The acquisition combines dentistry’s two largest dental membership plan companies, signaling an exciting time for subscription dentistry movement.
Austin, Texas (October 16, 2019) – Membersy LLC (“membersy”), the Austin-based digital health company that provides dental practices with thoughtfully designed membership programs to make dental care more approachable, is pleased to announce the acquisition of The CDI Group Inc. (“The CDI Group”), a California-based Knox-Keene licensed dental benefits company that administers custom discount dental plans on behalf of more than 3,000 dental practices across 42 states.
The acquisition will combine the core competencies and scale of The CDI Group with membersy’s industry leading subscription-based technology, marketing and administration solutions currently utilized by over 1,000 dental practices spanning across 28 states. The CDI Group created the modern dental membership model, and membersy’s success in this space has been based on refining that model by embracing tech and engaging practices at the local level.
“Today’s consumers have come to expect a highly personal and connected experience in everything they do. It’s time dentistry met those expectations,” said Eric Johnson, founder & CEO of membersy. “We’re deeply passionate about membership dentistry, the dentist-led movement that dramatically improves patient experiences and outcomes, and are committed to doing our part to further the movement by providing dental teams nationwide with the tools and support needed to offer patients a top-notch membership experience.”
“Membersy has impressed me with the way that they have elevated the dental membership experience,” said Neil Schroeder, co-founder and CEO of The CDI Group. “When we evaluated this opportunity, we identified a natural fit with membersy with respect to company culture and a shared commitment to regulatory compliance, and I’m confident that our partners at CDI will be in good hands.”
The acquisition comes at a time when the industry is experiencing significant changes to the delivery of dental care, and signals that the antiquated dental insurance model is ripe for disruption. Currently only 77% of Americans have dental coverage but only 50% of those visit a dentist in a year. According to the Health Policy Institute (HPI), between 2013-2016, 15.2% of the U.S. population reported needing dental care but did not obtain it due to cost. Additionally, unlike medical insurance, which covers costs after the bills reach the amount of the deductible, dental insurance cuts off coverage after a patient meets the annual limit. If coverage had kept up with the rates of inflation, the average annual maximums would be close to $10,000 vs $1,500 they are today.
The acquisition agreement for an undisclosed amount was signed on October 11, 2019 and is currently pending approval from the California Department of Managed Care.