DuneGlass Capital’s Doctor Equity™ Model Puts Private Equity to Work for Doctors

The Doctor Equity™ MSO/DSO model is flipping the economics and clinical control back into the hands of doctor partners in oral and maxillofacial surgery, orthodontics and pediatric dentistry, bariatric and general surgery, and vascular surgery and interventional radiology

Chicago, IL – DuneGlass Capital – a growth-oriented investment firm that partners with doctor entrepreneurs to turn private equity into Doctor Equity™ – announced today that its Doctor Equity™ management services organization (MSO) model is now available to medical practice owners across a variety of specialties including

Allied OMS – oral and maxillofacial surgery

BGS Alliance – bariatric and general surgery

LifeFlow Partners – vascular surgery and interventional radiology

Phase 1 Equity – orthodontics and pediatric dentistry

The DuneGlass Capital Doctor Equity™ MSO model flips the script on the traditional MSO by morphing doctor practices into private equity vehicles. Doctors who adopt the Doctor Equity™ model retain the vast majority of their ownership and all clinical control. The four companies currently utilizing DuneGlass Capital’s Doctor Equity™ model – Allied OMS, BGS Alliance, LifeFlow Partners, and Phase 1 Equity – benefit from management teams who have decades of private equity experience and deliver negotiating power, industry insights, more equitable contracts, and economics that have historically been reserved for the financial world—allowing doctors to capture the future growth of their practices.

“We’re showing practice owners a new path to getting the support and resources they need to compete in today’s market,” says Dan Hosler, Managing Partner at DuneGlass Capital and co-Founder of the Doctor Equity™ model. “Our MSO model is differentiated because the clinical shareholders 1) retain majority share of ownership, 2) are governed by a doctor-led Board of Directors, 3) benefit from proprietary private equity insights to optimize and monetize the value of their practices and 4) maintain clinical and cultural autonomy at the practice level.”

Looking forward to 2023, DuneGlass Capital will continue to look for subspecialties in which practice owners may benefit from Doctor Equity™.

“As an independent practice entrepreneur, knowing your options for support and growth is vital to your long-term success,” says Ryan Graham, Managing Partner at DuneGlass Capital and co-Founder of the Doctor Equity™ model. “Heading into 2023, we’re looking forward to sharing Doctor Equity™ with more specialties so we can continue to level the playing field for doctors across the country and finally provide an alternative to selling to the hospital, a large insurance company, or a PE-backed entity.”

Read the press release on AccessWire here.

Financial models using equity for internal business growth aim to leverage the intrinsic value of the business to fuel expansion, enhance operations, and increase profitability. Unlike traditional growth models that often rely heavily on external funding or debt, these equity-based models encourage internal stakeholders like doctors, partners, or long-term employees to become more deeply invested in the business, both financially and operationally.

Doctor Equity™ MSO Model by DuneGlass Capital

An innovative example of this is the Doctor Equity™ MSO (Management Services Organization) model by DuneGlass Capital. Unlike traditional MSOs, where doctors might relinquish a significant percentage of their practice’s ownership to external investors, the Doctor Equity™ model allows medical professionals to retain most of their ownership stake as well as full clinical control. Essentially, it transforms individual practices into private equity vehicles.

Key Features:

  1. Ownership Retention: Doctors keep the majority of their equity, ensuring their vested interest in the growth and success of the practice.
  2. Clinical Control: Clinical decisions remain entirely in the hands of the healthcare providers, ensuring that patient care remains the primary focus.
  3. Private Equity Expertise: The management teams in this model bring decades of private equity experience to the table. This includes skills in negotiation, industry insights, and contract formulation.
  4. Enhanced Economics: Doctors are not just beneficiaries of better contracts but also get a slice of the financial benefits that have traditionally been the realm of private equity firms, such as revenue shares, growth dividends, etc.
  5. Network Benefits: Being part of a larger entity provides the individual practices the ability to negotiate better with suppliers, get access to cutting-edge technology, and even favorable insurance rates, among other things.

Advantages for Doctors

  1. Financial Growth: Doctors can significantly benefit from the value appreciation of their equity stake as the practice grows.
  2. Risk Mitigation: As part of a more extensive network, individual practices can better manage business risks, ranging from regulatory changes to supply chain disruptions.
  3. Operational Efficiency: With experienced management teams taking over the administrative and operational aspects, doctors can focus more on their core function – patient care.

Final Thoughts

Equity-based financial models for internal business growth, like DuneGlass Capital’s Doctor Equity™ MSO model, present an intriguing shift from traditional growth strategies. By aligning the interests of internal stakeholders with the broader objectives of the business, these models not only foster growth but also empower those who are most integral to the business to contribute to and benefit from its success.

About DuneGlass Capital

DuneGlass Capital was founded in 2018 to help independent healthcare practices realize their full potential. With expertise in multi-unit operations, private equity deal structuring, and healthcare business strategy, the founders of DuneGlass Capital have created a repeatable process for value creation so that doctors across medical and dental specialties can turn private equity into Doctor Equity™. Having grown up in families in medicine and dentistry, DuneGlass Capital executives understand the difficulties of private practice and how important it is to mentor their clinical shareholders about private equity to maximize the intrinsic value of their practices. Email Partner@duneglasscapital.com or visit DuneGlassCapital.com to learn more.

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