Dental industry leaders are tracking several new trends this year regarding patient demand, dentist migration and DSO growth.
Here is a summary of five new trends in 2025:
1. Middle-market DSOs and AI: Middle-market DSOs have become one of the largest adopters of artificial intelligence. VideaHealth CEO Florian Hillen shared with Becker’s that these companies have leaned on AI to drive same-store growth as the cost of acquiring practices rises.
Wardah Inam, PhD, CEO of Overjet, also said that adopting this technology can help DSOs reduce costs over time.
“Every company is looking at how do we use AI to improve our operations, reduce costs and increase revenues? There’s more pressure on these DSOs as well. They’re going in this environment now, rather than the environment where we had easier money a few years ago, so they’re trying to get any advantage that they can,” she told Becker’s. “With the labor costs increasing, with the tariffs increasing the cost of the equipment and supplies, there’s a lot of cost pressure happening. It’s necessary for these groups to start investing in technology as a way for them to reduce costs and improve their productivity.”
2. Private equity interest: Private equity investors are turning their attention more toward smaller DSOs in a move that is catching some industry leaders by surprise.
Haim Haviv, the founder and CEO of Hudson Dental in New York City, recently told Becker’s he has seen more private equity groups go after smaller DSOs at earlier stages for the unique position these companies are in.
“I think it’s been interesting to see how smaller platforms still get the appetite of private equity investors, whereas it used to be the aggregation, and you buy a lot and you have private equity groups coming after you,” he said. “We’re seeing private equity groups going after the smaller groups that have that potential and are willing to come in earlier than to come in when you have 100 or more locations. We’re seeing private equity coming at an earlier stage, and willing to go with these smaller groups that are more nimble.”
3. Healthcare job growth: Although the U.S. saw disappointing results for employment in June, the healthcare sector saw reasonable gains that could potentially point to continued growth.
The Bureau of Labor Statistics released its “Job Openings and Labor Turnover” report July 29, leading to discussions about slowing economic growth. However, hospitals, physician offices and dental offices added a surprising 55,400 jobs. Dental offices specifically added 7,100 employees.
4. Increased oral surgery investment: Several DSOs specializing in oral and maxillofacial surgery have landed additional funding in recent years as investors continue to see the field for its growth potential.
Robert Clark, DMD, a member of OMS360’s board of directors, told Becker’s that many investors have taken notice of advantages the OMS specialty offers after focusing on general dentistry and other specialties for several years.
“Oral surgery is a relatively high-reimbursement, high-production [specialty] … I think they saw the opportunity of a practice modality that was largely untouched by private equity and management companies,” he said. “It’s a great specialty for people who want to work hard, it allows you to produce and to maintain your lifestyle, have a family life, but also it’s something that is financially lucrative and professionally fulfilling, particularly if you want to do the surgical side.”
5. Practice ownership changes: Newer and younger dentists are waiting longer to buy or build their own practice after graduating from dental school, according to new data from the American Dental Association’s Health Policy Institute.
Among dentists who graduated from dental school between 1996 and 2000, 70% were practice owners five to nine years after graduation. Just 21% of dentists who are part of the 2016 to 2020 graduation cohort were practice owners five to nine years post-graduation.
Study authors attribute the shift away from practice ownership partly to demographic factors, citing “strong evidence to suggest demographic factors, such as race/ethnicity and gender, play a role in career choices of dentists, including practice ownership.” In addition, educational debt among dental school graduates is also a factor in the drop-off of early-career dental practice ownership, according to the report.
Additionally, a recent survey from the American Association of Orthodontists shows that the percentage of orthodontists who own practices has declined since 2018. Sixty-eight percent of respondents reported being a practice owner this year, either solely or as a partner, compared to 80% in 2018 and 69% in 2022.
The AAO also reported that female respondents were more likely to join a DSO as their first career opportunity than male respondents. Additionally, younger respondents were more likely to join a DSO than older respondents.
