In this Orthodontic Products podcast episode, Chief Editor Alison Werner interviews Greg White, DMD, MSD, president and CEO of PepperPointe Partnerships, about a recent white paper he authored. “The State of the Dental Industry” looks at the rapid consolidation in the field, led by private equity, and offers predictions for the future. 

In addition to his role at PepperPointe Partnerships, White is an orthodontist in private practice for more than 25 years and a founding partner of White Greer and Maggard, a pediatric and orthodontic group practice located in Lexington, Ky. Through these two lenses, he explains the nuances associated with private equity backed DSOs, what that model looks like, and what the end result can mean for both dental professionals and the communities they serve. 

White explains how consolidation in the dental industry isn’t a recent phenomenon. There was movement in the 1990s, but it wasn’t until the 2008 recession that the trajectory of consolidation ramped up—with its biggest jump coming with the pandemic. In the 1990s, only 2% of practices were owned by DSOs. By 2013, it was 13%. And by 2023, it was 34%, according to White. 

Given this, White talks about the need for dental professionals, especially orthodontists, to understand what it means to sell your practice to a DSO that is backed by private equity. He talks about who owns what; what a doctor is really earning; and what role stock plays into a potential payout. 

In this episode, White also talks about how this consolidation affects associates today and future generations of dental professionals. Younger doctors are struggling to buy or start a practice due to high student loan debt. Many are unable to afford the upfront costs of a practice, which leads them to DSOs to start their careers. But what happens when they want to start their own practices? White argues that their options are limited. 

To round out the conversation, White talks about the importance of knowing your exit plan whether you’re 5 years or 30 years into your career. There are options, but you need to do the work to understand all of them.