Business Service Agreements: A Tool for Deception within the Corporate Dental Support Industry

Business Service Agreements: A Tool for Deception within the Corporate Dental Support Industry
By Michael W. Davis, DDS

Business Service Agreements (BSAs), also called Business Service Contracts or Management Service Agreements (MSAs), are a tool created by the dental support industry (a/k/a dental support organizations) to mask their true business operational models. These contracts are generated between the unlicensed ownership (corporate beneficial owner) and the sham figurehead owner (nominee owner dentist(s)).
These agreements contain a variety of misrepresentations specifically designed to circumvent the rule of law. These BSAs serve as a lynchpin supporting the unlawful house of cards, of largely unlicensed and unregulated healthcare entities. Please note: the term “dental support organization” is also an intentional misrepresentation, to mask beneficial ownership.
Case precedent was established in federal Fifth Circuit ruling 07-30430)¹., in which the court determined a Dental Support (Service) Organization (DSO), Orthodontic Centers of America (beneficial owner of dental clinics), was engaged in the unlicensed and unlawful practice of dentistry. The court also ruled the business agreements with so-called “owner” dentists were unenforceable and non-severable (denying one part could be enforced while another could not), because elements in these contracts were unlawful, the entire contract was rendered unenforceable.
Nationally, every DSO has created different BSAs. And, within different states, different DSOs will produce different agreements. However, there exist common features worth examination in the vast majority of these contracts.

Dental Clinic Ownership
The DSO generally will deny ownership of the dental practice. Yet, the DSO usually owns the facility or is the landlord on the lease agreement. The DSO owns the dental equipment, supplies, and any possible leasehold improvements.
The DSO enjoys contract rights to control what dentists or entity may be artificially designated as “owners”. An owner dentist(s) may not freely sell “their” asset of a dental practice, and thus are merely façade nominee owners. The DSO controls the bank accounts of the “owners’” clinic bank accounts, which are swept out several times per week, or daily. These are central points in the lawsuit against Dental One Partners, DentalWorks, et al, by 14 duly licensed North Carolina dentists enjoined by the North Carolina Board of Dental Examiners, in 2013.^2.

Unethical Private-Equity-Owned Dental Clinics Receive Well Deserved Attention

Unethical Private-Equity-Owned Dental Clinics Receive Well Deserved Attention

It’s been a bad few weeks in the limelight for private equity investors masquerading on the down-low as charity dentists when what they’re really after is making millions by performing unnecessary dental work on poor kids and then getting Medicaid to pay for it. With the way everyone’s acting, you’d think it was the mortgage crisis all over again – as if working class and poor folk were nothing more than pawns in a game played by Wall Street investors, but financed with American tax dollars.

Download the pdf.

ROTFL–Aspen Dental propaganda quoting the group who promotes illegal practice of dentistry; The DGPA

From the Aspen Dental Blog

Dispelling misconceptions about Dental Service Organizations

March 5, 2012 by Bethany Tuzzolino

A recent online article¹ based on the results of an August 2011 survey of 1,500 dentists asked participants to rank what they consider to be their highest concerns as practitioners and small business owners. They identified “Growth and Influence of Corporate Dentistry Companies that Hire Dentists” as a high priority challenge to their success. The respondents ranked this “frustration” about the current state of the profession the third highest category in the Priority 1 section of the survey, right behind “Third-Party Dictation of Treatment Plans and Setting Fees” and mid-level or expanded-function dental practitioners, and right above “Overpopulation of Dentists and Hygienists.” The author notes that “some of these firms have moved into geographic areas already saturated with dentists.”¹ This situation is understandably concerning to private practitioners, who are essentially entrepreneurs trying to establish a territory and stable patient base. It is, however, a well-known fact that dental school does not teach graduates how to successfully find the ideal location for, or run, a private practice.

Here’s an idea, close down the illegal operations. Every treatment they deliver within their walls is illegal to do! Every x-ray taken, is being done so, illegally.

Since there seems to be confusion in the world of prosecution and regulation as to whether these corporate dental companies, such as Kool Smiles, Aspen, Heartland and now Wal-Mart, are legal or illegal there is a comprehensive review of all 50 states ready, just for the clicking. Go ahead, try it. CLICK HERE 

Dental boards say they don’t regulate the corporate mills in any way, however, North Carolina is proving that not to be true. So far, it’s the only state taking the initiative but it’s unclear as to whether they are only targeting Heartland Dental or all, and I mean, ALL corporate dental practices. [I say this since I know there are some regional clinics operating at full speed down there with dollars headed directly to Colorado’s Michael DeRose’s pockets. By the way, he’s on the List of Excluded Individuals and Entities, where he’s not to profit from Medicaid in any way. But, heck, I know that’s small potatoes, right?] 

Persecutors, on every level, from the local city or county prosecutors all the way to “The” Attorney General of the United States, seem to ignore the fact that the corporate dental mills are just flat out illegal operations. Every bill they send the US taxpayer is a fraudulent bill!  Every one of them!! Every treatment they deliver within their walls is illegal to do! Every x-ray taken, is being done so, illegally. What is not to understand and what are they failing to “get”? Anything?

The corporations should not be ripping the taxpayer from stem to stern, using taxpayer dollars as toilet paper on their $10 million jets and authorities should be lined up outside these place with warrants and handcuffs.

This dragon has been slayed and quartered on this website, time after time, after time, after time, for well over 4 years now and Medicaid fraud is still a run away train when it comes to dentistry.

Since December there has been a noticed increase in individual dentists getting nailed for Medicaid fraud, with most of them getting some jail time along with their fine and repayment. Remember, the Medicaid fraud in dentistry is mostly treatment on children in case anyone has forgotten that!

So for any prosecutor with a set of balls out there, even if you have a teeny weeny set, that just might want actually bring criminals to justice-criminals who are not only stealing from the taxpayer, but physically hurting children-click here and check your state laws. It’s all laid out for you, it just cant’ get any easier, truly. Then get a warrant and shut these places down. If you need assistance, call me. Hell, I work for free!

50 State Review of the Corporate Practice of Dentistry and the Laws that prohibit it.

If you need further assistance, click here on how the scam works.  It’s been told every way I know to tell it. Honestly, it’s not that confusing.

Corporate dentistry is dangerous to the public and the dentists who work for them.

Just last week the Georgia Board of Dentistry denies it’s ability to regulate “dental practices”, but they don’t mind to nail an individual dentist for following the “dental practice” protocol for treatment of their patients.

Georgia Board of Dentistry Denies Ability to Regulate “Dental Practices”

LETTER TO GEORGIA BOARD OF DENTISTRY

From: Concerned citizen
To: Georgia Board of Dentistry
Sent: Wednesday, March 28, 2012

Question / Comment:
Dear Director,
I'm seeking Public Record info on Actions the Georgia Dental Board may have taken against dental facilities, under the "Kool Smiles" brand, or dentists employed by this interstate company.
Thank You,
Concerned Citizen

REPLY FOR THE GEORGIA BOARD OF DENTISTRY:

From: Georgia Board of Dentistry
To: Concerned Citizen
Sent: Wednesday, March 28, 2012


Your email has been received by the Georgia Board of Dentistry. The Board does not have the authority to sanction dental practices; therefore, there are no sanctions against "Kool Smiles." Also, we would need the name of specific dentists in order to search for board orders. You can query for board orders by individual practitioner at https://secure.sos.state.ga.us/myverification/
Regards,
Georgia Board of Dentistry

I’ve gotten the same kind of info from other state dental boards over the years and it appears nothing has changed unless it’s gotten worse.

Question:
Where and with whom do the dentists who work for these “dental practices” file complaints?

Dangerous ‘eh?

You bet!