Dental Boards in the majority of states require that dental
practices be owned by a licensed dentist(s).
As the number of dental management companies (DMCs) has grown, the
question has arisen: Are these DMCs
actually the owners of these practices since they set fees, production goals,
etc? After a costly legal battle between
the NC State Board of Dental Examiners and a group of DMCS, the North Carolina legislature
voted to allow the NC Dental Board to oversee contracts between dentists and
DMCs. Though details of the oversight
process were not included in the bill, a six-member task force was appointed,
including two members from DMCs, to make recommendations concerning oversight
regulations by January 2013. One detail
that was in the initial bill was that DMC contracts must include a warning to
dentists to seek legal advice before signing a contract.
The conditions under which the NC Dental Board can oversee DMC
contracts should be finalized by spring 2013.
The legislation may well serve as a template for other states.
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