As business advisors serving Ohio’s dental community, we’re seeing a significant shift in how dental practices will operate and grow, thanks to recent legislative changes. Senate Bill 40, signed into law by Governor Mike DeWine, introduces two game-changing reforms that will impact practice management and professional mobility.
Insurance Reform: Taking Control of Non-Covered Services
Starting January 1, 2025, dental practices will gain more autonomy in setting fees for services not covered by insurance providers. This fundamental change addresses a long-standing challenge where insurance companies could dictate fees for services they didn’t even cover – a practice that created operational challenges for many dental offices.
What does this mean for your practice?
- Greater control over your fee structure for non-covered services
- Enhanced ability to establish fair pricing based on your practice’s unique market and operational costs
- Improved financial planning capabilities with more predictable revenue streams
- Better alignment between your services and patient needs, without third-party interference
Practice Mobility: Breaking Down State Barriers
The second major component of SB40 positions Ohio as the tenth state to join the Dentist and Dental Hygienist Licensure Compact. This interstate agreement represents a significant opportunity for practice growth and talent acquisition.
Key benefits of the compact include:
- Streamlined licensing processes for multi-state practices
- Enhanced ability to attract qualified professionals from other participating states
- Improved flexibility for expanding or relocating practices
- Reduced administrative burden for dental professionals moving across state lines
Strategic Planning Considerations
As your business advisors, we recommend dental practice owners consider several strategic moves in response to these changes:
- Review Your Fee Structure: Take time to evaluate your current pricing for non-covered services and develop a strategy for potential adjustments once the law takes effect.
- Assess Growth Opportunities: Consider whether multi-state practice expansion might align with your long-term business goals, given the new licensing flexibility.
- Update Business Plans: Factor these legislative changes into your strategic planning, particularly regarding staffing and expansion decisions.
Looking Ahead
These legislative changes reflect broader trends in healthcare toward increased provider autonomy and practice mobility. As the dental industry continues to evolve, staying informed and adaptable will be key to maintaining a successful practice.
At Rea, we’re committed to helping dental practices navigate these changes successfully. Whether you’re considering expanding your practice across state lines or restructuring your service pricing, our advisory team can help you make informed decisions that align with your practice’s goals.
By Annie Yoder (New Philadelphia)
This article is provided for informational purposes only and should not be construed as legal advice. For specific guidance regarding Senate Bill 40 and its impact on your practice, please consult with qualified legal counsel.