Stevens Point-based Delta Dental of Wisconsin’s recent acquisition of Madison, Wis.-based DSO Cherry Tree Dental could violate federal antitrust laws, the American Economic Liberties Project and the Alliance of Independent Dentists said in an Aug. 21 news release.
Delta Dental of Wisconsin said last month that it purchased Cherry Tree Dental, sparking concerns of conflicts of interest within the dental community.
In an email sent to providers, Delta Dental said Cherry Tree, which has locations in Wisconsin, Illinois, Michigan and Minnesota, will operate as a separate company and the two organizations will have separate leadership structures.
The American Dental Association said it is looking into the potential legal and regulatory implications of the deal, while the Wisconsin Dental Association recently asked the state’s Department of Justice to monitor the insurer’s acquisitions in Wisconsin.
The American Economic Liberties Project and the Alliance of Independent Dentists wrote a letter addressing their concerns earlier this month to the U.S. Department of Justice’s Antitrust Division, the Federal Trade Commission and Wisconsin Attorney General Josh Kaul.
The letter asked them to investigate the acquisition and states that the deal may violate Section 7 of the Clayton Act, which prohibits mergers and acquisitions that could reduce competition. Both groups also allege that the acquisition goes against merger guidelines set by the Justice Department’s ATR Division and the FTC in 2023.
“Insurers acquiring or affiliating with providers is a common occurrence across the healthcare landscape,” a Delta Dental spokesperson told Becker’s. “Delta Dental of Wisconsin is, and always has been, committed to adhering to all applicable laws, and to improving oral health and access to oral health care for all Wisconsinites.”
