Private equity’s growing presence in healthcare and dentistry is fueling concerns among providers and patients, according to Barry Lyon, DDS.
Dr. Lyon, dental director for Main Street Children’s Dentistry and Orthodontics and Dental Care Alliance, recently spoke with Becker’s about why private equity is getting a negative reputation in healthcare.
Editor’s note: This Q&A is part of a weekly series featuring Dr. Lyon focused on topics in the dental industry and DSO field. The views expressed are those of Dr. Lyon and do not necessarily reflect those of Main Street Children’s Dentistry and Orthodontics or Dental Care Alliance.
This response was lightly edited for clarity and length.
Dr. Barry Lyon: Private equity’s entry into healthcare is viewed with skepticism by patients, providers, and law makers.
Researchers at Harvard Medical School state patients are more likely to fall, get new infections or experience other forms of harm during their stay in a hospital after it is acquired by a private equity firm.
While economists and industry analysts often see PE as a source of capital for healthcare systems, the view from patients and providers is often negative. The concern is that corporate profits eclipse patient care, while at the same time the influx of capital helps provide today’s newest technology that enhances care.
Patient concerns turn darker when it comes to ethics. Reports of aggressive coding and higher out-of-pocket costs tarnish PE’s presence. Further, the closing of less-profitable rural hospitals directly impacts access to care for those with the greatest needs. Maternity and emergency services have been most impacted.
For providers, morale is low and it contributes to what is called “The Great Burnout.” There is a concern that patient care is directed to be provided in a way that maximizes profits versus what is best for the patient. In an effort to save money and boost profits, less-experienced, younger and lower paid clerical and auxiliaries are being hired.All of this has not gone unnoticed. 2025 and 2026 have seen a surge in state-level health transaction review laws. States with these laws include California, Connecticut, Illinois, Massachusetts, Minnesota, Nevada, New York, Oregon, Washington, and as of mid-2025, New Mexico. The laws require a notice period or approval before a deal is closed, and is a strategy to protect constituents from corporate overreach.
