Closeout is the greatest threat: global investment firms to buy German dental practices

International financial investors get more and more into the German healthcare market. Especially in the area of dentistry, they promise a high return on investment. Possible investments are made through a new law that allows for the operation of entrepreneurs is organized on a large-scale practices with employee Physicians. Representatives of the dentists to see the developments with concern.

In Germany, more and more Medical care centres (mvzs). Since the organization was form by a law in the year of 2015, increased the number of houses according to the “süddeutsche Zeitung” of 29 to 540. Have settled in the MVZ in the process, especially in large cities, and rich counties – where the population can afford expensive additional services.

The mvzs are large practices with up to 30 Doctors who work there as employees. Especially in the case of young Doctors working for a company is therefore often more attractive than the construction of a private practice that binds you to a place. Behind the MVZ, the income expectations of operators: global investment firms are entered according to the “süddeutsche Zeitung” with a lot of money, Advisory firms, to prices the reliable German healthcare market as a gold mine.

Cost reductions and profit maximization

So, in the meantime, Fund companies such as Summit Partners, Nordic Capital, or Jacobs Holding were busy, throughout the country dental clinics to buy, and to bring large chains with dozens of stores. The aim of the Private-Equity firms, it was here, in the end, the big offices after the restructuring to be profitable to resell. A common management and Central purchasing to reduce costs – across countries.

This includes, according to the “süddeutsche Zeitung” also, patients additional deals selling, such as professional teeth cleaning, you pay out of your own pocket. The success of have the areas, of course, only in large Metropolitan areas and in counties in which the income of the population is high. Only eight percent of the care centres in the new Federal States were established.

Organisations face rising costs of treatment

There’s criticism. “The sell-off of the supply of speculators is the biggest threat there was in the dental field ever,” said the head of the cash-dental Federal Union, Wolfgang Eßer, of the newspaper. “We have the impression that MVZ chains focus on particularly high-yield areas, for example, in implantology or complex dental restorations.” The cost of treatment in MVZ chains would lie significantly above the average.

However, for many dentists, the new business model is attractive. The investors advertise according to the “süddeutsche Zeitung” especially in the case of older Physicians who are concerned about the future of their practices and, therefore, is interested in selling. For many, the entrepreneurial ratio means more safety. Other Doctors appreciate the flexibility: As an employee, you can also engage in part – time and the management of large-scale practice will make someone else.