The Office of Fair Trading (OFT) is continuing its investigation into the working of healthcare markets by launching a review of the dentistry sector.
It said the market study will examine whether the private and NHS dentistry markets are working well for patients.
The OFT is already in the midst of reviewing the private healthcare market, from which it published interim results last month that suggested the market was ‘not working well for consumers'.
A recent COVER Breakfast Briefing sponsored by Denplan heard that many employees and employers are looking more readily at purchasing dental cash plans.
This is often due to the increasing difficulty in obtaining NHS treatment and soaring costs of private care that many people are reporting.
While not directly targeting dental cash plan providers, it is likely the market for these products could be significantly affected by any major recommendations made by the OFT.
The examination will focus on how dentistry services are sold, whether patients are given appropriate information to help them choose between dental practices, the types of treatments on offer and different payment methods in the context of both NHS and private dentistry.
It will also look at how easy it is to change dentists, and whether the current system for customer redress works.
The OFT said its study would also examine whether there are any unnecessary barriers to new practices entering either private or NHS funded markets, and consider the issue of professional restrictions on direct access to specialists or providers of auxiliary services, such as hygienists.
In 2010 the UK market for dental services was worth £7.2bn and the OFT said forecasts suggest this could grow to £8.2bn by 2014 with much of the growth coming from the private market.
"While the OFT recognises that the UK has some of the highest standards of oral care in the world, it wants to examine concerns raised by consumer bodies such as Which? that many patients are confused over dental treatments and prices," it added.
Sonya Branch, senior director for services, infrastructure and public markets at the OFT said: "Patients appear to be confused about the prices they are being charged and concerns have been raised that they may not be getting sufficient information or adequate choice over the dental treatments they receive.
"We also note that the costs of private dental treatment in England are among the highest in Europe.
"Given the current strains on people's finances, we think it is a good time to examine whether competition is working effectively to drive up the quality of private and NHS dental services and deliver better value for money for consumers," she added.
The OFT plans to complete the study by March.