Dental insurer’s acquisition of dental practices raises concerns
A news report by WBAY in Green Bay, Wisconsin, highlights concerns raised by Delta Dental of Wisconsin’s recent acquisition of a group of practices known as Cherry Tree Dental.
Both the American Dental Association and the Wisconsin Dental Association spoke out against the purchase in a statement, saying it “raises deep concerns and important questions about the impact to dental professionals and patients, particularly if these types of acquisitions increase nationwide.” Their core concern centers on the potential conflict of interest when an insurance company becomes both the payer and the provider of dental care, according to the statement.
There’s nothing illegal about the sale under Wisconsin law, according to the news report. However, it’s the first time a sale like this has occurred in the U.S., Wisconsin Dental Association Executive Director Mark Paget told the outlet. Wisconsin is one of only nine states that allow for a dental clinic to be owned by someone without a dental license.
Mr. Paget sent a letter to the Wisconsin Department of Justice, requesting more oversight for transactions like this, and plans to send a letter to the Office of the Commissioner of Insurance.
An Office of the Commissioner of Insurance spokesperson told WBAY that the transaction doesn’t require its approval, but state law does require the office to approve Delta Dental Group’s reorganization plan and hold a public hearing.
In a statement, Delta Dental of Wisconsin said its filing with the Office of the Commissioner of Insurance involves establishing a holding company as its parent entity. A number of states have proposed bills allowing for the formation of similar holding companies, which the ADA continues to track.
Once the office completes its review, it will post a public notice and conduct the hearing.
Read more: WBAY
The article presented here is intended to inform you about the broader media perspective on dentistry, regardless of its alignment with the ADA's stance. It is important to note that publication of an article does not imply the ADA's endorsement, agreement, or promotion of its content.