Brian Colao on DSO Legal Frameworks and Growth Strategies

The Dental Economist Show with Guest Brian Colao

In this episode of The Dental Economist Show, host CRO Mike Huffaker of Planet DDS sits down with Brian Colao, director of the DSO Industry Group at Dykema. Join them as they explore DSO legal frameworks, implementation strategies for new technologies, and the future of dental service organizations.

Learn more about:

  • Legal requirements and compliance for DSO operations
  • The evolution of DSO business models
  • Technology integration challenges and solutions
  • Market conditions affecting DSO growth
  • The impact of interest rates on dental acquisitions
  • Artificial intelligence in dentistry
  • Implementation strategies for new technologies
  • The importance of standardization in DSO operations

About Our Guest

Brian Colao has transformed Dykema’s DSO group into one of North America’s most respected leaders in DSO transactions and compliance. With over twenty-five years of experience, he’s been instrumental in shaping the legal framework governing DSOs, particularly through his pioneering work on corporate practice and compliance standards. He also founded Dykema’s award-winning Definitive Conference for dental service organizations.

Episode Highlights

Learn the keys to building a sustainable DSO model in this insightful conversation with Brian Colao. Here are some highlights from the show:

Legal framework and DSO support services

Colao explains the fundamental legal requirements for DSOs, highlighting that in forty-five of fifty states, non-dentists cannot own dental practices directly. The only way for non-dentists to participate is through providing non-clinical administrative support services by contract. He emphasizes that DSOs must provide genuine value through these services to justify management fees and revenue participation.

Market conditions and interest rate impact

Colao discusses how recent interest rate increases have significantly affected DSO operations and valuations. He describes how organizations that previously had substantial free cash flow found themselves struggling with increased debt service costs, forcing difficult decisions about staffing and operations. He predicts improvement in market conditions by Q3 to Q4 2025.

Technology integration and implementation

Colao emphasizes the critical importance of proper implementation plans for new technology solutions. He notes that many good ideas fail not because of the technology itself, but due to poor implementation strategies. He stresses that technology providers must take responsibility for successful implementation rather than leaving it to the DSO.

Artificial intelligence and future trends

Colao expresses strong optimism about AI in dentistry, calling it “the single biggest advancement in the history of dentistry.” He highlights its value in diagnostics, revenue cycle management (RCM), and patient retention, noting how AI can help address staffing shortages by automating certain tasks.

About The Dental Economist Show

Don’t miss out on episodes with special guests to discuss top strategies to grow your dental business. Tune in to the The Dental Economist Show weekly to learn how to optimize your DSO’s value and stay ahead in a rapidly evolving industry.