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Consolidation in the dental industry: a closer look at dental payers and providers

Author

Listed:
  • Kamyar Nasseh

    () (American Dental Association)

  • John R. Bowblis

    (Miami University)

  • Marko Vujicic

    (American Dental Association)

  • Sean Shenghsiu Huang

    (Georgetown University)

Abstract

We examine the effect of commercial dental insurance concentration on the size of dental practices, the decision of dentists to own a practice, and the choice of dentists to work at a dental management service organization—a type of corporate group practice that has become more prevalent in the United States in recent years. Using 2013–2015 dentist-level data from the American Dental Association, county-level data on firms and employment from the United States Census, and commercial dental insurance market concentration data from FAIR Health®, we find a modest effect of dental insurance market concentration on the size of dental practices. We also find that a higher level of commercial dental insurance market concentration is associated with a dentist’s decision not to own a practice. There is inconclusive evidence that higher levels of dental insurance market concentration impact a dentist’s decision to affiliate with a dental management service organization. Overall, our findings imply that dentists consolidate in response to increases in concentration among commercial dental insurers.

Suggested Citation

  • Kamyar Nasseh & John R. Bowblis & Marko Vujicic & Sean Shenghsiu Huang, 2020. "Consolidation in the dental industry: a closer look at dental payers and providers," International Journal of Health Economics and Management, Springer, vol. 20(2), pages 145-162, June.
  • Handle: RePEc:kap:ijhcfe:v:20:y:2020:i:2:d:10.1007_s10754-019-09274-x
    DOI: 10.1007/s10754-019-09274-x
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    References listed on IDEAS

    as
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 13th July 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-07-13 11:00:06

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    More about this item

    Keywords

    Dental insurance; Market structure; Dental care; Consolidation;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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