Dentists Concerned Over Recent Insurance Acquisition in Wisconsin

There’s a bit of unrest among dentists nationwide after a major dental insurance company in Wisconsin acquired over 30 dental practices in Madison.

Delta Dentistry in Wisconsin was purchased by Cherry Tree Dental about three weeks ago.

Many dental professionals believe this deal muddles the distinction between insurers and healthcare providers.

“When an insurance company functions as both a healthcare provider and an insurer, it raises questions about possible conflicts of interest,” a statement noted, as articulated by the American Dental Association.

“From a business standpoint, these dental insurance companies aim to cut costs and boost profits,” it continued. “This might restrict patients to treatment options that are cost-effective for insurers rather than those that are best for their oral health.”

Jed Roher, Chief Justice of Delta Dental in Wisconsin, mentioned that such arrangements are unusual within the dental sector but not unprecedented, as other healthcare providers have owned insurance companies before.

He pointed out that established guidelines already govern the interactions between insurers and providers.

“A key rule is that Cherry Tree Dental maintains its own leadership team, allowing it to make independent decisions regarding contracts and negotiate refunds,” Roher explained. “Delta Dentistry in Wisconsin isn’t privy to these discussions, and clinical decisions are made by the dentists along with their patients.”

According to Roher, Delta Dental’s acquisition was motivated by a desire to enhance access to rural dentists.

Cherry Tree Dental began in Madison back in 2006 as a family-operated practice and has expanded to 25 locations across Wisconsin, four in Illinois, and 25 in Michigan and Minnesota.

Most of its Wisconsin sites are situated in central areas, like Wausau, Eau Claire, La Crosse, and Green Bay.

Mark Paget, the executive director of the Wisconsin Dental Association, stated that the organization wasn’t fully aware of the acquisition beforehand and that the group’s 3,100 members are quite anxious about it.

Wisconsin is among fewer than a dozen states that don’t mandate dental offices to be owned by licensed dentists.

“It’s legal, but, well, we didn’t anticipate this happening,” Paget commented. “Now that it has, we’re keen to ensure it doesn’t affect the dynamic between patients and their dentists.”

Dr. Emily Eddahl, a dentist from Brookfield, admitted to being taken aback by the news.

Her concern lies in the belief that the new focus will shift away from patient care towards profit-making.

However, Eddahl also sees this as a chance for the dental community in Wisconsin to rethink the regulations surrounding ownership and practice.

“You know, if this is just 20 offices now, imagine if it grows to 2,000. That could significantly alter our entire dental community,” she remarked.

Paget remains skeptical about any legal changes but hopes for increased transparency moving forward.

“We need to ensure that there are adequate safeguards and transparent practices in place, so patient care isn’t compromised or dictated by the payer’s interests,” Paget expressed.