Private Equity Dental Services Organizations: Corporate Practice of Medicine, Fee-Splitting, Regulatory Compliance

Private equity growth in the U.S. continues to be driven by healthcare. 2018 healthcare private equity activity surpassed 2017 by over 21%. Opportunities for growth continue, including in dentistry.

DSOs provide private equity firms an alternative means of investing and participating in the healthcare sector where legal and business hurdles present themselves, but the investment is not without risk. Counsel must thoroughly understand services that are provided and the terms in the DSO agreement.

Counsel must consider several factors unique to healthcare when structuring private equity DSOs, including the corporate practice of medicine and fee-splitting rules and prohibitions, as well as Anti-Kickback Statute and other regulatory compliance requirements. How the DSO is structured will often turn on the jurisdiction's laws regarding the corporate practice of dentistry.

Listen as our authoritative panel of healthcare counsel examines the nuts and bolts of structuring healthcare private equity DSOs. The panel will explain considerations for both the private equity group and the dental practice, and the unique compliance risks presented by DSOs for private equity investors. The panel will outline guidance for counsel to address healthcare regulatory issues in private equity DSOs.

1. Factors when considering DSO investment with providers
2. Structuring DSOs with private equity
   1. Corporate practice of medicine
   2. Fee arrangements
3. Regulatory issues
4. Best practices

The panel will review these and other key issues:

• What factors contribute to private equity firms and dental practices considering and entering into DSO arrangements?
• What are the critical factors for counsel in structuring DSOs?
• What are best practices for counsel to ensure regulatory compliance in a private equity DSO?