Private equity-backed dental groups should prepare for intensifying congressional oversight as lawmakers expand scrutiny of PE’s role in healthcare, according to the Holland & Knight law firm.
Five notes for dental leaders:
- Healthcare has historically been Congress’s primary focus when it comes to PE oversight, and that is unlikely to change, the law firm posted on its website Aug. 17. The U.S. Senate Budget Committee released a 171-page bipartisan report in 2025 titled “Profits Over Patients: The Harmful Effects of Private Equity on the U.S. Healthcare System.” New polling also found that 83% of voters across party lines expressed concern about PE firms taking over critical public service sectors, including healthcare.
- Congressional oversight activity is likely to intensify in the final months of the 119th Congress and could expand significantly if Democrats regain control of either chamber following the 2026 midterms, which would give committee chairs subpoena authority to compel documents and testimony.
- Holland & Knight recommended that PE-backed firms assess likely areas of congressional inquiry, strengthen internal processes and coordinate legal, government affairs and communications strategies in preparation for potential investigations.
- Firms should also anticipate congressional oversight to unfold alongside state attorney general investigations and private litigation.
- Several states have recently introduced or passed legislation to limit corporate entities’ ownership of dental practices and their influence on clinical decision-making.
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