Forbes reported:
SmileDirectClub shut down operations last Friday, leaving patients confused about the future of their dental health—and their payment plans—but the company advised customers to seek future care from local dentists, continue making payments for their treatments and said the status of refunds is still in limbo.
Surprised? Private equity underwriter Clayton, Dubilier and Rice wasn't. CDR trimmed their SmileDirect stake beginning with the company's IPO.
Nashville Post reported on CDR selling its remaining stakes:
A New York-based investment firm that in 2021 was SmileDirectClub’s largest institutional shareholder has dumped the remainder of its holdings in the Nashville-based dental company.
PEU ownership seems bad for dental care. The Carlyle Group bankrupted Church Street Dental and now CDR backed SmileDirectClub produced lots of frowns.
A U.S. Senate Committee may wish to broaden the scope of their inquiry into damage done by PEUs in the healthcare arena.
I don't expect them to given politicians have been an accommodating lot for the greed and leverage boys. Politicians Red and Blue love PEU and increasingly, more are one.
