We hear what the Smile Direct Club bankruptcy news means for dentistry, the aligner industry, and the customers who have been impacted.
This article was originally posted following the news that Smile Direct Club had filed for Chapter 11 bankruptcy in October.
Smile Direct Club have recently announced its filing for Chapter 11 bankruptcy. This comes four years after raising $1.35 billion in an initial public offering.
But what does this mean for dentistry? And how has this impacted the customers? We hear from different members of the profession.
Damon Taheri, orthodontist
The news of Smile Direct Club filing for bankruptcy brings forth a complex mix of emotions within the orthodontic community. On one hand, there’s a sense of relief among many of us who have long been concerned about the implications of remote teledentistry models. This situation highlights the importance of prioritising patient safety and proper dental care over profit-driven approaches.
However, my heart truly aches for the patients who find themselves in limbo due to this bankruptcy. These individuals sought what they thought was a more affordable and accessible way to address their orthodontic issues, and they trusted Smile Direct Club to provide a solution. Now, they are left in a state of uncertainty regarding the completion of their treatments, which is deeply concerning.
This incident should be a stark reminder to the entire aligner industry of the need for stricter regulations and oversight. Teledentistry can be a valuable tool, but it should always prioritise patient health and safety. We must advocate for more rigorous standards to ensure that such unfortunate situations don’t occur in the future.
Chrystal Sharp, orthodontic therapist
As an orthodontic dental professional, I have been exposed clinically to the dangerous results that unregulated online orthodontic aligners can cause. Without talking about Smile Direct Club specifically, I have seen mobile teeth, nerve damage and severe bite changes. This not only leaves patients seeking further orthodontic treatment, but in most cases, in a far worse situation than where they started.
I firmly believe remote unmonitored aligner treatment is not comparable to bespoke clinical care, provided by dental care professionals held to rigorous standards under a regulatory body. I’m a firm advocate for regulation in the dental industry and hopeful the recent bankruptcy news will raise quality concerns to regulators. At the forefront of any dental treatment should be patient safety, quality of care and protection of harm.
I’m optimistic that such stories will increase patient awareness, hopefully removing the misconception that results are the same, without the costly addition of being treated by a dental professional. Rather, the difference between what is achievable without adjunct therapy (such as attachments and IPR) is significant.
Without the expert guidance of a dental professional, treatment is prolonged and risks are increased. It is our expertise and training as dental professionals that ensures we can assess and monitor tooth movement at regular stages along with the health of gums and teeth. Attempting unmonitored dental work by cutting cost – and potentially corners – is never worth the risk.
Khamzat Asabaev, Softsmile CEO
Bankruptcy is not the end – many stellar businesses have weathered it. However, this bankruptcy is particularly consequential for the aligner industry. Smile Direct Club was audacious enough to challenge the status quo. Their goals deserve recognition, but their failure also offers valuable lessons.
1. Fortune favours the brave
The founders of Smile Direct Club, backed by exceptionally astute investors, have been remarkable. They disrupted the orthodontic market, directly challenging its main players, and captured a market share that was unimaginable for most dental producers. In a single year, Smile Direct Club sold more aligners than most other brands combined. They understood that consumers don’t want to spend excessive time with doctors and desire lower costs. They seized this opportunity and proved that a business solving these issues will succeed.
2. Price matters
Smile Direct Club demonstrated that a competitive price point can drive more people to seek orthodontic treatment. Current pricing is prohibitive for most of the US population, let alone less affluent markets. Businesses offering competitive prices will capture a larger piece of the cake.
3. Orthodontic treatment necessitates orthodontists
Running a profitable business is one thing; delivering healthy, beautiful smiles is another. Treatment efficacy cannot be compromised for any reason. In this industry, patient wellbeing comes first, followed by doctors, and then profits. This lesson is crucial for anyone claiming to provide patient care – do not ignore doctors, do not ignore biomechanics.
As I always say, we are at the dawn of the aligners market growth. We will see many bankruptcies, liquidations, litigations and consolidations. Smile Direct Club was the first to go to consumers. Who knows, maybe with a refined business model and better technology, there will be more successful examples.
Regardless of the outcome, it is a fact that the market requires disruption, it needs a reliable solution and more affordable pricing – many people today need orthodontic treatment. Smile Direct Club was brave enough to give hope to the market. I am confident it is not the end.
Ciara Ennis, orthodontist
Smile Direct Club, which this week declared bankruptcy, is a company which offers self or remote orthodontic treatment using clear aligners. It does so on the basis that you never need to see a dentist in person. It claims this ‘improves access to oral care’.
I, however, vehemently disagree and would advocate that self and remote treatment cannot and should not be justified from a dental perspective. I also strongly support the European Federation of Orthodontic Specialists Association’s (EFOSA) declaration that ‘Exclusive self and remote treatment represents a serious violation of the dental standard.’
As well as being deeply opposed to such unregulated treatment, I am also equally concerned for the welfare of the patients who are currently in treatment with Smile Direct Club and wonder what will happen with their ongoing care following this week’s announcement. Dental professionals should encourage any patient who is affected to consider booking an appointment with a dentist or specialist orthodontist.
Orthodontic treatment should always be preceded by a full clinical examination by a registered specialist orthodontist or general dentist. Without proper initial diagnosis, treatment planning and regular clinical monitoring, significant and permanent damage could be caused to a patient’s dental health.
Rob Kenyon, dental technician
The evolvement of direct-to-consumer (DTC) dental appliance providers, with Smile Direct Club at the forefront, heralded a new dawn of accessible and economical dental care. However, the recent Chapter 11 bankruptcy filing has unpeeled layers of critical concerns that hover around patient care and the undue pressure on conventional dental practitioners who are strictly tethered to regulatory mandates.
On the flip side, traditional dental practitioners find themselves navigating a stringent regulatory milieu. The contrasting regulatory environments create an uneven playing field, putting conventional practitioners at a disadvantage. They often lack the substantial financial and legal resources to challenge regulatory directives or engage in legal discourses, unlike their DTC counterparts, who, with deeper pockets, can afford to navigate the legal and regulatory landscapes more aggressively.
Furthermore, the legal tussles that Smile Direct Club finds itself embroiled in underscore a broader discord within the dental sector. It accentuates the urgent need for a harmonised regulatory framework that safeguards both consumers and traditional dental practitioners, levelling the playing field and ensuring that the high standards of dental care are upheld across the board.
Real-world implications
While the focus here is primarily on patient care and the strain on traditional dental practitioners, it’s worth noting that the financial tumult experienced by Smile Direct Club also hints at the precarious nature of the DTC dental sector. It serves as a cautionary tale for investors who may be eyeing this sector with interest.
The narrative of Smile Direct Club unfurls the pressing need for reinforced regulatory scrutiny in the DTC dental appliances sector. It is imperative to formulate regulations that prioritise patient care, uphold the standards of professional dental practice, and foster a fair competitive ambiance for the holistic progression of the dental care industry.
The journey of Smile Direct Club is not just a business case study. It’s also a vivid illustration of the real-world implications that can occur when innovation races ahead, possibly at the expense of quality patient care and professional expertise.
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