Private Equity in Dentistry Means Higher Fees but Same Reimbursement

Private equity’s expansion into dentistry has fueled ongoing debate but new research suggests the reality is more nuanced than either critics or supporters claim. A recent study analyzing dental practices from 2015 to 2021 found that private equity acquisition did not lead to higher negotiated reimbursement rates from insurers. For dentists, this is a critical point: despite changes in ownership, payers are not increasing what they reimburse for procedures.

However, the study did identify meaningful operational shifts. Following acquisition, dental practices increased their service charges by approximately 3.3%. While insurers may not pay more, these higher list prices can still translate into greater out-of-pocket costs for patients, especially those without comprehensive coverage.

Equally important is the shift in care delivery. Practices backed by private equity were more likely to move away from preventive and diagnostic services toward higher-revenue restorative, surgical, and specialty procedures. Many also transitioned into multispecialty models, reflecting a broader trend toward consolidation and expanded service offerings.

For dentists, these findings raise important considerations. While private equity may bring scale and operational efficiency, it may also influence clinical decision-making, practice structure, and patient cost burden.

As consolidation continues, understanding these dynamics will be essential, not just for business strategy, but for maintaining patient trust and delivering balanced, ethical care. Click here to read more.