Association claims Delta Dental of Wisconsin’s recent acquisition of Cherry Tree Dental could create a conflict of interest.
Earlier this month, the American Dental Association (ADA) issued a statement sharing concerns about dental insurance companies buying dental practices.
In the statement, the ADA said Delta Dental of Wisconsin’s recent acquisition of Cherry Tree Dental—a leading general dentistry provider and dental service organization (DSO) in the Midwest—could create a conflict of interest. The ADA, along with the Wisconsin Dental Association, believes this development raises deep concerns and important questions about the impact to dental professionals and patients, particularly if these types of acquisitions increase nationwide.
The ADA is actively reaching out to Delta Dental of Wisconsin to gain a clearer understanding of the nature and scope of this transaction. In parallel, the association stated it is assessing any potential legal and regulatory implications that may arise from this acquisition.
When an insurance company becomes both health care provider and insurance payer, questions arise regarding potential conflict of interest, the ADA said in a press release. From a business standpoint, dental insurance companies seek to minimize cost and maximize profit. As a result, patients may find their treatment options limited to what is most cost-effective for the insurer, not necessarily what is most effective for their oral health. The ADA added that it believes that the health interests of patients are best protected when dental practices and other private facilities for the delivery of dental care are owned and controlled by a dentist licensed in the jurisdiction where the practice is located.
The ADA remains committed to advocating for a fair environment in which all dentists, whether employed or practice owner, can thrive. Its priority is to ensure that dentists can continue to practice with autonomy and integrity, and that the patients they serve receive the highest standard of care.
Current ADA Policies
The following ADA policies were adopted by the ADA House of Delegates.
Ownership of Dental Practices (Trans.2000:462)
- Resolved, that the Association supports the conviction long held by society that the health interests of patients are best protected when dental practices and other private facilities for the delivery of dental care are owned and controlled by a dentist licensed in the jurisdiction where the practice is located.
Regulating Non-Dentist Owners of Dental Practices (Trans.2011:491; 2019:255)
- Resolved, that in order to protect the oral health and safety of patients, and to ensure their continuity of care, the ADA urge and assist constituent societies to advocate for the regulation of entities that provide dental services but are owned or controlled by non-dentists, non-dentist corporations, or dentists not licensed in that state, and be it further
- Resolved, that licensing and state authorities be urged to establish regulations which hold entities providing dental services that are owned by non-dentists, non-dentist corporations, or dentists not licensed in that state to the same ethical and legal standards as those that are owned by state licensed dentists, and be it further
- Resolved, that any entity providing dental services should be required to register with their state dental licensing board and obtain a business license from the appropriate state agency as required by law.
The not-for-profit ADA is the nation’s largest dental association, representing 159,000 dentist members. The premier source of oral health information, the ADA has advocated for the public’s health and promoted the art and science of dentistry since 1859.
For more information, visit ADA.org.
