The percentage of dentists affiliated with private equity has nearly doubled over the course of six years, according to a paper released Aug. 5 by the ADA Health Policy Institute.
According to the analysis, dentists affiliated with private equity increased from 6.6% in 2015 to 12.8% in 2021.
Private equity affiliation increased particularly among larger dental practices and among dental specialists like endodontists, oral surgeons, pediatric dentists, orthodontists and prosthodontists, according to the paper, authored by Kamyar Nasseh, Ph.D., ADA health economist, Anthony T. LoSasso, Ph.D., professor and chair of the DePaul University economics department, and Marko Vujicic, Ph.D., ADA chief economist and vice president of the Health Policy Institute.
“The dental provider market is highly fragmented, which makes it an attractive acquisition target for [private equity] firms, given the perceived potential to improve the efficiency of practices and increase [private equity] firms’ profit margins or market share,” the paper reads.
Source: Private equity affiliation among dentists increases / ADA News