Good morning. Forget five-star Google reviews—4,000 years ago, great dental work got you a tomb. Tetinebefou, the pharaoh’s personal dentist, treated royal teeth and was rewarded with an intricately decorated burial chamber, recently uncovered by archaeologists. Finally, a pyramid scheme that paid off.

Inside this issue:
- States get tough on private equity-backed healthcare.
- Salary survey pulls back curtain on dental staff.

⏰ Your reading time today: 5 mins 5 seconds

🏆 Enjoy your coffee break with Word of Mouth, a dental-themed word game inspired by Wordle … guaranteed to leave you grinning, not grinding!

MARKETS

📈 Patterson Companies ($PDCO) – 31.01 | +0.02 (0.07%)
📉 Henry Schein ($HSIC) – 78.90 | -1.02 (1.28%)
📈 Weave Communications ($WEAV) – 17.44 | +1.05 (6.41%)
📉 Dentsply Sirona ($XRAY) – 18.46 | -0.86 (4.45%)
📉 Align Technology ($ALGN) – 212.03 | -1.52 (0.71%)
📈 Envista Holdings ($NVST) – 21.23 | +1.37 (6.90%)
📉 Colgate-Palmolive ($CL) – 85.96 | -0.98 (1.13%)
📈 3D Systems Corp ($DDD) – 4.40 | +0.65 (17.33%)

Data is provided by Google Finance. Stock data as of market close, reflecting changes over the past 5 days, as of 5:00 p.m. ET.

THE DRILL DOWN

🦷 ADA executive director steps down, as Raymond Cohlmia, D.D.S. resigns effective immediately, with Elizabeth Shapiro, D.D.S., J.D. named interim leader. The transition occurs just as the American Dental Association presses President Trump directly in a letter and in a broader public PR campaign to prioritize oral health in national policy. The real infrastructure bill: molars. 

⚖️ NIH dental chief settles contentious lawsuit and will retire, reaching an agreement with HHS after being placed on involuntary leave for nine months in a dispute over her leadership of the government agency. 

👮 Break room bandit caught, as police arrest a thief who had been targeting dental offices, stealing valuables from staff lounges while posing as a patient. Not the kind of patient turnover anyone wants. 

🚱 Debates on fluoride continue, with Florida’s surgeon general weighing in on efforts to remove fluoridation from public drinking water, while Arkansas and New Jersey dentists fight for fluoridation. 

🤖 AI in dentistry raises malpractice concerns, as the California Dental Association warns that while AI can improve patient care and efficiency, it also introduces legal risks for dentists, highlighting certain risk mitigation strategies dentists can take. Great, now even the robots need liability insurance. 

🏛️ UCLA orthodontics scandal resurfaces, as an investigation uncovers allegations of fraud, extortion, and financial misconduct by three former professors, involving the alleged solicitation of unauthorized fees from international students. 

GOVERNMENT REGULATION

More rules, more toothaches

Private equity’s grip on healthcare is under the drill. From Massachusetts to California to Connecticut, regulators are considering a tightening of oversight, targeting what they say is excessive consolidation, rising patient costs, and concerns about profit-driven care. With federal agencies joining the fray, PE-backed healthcare investments—including DSOs—are feeling the squeeze. 

For dental support organizations (DSOs), the crackdown matters. Private equity has fueled DSO expansion, but as scrutiny intensifies, acquisitions could slow, compliance costs could rise, and investors may rethink their appetite for dentistry. 

What’s happening: State and federal regulators are stepping up efforts to curb private equity’s growing role in healthcare, alleging that some consolidations are driving up costs while reducing competition and patient care quality. New laws, enforcement actions, and heightened antitrust scrutiny could create headwinds for PE-backed health plays, including DSOs. 

• State legislation bills are being introduced, with Massachusetts enacting sweeping new regulations requiring state approval for healthcare acquisitions and holding PE investors liable for fraudulent billing. Connecticut, Oregon, and New Mexico are advancing similar oversight measures. 

• Federal efforts are ramping up, as the FTC, DOJ, and HHS launched a joint task force to investigate private equity’s impact on healthcare markets, while a proposed Senate bill would impose criminal penalties on firms that compromise patient care. 

• A judicial squeeze continues, with the DOJ’s updated merger guidelines reflecting a more aggressive stance on blocking consolidations deemed anti-competitive. Enforcement officials have been clear that health deals are under the microscope.  

Why it matters: For DSOs backed by private equity, this growing regulatory wave translates into: 

• Higher compliance costs as new reporting requirements and legal scrutiny increase operational expenses.  

• Longer deal timelines with heightened regulatory oversight delaying acquisitions and roll-ups. 

• Greater legal exposure as laws in states like Massachusetts now hold investors accountable for potential healthcare fraud and patient harm. 

Depending on whether this trend continues, regulations could slow consolidation efforts and raise the bar for investment, making DSOs less attractive to private equity. 

What’s next: The new Trump administration could significantly shift federal enforcement priorities, potentially easing some regulatory pressure. In a noteworthy move, the new leadership has already removed the January 15th press release regarding the launch of the tripartite agency report on private equity in health. 

But with states driving much of the crackdown, PE-backed DSOs will still face a growing patchwork of oversight at the state level, requiring careful navigation of compliance and deal-making challenges. 

PE-backed DSOs are still in the game, but the rules are changing—and so are the referees. 

BUSINESS BITES

 🤖 VideaHealth lands $40M to lead AI-driven dentistry, with its oversubscribed Series B fueling expansion into new markets, deeper DSO partnerships, and enhanced AI workflow tools. With backing from players like Heartland Dental and Dentalcorp, the company is doubling down on AI-powered diagnostics and revenue cycle management (RCM). 

💰 KKR takes a bigger bite of Henry Schein, investing another $250M to increase its stake in the company to 12%, with an option to grow to 14.9%. Alongside the deal, Henry Schein is adding KKR executives to its board as it looks to drive strategic growth and shareholder value. PE keeps sinking its teeth in.  

🦷 Dental deals dominate 2024 health investments, with dentistry leading healthcare M&A in 2024 with 132 deals, followed by veterinary and dermatology deals. Wall Street still has a sweet tooth.

📈 Gen4 Dental Partners reports strong growth, announcing robust 2024 performance with organic expansion, new acquisitions, and leadership appointments positioning the company for continued success in 2025.  

🤖 Planet DDS and Pearl team up on AI, launching AI Assist to enhance diagnostics and operations for multi-location dental practices. The partnership aims to set a new standard in AI-powered patient care. Smarter tools, sharper insights. 

🦷 Lorient Capital launches an implant-focused DSO, partnering with Dr. Houmam Ali to build a new specialty-driven organization. The venture aims to advance surgical excellence and expand access to implant treatments. Filling gaps—literally. 

💼 Smile Partners recapitalizes, securing new backing from BlackRock and Hollyport Capital to fuel expansion and acquisitions. Because smiles aren’t cheap. 

📈 PDS Health reports record growth, surpassing seven million patient visits in 2024 as its dental-medical integration model expands past 1,000 locations. One step closer to your dentist checking your blood pressure. 

DENTAL SALARIES:

Raises, turnover, and a reality check

Salaries are up, but the industry’s staffing headaches haven’t exactly vanished. The newly released 2025 DentalPost Salary Survey confirms what many DSO leaders already know—pay raises are happening, but they’re not always enough to keep employees from eyeing the exit. Turnover has slowed, but one in three dental professionals is still considering a job change this year. 

So what’s really going on inside the minds of your team? What’s keeping them loyal, what’s pushing them out the door, and how can you be strategic about retaining top talent while keeping your dental operation growing? Let’s drill in … no anesthetic needed. 

What’s happening: Dental salaries saw notable gains in 2024, yet satisfaction remains a mixed bag. Pay rose across the board, especially for dental assistants, hygienists, and front office associates, while dental practice managers saw a rare 6.5% decline in total income. Nearly two-thirds of respondents received a raise in the past two years, but less than half say they’re satisfied with their compensation. About 91.9% of respondents received benefits of some kind in 2024, but medical and retirement benefits remain the most sought-after perks.  

Here’s what else we learned:  

• Turnover is still a challenge. While 66.5% of respondents report job satisfaction, 35% are considering a move, citing work environment, appreciation, and benefits as key factors. 

• Long-term employees want stability. Over 55% of dental professionals have stayed with their employer for five or more years, signaling that retention is possible—but only if conditions are right. 

• Hiring pressures persist. Turnover has dropped from 41.4% to 35%, but the top reasons for switching jobs remain the same: higher pay, better work environment, and stronger benefits. 

Why it matters: Pay bumps are nice, but they’re not solving the staffing puzzle. While salaries have improved, the industry’s turnover problem hasn’t gone away—just slowed down. Practices, groups, and DSOs that rely on competitive pay alone risk a game of musical chairs, with employees jumping at the next best offer. Losing experienced staff disrupts operations, impacts patient care, and keeps recruiting teams permanently on high alert.  

The operations that will win the struggle over staff will likely be the ones that go beyond paychecks, offering career growth and a strong workplace culture. For instance, Heartland Dental's new Masters and Mentors campaign pushes a doctor-led culture and leadership development, aiming to foster an environment where dental professionals can thrive. Likewise, Dental365 similarly introduced an experiential learning platform to keep their clinicians learning and providing the best care. 

Looking ahead: Raises alone won’t cut it—employers need to bundle competitive salaries with strong benefits, career development, and a workplace that doesn’t feel like a revolving door. While fewer dental professionals are actively job hunting, those dissatisfied with pay and perks will still walk. Work culture and leadership are playing a bigger role in retention than ever, making hiring and training great managers just as critical as salary benchmarks. 

For operators, the takeaway is simple: A paycheck gets employees in the door, but a bad workplace sends them right back out. 

CLINICAL NOTES

• 🧬 Brain biomarkers could predict pain sensitivity, as a breakthrough study identifies neural patterns that may help dentists customize anesthesia and post-op care. Finally, a way to know who actually needs the extra lidocaine. 

• 🦷 Regrowing teeth is closer than you think, as this article outlines research efforts developing RNA-based treatments, stem cell therapies, and mineral regeneration that could make implants obsolete. Human trials are already under way, and some experts predict clinical use as early as 2030. Looks like the tooth fairy might need a new job. 

• 🧠 Dentures may help slow cognitive decline, with a new study finding that older adults with partial tooth loss who use dentures show better baseline cognitive function and slower decline over time. 

• 💉 First case of anesthesia-induced bone death reported, as a new study documents a rare case where a routine dental injection led to permanent jaw damage in a healthy patient. Researchers suspect the injection method and medication may have cut off blood flow to the bone.  

• 🍵 Green tea shows promise for oral mucositis, as researchers at the Tokyo University of Science develop an adhesive film infused with green tea polyphenols to help treat painful mouth sores caused by cancer treatments. A whole new way to steep in the benefits. 

BEYOND THE CUSP

• Former San Francisco Giants slugger Cody Ransom has traded home runs for handpieces, launching a second career as a dentist in Maryland. Less chewing tobacco, more fluoride varnish. 

• Gen Z and millennials are ghosting jobs, with a new report revealing rising trends of career catfishing and no-show hires—accepting offers, then disappearing before day one.  

• Read how Timothée Chalamet mastered the age-old press tour. 

• Maximize your time off in 2025 with this viral hack. 

• Why do people risk it all to climb deadly peaks? Let’s find out.