A landmark deal in Wisconsin has garnered national attention for its potential impact on the future of dental care.
Insurance company Delta Dental has acquired Cherry Tree Dental, a Madison-based dental practice chain with several locations in northeastern Wisconsin.
The deal, billed as the first of its kind in the United States, sparked strong opposition from the Wisconsin Dental Association (WDA) and the American Dental Association (ADA).
Both organizations believe the acquisition could create a conflict of interest, raising concerns that treatment recommendations may prioritize cost savings for insurers over optimal care for patients.
In a statement, the ADA emphasized that it is closely monitoring developments and seeking clarification from Delta Dental Wisconsin. The association also noted that it is reviewing potential legal and regulatory implications.
“When insurers act as both providers and payers, there is a significant risk of conflicts of interest,” the ADA stated, adding that patients’ best interests are best served when dental practices are owned and controlled by licensed dentists.
Cherry Tree Dental currently operates in four states, with the majority of its locations in Wisconsin, including clinics under various names in Ashwaburn, Menasha, and Oshkosh.
While the acquisition is legal under Wisconsin law, it has caused considerable unease within the dental community.
“This is unprecedented not only in Wisconsin, but throughout the United States,” said Mark Paget, Executive Director of the WDA, who called for increased regulation of such transactions. He recently sent a letter to the state Department of Justice and plans to contact the Office of the Commissioner of Insurance (OCI).
According to the OCI, the transaction does not require direct OCI approval, but Delta Dental’s restructuring plan will require a public hearing and regulatory review before moving forward. Wisconsin is one of only nine states that allows non-dentists to own dental practices.
In a statement, Delta Dental Wisconsin defended the acquisition, saying it aims to improve access to oral health care.
The organization argues that while the number of dentists in Wisconsin remains stable, changes in their practice locations have created access difficulties, particularly in underserved areas.
Delta Dental stated that its nonprofit holding company structure will enable it to continue its mission of expanding access to care statewide.
While the concept of insurance companies owning dental practices is relatively new in dentistry, similar ownership structures exist in the broader healthcare industry, where they are already regulated.
Delta Dental stated that it plans to comply with all laws applicable to insurer-healthcare relationships.
The Wisconsin Department of Justice has not yet commented on this matter.