MB2 Dental Solutions is a DPO group that provides both support and autonomy to practice owners. Dr. Mauricio Dardano talks to us about the process and benefits of becoming an MB2 practice.
Dr. Mauricio Dardano is one of the practice owners in MB2 Dental Solutions, a DPO group. After being contacted by multiple DSO, Dr. Vo started considering selling a portion of his practice. He learned that MB2 is not a typical DSO. You have a network of doctors to work with while still retaining some autonomy to continue growing your business.
A common few complaints people have when looking to sell include a lack of time for clinical development, a desire for assistance with growth, improving the work culture, and pre-planning and exit strategy. The type of doctors interested in their model are more entrepreneurial.
What’s your favorite thing about the MB2 culture? They work hard together but play hard too. It is the camaraderie of dental school without studying. It’s like a mastermind for practice owners.
When will the recap happen? It will probably be in the next few years. Recap is the divestment and recapitalization from one group of investors to another. No matter when it happens, there are opportunities to increase your investment and sell off at higher multiples.
It ultimately comes down to patient care. The integration process has been overall successful, and the attitude of the staff has been positive because of the ease and simplification for staff.
Doctors may be worried about people coming in and changing everything. The goal is to improve what you are already doing when possible, but the direction and implementation are at the doctor’s discretion.
What does MB2 offer an owner? They can do much of the day to day tasks if that is what you need, or you can retain many tasks. The idea is to give you more time. Payments, insurance claim corrections, or other managerial tasks can be handed off to the MB2 group.
How does MB2 help an owner grow to multiple locations? How does compensation happen for multiple locations? You get paid first as a clinician, then as a business owner. The more growth you have, the more revenue from both streams you will receive.
Does joining MB2 mean I have to go in-network if I’m fee for service? No, you get to maintain office autonomy.
If buying another office, what is the ownership level then? Your percentage stays the same as when you initially came into the group, it just expands to include the new location.
How does the compensation work? You are paid a percentage of production and then a percentage of dividends remaining.
What are the steps and requirements to join MB2? Collections of $800k and above are where they begin to consider purchasing, but typically it is $1.5-$1.7M collections or EBITDA.
What if my practice has no debt? MB2 can do an evaluation if you are below the typical thresholds. In order to do a practice evaluation, look at your 12-month P&L, production by the provider, and your lease. Then they will give a proposal. Moving forward you have an opportunity to visit the headquarters and meet the team.
What if you don’t own a practice? Building relationships as an associate, then becoming an owner is a possibility as well.
If you’re close to the threshold, they are working on a deal to reimburse you for the cost of your consultant for the previous year that helps boost your practice. The details are still being worked out regarding this plan.
Does MB2 take over the books and accounting? There are some aspects that MB2 will require as far as standardized reporting. You can still keep your CPA, and MB2 can handle much of the books.
MB2 can help you with recruiting and hiring as well.
Are there any issues with leases transferring with MB2? The group has a legal team to help change everything over. If you’re wanting to move locations they can help and pay their portion of the move to your new space.
Dr. Dardano feels that as one of the first practices, he feels that being an owner in the group is very rewarding both personally and professionally. It is a very doctor centered group.
There is a referral bonus for practice owners that bring a new owner into the group.