In today’s increasingly complex dental industry, Dentists and dental practice managers alike often find themselves overwhelmed by the administrative demands of running a practice. Enter Dental Service Organizations (DSOs), outside business entities which handle their administrative, business, and marketing functions.
There are many types of DSOs and many models for the DSO/practitioner relationship. Some DSOs assume the management of existing private dental practices, handling marketing, payable and receivables, and other back office matters. Others open new dental offices, handling everything from leasing the space and equipment to hiring dentists and hygienists to advertising, insurance filing, and more.
But even seasoned DSOs who are skilled with the business of running dental practices can find themselves overwhelmed by the demands of managing payroll taxes, handling workers’ compensation, sourcing employee benefits, plus recruiting and training administrative staff and maintaining workplace safety. That’s why many DSOs turn to a Professional Employer Organization (PEO), a holistic HR solution that has become increasingly relevant to the dental industry. PEOs provide specialized administrative support, managing everything from payroll and benefits to compliance, enabling dental professionals and DSOs alike to focus on the core aspects of the practice.
Aspen HR stands out as a leading voice on DSO/PEO partnerships, providing customized HR services tailored to the unique needs of the dental sector. Understanding the benefits of a PEO can be a game-changer for DSOs, offering a streamlined approach to managing complex HR tasks and ensuring a focus remains on providing top-notch dental care.
Understanding PEOs
A PEO is a firm that allows small and medium-sized businesses to outsource their employee management tasks, such as payroll, employee benefits, workers’ compensation, recruiting, and training. Why partner with a PEO? By entering into a co-employment arrangement with a PEO, dental practices and DSOs can access a wider range of benefits for their employees, often at a lower cost than managing these services independently. Services specifically tailored to the healthcare sector (e.g. PEO for healthcare, PEO for medical, PEO for dental) ensure that DSOs can provide competitive benefits packages, maintain compliance with complex healthcare regulations, and manage risk more effectively.
The Challenges Faced by the DSO Industry
The DSO industry, while growing, faces a myriad of operational and administrative challenges. From the complexities of compliance with healthcare regulations to the difficulties of talent acquisition and retention in a competitive employment market, these challenges can significantly impact a DSO’s efficiency and profitability. Additionally, managing employee benefits and ensuring the well-being of existing staff in a way that aligns with the latest industry standards requires a dedicated, expert approach. The administrative burden of these tasks can detract from the primary focus of any DSO: providing excellent dental care to patients.
How a PEO Benefits Dental Service Organizations
Streamlined HR Operations and Compliance
Partnering with a PEO like Aspen HR allows DSOs to streamline their HR operations, from payroll processing and benefits administration to compliance with employment laws. This partnership ensures that DSOs stay ahead of regulatory changes, reducing the risk of non-compliance penalties. It also frees up time and resources, allowing dental professionals to concentrate on patient care and growing their practice.
Enhanced Employee Benefits and Satisfaction
One of the primary benefits of a PEO is the ability to offer a superior benefits package at a more cost-effective rate. Through the economies of scale achieved by pooling employees from multiple organizations, PEOs can negotiate better rates for health insurance, retirement plans, and other benefits. This not only aids in attracting and retaining top talent but also boosts employee satisfaction and morale, which is crucial for the long-term success of any dental practice.
Risk Management and Liability Reduction
DSOs face inherent risks related to employment practices, workers’ compensation, and health and safety regulations. A PEO’s expertise in managing these risks can significantly mitigate potential liabilities for DSOs. By taking on much of the legal and regulatory burden, a PEO ensures that DSOs and dental practices remain compliant and secure.
Access to Expertise and Technologies
Collaborating with a PEO provides DSOs access to a team of HR experts and the latest technologies in payroll and HR management. This expertise can be particularly beneficial for smaller DSOs that may not have the resources to hire a full HR department. The advanced HR technologies offered by PEOs also streamline HR processes, making them more efficient and less prone to error.
Cost Savings
Ultimately, the decision to partner with a PEO often comes down to cost. This is one of the clearest benefits of a PEO: by leveraging its services, DSOs can achieve significant savings in HR-related costs. These savings can then be reinvested into the core activities of the dental practice, such as expanding services, investing in new technologies, or enhancing patient care initiatives.
Cost-Benefit Analysis: Is a PEO Worth It for DSOs?
Choosing to partner with a PEO often requires weighing the upfront costs against the potential savings and value addition. While there are costs associated with partnering with a PEO, the long-term savings can be substantial. These savings include reduced administrative costs, lower HR-related expenses, and (perhaps most importantly) significant savings on employee health benefits. Additionally, the value added through compliance assurance, risk management, and access to HR expertise cannot be understated.
For DSOs, the avoidance of compliance penalties alone may justify the cost of a PEO partnership. When factoring in the potential for enhanced employee satisfaction and retention through better benefits packages, the financial and operational benefits of a PEO become even more compelling. Thus, for many DSOs, the answer to “Is a PEO worth it?” is a resounding yes, given the tangible and intangible advantages that a PEO partnership can bring.
Choosing the Right PEO for Your DSO
DSOs should prioritize PEOs with specialized experience in the healthcare sector, particularly those with a deep understanding of dental services. This specialized expertise ensures that the PEO is well-versed in the unique challenges of dental practices, from regulatory compliance to employee certification and credentialing. DSOs should also look for PEOs with a comprehensive suite of services tailored to healthcare providers, a commitment to personalized service, and an ability to offer competitive benefits packages that meet the needs of healthcare professionals.
For DSOs seeking an ideal PEO to partner with, Aspen HR offers customized solutions designed to meet the unique challenges faced by dental practices. Our deep industry knowledge, combined with a comprehensive approach to HR management, makes Aspen HR the go-to partner for DSOs looking to leverage the full spectrum of PEO benefits. Whether it’s streamlining HR processes, ensuring compliance, or accessing superior benefits packages, Aspen HR is equipped to provide DSOs with the support they need to thrive. Contact Aspen HR today to see how our PEO services can benefit your DSO!
