Delta Dental of Wisconsin’s recent purchase of Madison, Wis.-based Cherry Tree Dental, has sparked debate and concern within the dental community.
In an email sent to providers, Delta Dental of Wisconsin, which has several locations in Wisconsin, Illinois, Michigan and Minnesota, said Cherry Tree Dental will operate as a separate company and the two organizations will have separate leadership structures.
The insurer’s primary motivation for the acquisition was to ensure dental care access in rural parts of the state.
“While the number of dentists in Wisconsin has been relatively stable, the geography of where those providers are practicing has shifted. This has created a dynamic where there are some access challenges in our state,” a Delta Dental of Wisconsin spokesperson told Becker’s. “If nothing is done other than to preserve the status quo, we believe access could be a bigger challenge over time. Delta Dental of Wisconsin is a mission-driven organization focused on improving oral and overall health and part of that includes helping maintain access to care in the state. We believe that an improved connection between providers and Delta Dental of Wisconsin will best position the dental industry to continue responding to the needs of Wisconsinites.”
However, dental providers are wondering what such acquisitions can mean for patient care and the future of dentistry. The American Dental Association shared that it was concerned about a potential conflict of interest with an insurer being both the provider and payer. The organization is currently looking into the potential legal and regulatory implications of the deal.
Delta Dental told Becker’s that Cherry Tree Dental practices will not be required to participate in its insurance network, and that Delta Dental will not be a part of any clinical decisions. Delta Dental will also not be part of reimbursement negotiations with other carriers.
Delta Dental added that while insurer acquisitions of practices may be new for dentistry, they are not for the overall healthcare field. The insurer said it will adhere to current rules governing interactions between insurers and provider operations.
“Decisions about operations, including insurance participation, will continue to be made by Cherry Tree Dental’s leadership,” the spokesperson said. “Cherry Tree Dental offices will remain part of a broad range of insurance networks.”
However, Nels Ewoldsen, DDS, told Becker’s that the acquisition does little to improve access to care.
“Clearly, the move puts Delta Dental in a better position to control costs while moving their members a little farther from patient-centered care,” he said. “Ultimately, practice ownership will increase Delta Dental’s provider numbers, assuming they find folks who’ll work there.”
Krista Kappus, DDS, agreed that the deal raises ethical and operational concerns, telling Becker’s that such deals could lead to clinical decisions being made to serve an insurer’s financial interests. This would negatively affect public trust in the dental profession, she added.
“This creates a dangerous precedent. When the same entity responsible for paying for care is also delivering it, the priority often shifts from patient health to financial efficiency,” she said. “Delta now has every incentive to run these offices in a way that maximizes profit, which could mean recommending treatment based on cost rather than clinical need, underpaying staff, and creating a tiered system where Delta patients receive lower-quality care in understaffed or overburdened environments.”
