BackArticles and Speeches

The Latest Hot Spot in Private Equity? Dentists

March 18, 2016
Brendi Kaplan

In an article published on March 18, 2016, Nashville partner Brendi Kaplan provides insight on the increase in private equity firms investing in dental service organizations (DSOs). “A large component of the attraction of private equity firms to DSOs is that patients fall within a direct payment model, i.e., private pay or commercial pay, thus landing outside government reimbursement (except Medicaid, in certain settings), and the practices operate with far less regulatory constraints and limitations,” explains Ms. Kaplan. The dental industry is continuing to become less fragmented as dental practices look to consolidate, which has led to many practitioners choosing to opt into a management or corporate structure. By doing so, “practitioners can focus on their patients, expand access to dental care, and benefit from the economies associated with a managed practice relationship,” says Ms. Kaplan. In addition, these private equity buyouts often are the most practical exit strategy for aging dental practice owners who are nearing retirement. For the full article, subscribers can click here.