The private equity firm, FFL, who owns Kool Smiles Dental and Resolution Dental is moving away from opening their own clinics and moving toward the Heartland Dental business model—what I call the F & S business model. (S for suck, so you can figure out what the F stands for).
F & S Business Model - This is where they come in, offer practice owners an unrealistic amount for their established practice, put the current owner and staff under employment contracts, then set unrealistic income quota’s that forces dentists and staff to make decisions not necessarily good for the patient. See A peek under the sheets of Heartland Dental
Rumors last years indicated Kool Smiles Dental had their highly questionable but lucrative Medicaid income stream reduced significantly due to what was apparently questionable dental treatment and billing practices. In 2013 they began switching many of their practices to Resolution Dental.
Now, they want to purchase already established dental centers. I’m sure this is a much faster way to increase the dwindling revenues.
They want locations “not in the hood” and are offering a “fast and furious” “too good to be true” amount cash for said locations. They want dentists willing to sign restrictive 2 years employment contracts, which will no doubt include a stiff penalties, especially for disparagement of the company. They also offer bribe your staff to stay on, but make no promises.
Ok, that’s not what they say on their website, but it’s my interpretation. You can make your own. Here is what it says on their website:
With flexible terms and cash-based transactions, we can arrange an attractive and timely transition for your successful practice.
- Committed and high quality dentists who have built a great team around themselves
- Locations in attractive communities with continued growth opportunity
- Dentists willing to transition with the practice for at least two years
We know a good team is worth keeping. That's why we will strive to retain and reward your staff by supporting your compensation model, and supplement it with attractive benefits packages. Could you use some additional free time? Contact us to discuss what support services we can offer. We can free you up to enjoy more time with your patients and family.
We offer attractive compensation options for you, both during and after your practice transition. Our benefits package for dentists includes paid time off, 401K with company match, professional liability insurance, and reimbursement for licenses and continuing education.
Our due diligence process allows us to get to know each other and has three objectives:
- Assure your team would be a good fit with our compliance oriented culture and hands-off approach
- Determine the fair value for your practice; and
- Create a comprehensive transition plan to ensure a successful transition for you and your staff.
We know there is a lot to consider before any practice transition. We are flexible and are here to discuss options with you. Simply fill in this form to get started. One of our practice affiliation experts will be in touch with you shortly.
NCDR, (National Children’s Dental Research) is the so called “management” company that FFL partners uses to crack the whip on dentists and support employees at the dental clinics.
(other than creative cash flow, I’ve never found out exactly what they are “researching”.)
FFL Current Investments: