In November 2010 I wrote about the Kansas Dental Board sending a “prove-it” letter to Dr. Thomas Corcoran. The Dental Board was questioning the true ownership of Topeka Dental Clinic, LLC and another CSHM dental clinic.
Dr. Corcoran forwarded the letter on to Church Street Health Management’s headquarters.
[If he owned the clinic I’m not sure why he would forward this on to a company who just provides billing, payroll, human recourses, and other mundane office related services, if that is truly all they do for their “associated” clinics.]
Church Street Health Management had him listed as being the owner of one of their Kansas clinics.
Bye Bye Birdie
CSHM must have cleared the issue off their to do list. According to information received, Dr. Thomas Corcoran’s has not seen a patient since early October 2010. Dr. Corcoran had been with Church Street Health Management since May 2004, almost 7 years.
Over the next 5 years, beginning January 21, 2010 Kansas is to receive approximately $1.2 million of the $24 million dollar settlement Church Street Health Management agreed to pay so the DOJ would not look into their operation any further.
Evidently the Dental Board is involved in those payments. I say this because in a letter to Dr. Corcoran, Dental Board Director, Betty Wright said, “ Since this amount is substantial and is being paid by a corporation and not by yourself, it is evident that although you have indicated in the past that you are the owner of the Topeka Dental Clinic, LLC and previously Small Smiles of Wichita, that in fact the owner of the clinic in not yourself, but instead a corporation.”
Originally, Dr. Corcoran had 10 days to answer several questions that Ms. Wright brilliantly asked. Any person who owned a business would be able to answer the questions with ease. A sample of the questions she asked were:
1. A copy of your purchase agreement or ownership documents of the clinic.
2. An employee handbook
3. A copy of advertisements published to hire dentists
4. A list of member of your LLC with ownership interests.
5. An Operating Agreement between yourself and FORBA
6. Attach your personal and business FEDERAL income tax returns with attachments, including Schedule C with W-2’s or 1099’s. If you are a PA or LLC include returns for you personally and for the business entity.
7. Attach five payment reimbursement forms from Medicaid and five from insurance companies.
8. Attach copies of promissory notes or loan agreements with amortization schedule used.
9. Attach a copy of the latest bank account statements for the business.
10. Do you own the fixtures and equipment? ___ Yes ___No If “No” state from whom it is leased.
[Looks like that 10 day deadline from Kansas Dental board, turned into a 10 day notice for Dr. Corcoran. I’m told Dr. Corcoran was not officially listed as “terminated” until January 31, 2011]
Can the new “owner” answer those questions presented by Ms. Wright, probably not.
So what to so? What to do?
Oh, lets change the laws in Kansas! Yes, that’s it! So much easier! Let’s use Comfort Dental as a front. We know they want in the state. Shoot, they won’t even realize they are being used. Get franchise dental clinics allowed in the state and it will save our three clinics.
Then we can say we are a “franchise” too.
Questions:
- So who “owns” the clinic now?
- Sale agreement? (Dr. Corcoran selling to whoever)
- Should there not be some tax related issues for Dr. Corcoran since he “sold” this business?
- Is anyone checking?
Hello IRS!
We are loosing out on some tax dollars folks!
Related:
KWCH Investigation into Small Smiles and Church Street Health Management ( known then as, FORBA Holdings)
Kansas Dental Board Asking Dr. Thomas Corcoran To “Prove It”
Kansas House Bill To Allow Expanded Functions for Hygienists Appears Dead
Look Out Kansas – Say it ain’t so
Gates of Hell opening For Kansas citizens; Corporate Dentistry
