States Draw the Line on Private Equity’s Growing Grip on Dentistry

Private equity has become a powerful force in healthcare over the past decade, and dentistry is no exception. As investment firms acquire dental practices, management service organizations, and facilities at a rapid pace, state lawmakers are increasingly concerned about market consolidation, loss of clinical autonomy, and threats to patient care. In response, at least seven states including California, Indiana, Massachusetts, Maine, New Mexico, Oregon, and Washington, have enacted new laws in 2025 alone to increase oversight of private equity acquisitions in healthcare.

Private equity firms pool capital from pension funds, endowments, and wealthy investors to buy controlling interests in practices, often with the goal of selling them at a profit within a few years. Supporters argue that this model brings capital for technology upgrades, operational efficiency, and expanded access to care, particularly in rural or underserved areas. Critics, however, say the profit-driven approach can undermine care delivery and professional judgment.

Several of the new laws directly affect dentistry. Oregon’s legislation limits market concentration and explicitly bars private equity firms from controlling clinical operations. California passed a law prohibiting private investors from interfering with the professional judgment of physicians and dentists. Massachusetts and California now require private equity firms and related entities to report acquisitions and give attorneys general greater authority to investigate deals. Washington created a statewide registry of healthcare entities to increase transparency, while Maine imposed a 1-year moratorium on private equity hospital purchases. Click here to read more.