Update on Rules for Practice Ownership

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Recently Amended Rules Halted

High Level Summary:

In April, the Colorado Dental Board adopted several new and amended rules in various sections of the Colorado Dental Regulations. Significant changes were made to Section 1.7, pertaining to ownership requirements for dental practices.

Last night (Aug. 24), the Colorado Dental Board held an emergency meeting and voted to halt the implementation of Sections D and E of Rule 1.7 that pertain to proprietorship and dental service organizations (DSOs).

Details:

Please read the following timeline for more details on this process and the rules that were halted for implementation.

April 30:

  • The Colorado Dental Board held a rulemaking hearing to adopt several amended regulations pertaining to the 2025 Dental Sunset Bill, and also considered amended regulations separate from the Sunset Bill that pertained to practice ownership in Rule 1.7.
  • The Colorado Dental Board proposed amended regulations to define Colorado laws on dental practice proprietorship, and specifically how it applies to DSOs. The Colorado Dental Practice Act (state laws governing dentistry) states that only a dentist licensed to practice dentistry in Colorado may be the proprietor of a dental practice in Colorado (and only a licensed dentist or licensed dental hygienist may be the proprietor of a dental hygiene practice).
  • The proposed rules (full version can be read here) to define this statute included:
  • Only a dentist may have any ownership interest in a dental practice and only a dentist or dental hygienist may have any ownership interest in a dental hygiene practice (unless operating under an exception provided in law for nonprofit organizations or local governments).
  • A licensee who practices in a dental practice where the proprietor is not a licensed dentist (or dental hygienist, for dental hygiene practices) is subject to disciplinary action by the Board.
  • A Dental Service Organization (DSO) may not serve as the proprietor of a dental or dental hygiene practice.
  • A licensee who practices in a practice where the DSO acts as a proprietor may be subject to disciplinary action by the Board.
  • A licensee is permitted to use the services of a DSO as long as the DSO does not exert influence over clinical decisions or professional judgement, the licensee reviews all procedures billed for accuracy, the licensee retains the ability to alter patient accounts if errors are discovered, and the licensee has immediate access to all patient records for treated patients.
  • An entity that owns a physical building and leases/rents a space to a dental practice is not considered a proprietor as long as the entity does not also lease or provide dental materials or equipment to the practice.
  • At the hearing, the Association of Dental Service Organizations (ADSO) opposed the proposed amended regulations in rule 1.7 pertaining to specific ownership restrictions.
  • At the end of the hearing, the Colorado Dental Board voted unanimously in favor of adopting the amended regulations.

June 30

  • The adopted regulations went into effect at the end of June.

July 16

  • ADSO filed an appeal and petition for judicial review of the amended regulation in Rule 1.7 with the Colorado Court of Appeals. ADSO also requested that the Colorado Dental Board issue a “stay” of the new regulations (this would put a halt on the specific sections of the new regulations), until the Colorado Court of Appeals makes a ruling.

August 24

  • In response to this request for a “stay” of the amended regulation, the Colorado Dental Board called for an emergency meeting.
  • The Colorado Dental Board voted unanimously in favor of granting the request for a “stay,” until such time that the Colorado Court of Appeals has made a ruling.

The decision made by the Colorado Dental Board applies only to Sections D & E of Rule 1.7. This means that those specific sections, D & E, are NOT in effect at this time, and will instead be paused until a ruling is made by the Colorado Court of Appeals.

The Colorado Dental Board was clear that they still operate in accordance with state laws governing dentistry, and that this stay of Rule 1.7, Sections D & E, does not halt any current or further investigations concerning the unlicensed practice of dentistry or any other violation of the Dental Practice Act.