A peek under the sheets at Heartland Dental

I ran across a propaganda piece today on – dentalhealthcarecenter.net. about the super duper fantastic Heartland Dental Care.
 
It tells about Heartland Dental, in Effingham, IL and what they can do for dentists who are finding it hard to develop their own dental offices. It tells dentists, that by becoming an “affiliate” of Heartland, it can “make your career better.” Their career will be better because Heartland “will increase your creditability and reputation”. It goes on to say:

• “Working with this company will never lead you to regret”
• ”your office will be way better”
• “The company will help in marketing your office, providing you qualified staff,, managing your office, advertising your services and many more.”
• ”people consider that dentists who are working under the name of the company are all professional”
• “it is not the company that decides how your office should work. You can decide how you run your business yourself. The company just helps you reach your dream.”
• “if you face serious problem when running your office, the company will give you effective suggestion in how to break the problem.”
• “you will likely to become a partner of the company”

But what really happens?

Here is what I’m told

Heartland Dental–Rick Workman paid $3 mil to settle fraud charged in 2008; May 2012 they got their $3 million back

On May 23, 2012, Rick Workman breaks ground on a HUGE expansion for their corporate headquarters in Effing-no-where, IL. Part of the new facility will be for “training” purposes and I’m sure the psychiatric department will have new offices. Psychiatric department you ask? Yes, that’s what I’m told. If you can’t maintain your production numbers, they actually have psychologists come for a little chit chat. A little couch time, so to speak.

Now,less than 4 months later, Workman has put Heartland up for sale, asking price… a mere $1.4 BILLION dollars.

To here him tell it, he just leases the use of some appointment scheduling software, that he doesn’t even own, and does some payroll services for independent dental clinics. (liar, liar, pants on fire…) 

I’m sure the folks of Illinois are tickled pink to give Workman his $3 million dollars back for his “expansion”.  ( $3 mil is the EXACT amount Heartland had to pay to settle fraud allegations in 2008.) Did anyone hear the “Kennedy” tone in the voice?

HOMES 

In Effingham, IL Richard Eugene and Angie Workman’s home is located at 16130 Hildene Drive, Effingham, IL 62401

Is Rick Workman trying to dump his baby - Heartland Dental - before its value is zero?

Many in the industry don’t see it.  Even more are in denial about it. But it’s happening, non-the-less. Corporate Dentistry is under attack. Federal, state and local governing boards as well as law enforcement agencies are making bold moves to clean up what has been left to run amok for years. This “clean up” may be fatal. Which is fantastic for every person in America, because everyone sees the dentist at some point.

Though it may be slow and painful. Has Rick Workman finally come to gripes with that reality? I think this is a HUGE signal to all “corporate dental chains” out there. When one of the first, largest and most influential entities in the industry is ready to tuck it’s tail and run, you know it’s bad.

 

Heartland Dental Care, Inc. Sale
September 6, 2012
Heartland Dental Care Inc., one of the largest dental practice management companies in the United States, is exploring a sale that could fetch as much as $1.4 billion, according to two people familiar with the matter, Reuters wrote Thursday. The company, in which Chicago-based private equity firm CHS Capital Partners has a stake, has hired investment banks Jefferies and Moelis to find a buyer and has drawn interest mostly from other buyout firms, the people said.
(Reuters) – Heartland Dental Care Inc, one of the largest dental practice management companies in the United States, is exploring a sale that could fetch as much as $1.4 billion, according to two people familiar with the matter.

The company, in which Chicago-based private equity firm CHS Capital Partners has a stake, has hired investment banks Jefferies and Moelis to find a buyer and has drawn interest mostly from other buyout firms, the people said.

The sources asked not to be identified because the process is not public.
Heartland Dental has about $120 million in annual earnings before interest, tax, depreciation and amortization (EBITDA) and could be sold for 10 to 12 times EBITDA, they added.

The auction is early in the second round and final bids are expected about a month from now, according to the people. Jefferies has offered to provide financing for potential buyers, they added.

Representatives for Heartland Dental, CHS Capital, Jefferies and Moelis did not immediately respond to requests for comment.

 

Heartland Dental, ReachOut America, Dental One, and others...

I notice a lot of folks visit this blog looking for information on Heartland dental; complaints, fraud and lawsuits.  Same with this rogue Reachout Healthcare America mobile dental setup.  If you've got something you would like to share, email here.  

Thor:  

Don't go nuts, this has nothing whatsoever to do with CSHM!

North Carolina Dental Board nixed Heartland Dental’s attempt to take root, taking the bull by the horns.

It looks like North Carolina is taking the lead to put an end to the corporate take over of dentistry.  Now, if they would just look into the Smile Starters agreement with Root Dental Management, and the sales agreement between Dr. Rivera and Dr. Michael DeRose another income flow to the DeRose family might be cut off. 

If you want to understand how the corporation do business, you should read this.  It lays it all out for you.

North Carolina State Board of Dental Examiners (NCBDE)

vs.

Heartland Dental Care, Inc
d/b/a Heartland Management, Inc
Gary Cameron and Associates, P.C and';
Gary L. Cameron, DDS

Case 11-CVS-2343

Heartland Dental Permanent Injunction

The NCBDE filed a complaint in Superior Court, Randolph County, North Carolina in September accusing Heartland Dental of implementing a series of transactions, contracts, documents and agreements to which Dr. Gary Cameron, DDS of Asheboro, North Carolina unlawfully transferred to Heartland Dental; Ownership, Management, Supervision and Control of his dental practice, Asheboro Dental Care..

Dr. Cameron was selling his dental practice to a corporation, “an unlicensed individual or entity.”

Heartland denied Dr. Cameron transferred ownership or management to anyone and maintained Dr. Cameron merely sold certain assets to Heartland then entered into a lawful management agreement with Heartland.

This violates North Carolina’s Dental Practice Act (N.C. Gen. Stat. 90-22) and the Management Arrangement Rule (21 N.C. Admin. Code 126X.0101).

Heartland Dental denied the allegation that Dr. Gary Cameron transferred ownership or management to anyone and maintained Dr. Cameron merely sold certain assets to Heartland Dental then entered into a lawful management agreement with Heartland.

[I’m seriously trying not to roll on the floor while laughing at Heartland’s position]

However, in 2009, Dr. Cameron hired Roger K. Hill and Company to assess and valuate his dental practice and provide him with a valuation of $2,350,800.00.  I’m not even going to get into what was likely done to make sure the the clinic had a high value.

By December 1, 2009 Dr. Cameron and Heartland agreed on a price of $2,450,000.00 PLUS the value of his accounts receivable and entered into a “Letter of Intent to Acquire Certain Assets”.  In this letter of intent it listed the “assets of the Seller” to be:

”All operating assets, leasehold improvements, office equipment, dental equipment, supplies, inventory, trade receivables, licenses, contracts,
trademarks, and other tangible and intangible property necessary to the operation of the Seller”

In January 2010 Dr. Cameron established a new company called Gary Cameron and Associates, P. C. with him being the sole owner.

Heartland Dental Invades Nevada and Kansas

Heartland Dental invades Kansas and Nevada. Kansas isn't paying attention to who it lets practice dentistry I see. Corporate dentistry is spread like the swine flu these days. The places do NOT deliver the care and treatment you are used to receiving from you local family dentist. Please stay away from them and do your homework before making that appointment. A simple google search for complaints will do the trick.

Here is the latest breaking news Heartland has put out. Take it as a warning.

From HealthNewsDigest.com
Dental
Heartland Dental Care, Inc. Continued Its Growth in 2009 Adding 32 Dental Practices
By
Jan 14, 2010 - 5:59:38 PM

(HealthNewsDigest.com) - EFFINGHAM, Ill., -- Heartland Dental Care, Inc. brought its total number of practices to 253 in 2009 with the acquisition of 27 established practices and the creation of five de novos.

Several of these practices expanded Heartland's presence into two new states -- Nevada and Kansas - increasing the Company's footprint to 14 states.

"We are glad to welcome these practices and team members into the Heartland Dental Care family," said Rick Workman, DMD, Founder and Chief Executive Officer of Heartland Dental Care, Inc. "These acquisitions and new practices strengthen our commitment to provide quality dental care in hometowns all across the United States."

"At the beginning of 2009 we set out to add 25 practices, and that's just what we've done," Workman said. "Plus these practices have brought substantial value to our company especially through the innovative ideas of their team members."

Besides a healthy and managed growth in 2009, the Company also experienced several other major accomplishments:

-- Increase in Same Store Sales over 2008
-- Addition of 96 dentists and an overall reduction in team turnover
-- Expansion of education and clinical training programs into regional
settings
-- Integration of digital x-ray technology and other cutting edge tools
and techniques
-- Substantial cost savings on supplies and laboratory fees
-- Implementation of Patient Satisfaction Surveys

"Everything we do works toward our goal to be a world class company and the leader in dentistry," said Patrick C. Bauer, President and Chief Operations Officer of Heartland Dental Care, Inc. "We will continue to work toward this goal in 2010. We will further this vision by helping our doctors and practices be the best they can be. Whether it's through advanced clinical education or simple communication skills - it's all about giving our patients personal attention and professional excellence."

About Heartland Dental Care

Heartland Dental Care, Inc. is one of the leading dental practice management groups in the United States with more than 250 dental practices located within 14 states. Based in Effingham, Ill., Heartland provides its dentists and team members with continuing professional education and leadership training along with a variety of management services which include staffing, human relations, purchasing, administration, financial, marketing and information technology support. For more information, visit www.HeartlandDentalCare.com.