Private equity buys dental practices, then pushes pricier procedures
Private equity ownership affects dental practices
Private equity ownership of dental practices nearly doubled between 2015 and 2021. New research in Health Services Research shows that after acquisition, offices raise list prices by over 5% within three years, perform 46% more implants per visit, and shift toward higher-cost restorative care—while negotiated insurance payments stay flat and Medicaid participation doesn't budge. The authors warn that revenue gains may not benefit providers or patients.
Private equity firms can enhance dental practice revenue by shifting from preventive procedures to higher-cost restorative procedures while not reimbursing providers at a higher amount.