Earlier this month, the Federal Trade Commission issued a complaint against the three largest dental distributors in the country: Henry Schein (HSIC), Patterson (PDCO), and Benco (the “Big 3”). The complaint alleges that the three dental distributors systematically boycotted buying groups. If true, the Big 3 have been forcing smaller dental practices to pay higher prices for supplies, despite the practices’ ability to band together to negotiate. In contrast, the large distributors have been negotiating with corporate dental customers, potentially giving an unfair advantage to Dental Service Organizations.
According to the FTC document: