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State Dental practice acts: implications for competition

D A Conrad, M L Emerson

    Journal of Health Politics, Policy and Law
    |January 1, 1981
    PubMed
    Summary
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    State dental practice acts significantly impact the dental market. Regulations on advertising, scope of practice, and ownership influence dentist fees and income, affecting overall competition.

    Area of Science:

    • Health Policy
    • Health Economics
    • Dental Public Health

    Background:

    • State dental practice acts encompass regulations on advertising, scope of practice, and organizational structures.
    • These regulations may influence market competition and economic outcomes for dental providers.

    Purpose of the Study:

    • To analyze the impact of specific state dental practice act provisions on competition within the dental services market.
    • To investigate the relationship between regulatory restrictions and key economic indicators for dentists, such as fees and net income.

    Main Methods:

    • Empirical analysis of state dental practice act provisions, including advertising restraints, scope of practice limits, and ownership restrictions.
    • Statistical examination of the association between these provisions and dentists' fees and net incomes.

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    Main Results:

    • Limits on the number of offices per dentist and the absence of reciprocal licensing correlate with higher dental fees and net incomes.
    • Restrictions on the number of dental hygienists per dentist are linked to increased dental fees, but not net income.
    • Limitations on commercial advertising are associated with higher net incomes, independent of dental fees.

    Conclusions:

    • Dental practice act provisions have a demonstrable effect on market competition and economic outcomes in dentistry.
    • Changes in practice acts are both a driver and a consequence of shifts within the dental marketplace.
    • Policy implications for national health insurance and reimbursement strategies warrant further consideration.