Continued consolidation within the dental industry has led to increased scrutiny of DSOs, leading organizations to carefully examine their operations, according to Barry Lyon, DDS.
Barry Lyon, DDS, director of provider recruiting and onboarding at Dental Care Alliance, recently spoke with Becker’s about how state board expectations have influenced the DSO field.
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:
Twenty-five years ago there were approximately 100 DSOs in the US, while today the count is closer to 3,100. As the number of DSOs grew, scrutiny from state dental boards followed.
Dental boards have two main functions: license dental professionals and protect the public from the harm caused by those it licensed. As it pertains to DSOs, boards want to be certain that licensed dentists — not corporate entities — control clinical decision-making. The focus therefore is on oversight of the corporate practice of dentistry, fee-splitting issues and management service agreements. Cross that line, and dental boards will step in.
Another concern among dental boards is private equity having corporate influence over dental care. This has spurred some state dental boards, acting in concert with state dental societies, to attempt to enact legislation to regulate DSOs. Many boards have expanded definitions of what constitutes clinical control, tightened advertising and billing rules, and increased scrutiny of contractual relationships between dentists and management entities. In 2014, there was an all-out push in Maryland by the legislature, supported by the dental board and the state dental association, to impact how DSOs functioned. The effort went on for three years and ended with a Pyrrhic victory by the board that simply resulted in refining the definition of the practice of dentistry.
Today, there is coexistence between DSOs and dental boards. Boards have set the ground rules while DSOs have learned that transparency, a robust compliance program and avoiding any perception of clinical influence, is necessary for continued success in the industry.
At the Becker's 5th Annual Future of Dentistry Roundtable, taking place September 14-15 in Chicago, dental leaders and executives will gain insights into emerging technologies, practice growth strategies and the evolving landscape of dental care delivery, with a focus on innovation, patient experience and operational excellence. Apply for complimentary registration now.
