CEO Message

Jerry Rhodes

Chief Executive Offi cer

HAPPY HOLIDAYS!

The second edition of the DCA Insider is the perpetuation of our eff orts to consistently communicate with you, the DCA Family. As I mentioned in the fi rst issue, our goal is to publish the DCA Insider at least two times a year going forward. As always, I welcome your feedback and suggestions on content, sentiment and how we might make this important communication mechanism more meaningful to you. I’d like to recognize Shawn Wherry, Kelly Stillman and Sandy Wachowski for their work to make this semiannual publication a reality.

Much has happened over the last six months. We have 12 new affi liations, as well as a number of new and talented team members. In addition, we have a diverse and innovative group of leaders who have joined to lead the organization in achieving our most important goals, the ”Vital Few.”

RECENT DCA TEAM ADDITIONS

I’m excited about the breadth of talent we have integrated into the company and their respective enthusiasm for making an immediate and lasting impact on the business and the patients that we serve.

Division Vice Presidents

David Braddy, Midwest Joe Eckerle, Northeast Sandy Johnson, Florida André Kellogg, Southeast

Regional Managers

Tony Belton, West Florida Jennifer Goodwin, Texas Matt Brush, North Central Florida

Clinical Directors

Lorne I. Yasbin, DMD, Maryland Michele Mattioli DDS, Virginia Beach Steve Goldstein, DDS, New Jersey

Communications, Patient Experience, Employee Engagement Kelly Stillman, Director of Communications

Procurement

Sabian Selmer, Director of Procurement

Operational Excellence

Denise Arechavaleta, Director of Operational Excellence (promotion)

I would also like to recognize our

Hygienist of the Year, Julie Brummett

from The Dental Center of Granger, and our Support Team Member of

the Year, Rick Ministre from Virginia

Dental Center, for the incredible service they deliver to our patients each and every day.

We have seen great success and progress on our ”Vital Few” objectives over the last year; but, we continue to face a myriad of challenges in the fi eld.

However, there is very good news in several critical areas of our business. Specifi cally, our Recruitment Team has markedly improved their eff orts and

we continue to lead the industry in doctor retention and recruitment

fi gures. To that end, we have successfully hired a record number of new graduate doctors —36 as of the printing of this publication. I’ve had the pleasure to meet several of these new doctors, and am particularly excited to have these thoughtful, new dentists join the DCA Family. Many are already making signifi cant contributions to the organization and are providing quality dentistry to our communities across the country.

It seems more than appropriate, as we remember the end of the World War I and the institution of Veterans Day on November 11, to recognize and thank

our many team members who have

given their service to our country, as well as those who continue to do so. On behalf of the nation and the entire DCA Family, thank you for your service and the sacrifi ces you have made in support of our great nation. We are fortunate to have you as part of the DCA family.

Finally, and always top of mind, I wanted to share some dental industry insights and trends, as well as the strategies we are developing to get ahead of the rapidly changing and highly competitive environment in the industry. As I mentioned in the last edition of the DCA Insider, the rapid development of consumerism in healthcare, but specifi cally the dental industry, is accelerating. This has radically changed perspectives on dentistry and the demands and preferences of patients in

our practices. The rise of consumerism creates unique challenges for the traditional models of patient access to delivery of care.

For those of you who have attended any of this year’s DCA Town Hall meetings, you have heard me share many of the associated issues that this new consumer-driven model presents. The fi eld of dentistry is experiencing declining patient visits, particularly (and ironically) with the age groups that have the most access to dental insurance. This issue may be a result of the economics of higher deductible insurance plans, as dental services compete with a higher overall exposure of healthcare expenditures.

Regardless, this is a troubling trend. More companies and dental products are now heavily focused on going directly to the consumer. Recently in a trip to the King of Prussia Mall, outside of Philadelphia, I witnessed this very situation, when I visited the new Invisalign ® store.

Imagine an Apple ® store —streamlined, sleek, comfortable and full of innovation, and let’s not forget, the Genius Bar— but for clear aligners. The innovative concept promotes the Align Technology directly to consumers and off ers free digital scans and promotion of what Invisalign ® can do to create a more desirable smile. Referrals are made to dentists promoting Invisalign ® in the area, and in proximity to where the prospective patient resides. This is a real, tangible example of how the traditional

patterns of access to dental care are changing, and new technologies are increasingly focused on an approach directly to the consumer.

Additionally, there are novel, online companies such as Bid Your Smile that present a unique bidding process to patients, marrying available dental services and patient needs—a sort of eBay storefront for dental care. That one specifi cally centers around orthodontic care.

The potential impact on our business is undeniable, and we are only in the early stages of the evolving concepts of consumerism. As managers we must

ensure that we provide our patients the very best, quality dental service. This must be coupled with easy access to care and a world-class patient

experience. This will set Dental Care Alliance apart, and will be a signifi cant part of our strategies and tasks in 2019. We will be presenting these new objectives and “Vital Few” over the next several weeks.

Thanks for all that you do, and Happy Holidays.

I want to recognize Virginia Wicke, who has served as Division Vice President for the Northeast, and is retiring at the end of 2018. Formerly, Virginia served as the Chief Operating Offi cer of NEDM, prior to their affi liation with the DCA Family, and has been a key member of the DCA Operations Leadership Team for several years. She was one of the fi rst team members to patiently spend time with me, in my efforts to learn about the dental industry. She has been a valuable and important asset to DCA. I want to thank her for the many years of service and her signifi cant contributions to the dental fi eld and to Dental Care Alliance.