Independent Dental Practice Act Draws a Line in the Sand Against Corporate Dentistry

Accelerating consolidation in dentistry has prompted a new policy response designed to preserve clinical independence and protect patient care. The American Economic Liberties Project, an anti-monopoly, nonpartisan organization, has released model state legislation titled the Independent Dental Practice Act, offering lawmakers a framework to reinforce corporate practice of dentistry laws and close loopholes that allow indirect corporate control.

The proposal arrives amid mounting concern over vertical integration in the dental sector, highlighted by the acquisition of Delta Dental of Wisconsin by Cherry Tree Dental, a private equity–backed dental support organization (DSO). The transaction marked the first instance in Wisconsin of a dental insurer purchasing a provider organization, intensifying debate about conflicts of interest, reimbursement pressure, and market concentration.

While most states maintain corporate practice of dentistry statutes, the model legislation targets “friendly dentist” arrangements and restrictive management agreements that permit insurers, DSOs, and private equity firms to exert de facto control. The framework strengthens prohibitions on non-dentist ownership; restricts transfer of control over staffing, scheduling, billing, coding, pricing, and payer contracting; and voids most noncompete clauses affecting dentists. It also introduces advance notice requirements for material change transactions, increasing transparency around acquisitions and ownership transfers.

As consolidation continues reshaping the marketplace, the Independent Dental Practice Act positions state policymakers to reassert boundaries between clinical decision-making and corporate influence, an issue likely to define the next chapter of dental practice governance. Click here to read more.