Here are six recent updates that have led to optimism and skepticism among DSO leaders:
Good news
DSO investments
Several DSOs have landed investments this year to support debt restructuring and network growth. Lone Peak Dental Group recently received a $15 million mezzanine debt investment from o15 Capital Partners, an alternative investment firm, while Dental Care Alliance entered an agreement with its existing lender group to reduce its debt by more than $1.1 billion and receive $95 million in new capital.
Dentist supply
Although the DSO field is currently experiencing a high-demand, low-supply environment that is expected to continue for the next several months, the market could soon shift to favor DSOs. A new report from TUSK Practice Sales shows that several states have more than 40% of active dentists aged 55 and older, representing one of the largest potential seller pools in the dental M&A market to date.
Artificial intelligence
AI has become one of the biggest drivers of growth across the DSO field, helping to build trust between patients and clinicians, enhance diagnostic care and optimize operational tasks. Dozens of DSOs have added AI platforms to their networks recently, including some of the largest DSOs in the U.S., such as Sonrava Health, Aspen Dental and Heartland Dental. Middle-market DSOs have become one of the largest adopters of AI, leaning on the technology to drive same-store growth as the cost of acquiring practices rises.
Bad news
Corporate dentistry scrutiny
Several states have recently introduced legislation to limit corporate entities’ ownership of dental practices and their influence on clinical decision-making. Organizations have also spoken out against corporate dental ownership to protect patient care and clinical autonomy.
Private equity deals
All but one dental specialty experienced a decrease in private equity deals in 2025, according to a recent report from PitchBook. Dental industry deals saw a 37.2% drop in 2025, primarily in endodontics and periodontics. Oral surgery was the only specialty to see an increase at 9.1%.
Medicaid funding
The One Big Beautiful Bill Act (H.R. 1) is expected to shrink state Medicaid budgets by $664 billion through 2034, according to a recent RAND study. KFF estimated the amount of Medicaid funding cuts each state could be hit with over the next 10 years, with many states being estimated to lose billions of dollars. New research from Georgetown University also shows between 1.5 million and 1.8 million children have already been dropped from Medicaid programs since January 2025. Barry Lyon, DDS, dental director for Main Street Children’s Dentistry and Orthodontics and Dental Care Alliance, told Becker’s the cuts could heavily impact DSOs’ ability to care for adult and child Medicaid recipients.
At the Becker's 5th Annual Future of Dentistry Roundtable, taking place September 14-15 in Chicago, dental leaders and executives will gain insights into emerging technologies, practice growth strategies and the evolving landscape of dental care delivery, with a focus on innovation, patient experience and operational excellence. Apply for complimentary registration now.