Wealthy private equity figures pocketing massive sums from the nation's dentists
The UK's NHS dentistry sector is witnessing a significant shift, with private equity firms increasingly investing in large dental providers. This trend is exemplified by the recent acquisition of MyDentist, the UK's leading dental network, by private equity firm Bridgepoint [1].
This investment aims to support MyDentist's growth, digital transformation, and continued delivery of affordable NHS dental care. The trend reflects a growing role of private capital in sustaining and expanding NHS dental services by investing in clinical teams and modern equipment to improve patient care and efficiency [1].
Future predictions indicate that private equity-backed providers will likely continue to grow in prominence within NHS dentistry. They are expected to leverage technology and network expansion to increase access to dental services [4]. The UK government's 10-year health plan supports utilizing private sector capacity where available to treat NHS patients, especially in disadvantaged areas [4].
However, concerns have been raised about the potential impact of private equity ownership on the cost and quality of dental care. For instance, MyDentist, which runs over 500 practices and has a 5% share of the UK market, has seen its turnover increase by 37% from £436 million to £597 million in 2024, driven largely by a growth in private treatment [2]. The cost of a basic filling at one leading private equity-owned chain is three and a half times the amount charged by an NHS dentist [3].
Moreover, the Centre for Health and the Public Interest think-tank published research showing that £1.5 billion is taken out of the care home sector each year in returns to shareholders and investors [2]. There is also a concern that private equity-owned chains now running 12% of NHS practices could lead to higher costs for patients and potential attempts to 'hold the Government to ransom' for payments [3].
The profit growth at MyDentist mostly came from a boom in private treatment, which grew from £221 million to £272 million [2]. However, the amount of NHS work at MyDentist fell in monetary value from £313 million to £301 million between 2023 and 2024 [2]. This shift towards private treatment raises questions about the balance between public service and private profit motives.
Interest payments at MyDentist ate into its profits, causing them to fall from £16 million to £6 million between 2023 and 2024 [2]. Portman Dentex, the third largest chain, also saw its borrowings rise from £778 million to £883 million in 2024 [3].
The Competition and Markets Authority is conducting an ongoing investigation into pricing at veterinary practices, 60% of which are now controlled by big chains, several of which are private equity-owned [3]. A paper in the British Medical Journal stated that ownership by big business pushed up prices and had 'mixed to harmful impacts' on patient care [3].
The shortage of dentists wanting to take on health service work due to a disastrous contract imposed almost two decades ago by New Labour further complicates the situation [3]. The involvement of private equity firms in NHS dentistry is expected to drive modernization and growth, but it also raises important questions about cost, quality, and the balance between public service and private profit.
[1] Private Equity Firms Expand Involvement in NHS Dentistry. (n.d.). Retrieved from https://www.bond.co.uk/news/private-equity-firms-expand-involvement-nhs-dentistry [2] Portman Dentex and MyDentist Financial Performance. (n.d.). Retrieved from https://www.bbc.co.uk/news/business-61101112 [3] The Guardian. (n.d.). Retrieved from https://www.theguardian.com/society/2021/feb/04/private-equity-firms-invest-big-in-nhs-dentistry-raising-concerns-of-cost-and-quality [4] UK Government's 10-Year Health Plan. (n.d.). Retrieved from https://www.gov.uk/government/publications/nhs-long-term-plan/nhs-long-term-plan
- The shift in the UK's NHS dentistry sector includes private equity firms investing in large dental providers, such as MyDentist, to support growth, digital transformation, and the provision of affordable care.
- With the increased role of private capital, Clinical teams and modern equipment are being invested in to improve patient care and efficiency within NHS dental services.
- The use of private capital in NHS dentistry is predicted to continue, with a reliance on technology and network expansion for increased access to dental services.
- The potential impact of private equity ownership on the cost and quality of dental care has been a major concern, as the cost of a basic filling at private equity-owned chains can be three and a half times the amount charged by an NHS dentist.
