Model legislation introduced outlawing DSOs: 6 things to know

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The American Economic Liberties Project has released model legislation that would strengthen corporate practice of dentistry laws, according to a Dec. 18 news release from the organization. 

Here are six things to know:

  1. All but five states have laws that attempt to restrict the corporate practice of dentistry but there are a number of loopholes and workarounds, such as DSOs. 
  2. The state laws are meant to stop non-dentists from owning or controlling dental practices in order to maintain clinical autonomy. 
  3. In some cases, the dentist who partners with a DSO remains the legal owner of the practice, but the DSO takes over operational control over finances, staffing and strategic decisions. 
  4. In 2005, 85% of dentists in the U.S. were practice owners, compared to 73% in 2023. 
  5. There were at least 161 private equity deals in the dental industry in 2024, the most of any healthcare sector. 
  6. The model legislation not only prohibits non-dentists from owning practices, but bans common workarounds including DSOs. 

Read the full model legislation here.

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