Tuesday, February 21, 2012

Church Street Health Management Files for Bankruptcy With Plan for Sale - Bloomberg

I’m not really a betting person, but I’m guessing, the Small Smiles at Church Street Health Management are now down to wee little bitty smiles.  No, I’m sure they are down right frowns and have been for a while now. 
Want to take a guess where there is a ‘Big Smile” ? 
Maybe Interstate corporate dentistry is NOT exactly the investment Private Equity firms think it is! 
Read on…  documents related to the case at the end.
Church Street Health Management Files for Bankruptcy With Plan for Sale – Bloomberg
Church Street Health Management LLC and four affiliates, providers of management services to 67 dental centers, filed for bankruptcy as part of a plan to sell the businesses.
The companies had assets valued at $895.3 million and debt of $303.4 million, according to Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Nashville, Tennessee, where Church Street is based.
A sale in bankruptcy is the “best option to maximize the value of the assets for stakeholders and to safeguard the welfare of the patients,” Martin McGahan, Church Street’s chief restructuring officer, said in court papers.
Affiliates Small Smiles Holding Co., Forba NY LLC, EEHC Inc. and Forba Services Inc. also sought court protection from creditors. Small Smiles is the parent of a group of companies that provide management services to dental centers serving low- income families in 22 states.
The 20 largest unsecured creditors are owed about $21.1 million, according to court documents. National Association of Medicaid Fraud Control Units is the largest, owed about $10.7 million for a settlement. Twelve state Medicaid Fraud Control units are collectively owed about $6.2 million.
The case is In re Church Street Health Management LLC, 12-01573, U.S. Bankruptcy Court, Middle District of Tennessee (Nashville).
To contact the reporter on this story: Dawn McCarty in Wilmington at dmccarty@bloomberg.net
To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net
Related Documents:
Look for the true equity owners & investors in CSHM (The Carlyle Group, Arcapita Bank, & American Capital) to attempt to gain a 1st Lien in Bankruptcy Court. They purchased equity in CSHM in September, 2006. Their Representatives sat on the Board of CSHM for years, & were positioned to make appropriate decisions.

Look at the history of CSHM (d/b/a Small Smiles) w/ a long list of civil actions for malpractice, as well as a Settlement w/ the US Justice Department for $24 Mil, for alleged Medicaid fraud & abuses.

Look at the history of The Carlyle Group, w/ its Settlement for $20 Mil for alleged fraud over the NY State Common Retirement System. When you read the Release from former NY AG Cuomo, you'd think The Carlyle Group lead reform in the investment industry. LOL!

The Carlyle Group is no stranger to questionable investments involving alleged fraud of the US Taxpayer. Do a little checking into HCR ManorCare & Heartland (Nursing Home).

We establish social safety-net programs for our most vulnerable citizens, disadvantaged elderly & low-income children. We, US Taxpayers, foot the bill. Unfortunately, certain well-connected & influential in Washington circles, see the Taxpayer as a "Golden Goose".

Medicaid & Medicare scams are Big Business! They attract low-level scam artists, as well as well respected investment banking firms. The trick is to keep at "arm's length", for potential future liabilities. "We had no idea." "We weren't involved in the day-to-day operations." "What unfortunately happened comes as much of a shock to us, as it does to all of you."

These investment bankers are as transparent, as sheets at a $20 per night motel.
Michael W Davis, DDS