Colo. stays rule reshaping DSO ownership

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The Colorado Dental Board voted on August 24 to temporarily block enforcing Rule 1.7, which affects dental service organization (DSO) ownership. The decision drew praise from the Association of Dental Support Organizations (ADSO), according to a press release dated August 25 from ADSO. 

The dental board’s decision comes about a month after it was sued by ADSO, which claims the rule threatens patient access, specifically for Medicaid patients. The ADSO is asking the Colorado Court of Appeals to set aside the changes to the rule.

“We applaud the dental board’s decision to stay Rule 1.7,” ADSO CEO Andrew Smith said in the press release. “This much-needed pause will allow the courts to consider the rule’s validity and give the Board time to work with Colorado dentists and patients to ensure any final rule protects access to care without imposing undue compliance burdens on the practices working to provide it.”

In July, ADSO sued the board, challenging changes made to Colorado’s Dental Practice Act Sunset bill (SB25-194), which went into effect June 30, claiming the updated rule imposes new restrictions on dentist-DSO relationships and creates compliance challenges and uncertainties for dentists, provider networks, and DSOs.

Rule 1.7 changes prohibit DSOs from leasing office space and equipment to supported practices, subject dentists and hygienists to potential board discipline if they practice in certain DSO-supported settings, and it requires disclosure of financial and business records.

The ADSO contends that the rule changes are especially problematic as the dental Medicaid program continues to be underfunded in Colorado and across the U.S. DSO-supported practices often are in counties with lower-income households, according to the release.