$2.3 Million Malpractice Lawsuit in Filed in Virginia Against Kool Smiles

May 9, 2019

In January 2018, Dental Service Organization (DSO), Benevis, who operates Kool Smiles dental clinics across the country agreed to a Settlement of $23.9 million dollars to settle fraud charges with the federal government. Why the company was not placed under a Corporate Integrity Agreement is beyond me, not that they mean a whole lot, but still. 

“Today’s settlement sends a very clear signal:  Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”

“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”

Soon after they began rebranding each clinic to appear more individually owned and operated. But did they change their ways?  Uh....nope!  

The Complaint states that at least 50 children were treated with unsterilized instruments in March and April 2019.

190509 Virginia Kool Smiles... by on Scribd

Evidence shows Benevis, LLC / Kool Smiles Dental Centers Knows the Laws.

Screen shot from Benevis website January 20, 2018:

They simply believe the laws don’t apply to them.
Ad from the Kentucky Dental Association Website.

Benevis, (formerly NCDR, LLC) is owned by FFL Partners and operates Medicaid dental clinics under the name Kool Smiles Dental, focused on children (perferably under the age of 5 from the looks of things).  However they operate a disturbing non-Medicaid division under the corporate umbrella of PSBB, PC, Inc. with Dale Mayfield CFO, Secretary and CFO.  Mayfield is the Chief Dental Officer at Kool Smiles.  In 2016, Mayfield was appointed to the Georgia Board of Dentistry by Governor Nathan Deal. (try not to puke if you read this link)

Mother speaks out against Yuma, AZ Kool Smiles Dental Clinic

A mother is speaking out following the death of two children who visited a dental office in Yuma.

Nearly six years later, Elva Aranda is sharing her experience at Kool Smiles, who claims her daughter was being choked by a dental assistant in Summer 2012.

"It was a horrible experience, a horrible experience because when you see someone else hurting your child, you feel helpless," said Aranda.

Aranda says while her daughter was getting her regular checkup, the dental assistant was acting aggressively towards her daughter during the procedure. She claims the dental assistant was adding pressure to her daughter's neck as if she was choking her without realizing it.

"You know the suction tool, she started putting that into my daughter's mouth, and that was making her "gag". I'm here looking at my daughter, and I'm seeing her gag because that tool was shoved in her mouth and I started comforting here saying "it's okay, you're going to be okay" but I did not see that this lady had her whole hand shoved into my daughter's neck choking her."

Read the entire report here.

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In 2016, 4 year old Liseth Lares died just days after visiting the same Yuma, AZ Kool Smiles clinic as 2 year old Zion Gastelum

YUMA, Arizona --

Two children, one dentist's office, each meeting the same tragic fate.
An Arizona mother is suing Kool Smiles in Yuma after her 4-year-old daughter died days after she visited the dentist's office in January 2016.

Francisca Lares said she is heartbroken, because she was only trying to do the right thing in getting care for her daughter, KNXV reports.

But when little Liseth Lares developed a fever, family attorney Marco Mercaldo said the dentist sent the girl home after a "relatively cursory exam."

"Told the mom essentially there is nothing to worry about, she'll be fine," Mercaldo said. "Unfortunately, the infection spread and she died of the infection."

Mercaldo argues Liseth could have survived the infection if Kool Smiles had given her the proper treatment.

Read full report here.

2-year-old Zion Gastelum dies after dental appointment at Kool Smiles

YUMA, AZ - An Arizona family is left confused, devastated and looking for answers about just what happened during a young boy's dental appointment.

The family of Zion Jay Gastelum said the 2-year-old died after a dentist appointment in Yuma last month. Zion's uncle told ABC15 the child's parents took him to Kool Smiles Dentist on December 16 for a crown and filling, and somehow either during or after the process, it appears Zion stopped breathing. 

According to family, Zion was transported to Yuma Regional Medical Center and then flown to Maricopa County, where he died several days later.

Read more here

Kool Smiles Dentist—Dr. Tuan “Terry” Truong, DDS— sentenced to 18 months in jail

Let me get this straight, private equity firm FFL’s corporation—NCDR, LLC/Kool Smiles—hired Dr. Troung, trained him to be a thief, gave him quota’s to meet, and now want their money back for legal expenses. OMG!

Here is what I want to know:

1. Why was Dr. Tuan Truong not on his hands and knees begging to spill his guts about this crooked company?

2. If he did who stopped him and why?

3. Was he here on a work visa?

PS: Don’t choke and puke when you read out “Kool Smiles” cooperated with the investigation! You bet your ass they did, and directed investigators to only what they wanted them to know apparently.

 

Abilene Dentist Sentenced to 18 Months in Federal Prison and Ordered to Pay Nearly $58,000 in Restitution in Medicaid Fraud Scheme

FOR IMMEDIATE RELEASE

February 5, 2014

Defendant Worked as a Pediatric Dental Provider at Kool Smiles
and Personally Benefitted From Scheme

ABILENE, Texas — Dr. Tuan Truong, aka “Terry Truong,” of Abilene, a dentist who practiced pediatric dentistry at Kool Smiles in Abilene, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 18 months in federal prison.  Truong pleaded guilty in August 2013 to an Information charging one count of making a false statement in connection with a health care matter.  Truong was also ordered to pay $57,969 in restitution to Kool Smiles.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

According to documents filed in the case, in summer 2008, Truong began working for Kool Smiles, which paid him a base salary and offered opportunities for bonuses based on additional procedures he performed in excess of daily targets set by Kool Smiles management.  Dentists were required to use professional judgment in the treatment and management of patient care.

NCDR, LLC–Kool Smiles-Resolution Dental wants you and your practice.

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 advertise:

Are you considering selling your practice? Let's talk.

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.

Kool Smiles under investigation?

February 11, 2013
I'm hearing rumblings of a Kool Smiles investigation going on by a federal agency but its not the one I have would expected; although I'm not surprised to hear is taking place.

There are literally thousands of complaints from parents and patients online about the Kool Smiles call center, for example:

404-781-0512 "Kool Smiles continues to call my cell phone and harass me almost daily...even after I've told them numerous times to stop..."

"They are so pressed to get your business that they disregard your privacy.."

"...I receive several phone calls a week from Kool Smiles to both my cell phone and my husband's..."

"These callers call me again and again..."

I'm told their automated system was a train wreck and Kool Smiles is fully aware of it.

Essentially set up as an appointment reminder it soon turned into high pressure sales calls to get parents to bring their child back for more torturous dental care. As long as the number was a "good" number Kool Smiles would continue the harassment. Same as they are with children's teeth, as long as there is prospective tooth to treat, it got treated, needed or not.

Apparently there has finally been enough complaints and the FCC is investigating. This is not confirmed by the FCC but my sources are solid.

In further Kool Smiles news:

I'm told Kool Smiles in Texas are being converted to their latest brain child - Resolution Dental. All expansion plans for new offices that were scheduled to open in 2013 have been cancelled.

NCDR, LLC–Kool Smiles looking to infect adult dental care in Texas-Under the name Resolution Dental

Kool Smiles and NCDR, LLC are venturing over into adult care in Odessa, Texas – buyer beware! Operating under the name Resolution Dental, they are seeking applicants and offering a $25k sign on bonus. Here is the job posting.
While the brakes were put on to the grand openings of their newest Medicaid mills in Texas, its full steam ahead for at least one Resolution Dental office.
They don’t want applicants to know who they are really going to be employed by as Paul has set up an innocuous email address -resolutiondentalhr@gmail.com
Most of the job have you contact Paul Court at 925-407-5383. Paul is a dentist recruiter for NCDR, LLC
Ncdr, L.L.C.
1575 Northside Drive Building 400
Atlanta, Georgia 30318
United States
www.ncdrllc.com
According to Zoom Info, Paul’s past employment consists of:

Employment History

• Branch Manager Robert Half International Inc

Financial Services Manager Robert Half International Inc

Branch Manager Accountemps

Manager, Dental Staffing Kool Smiles P.C

General Manager U.S. Department of Education

Polly “Wanna Crack Her” Buckey Remix

You can't hide your lyin eyes
And your smile is a thin disguise
I thought by now you'd realize
There ain't no way to hide your lyin' eyes
There ain't no way to hide your lyin' eyes
Honey, you can't hide your lyin' eyes – The Eagles

All joking aside, there is no way you can miss when she’s lying. The corner of her mouth pulls to the left, she looks to the right, and her voice is deep and raspy. (shaky)… and she gets that whacked out look on her face.

What I’m wondering is why Dr. David M. Strange has stopped putting his family at risk by going on TV and lying. Maybe it’s because, even though she sucks at it, she is the one willing to risk it all to do it.

There is a lot of hoopla over the FRONTLINE and Center of Public Integrity investigation, which is well deserved. But all the allegations are not new. These same allegation have been hitting regional and local news stations for years.!

Reports have landed in the local press and on local news stations since at least 2008. It is 2012, right?  Is anyone listening to these parents; to these employees?

Here are some of the reports:

Kool Smiles files suit against law firm taking personal injury cases - I’m thinking this is NOT a good idea for Freidman Fleischer & Lowe; Doug Brown or Kevin Miller…

…Dentistry of Brownville, P.C. or NCDR, LLC, or KS TX, P.C. or  whatever name Kool Smiles dental centers are using.

You have a Private Equity firm behind the Kool Smiles name. You have a Private Equity firm basically practicing dentistry. You have a Private Equity firm setting up dummy professional corporations in many states, Texas included. You have a crooked dentist, Dr. Tu Tran with his name all over Dentistry of Brownsville, PC and he doesn’t even practice in Texas or any other state for that matter!  He lives outside Atlanta. According to Texas records, NCDR, LLC is “governed” by Kool Smiles Acquisition Corporation-400 EAST GALLERIA PARKWAY SE, STE. 800
ATLANTA , GA 30339

There are thousands of parents complain their children are being injured and abused with unnecessary and substandard dental treatment. These same complaints have been coming from Kool Smiles clinics across the nation for 5 years. The parents are claiming of harsh and brutal touching and manhandling of their children to deliver that dental care. All for the simple reason to bill Medicaid for as much as they can in as quickest amount of time. Maybe parents have taken photos, made audio and video recordings of the children screaming and have decided to take action against the dentist and the company responsible for it. Maybe some support staff at the dental centers have done the same.
So, what does the company do? It files suit against the law firm taking the cases, citing “Copyright Infringement”.  Seriously??!!

5:12 –CV-00036
Monday March 19, 2012
NCDR, LLC
Dentistry of Brownsville, P.C.
KS TX, PC
vs.
Mauze & Bagby, PLLC
George Watts Mauze, II
James Thomas Bagby, III
Texas Southern District Court
Tradmark Infringement
Kool Smiles v Mauze & Bagby

Original Complaint	Exhibit 5 [doc 1-6]
Exhibit 1[doc 1-2]	Exhibit 6 [doc1-7]
Exhibit 2 [doc1-3]	Exhibit 7 [doc 1-8]
Exhibit 3 [doc 1-4]	Exhibit 8 [doc 1-9]
Exhibit 4 [doc1-5]	Exhibit 9 [doc 1-10]

Friedman, Fleischer & Lowe (FFL)

FFL Partners Executive Investors
Kool Smiles Investment
Midwest Dental Investment

Florida State Congressman Michael Bileca drowning in dental companies. He’s a CPA, not a DMD!

What would a Florida State Representative have his name on so many dental companies? Congressman Bileca is on the following either as a member of the LLC, Executive of the Corporation or the Registered Agent. He’s also the treasurer of the Dental Group Practice Association, that nasty little group whose goal is convince Private Equity firms to invest their every last dollar in corporate dentistry as they have defined it.  (FFL seems to be a huge sucker for this one, or they run DGPA..hmmm)

Among the odd things on this list, is there are ONLY dental companies. Not, lawn care companies, not roofing companies, not your general smorgasbord of companies one would expect if he were just their “registered agent”.
Got a complaint about this; don’t write your state representative, he knows all about it.  Contact the Florida State Dental Board:
Department of Health Board of Dentistry
4052 Bald Cypress Way
Bin C-08
Tallahassee, FL 32399-3258
Phone: (850) 488-0595
Fax: (850) 921-5389

Four Winds Health, Midwest Dental, Kool Smiles Dental and Friedman Fleischer & Lowe (FFL)

From FFL website:
Four Winds Health, LLC was formed to build and manage a chain of high-end urgent care centers that offer walk-in, extended-hour access for non-life-threatening acute injuries and illnesses. Through its centers, Four Winds is focused on creating a superior patient experience through the delivery of convenient, comfortable, high-quality medical care.
Four Winds is headquartered in Atlanta, GA. The company was formed by the same management team which previously founded Kool Smiles, another FFL investment. FFL provided founding capital to Four Winds in 2011


Midwest Dental is a leading dental practice management company with over 75 clinics in six states. Midwest Dental clinics are typically located in suburban and rural areas, and the company has demonstrated an impressive track record of growth through acquisitions of independent dental clinics. The company provides the clinics with a full range of management, administrative and financial services, allowing clinical staff to allocate more of their time to patient care.
Midwest Dental is located in Mondovi, WI. FFL acquired the company in 2011 and plans to provide additional capital to support future acquisitions.
 

NCDR, LLC provides various non-clinical services to dental group practices, including providing dental facilities, support staff, and other business services. NCDR's principal [ONLY] client is Kool Smiles, a nationally-branded provider of dental care focused primarily on children enrolled in Medicaid and State Children's Health Insurance Programs. The limited access to care for children on Medicaid/SCHIP plans provides an attractive growth opportunity for Kool Smiles as it continues to expand offices with a mission to provide quality care to this underserved population.

The company is headquartered in Atlanta, GA. FFL invested in NCDR in 2004 to provide growth capital and liquidity to founders.

I think Kool Smiles Dental press releases about “new jobs” is very misleading

Over the past several days Kool Smiles Dental (NCDR, LLC) has published press releases about their expansion, growth and plans to hire from 80 to 100 jobs in various states. i.e. South Carolina to get 100 new jobs, Virginia blessed with 100, Indiana 88 new jobs.
Using buzz words and phrases such as “expansion”, “bright economic outlook” “provide jobs” leaves the reader feeling warm and fuzzy about Kool Smiles doesn’t it?  Heck they are providing dental treatment for underprivileged children and children whose parents have fallen on hard times due to the poor economy and bleak job outlook.  As the cherry on top they state they are providing jobs for states and local communities. 
FANTASTIC!
Shoot, they even have lawmakers commenting about the fabulous news:

Kool Smiles Dental owners purchased Midwest/Mountain Dental- April 2011

Mountain Dental and Midwest Dental operated by Dr. Jeff Moos is another dental chain owned by a Private Equity firm- the same one who owns Kool Smiles-Friedman, Fleischer & Lowe, out of San Francisco!  A “Mike Lindley” is on the board of Mountain Dental.
Friedman, Fleischer & Lowe, (FFL)the private investment firm who owns and operated NCDR, LLC – Kool Smiles Dental Centers purchased Midwest Dental from Cressley & Company April 2011.
Cressley & Co, along with CIT Group were leaders in the recapitalizaition of Midwest Dental in May 2007.  Cressley purchased MWD from Svoboda.

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Here is the story from “The Middle Market”
by Anthony Noto
April 7, 2011

San Francisco-based FFL is investing out of its 2007-vintage Friedman Fleischer & Lowe Capital Partners III fund, which targets companies with enterprise values within the $50 million to $500 million range.
Terms of the deal have not been disclosed. FFL is acquiring the Mondovi, Wisc.-based target out of Thoma Cressey Bravo Fund VIII LP.
Chicago-based Thoma Cressey led a recapitalization of Midwest Dental in May 2007 and purchased all of its interests from Svoboda Collins LLC. Terms were not disclosed.
Calls to Aaron Money, the FFL partner leading the latest acquisition, were not returned. A spokesperson at Midwest Dental could not be reached.
FFL already owns two companies in the dental space. Portfolio companies NCDR LLC and DPMS Inc. provide facilities and support staff to dental groups operating under the Kool Smiles brand, according to the PE shop’s website. FFL acquired Atlanta-based NCDR and San Ramon, Calif.-based DRMS in 2004 and 2006 respectively.
[ NCDR, LLC and DPMS, Inc were really just Kool Smiles whether it be Kool Smiles 2 or Kool Smiles 3 or whatever.  They merged a few months back and guess what, they are still NCDR, LLC - Kool Smiles]
Purchasing Midwest Dental would not serve as an add-on to NCDR or DRMS. 
Other midmarket PE firms have capitalized on M&A within the dental space as well. On Dec. 29, Sentinel Capital Partners sold Phoenix-based ReachOut Healthcare America Ltd., a provider of dental support service and care to underprivileged children, seniors, and military personnel. Terms were not disclosed.
A month earlier, dental services company Smile Brands Group Inc., backed by Freeman Spogli & Co., found a new private equity owner in Welsh, Carson, Anderson & Stowe. The price of that secondary buyout was not disclosed, but the Santa Ana, Calif. company said last April that it hoped to go public with an enterprise value of about $470 million.

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Here is the story from LBO Wire

Cressey & Co. Passing Midwest Dental To Friedman Fleische Lowe
Shasha Dai
08 April 2011
Midwest Dental Holdings, a provider of management services to dental offices, may have its third private equity owner in four years if a pending sale to Friedman Fleischer & Lowe LLC proceeds as planned.
San Francisco firm Friedman Fleischer is buying the Mondovi, Wis., company from its current owner Cressey & Co., said a person familiar with the situation.
A spokesman for Friedman Fleischer declined to comment. David Schuppan, a Cressey principal; and Jim Myer, president and chief financial officer of Midwest, didn't return calls for comment.
Midwest provides management support for functions ranging from handling back-office work and marketing to finding medical assistants and dental hygienists.

Cressey's predecessor, Thoma Cressey Bravo, bought the company in 2007 from fellow buyout firm Svoboda Collins LLC for an undisclosed sum. LBO Wire reported then that Svoboda Collins saw more than three times its money, representing an internal rate of return of over 50%. Svoboda Collins acquired Midwest in 2004.
Midwest had about 450 employees, LBO Wire reported when Thoma Cressey Bravo bought the companyin 2007. More recent financial or staffing information wasn't available.

Thoma Bravo Cressey split in 2008 into two firms, Thoma Bravo and Cressey & Co., with the latter focusing on health-care investments.
Cressey & Co. closed its current fund, Cressey & Co. Fund IV LP, with $350 million in early 2010.
Reach Cressey & Co. at 312-945-5735.
http://www.cresseyco.com
The dental services provider may have its third private equity owner in four years if the sale goes through.

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Cressey & Company
2525 West End Ave # 1175
Nashville, TN 37203-1793
(615) 369-8400

[Keystone Education and Youth Services, LLC has an office on West End Avenue in Nashville as well.  According to Bloomberg, Michael Lindley, Rodney Cawood and Tim Richter are still the top dogs over there.  They may have sold their interest to UHS, but I believe they really just did exactly what Jeff Moos did, recapitalized his income.]
Cressey & Company
233 South Wacker Dr.
Sears Tower, Ste 920
Chicago, IL  60606
312-777-4424
[Another odd factoid here, there is a Mike Lindley on the board of Mountain Dental and Midwest Dental-Mountain Dental is of the same company, but the clinics in Colorado and New Mexico are operated under the name of Mountain Dental-you can check the company filings at the Secretary of State offices in New Mexico for Mountain Dental and Secretary of State office of Iowa for Midwest Dental]

American Securities Backing Out Of Kool Smiles Purchase?

It appears American Securities has seen the light!  Maybe they had a "come to Jesus moment".  Whatever the case, its reported to me Kool Smiles will not be sold, not right now anyway!

Knowing the lawsuits coming down the pipe is believed to have had a great influence in this decision.  Huge argument on whether it's "pike or pipe", but none the less, it's coming.

I would also assume the fact most of these clinics are  illegal operations in most states might have some influence as well.

I can see the headlines now:

“American Securities Buy Illegal Dental Clinics for $700 Million Dollars” or “Dental Clinics-Operating Illegally-Sold for $700 Million; Top Executives Say It Was a Great Deal”

along side

“Couple Has Crack House For Sale, includes falsified licenses, and all other bogus documents, insurance is transferable.  Asking price, average of last 5 years revenue.”

However, we can’t dismiss the Early Termination Request granted from the FTC on October 29, 2010, between American Securities Partners V Limited Partnership, Friedman, Fleischer and Lowe Capital Partners Limited Partnership and Kool Smiles Holding Corporation.

Huge argument on whether it's "pike or pipe", but none the less, it's coming.

I guess we will just have to wait and see if Kool Smiles can be marked “Sold”.  If it is, I am sure it should be marked “Sold As Is” and “All Sales Final”.

Kool Smiles Said to Have Received Offer of $700 Million Clinics

Oct. 4 (Bloomberg) -- American Securities LLC, a New York- based private-equity firm, is the leading bidder for a U.S. chain of dental clinics owned by Friedman Fleischer & Lowe LLC with an offer of about $700 million, according to people with knowledge of the auction.

Friedman Fleischer owns two companies, NCDR LLC and DPMS Inc., that provide facilities and support staff to dental groups operating under the Kool Smiles brand, according to the San Francisco-based firm’s website. TPG Capital also submitted an offer in the final round of bidding, said the people, who asked not to be identified because the deal hasn’t been completed.

The two companies are not really two companies, it's Kool Smiles and Kool Smiles 2.  KS is the clinics in the East and KS2 are the western most clinics.

Read the full article here: Business Week

However since after time passes and the stinch of a company begins to fill the offices of these PE firms, stories like this seem to vanish from the Internet.  So in case that happens, here is the full story:

By Cristina Alesci, Jeffrey McCracken and Jason Kelly

Oct. 4 (Bloomberg) -- American Securities LLC, a New York- based private-equity firm, is the leading bidder for a U.S. chain of dental clinics owned by Friedman Fleischer & Lowe LLC with an offer of about $700 million, according to people with knowledge of the auction.

Friedman Fleischer owns two companies, NCDR LLC and DPMS Inc., that provide facilities and support staff to dental groups operating under the Kool Smiles brand, according to the San Francisco-based firm’s website. TPG Capital also submitted an offer in the final round of bidding, said the people, who asked not to be identified because the deal hasn’t been completed.

Rajat Duggal, a managing director at Friedman Fleischer, couldn’t be reached for comment. Officials for American Securities and TPG declined to comment.

Private-equity firms have resumed dealmaking after a two- year lull following the global financial crisis that started in mid-2007, freezing credit markets and ending the biggest leveraged-buyout boom in history. There were $59 billion in deals in the third quarter, more than triple the amount a year earlier, according to data compiled by Bloomberg.

American Securities, which was founded in 1947 by a Sears Roebuck & Co. heir, has invested in companies including vacuum- cleaner maker Oreck Corp. and the El Pollo Loco chain of chicken restaurants, according to its website. The firm was a runner-up at the recent sales of Air Medical Group Holdings Inc. and Aspen Dental Management Inc., both owned by private-equity firms, according to a person with knowledge of the sales.

Air Medical, Aspen Dental

Leonard Green & Partners, the Los Angeles-based private- equity firm, is buying Aspen Dental from Ares Management LLC. Bain Capital LLC, the Boston-based leveraged buyout-fund manager, is acquiring Air Medical from Brockway Moran & Partners Inc. and MVP Capital Partners.

Kool Smiles caters to children enrolled in Medicaid, a federal-state health insurance program for the poor, and other state health insurance plans, according to Friedman Fleischer’s website. Some firms that looked at Kool Smiles were concerned that it was too reliant on Medicaid payments as governments face deficits, said one person familiar with the auction.

Private-equity firms are increasingly buying companies from each other as more than half the companies that submitted plans for U.S. IPOs in 2010 have yet to complete them. Sales among buyout firms allow the seller to return cash to investors, while the acquirer is able to deploy unused capital that was raised during the boom. Clients saw distributions last year fall to the lowest level since at least 2000, according to London-based research firm Preqin.

Opening Clinics

Smile Brands Group Inc., a separate dental chain backed by private-equity firm Freeman Spogli & Co., scrapped an initial public offering in May. The company, which relies on patients with private insurance for most of its revenue, is now shopping itself in a sale process that is still in early stages, according to a person with knowledge of the matter.

American Securities plans to expand Kool Smiles’ main business of opening clinics in places where access to dentists and other medical services is limited, the person said.

TPG has been pursuing deals. The Fort Worth, Texas-based firm and Goldman Sachs Group Inc.’s buyout arm agreed in July to purchase Belgian diaper-maker Ontex NV for $1.55 billion from London-based private-equity firm Candover Investments Plc. TPG also acquired a 35 percent stake in Creative Artists Agency for an undisclosed amount in a deal announced Oct. 1.

Friedman Fleischer has more than $2 billion under management, according to its website. Its holdings include Korn/Ferry International, the executive-recruiting firm, and Montpelier Re Holdings Ltd., a Bermuda-based property reinsurance company.

--Editors: Elizabeth Wollman, Larry Edelman
To contact the reporters on this story: Cristina Alesci in New York at Calesci2@bloomberg.net; Jeffrey McCracken in New York at jmccracken3@bloomberg.net; Jason Kelly in New York at jkelly14@bloomberg.net.

Kool Smiles is now Kool Smiles

Kool Smiles Holding, LLC is now Kool Smiles Holding, LLC.  Yeah I know it sounds stupid, and it is.
Kool Smiles was started by Dr. Tu Tran and Dr. Thien Pham, back in 2002 after leaving the employment of Ed and Michael DeRose at the Smile High clinic on Colorado.  (there a load of info on that on this blog)
By 2004 Tran and Pham reigned in the private equity firm, Friedman Fleischer & Lowe, a San Francisco base company.  Kool Smiles Holding was formed to facilitate the transaction.
NCDR, LLC (National Children Dental Research) was formed to ‘manage’ the Kool Smiles clinics. 
A couple of years ago, Kool Smiles II was created to take over the Kool Smiles in the west.  It was managed under the name DPMS, LLC (Dental Practice Management Services).  All still with FF&L holding the purse strings.
So all they have basically done was remerge.  They once were one, then they were two and now they are one again.
Here’s the Corporate run down:
President – David Lowe
VP and Sec – Aaron Money
Director – Tully Friedman
CFO – S. Thomas Nance
Directors– William Brody, Paul Walker, DDS, Douglas Brown, Kevin Miller, Brian Bouma, and Joseph Mello.
Kool Smiles Reg D form can be seen here.

Tidbits Of Kool Smiles Information

Dr. Tu Tran and Dr. Thein Pham were top dentist's at Smile High clinic in Denver, owned and operated by Eddie, Michael and Dan DeRose where they learned the DeRose Way of spreading dental services to the underserved.

When they broke out on their own, they began with 1 clinic in 2002 and by December 2003 there were three clinics in Georgia.

After 2003 things took off.  By January 2006 the Kool Smiles clinic count had jumped to 14 clinics.  In January 2007 there were 29 clinics and by July of 2007 there were 36.

I know this by using the wayback machine and checking the old copies of the website.

According to what I can find, there are somewhere around 100 clinics across the US, which beats Small Smiles, so they can shut up about being the "Largest" ...unless they mean dirty rotten scoundrels....