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Shining a light on PE ownership.

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AS

Aspen Dental

healthcare
PE-OWNED

Network of dental practices providing affordable care.

PE-OWNED

Acquired by Leonard Green & Partners2018-07-01

View PE Firm Profile

What Made It Great

“

Making dental care accessible and affordable for all patients.

What PE Will Likely Do

Predictions

Aspen Dental clinics will see a reduction in the number of dental professionals (dentists, hygienists, assistants) per clinic, leading to longer wait times for appointments and reduced individual attention for patients

HIGH LIKELIHOODBased on: The known tactics of Leonard Green & Partners, including aggressive cost-cutting and debt loading

Dental equipment and technology investments will be deferred, resulting in the use of outdated or less effective tools and technologies for procedures

HIGH LIKELIHOODBased on: The high frequency of staffing reductions, service line cuts, and management fee extraction in the healthcare industry under private equity ownership

Efforts will be made to increase the number of patients seen per day, leading to shorter appointment times and less comprehensive dental exams and treatments

HIGH LIKELIHOODBased on: The history of similar private equity-backed acquisitions in the retail and healthcare sectors leading to bankruptcy or severe service quality declines

The variety of dental services offered may be reduced, with a focus on the most profitable procedures and a decrease in specialized or complex treatments

HIGH LIKELIHOODBased on: The history of similar private equity-backed acquisitions in the retail and healthcare sectors leading to bankruptcy or severe service quality declines

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements of 'operational improvements' and 'efficiency initiatives', with a focus on cost-cutting measures

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Staffing reductions begin, with a shift towards less experienced or lower-skilled dental professionals to reduce labor costs

12-24 months

“12 to 24 months months”

Patient wait times increase, and the quality of dental care and patient experience starts to noticeably decline

24-36 months

“24 to 36 months months”

Ongoing issues with access to care, patient complaints about the deterioration of services, and potential closures of less profitable Aspen Dental locations

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

Steward Health Care

Cerberus Capital Management·2010

See full case study
Operating

Envision Healthcare

KKR·2018

See full case study
Operating

US Dermatology Partners

Ares Management·2016

See full case study
Operating

Hahnemann University Hospital

Cerberus Capital Management·2018

See full case study
Operating

Sound Physicians

Summit Partners·2019

See full case study

What You Can Do

Take Action

Actions

  • Be prepared for longer wait times and reduced attention from dental professionals at Aspen Dental clinics

  • Advocate for your specific dental care needs and be vigilant about the quality of treatment, as cost-saving measures may lead to a decline in the standard of care

  • Consider seeking out alternative dental providers that prioritize patient care over profit margins

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"Aspen Dental is now PE-owned. Here's what that means for you."