Dentists and clinical organizations are continuing to voice their disapproval of Delta Dental of Wisconsin’s recent acquisition of Cherry Tree Dental.
Delta Dental of Wisconsin announced in July that it purchased Cherry Tree Dental. In an email sent to providers, Delta Dental said Cherry Tree, which has locations in Wisconsin, Illinois, Michigan and Minnesota, will operate as a separate company and the two organizations will have separate leadership structures. Despite this, the acquisition has sparked concerns of conflicts of interest within the dental community.
Here are six updates that have taken place since the acquisition:
1. The American Dental Association announced in July that it was looking into any potential legal and regulatory implications of the acquisition. The ADA expressed concerns about a potential conflict of interest with a dental insurer being both the healthcare provider and insurance payer. Due to the tendency for dental insurers to maximize profit, the ADA also said it is concerned that patients may have limited treatment options to fit what is most cost-effective to the insurance company.
2. The Wisconsin Dental Association sent a letter to the state Department of Justice in August, asking the department to closely watch over Delta Dental of Wisconsin’s acquisition of dental practices in the state. The WDA shared its concerns about potential conflicts of interests that could impact patient care. The organization also said it is worried patient treatment options may be decided by what is more cost effective for Delta Dental of Wisconsin rather than by what is clinically best for the patient’s oral health.
3. The American Economic Liberties Project and the Alliance of Independent Dentists wrote a letter to the U.S. Department of Justice’s Antitrust Division, the Federal Trade Commission and Wisconsin Attorney General Josh Kaul. The letter asked for an investigation into the acquisition and states that the deal may violate Section 7 of the Clayton Act, which prohibits mergers and acquisitions that could reduce competition. Both groups also allege that the acquisition goes against merger guidelines set by the Justice Department’s ATR Division and the FTC in 2023.
4. The ADA submitted comments Sept. 15 in response to the Justice Department’s request for information on state laws that could have a negative impact on the economy or interstate commerce. The ADA pointed to state regulations it said prevent competition among insurers, including territorial limitations, barriers to provider participation and other contractual provisions. It also shared concerns over practice acquisitions by insurance companies, citing Delta Dental of Wisconsin’s purchase of Cherry Tree Dental.
5. A public hearing was held by the Wisconsin Office of the Commissioner of Insurance in October to discuss internal restructuring planned by Delta Dental of Wisconsin that requires the department’s approval. During the meeting, Christian Marsh, DDS, raised concerns about monopolization of the insurance industry. Mark Paget, the executive director of the Wisconsin Dental Association, also raised concerns about patient care and provider independence.
6. Earlier this month, the ADA asked the Wisconsin Office of the Commissioner of Insurance to evaluate the impact of the acquisition before giving it approval. ADA leaders filed a letter with the commissioner’s office opposing the acquisition, citing potential conflicts of interest, patient care concerns, and concerns about market competition and access to proprietary information.
