Dental practice management companies, dental consultants and DSOs all offer to help you run the business side of your practice. They differ on three things that matter more than anything in their sales pitch: who controls the practice, who owns it, and how they get paid.
This guide compares the three side by side so you can tell which one fits what you actually need.
The short version
| Dental consultant | Practice management company | DSO | |
|---|---|---|---|
| What they do | Diagnose problems, build a plan, help install it | Take over specific business functions, ongoing | Run most of the business side, often as part owner |
| Who controls the practice | You | You, with some functions outsourced | Shared or mostly the DSO |
| Ownership | You keep 100% | You usually keep 100% | Often partially or fully sold |
| How they’re paid | Project or monthly fee | Monthly fee or % of collections | Management fee plus equity value |
| Best for | Owners who want to grow and keep control | Owners who want to hand off admin work | Owners ready to sell or step back |
What is a dental practice management company?
A dental practice management company takes over some or all of the non-clinical work of running a practice: billing and collections, insurance credentialing, HR and payroll, scheduling support, purchasing or marketing. You pay them to run those functions, usually on an ongoing basis.
The term is used loosely. Some “practice management companies” are really billing services. Others manage almost everything and look a lot like a DSO without the ownership stake. Before you compare quotes, get a written list of exactly which functions they will run and how you’ll measure them.
Good fit if: your systems work, but you don’t have the time or staff to run admin functions well, and you’d rather pay someone to handle them than build an in-house team.
Watch for: fees tied to collections that grow even when performance doesn’t, long contracts, and losing visibility into your own numbers.
What is a dental consultant?
A dental consultant works on the business with you rather than for you. They look at the numbers, find where the practice is losing money and patients, build a plan to fix it in the right order, and help your team put it in place. The goal is a practice that runs well on its own systems, with you still in control. (More detail in what does a dental consultant do.)
Good fit if: you want to grow, raise profit or prepare for the future, and you want to keep full ownership and control.
Watch for: consultants who hand over a report and leave, or who only cover one area, such as marketing or the front desk, and miss the rest of the business.
What is a DSO?
A dental service organization provides business services to practices, usually through a long-term management agreement, and often buys part or all of the practice. Many DSOs are backed by private equity. Dentists keep clinical control, but most business decisions move to the group. (Full explanation in what is a DSO.)
Good fit if: you want a payout, want to reduce your hours or plan to retire within a few years.
Watch for: loss of control over staffing, fees and suppliers, long work commitments after a sale, and payouts that depend on a future sale of the group.
How to decide
Start with what you want the practice to look like in five years:
- “I want to grow and keep it.” A consultant, possibly paired with outsourced functions where you lack staff.
- “I want my time back, but I’m not selling.” A practice management company for the admin, plus clear reporting so you stay in control of the numbers.
- “I want to sell in the next few years.” Fix profit and systems first, then compare DSO offers. A consultant can raise the value before you go to market. See dental practice transitions.
- “I want to build my own group.” You need DSO-style systems without selling to a DSO. See DSO consulting.
Questions to ask any of them
- Exactly which functions will you run or change?
- Which numbers will we track, and how often will I see them?
- What does it cost, and does the fee rise with my collections?
- How long is the contract, and how do I exit?
- Do you take any ownership in my practice, now or later?
- Who on your team actually does the work?
Where Premier Practice Group fits
We’re a consulting firm that also installs and runs the systems. Our dental practice management services cover the front desk, scheduling, team training and patient follow-up. Our marketing team handles new-patient growth. You keep 100% ownership, we work month-to-month, and we never take equity.
FAQ
What does a dental practice management company do?
It runs non-clinical functions for a dental practice, such as billing, collections, credentialing, HR, purchasing or marketing, usually for a monthly fee or a percentage of collections.
Is a DSO a practice management company?
A DSO is a type of practice management company that usually takes an ownership stake and runs most of the business side. Not every practice management company is a DSO.
Can I use a consultant and a practice management company together?
Yes. A common setup is a consultant to set strategy and systems, and an outsourced partner for functions like billing or credentialing.
Which is cheapest?
It depends on scope. Compare total cost over two to three years, including fees that grow with collections, and weigh it against the ownership or control you give up.
Not sure which you need?
Start with the numbers. Book a free audit and we’ll show you where the practice stands and which option makes sense.