Colorado DSO Collapse Leaves Dentists With Lawsuits, Debt, and Unanswered Questions
A Colorado dental support organization (DSO) once marketed as a lifeline for independent practices has collapsed, leaving a trail of lawsuits, shuttered offices, and devastated dentists. The rise and fall of Ssun HealthFounded in late 2019 by businessman Eric Nuss, Ssun Health promised…
A Colorado dental support organization (DSO) once marketed as a lifeline for independent practices has collapsed, leaving a trail of lawsuits, shuttered offices, and devastated dentists.
The rise and fall of Ssun Health
Founded in late 2019 by businessman Eric Nuss, Ssun Health promised to relieve dentists of day-to-day management headaches by converting practices into DSO partnerships. Dentists who signed on—including Dr. Judson Valstad of northern Colorado—handed over operations, staff, and in some cases even their buildings, in exchange for partnership shares and upfront payments.
By mid-2021, eight dentists across Colorado and New Mexico had joined. But within 18 months, the model unraveled. Staff and vendors went unpaid, leases defaulted, and loan payments were missed. The company’s debts ballooned to more than $8 million, triggering receivership and eventual bankruptcy.
Dentists left with staggering losses
For Dr. Valstad, the failed partnership cost more than $300,000. Others say they lost even more. Practices that survived had to scramble to rebuild after the DSO imploded. “It was a very messy situation all around,” Valstad said. “I think a lot of people are out a lot of money.”
Former Ssun Health employees also say their wages and benefits were withheld. Investigations by the Colorado Department of Labor confirmed unpaid wages, ordering Nuss and the company to pay penalties for what regulators called a “willful failure to pay.”
Questionable spending and lack of oversight
Documents obtained by investigators show company funds went toward luxury purchases, including thousands spent at country clubs, sporting goods stores, and gun shops—while dental staff and vendors waited for checks that never arrived. Former revenue cycle manager Cher Russell described the experience bluntly: “So many people entrusted their livelihoods to this man. And it’s all gone.”
Because Nuss is not a licensed dentist, oversight from the state’s dental board was limited. Only this year did Colorado regulators issue a cease and desist order, citing state law that restricts dental practice ownership to licensed dentists.
A warning for practices nationwide
This case highlights the risks independent dentists face when approached by unregulated DSOs promising quick growth and easy management solutions. Experts warn that without strong oversight and transparency, such arrangements can expose dentists to enormous financial and professional risks.
Dental consultant Ron Bergloff summarized the danger: “He came in with a plan to take advantage of doctors.”
Why this matters for your practice
At Weence Health Marketing, we hear stories like this as a reminder that practices need sustainable growth strategies rooted in transparency, accountability, and control. Dentists and healthcare providers don’t need risky shortcuts — they need local SEO, content marketing, and patient acquisition systems that are predictable, ethical, and built to last.
If you’re considering selling or restructuring your practice, be cautious. Research the people and companies involved. And before you give up control, explore safer ways to grow — like attracting more patients online through proven marketing strategies.
FAQs
What is a Dental Support Organization (DSO)?
A DSO is a company that provides non-clinical services to dental practices, such as HR, payroll, and marketing, often in exchange for ownership or partnership agreements.
Why did Ssun Health fail?
The organization defaulted on more than $8 million in loans, failed to pay staff and vendors, and mismanaged funds, leading to receivership and bankruptcy.
Can non-dentists own dental practices in Colorado?
No. State law requires that only licensed dentists may own dental practices. That was the basis of the cease and desist order issued against Nuss.
How much money did dentists lose?
Reports suggest losses ranged from hundreds of thousands to millions across multiple practices, with some offices forced to close permanently.
What can dentists do to protect themselves?
Vet any potential business partner carefully, confirm compliance with state law, and consider growth strategies that keep ownership and decision-making within your practice.
