Clare Briggs speaks to Kunal Thakker about how Tooth Club Dental Group has used NHS dentistry for entrepreneurial growth.
We all know that NHS dentistry in the UK is in a difficult position, with many dental practices choosing to abandon NHS work altogether and focus on private practice instead. But with new government proposals set to make the NHS contract more economically viable by boosting overseas recruitment, there are still strong reasons for dentists to embrace NHS business. Provided NHS contracts are used in the right way, they can be a real driver for growth that helps practices to thrive in uncertain times.
I sat down with one of our clients, Kunal Thakker, CEO and founder of Tooth Club Dental Group, to learn why he is optimistic about the future of NHS dentistry and how he has leveraged NHS business to help grow his thriving and successful dental group.
As an ex-Goldman Sachs director with 16 years of business leadership experience, Kunal is definitely entrepreneurially minded. When he founded Tooth Club Dental Group in 2020, his vision was to create a new dental experience on the high street: an ultra-modern, membership-based model that offers premium, private services and a delightful experience at affordable prices, including general treatments, cosmetic dentistry and facial aesthetics.
Tooth Club has proven highly successful and the business has grown quickly over the last three years (with finance from TradeBridge providing a crucial cashflow boost whenever needed). The group now has 11 practices on high streets across southern and eastern England. But what may be surprising is that this very modern business, with its glamorous, hi-tech clinics and focus on private practice, is also committed to delivering NHS contracts long-term and sees them as a key tool in driving business growth.
How NHS contracts can drive private practice growth
Tooth Club has NHS contracts at two of its 11 practices, delivering around 20,000 UDAs each year in Ipswich, Suffolk and 9,000 in Loughton, Essex. In both practices, this accounts for less than 20% of their business.
Kunal says that the hybrid business model for these practices is to deliver basic services via the NHS contract to boost patient numbers, then offer private treatments like teeth whitening and cosmetic dentistry as an alternative.
‘NHS contracts are a great way to get patients into the practice. It means we can better serve the local community with the NHS services people want. But the big advantage is that they drive footfall and allow us to offer private treatments to a bigger pool of patients than we would otherwise have.’
Kunal Thakker
CEO, Tooth Club Dental Group
At Tooth Club’s NHS practice in Loughton, Essex, this strategy of converting NHS patients to private has proved very successful.
‘70% of our NHS patients in Loughton prefer to pay £80 to £100 for a higher-grade white composite filling done privately, rather than a grey NHS amalgam filling for £50,’ Kunal says. ‘Only the minority of patients exempt from charges tend to choose the amalgam. Patients also prefer the more flexible appointment times we can offer privately, such as in the evening.’
The NHS route can be a particularly useful way of increasing the numbers of children on a practice’s books. ‘We offer the parents the chance to upgrade from NHS services to our monthly private plan for kids,’ Kunal says, ‘and this is proving to be a successful strategy.’
The benefits of a predictable NHS income
The reliable income paid by the NHS can also be a really useful component of a successful business plan, helping with cashflow, planning and emergencies.
‘Steady cashflow is really important for any growing business,’ Kunal explains. ‘During the Covid lockdowns, for example, we were paid consistently by the NHS. If another crisis came along, we could rely on the NHS to keep us going.’
Predictability helps with business planning, too.
‘NHS income has allowed us to leverage additional cashflow finance from TradeBridge, which helps us to pay for stock and make improvements to the practice. We can leverage our income from private work too, but the reliability of NHS funding is a definite advantage.’
With NHS contracts, small is beautiful
As Kunal explains, keeping NHS contracts relatively small is a key factor in making them successful growth engines.
‘We would find it too difficult to make a profit if we had huge, conveyor-belt contracts,’ he says, ‘but smaller contracts like we have in Ipswich and Loughton are a great solution. They give you the best of both worlds.’
NHS contracts are a key component of Tooth Club’s business plan in the locations where they work best, but Kunal says it must be easier to recruit NHS dentists before he would consider taking on any more.
‘If it wasn’t so difficult to recruit NHS dentists,’ he explains, ‘I would consider taking on some of the NHS contracts being sold or abandoned by other practices. It’s not viable right now, because they don’t allow us to offer the highest quality of care.’
NHS work is a great support for new practices
Kunal’s message to new practices is to strongly consider securing an NHS contract alongside their private work.
‘For new businesses starting squat practices like us, with zero patients and zero revenue, an NHS contract means you earn revenue on day one, and the predictable monthly income helps to cover essential overheads while you’re growing.’
The NHS brand is also a powerful marketing tool that helps a new practice to hit the ground running.
‘People trust the NHS brand,’ Kunal explains, ‘and that trust will extend to your practice. Getting listed on the NHS Choices website brings in more patients and helps boost your visibility by raising your own website up the search rankings.’
The other key benefit is that NHS patients are more likely to be patients for life.
‘If a private patient can’t get an appointment straight away,’ he says, ‘they can just try another practice, but NHS patients stick with you. They’re really important for building loyalty.’
Streamlining overseas recruitment is a game-changer
Kunal welcomes the government scheme that allows him to recruit overseas dentists to work as NHS dental therapists until they gain UK-recognised qualifications. Because dental therapists can deliver routine NHS services while commanding lower salaries than dentists, they make it possible to offer NHS contracts and make a profit.
‘Dental therapists can do 60% to 70% of what NHS dentists do,’ Kunal says. ‘They offer treatments like fillings and teeth hygiene, while things like root canals and dentures are referred to a dentist.’
In fact, he thinks dental therapists could play an even bigger role.
‘I’d like to see their scope expanded so they can prescribe antibiotics and perform extractions on adults. Then they could see emergency NHS patients with serious tooth decay or infections. That would be a game-changer for NHS dentistry.’
Kunal is even more enthusiastic about government proposals now under consultation that would fast-track the registration of dentists with overseas qualifications. Dentists who qualify abroad must currently pass exams that take years to complete before they can practice here, but the proposals would allow the GDC to provisionally register them straight away, under the supervision of a GDC-registered dentist.
‘This will open a new array of opportunities,’ he says, ‘allowing us to cut through the red tape and quickly recruit more dentists to make NHS contracts a viable option again.’
Optimistic but realistic about the future
Kunal is generally optimistic about the future of NHS dentistry, but he’s realistic too. In a slow-moving bureaucratic system, the pace of change is never fast, and he doesn’t see a change of government speeding things up.
‘I think a Labour government will slow the pace of reform,’ he shares, ‘simply because the transition will cause a delay.’
More importantly, he doesn’t see any new government offering new funding, but there is plenty of room to make positive change.
‘We shouldn’t expect a “golden pot” of new money from any government. We have to reform the NHS system by using existing resources more effectively – such as by bringing in more foreign dentists.’
Looking ahead, Kunal can see a future where NHS dentistry becomes a viable commercial option again, but he doesn’t see that as a threat to his private business.
‘We just need to make sure our private service offering is differentiated,’ he says. ‘Provided we’re offering the extra time, superior service and education, our private services will always be more attractive.’
Going forward, he would like NHS reforms to focus more on children.
‘I’m very passionate about educating children,’ he explains. ‘We’ve done a lot of campaigns in schools and open days for children. Once we sort out children’s dental health, we seal the hole at the bottom of the bucket. It’s the best way for dentists to make a difference.’
TradeBridge is a natural partner for growth
TradeBridge is a specialist funder well positioned to help fund growth in the dental sector. Right now, we’re helping first-time buyers, growing practices and large groups to leverage their income from NHS and private trade to start new practices, expand their businesses and fund acquisitions.
Where traditional lenders may be reluctant to take a risk, dental businesses are instead looking carefully at specialists with an established pedigree in supporting entrepreneurial business owners to seize their moment.
With years of experience in the dental sector, we’ve designed a finance facility specifically for dental practices that uses real-time trading data and other information to make a faster, more accurate risk assessment that reflects the true strength of your business.
That means we can offer a flexible, revolving line of credit of up to three times your practice’s monthly income, with no restrictions on its use, no fixed repayments, immediate online access and the freedom to only draw down (and pay for) what you need.
Contact Clare on 07496 423 377 or [email protected].
This article is sponsored by TradeBridge.
