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Management Service Organizations (MSO)
There is a noticeable rise in a more corporate approach to dentistry. Current laws and regulations prohibit the ownership of dental practices in Texas by non-dentists, but there is an increasing proliferation of support companies, often termed "Dental Management Services Organizations," springing up to take advantage of this often cash-rich industry.
McGregor has counseled many of our dentist clients interested in expanding to consider this model of running a corporate dental practice. Doing so may make purchasing a single office by a single dentist much easier while simultaneously providing tax benefits and shielding dentists from certain liabilities. In the long run, adopting a corporate dental practice may even make selling the brand easier once the dentist is ready to move on.
That being said, there are many rules governing the extent to which dental services may be taken up by non-dental organizations, and some business models push the limits of legality. Accordingly, both the decision to move into this model, as well as the actual transition, should be done under the care of competent professionals familiar with the unique laws at play.
