Federal policy changes under the Trump administration could have a larger impact on dental organizations, including DSOs.
Barry Lyon, DDS, director of provider recruiting and onboarding at Dental Care Alliance, recently spoke with Becker’s about how changes to Medicaid and the Affordable Care Act will impact dentistry.
Editor’s note: This Q&A is part of a weekly series featuring Dr. Lyon focused on topics in the dental industry and DSO field. The views expressed are those of Dr. Lyon and do not necessarily reflect those of Dental Care Alliance.
This response was lightly edited for clarity and length.
Dr. Barry Lyon: Whether we like it or not, the dental industry has been impacted by the Trump administration. Changes to Medicaid and the Affordable Care Act, the banning of fluoride from public water supplies, and the availability of student loans have touched the way the profession functions.
Historically, former President Lyndon Johnson is regarded as having the greatest positive impact on dentistry. Enacted in 1965 as part of the “War on Poverty,” Project Head Start provided comprehensive education, medical and dental care to low-income children, ensuring they received early intervention and preventive dental services before starting school. LBJ also established Medicaid, which offered dental coverage as part of health services for millions of low-income families. In contrast, the Trump administration’s One Big Beautiful Bill Act includes one trillion dollars in Medicaid cuts and will effectively lower the number of Americans eligible for Medicaid. For DSOs providing Medicaid dental services, this will have a measurable impact.
Mr. Trump’s changes to the Affordable Care Act include more stringent enrollment requirements and higher deductible plans that will result in more underinsured patients. Higher out-of-pocket costs may impact utilization of preventive care and lessen demand for elective dental procedures. Patients will likely give more thought to case presentations and select those options that reflect what they deem as their greater needs.
While Americans may be directly negatively impacted, DSOs will benefit from Trump’s actions. Corporate-friendly tax provisions and restored deductions will improve margins and free up capital for reinvestment. Smaller DSOs with their limited payer mixes and less efficient administrative infrastructure may have difficulty keeping up. Graduating dentists, who had difficulty obtaining student loans and are finding themselves in precarious financial straits, may gravitate to DSOs that offer them needed financial stability.
The fallout from the Trump administration’s policies will influence the direction dentistry follows in the coming years.
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