North Carolina drops pre-approval requirement for DSO agreements

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North Carolina has ended a prior requirement for DSOs and dental practices to submit management agreements to the state dental board under Session Law 2026-41, enacted July 7, according to a July 10 article from the Holland & Knight law firm.

Previously, management agreements needed approval from the North Carolina State Board of Dental Examiners or a deemed compliance letter. The process of gaining board approval often delayed deals and increased costs for both DSOs and dental practices. 

The dental board retains the authority to investigate management agreements, review underlying agreements and enforce the Dental Practice Act. Requirements that govern written agreements, compensation structures and clinical autonomy remain in place. 

Some states, such as Illinois and Maine, have recently increased oversight and reporting requirements for transactions involving DSOs and other healthcare entities. 

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