Related Experiment Videos
Dental management service organizations. Lessons from medicine
1Department of Applied Dentistry, University of Colorado Health Sciences Center, Denver 80262, USA.
Journal of the American Dental Association (1939)
|April 16, 1999
Summary
Dental management service organizations (DMSOs) emerged due to healthcare cost pressures. Analysis of physician practice management firms (PPMs) suggests caution for dentistry due to control loss and financial instability in corporate models.
Area of Science:
- Healthcare Management
- Dental Practice Administration
- Organizational Economics
Background:
- Management service organizations (MSOs) have a long history in medicine.
- Their emergence in dentistry is relatively recent.
- This study provides insights into the future of dental management service organizations (DMSOs).
Purpose of the Study:
- To examine the development of MSOs in medicine.
- To analyze the performance of three major physician practice management (PPM) firms.
- To offer insights for the future of dental management service organizations (DMSOs).
Main Methods:
- Identified and examined the three largest PPM firms as of early 1998.
- Monitored stock prices and fiscal changes of PPMs throughout 1998.
- Tracked growth and evaluated stock price changes of publicly traded DMSOs.
Main Results:
- Economic pressures drove the creation of organizational structures to control healthcare costs.
- Vertical integration in healthcare delivery, including pharmaceuticals and hospitals, fueled the growth of PPMs and DMSOs.
- Many variables differ between medical and dental practice management.
Conclusions:
- The corporate model can lead to a loss of control for practitioners.
- Insufficient operating margins may not meet investor expectations.
- Plummeting stock prices question the universal adoption of these models in dentistry.