Value-Based Pricing · DSO Briefing
04 / 06The 5-Year Model · Conservative Midpoints
Two hours back per provider, per day. Plus the lawsuits you don't have.
| Line Item | Status Quo | With Chairside | Assumption |
|---|---|---|---|
| Expected claims (5 yrs) | 14 | 8 | 1-in-7 incidence · 40% reduction on documentation-driven claims |
| Avg total incurred / claim | $148,655 | $148,655 | CNA 3rd Ed., 2020–2024 closed claims |
| + defense cost per claim event | $35,000 | $35,000 | Industry midpoint, defended-and-dropped |
| Liability exposure (5 yrs) | $2.57M | $1.47M | Claims × (settlement + defense) |
| + DSO-borne deductibles & re-rate | $210K | $120K | Claims × ~$15K deductible (carrier-eaten settlement not double-counted) |
| Chair-hour recapture (incremental production) | — | $28.80M | 2 hrs/day × 240 days × $120 chair-hour × 100 providers × 5 yrs |
| Chairside investment (5 yrs) | $0 | $2.99M | 100 × $499/mo × 60 mo |
Bottom line · Net 5-yr value
+$27.0M
≈ $270K/provider · ~$64.8M multiple at 12× · ~2980 bps loss-ratio.
Status quo risk
$2.8M
Chairside cost
$3.0M
Value recovered
$30.0M