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Shining a light on PE ownership.

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Orthodontic Partners

healthcare
PE-OWNED

Orthodontic practice management and support services company.

PE-OWNED

Acquired by Leonard Green & Partners2019-01-29

View PE Firm Profile

What Made It Great

“

Platform for consolidating independent orthodontic practices

What PE Will Likely Do

Predictions

Orthodontic care quality will decline, with shorter appointment times, higher patient loads, and deferred equipment maintenance

HIGH LIKELIHOODBased on: Leonard Green & Partners' track record of cost-cutting, debt-loading, and brand value extraction in acquired companies

Orthodontic service offerings will be reduced, with fewer specialized treatments and services like oral surgery or TMJ therapy

HIGH LIKELIHOODBased on: The healthcare industry playbook of common PE tactics, including staffing reductions, billing upcoding, and service line cuts

Orthodontic practices will experience higher staff turnover as experienced orthodontists and nurses are replaced with less qualified personnel

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

Billing practices will become more aggressive, with upcoding of procedures and diagnosis to maximize reimbursements

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

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Cosmetic changes to Orthodontic Partners' branding, leadership shuffles, and 'efficiency' announcements

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Gradual staffing cuts begin, with experienced orthodontists and nurses replaced by less qualified personnel

12-24 months

“12 to 24 months months”

Noticeable declines in service quality, with longer wait times, rushed appointments, and fewer specialized treatments

24-36 months

“24 to 36 months months”

Major issues emerge, such as clinic closures, quality scandals, and patient complaints about declining care

36+ months

“36+ months months”

Potential bankruptcy, fire sale to another operator, or continued degradation of Orthodontic Partners' services

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 vigilant for any changes in your orthodontist's care quality, staff, or service offerings

  • Consider seeking care from independent orthodontists not affiliated with Orthodontic Partners

  • Advocate for your local community to support and maintain high-quality, affordable orthodontic care

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

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"Orthodontic Partners is now PE-owned. Here's what that means for you."