Dentistry is a $70 billion industry – a service-based, highly regulated and competitive industry. Recognizing this issue, Dental Patient Care America Inc. (OTCBB: DPAT) acts as a third-party administrator of dental programs, catering to individuals, groups and dental providers, offering a wide variety of benefits including financial solutions.DPAT organizes dentists into a co-operative model of networked dental practices. The contractual structure allows member dentists access to various benefits such as programs to purchase supplies, laboratory and operating services, insurance and employee benefits programs, and opportunities for profit sharing – benefits independent practitioners may find hard to obtain.
“The primary mission of the dental patient care, the co-operative, is to empower and preserve independent dentistry,” Marlon Berrett, president of DPAT, told Market News First.
Preserve might be an odd term at first, but Berrett means just that. The dentistry industry, much like the medical industry, is dominated by large corporations, insurers and groups. Independent practitioners may find it hard to compete the lack of tangible assets within an operating office can make it hard to organize sufficient financing.
“Independent dentists can’t compete against corporate infrastructure in a large regulated industry; if they combine together they can do that,” said Berrett. “Our business model requires the ability for us to become an interface between the financial community and the dental industry.”
Berrett said the company focuses on three strategic objectives to empower the company: DPAT can help assist with the reduction of certain costs by forming an organized group of dentists with a combined capital and bargaining power; to create and control patient flow, allowing dentists to collectively own and operate their own dental plans; and by providing fair and safe transaction financing.
Dentistry is a high risk, service-based business – no assets can back up the lending and financial arrangements. To maintain revenue, if a DPAT member dentist is unable to work for whatever reason, the co-operative can place another dentist in his place within 24 hours to continue revenue generation.
Additional financing can be obtained utilizing DPAT’s partnership with Stillwater National Bank.
“We have formed a financing partnership on an exclusive basis with Stillwater National Bank and we represent them in the marketing and processing of financing both dentists out of practice … dentists in practice, as well as dentists wanting to relocate,” said Berrett.
Berrett said that of the 180,000 dentists practicing in the U.S., 18 percent, or 32,000, of those dentists need cash to relocate their practice; about 6,000 are looking toward retirement; and 4,200 will graduate, needing cash up front as they enter the industry alone.
DPAT can help those practitioners while pushing business toward the bank. Berrett noted that if the company were able to take 10 percent of those retiring, 10 percent of those practicing, 10 percent of those graduating and 10 percent of those relocating, that alone represents 5,000 financings in the U.S. annually.
The company intends to bank on word of mouth and referrals – when current members are ready to retire or hear word of someone entering the industry they pass the information along. Berrett said the company plans on expanding nationally and is negotiating in about five states with groups and organizations to organize dentists in those states.
