Dental service organizations
Private equity in dentistry
Investment firms that buy ownership stakes in dental groups or support organizations, aiming to grow the business and later sell it, a trend the ADA tracks in its research.
Private equity in dentistry refers to investment firms that fund and own parts of dental groups, often through a DSO. The firm usually plans to grow the business and sell it later.
The ADA Health Policy Institute reports that the share of dentists affiliated with private equity increased from 6.6% in 2015 to 12.8% in 2021. The ADA News report on the paper says the percentage nearly doubled over six years, with increases among larger practices and among some specialists.
Private equity is a way to fund a group. It is not a type of practice. Terms differ by deal, so dentists who consider any offer should ask an attorney and a CPA to explain it. This entry reports data and gives no opinion.