Building the Billion Dollar DSO Series - Aspen Dental Part 1: The Origin of Aspen Dental

Summary

Aspen Dental's rise to prominence in the healthcare industry is a story of innovation, consumer focus, and strategic growth. Founded over two decades ago by Bob Fontana, the company transformed dental care by making it more accessible, affordable, and patient-centered. Aspen Dental's consistent brand, emphasis on customer experience, and the ability to scale its operating model across multiple locations have been key to its success. Recently, the company has expanded into other healthcare verticals, proving its model’s versatility. Aspen's commitment to breaking down barriers in healthcare continues to reshape the industry, providing accessible care that aligns with modern consumer needs.

Takeaways

• 😀 Aspen Dental started 23 years ago with a vision to provide accessible and affordable dental care to a broad population.
• 😀 The company grew from scratch to over 900 locations worldwide by offering a consistent, consumer-focused business model.
• 😀 Bob Fontana, the founder and CEO, drew inspiration from industries like eyecare (LensCrafters) to create a streamlined dental care system.
• 😀 The focus on consumerism in healthcare was key to Aspen Dental’s success, ensuring services were not only affordable but also convenient and transparent.
• 😀 Aspen Dental differentiates itself by removing friction from the system, addressing both emotional and functional barriers to care.
• 😀 The company’s expansion is based on replicating a proven operational model, similar to how other brands like Starbucks scale their businesses.
• 😀 Aspen Dental emphasizes brand loyalty, ensuring that both patients and employees align with the company's core values.
• 😀 The creation of Aspen Group allowed the company to extend its model into other healthcare verticals like urgent care, further broadening its impact.
• 😀 The launch of Aspen Group (TAG) is designed to respect the oral-systemic health link, integrating dental care with overall health.
• 😀 Bob Fontana stresses the importance of 'moments of truth' in customer interactions, ensuring trust is built from the very first touchpoint.
• 😀 Aspen Dental believes that healthcare should be patient-centered, delivering not just clinical care, but also convenience, trust, and choice for consumers.

Q & A

What was the original idea behind the creation of Aspen Dental?

The original idea behind Aspen Dental was to create a healthcare model that addressed the needs of a large portion of the population that wasn't being served by traditional dental practices. The focus was on improving access to care for more people, offering affordable services, and emphasizing consumerism in healthcare, which was not prevalent at the time.

How did Bob Fontana's background influence the creation of Aspen Dental?

Bob Fontana was inspired by his experience with the eyecare industry, particularly LensCrafters, which revolutionized eyewear by offering quick service and affordability. He applied a similar approach to dentistry, aiming to remove barriers, improve accessibility, and offer more value to patients, ultimately creating a business model that could scale.

What was the key challenge Aspen Dental faced when it started scaling?

The key challenge Aspen Dental faced was building a scalable operating model that could replicate success across multiple locations. This required creating a consistent service experience, building strong brand loyalty, and maintaining quality care, all while expanding the business.

What role does branding play in Aspen Dental's success?

Branding is central to Aspen Dental's success. As a brand-forward company, Aspen Dental focuses on building a strong brand identity that connects with customers on an emotional level. The brand promise creates consistency, loyalty, and trust among both patients and employees, and serves as the 'connective tissue' across its operations.

How does Aspen Dental differentiate itself from other dental organizations?

Aspen Dental differentiates itself by focusing on providing better access to care, offering affordable solutions, and creating a patient-centric experience. The company strives to remove friction in the system, both emotional and functional barriers, making it easier for consumers to receive care and trust the process.

What were the main inspirations for the business model of Aspen Dental?

The business model of Aspen Dental was inspired primarily by the eyecare industry, particularly the rapid expansion of LensCrafters. This model focused on breaking down barriers to service, offering convenient, affordable, and accessible options to customers, which Aspen Dental applied to dentistry.

What is the significance of Aspen Dental's shift toward a broader healthcare approach with the creation of The Aspen Group (TAG)?

The creation of The Aspen Group (TAG) reflects Aspen Dental's shift toward integrating dental care with broader healthcare services. The company recognizes the connection between oral health and overall health, and TAG was launched to extend Aspen's capabilities into other healthcare verticals, like urgent care, where similar access and convenience models could be applied.

How did Aspen Dental's experience in scaling dental practices contribute to its success in other healthcare verticals?

Aspen Dental's experience in scaling dental practices helped them apply the same operating model to other healthcare sectors. Their proven ability to standardize and scale a business with a strong brand identity, transparent pricing, and consumer-focused service allowed them to successfully enter and expand in fields like urgent care.

What is Aspen Dental's philosophy on customer experience and why is it important?

Aspen Dental places significant importance on the customer experience, believing that providing great care alone is not enough. They focus on ensuring patients have access to care, trust the team, and feel that their needs are being met. This holistic approach helps build long-term loyalty and trust, which is critical for both patients and providers.

How does Aspen Dental view competition in the healthcare market?

Aspen Dental views competition as a constant challenge where consumers are 'voting' with their choices. The company understands that patients and providers have options, and that by consistently improving service, providing better value, and building loyalty, Aspen Dental can continue to grow and maintain its position as a leader in the industry.