Delta Dental of Wisconsin’s recent acquisition of Cherry Tree Dental has led to a new wave of payer scrutiny in dentistry, with several providers and organizations calling for increased oversight to prevent vertical integration and conflicts of interest.
Delta Dental of Wisconsin announced in July that it purchased Cherry Tree Dental, a DSO with locations in Wisconsin, Illinois, Michigan and Minnesota. Delta Dental of Wisconsin said the company will operate separately with its own leadership structures, but the deal has still sparked concerns of conflicts of interest within the dental community.
Despite DDW arguing that the move improves access to care, some in the field have not been convinced.
“Clearly, the move puts Delta Dental in a better position to control costs while moving their members a little farther from patient-centered care,” Nels Ewoldsen, DDS, said. “Ultimately, practice ownership will increase Delta Dental’s provider numbers, assuming they find folks who’ll work there.”
Several dental organizations have voiced their opposition toward the deal, including the American Dental Association, the Wisconsin Dental Association and the Alliance of Independent Dentists.
The ADA announced shortly after the acquisition was announced that it was looking into any potential legal and regulatory implications of the acquisition. The organization also continues to advocate for increased oversight of payers this year, recently urging the Federal Trade Commission to investigate competition within the dental insurance market.
The FTC launched the Healthcare Task Force in March to enhance regulation enforcement and oversight of anticompetitive behavior in healthcare in order to protect consumers.
The ADA shared specific concerns related to large market concentration with the task force, and asked members to more closely examine vertical integration among dental insurers.
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