The percentage of dentists affiliated with private equity has nearly doubled over the course of six years.
Eight notes:
1. The percentage of private equity-affiliated dentists increased from 6.6% of dentists in 2015 to 12.8% in 2021, according to a new paper from the American Dental Association Health Policy Institute.
2. Researchers determined in the study that the dental provider market is attractive to private equity firms due to the market being highly fragmented.
3. There were fewer than 20 documented private equity transactions involving dentists from 2004 to 2015.
4. The number of documented private equity transactions involving dentists increased to 62 in 2019 before dropping to 46 in 2020. That number hit 96 in 2021.
5. The percentage of general dentists affiliated with private equity increased by 87% between 2015 and 2021.
6. The percentage of specialty dentists affiliated with private equity more than doubled between 2015 and 2021, with endodontists seeing the most growth in transactions.
7. Researchers said the large interest in dental specialists from private equity firms could be due to the high prices these providers can earn for their services, such as root canals and implants.
8. Researchers emphasized in the study the importance of ensuring that future research examines the effect these acquisitions have on the industry, including the cost of dental procedures, procedure mix, Medicaid participation and quality of care.