Colorado Dental Board Promulgates Regulations on DSOs Effective January 1, 2027

The Colorado Dental Board (“Board”) recently adopted new regulations that explicitly allow dental services organizations (“DSOs”) to operate in the state. However, the Board also confirmed, among other things, that DSOs cannot hold the lease for any dental practice’s premises or own the equipment used at the dental practice. The practice itself must hold the lease and own the equipment. Below is a summary of new language adopted by the Board affecting DSO activity.

• DSOs may provide administrative, operational, and non-clinical support to dental practices, but cannot own or serve as “Proprietors” of dental or dental hygiene practices.[1]
• DSOs cannot lease real property to a dental practice.
• DSOs cannot provide any dental material or equipment to the dental practice used for providing dental services.
• Licensees practicing in noncompliant practices run by a DSO may be subject to disciplinary action.
• A DSO may provide business management services to dental practices so long as:
  • • The DSO does not influence the licensee’s professional judgment and clinical decisions;
    • The licensee has immediate access to all patient records for treated patients; and
    • The payment to the DSO is not an improper fee-sharing arrangement.
• A DSO may provide financial management services, including patient account administration, to dental practices so long as:
  • • The DSO does not interfere with professional judgment;
    • The licensee reviews the accuracy of all procedures billed; and
    • The licensee retains the ability to alter a patient account should an error be found.
• Only dentists may own dental practices, and only dentists or dental hygienists may own dental hygiene practices unless operating under statutory exceptions such as certain nonprofit organizations or political subdivisions.

The Board’s new regulations go into effect on January 1, 2027. These regulations confirm that DSOs in Colorado must thoroughly review their contractual arrangements and protocols with affiliated dental practices to ensure compliance with these requirements. The new regulations in Colorado are very similar to those in New Jersey. Dykema has assisted clients in complying with the New Jersey regulations for several years. If you would like legal counsel on whether your DSO or practice is compliant with such regulations, please contact Dykema as soon as possible.

Brian Colao

Zack Hoard

Dean Gould

David Ko

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[1] The term “Proprietors” includes any person or entity who employs licensees, owns a dental office, or owns the dental equipment used for providing dental services. Proprietors are considered to be practicing dentistry.