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Dental Care Alliance

healthcare
PE-OWNED

Dental practice management company supporting independent dentists with business operations.

PE-OWNED

Acquired by Leonard Green & Partners2016-08-01

View PE Firm Profile

What Made It Great

Dentist-focused support model preserving clinical autonomy while providing business efficiency

What PE Will Likely Do

Dental Care Alliance will likely reduce the number of experienced dentists and replace them with less-qualified dental hygienists or technicians to cut labor costs.

HIGH LIKELIHOODBased on: Leonard Green & Partners' track record of aggressive cost-cutting and debt loading in acquired companies, resulting in high bankruptcy rates.

Dental Care Alliance will likely sell the real estate of their dental practices and lease it back, extracting equity for investors while increasing rental costs that may be passed on to patients.

HIGH LIKELIHOODBased on: The healthcare industry playbook of common private equity tactics that negatively impact patient care quality.

Dental Care Alliance will likely aggressively code for higher-reimbursement dental procedures and diagnoses, leading to more unnecessary treatments and higher out-of-pocket costs for patients.

HIGH LIKELIHOODBased on: The timeline of changes observed in similar past cases of private equity acquisitions in the retail and healthcare sectors.

Dental Care Alliance will likely eliminate unprofitable but essential dental services like preventive care or specialized treatments, forcing patients to seek care elsewhere or go without.

HIGH LIKELIHOODBased on: The timeline of changes observed in similar past cases of private equity acquisitions in the retail and healthcare sectors.

Dental Care Alliance will likely charge high management and consulting fees to the dental practices it acquires, reducing the resources available for patient care.

HIGH LIKELIHOODBased on: The timeline of changes observed in similar past cases of private equity acquisitions in the retail and healthcare sectors.

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Dental Care Alliance will likely announce 'optimization' programs and shuffle leadership as cosmetic changes, while behind the scenes preparing for cost-cutting measures.

6-12 monthsYOU ARE HERE

6 to 12 months months

Staffing reductions at Dental Care Alliance practices will begin, leading to longer wait times and shorter appointment lengths.

12-24 months

12 to 24 months months

The quality of care at Dental Care Alliance practices will noticeably decline, with patients experiencing longer wait times, fewer treatment options, and poorer overall experiences.

24-36 months

24 to 36 months months

Significant issues will emerge at Dental Care Alliance, potentially including the closure of certain dental practice locations or quality scandals related to patient harm.

36+ months

36+ months months

Dental Care Alliance may face bankruptcy or be forced to sell to another operator, leaving the future of the acquired dental practices and their patients uncertain.

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Be aware of potential changes in the quality of care at Dental Care Alliance practices, and be prepared to seek alternative providers if necessary.

  • Monitor your dental bills and question any unexpected or seemingly unnecessary treatments or charges.

  • Stay informed about any major changes or issues at Dental Care Alliance, and be willing to switch to a different dental practice if the quality of care declines.

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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