Should Wall Street Decide The Direction of Dentistry?

DAG CEO
Mar 4
4 min read

In 2025, Dental Service Organizations (DSOs) are projected to experience a remarkable growth rate, capturing an impressive percentage of market share within the dental industry. Dentistry viewed as an investment with the hopes of striking it rich, instead of a profession rooted in compassion and clinical excellence is a slippery slope.

The rise of the VC backed Dental Support Organizations (DSOs) has significantly transformed the dental industry, leading to increased concerns about malpractice suits. As DSOs expand, integrating numerous dental practices under centralized management, several factors have emerged that may contribute to a higher incidence of legal issues:

Corporate Practice Violations

The involvement of DSOs in the operational aspects of dental practices has sparked debates about potential violations of the corporate practice of dentistry doctrines. These legal frameworks prohibit corporations from practicing dentistry or employing dentists to provide clinical services. Some experts predict that the growing presence of DSOs could lead to more litigation concerning these violations. For instance, a legal note in the DePaul Journal of Health Care Law suggests that increased DSO involvement may result in more legal disputes related to corporate practice laws.

Profit-Driven Practices and Patient Care Concerns

The substantial investment of private equity firms in DSOs raises concerns about prioritizing profits over patient care. Critics argue that this focus may lead to practices such as overtreatment, misleading advertising, and Medicaid fraud. Such actions not only harm patients but also expose DSOs to legal actions. A report by the Private Equity Stakeholder Project highlights these risks associated with private equity involvement in DSOs.

Increased Malpractice Claims

There is evidence suggesting that dental specialists, including those affiliated with DSOs, are facing a higher frequency of malpractice claims. Factors contributing to this trend include complex corporate structures, potential conflicts of interest, and centralized decision-making that may overlook individual patient needs. An article from McKenna Law discusses the rising number of malpractice suits against dental specialists, emphasizing the challenges and financial implications for practitioners.

In summary, while DSOs offer efficiencies and growth opportunities within the dental sector, their influence may also contribute to an environment where malpractice suits become more prevalent. This underscores the importance for dental professionals and organizations to remain vigilant about legal compliance, prioritize patient-centered care, and implement robust risk management strategies to mitigate potential legal risks.

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