Here are six statistics and trends highlighting the shifting practices of private equity companies in the dental industry:
1. Several states have either adopted or proposed new private equity laws this year that could have significant impacts on mergers and acquisitions in the dental space. For example, California recently passed a bill that expands the attorney general’s powers to take action against corporate entities that interfere with medical and dental practices, including patient care decisions and coding and billing procedures. Pennsylvania also passed legislation to expand the attorney general’s authority to review and potentially block healthcare mergers and acquisitions.
2. Oral and maxillofacial surgery has continued to be targeted by private equity groups due to its growth opportunities and history of success.
3. Several DSOs have gained private equity funding this year, including Blue Cloud Pediatric Surgery Centers and Motor City Dental Partners.
4. Private equity investors are turning their attention more toward smaller DSOs.
5. The percentage of dentists affiliated with private equity has nearly doubled over the course of six years.
6. A 2024 analysis found that the dental industry is facing particularly extensive holding periods for private equity investments.
