Dr. Thomas Corcoran-Topeka Kansas Small Smiles Dental Clinic Owner-No longer with Small Smiles. Did he sell? Of course not, you can’t sell something you don’t own.

 

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:

1. So who “owns” the clinic now? 
2. Sale agreement? (Dr. Corcoran selling to whoever)
3. Should there not be some tax related issues for Dr. Corcoran since he “sold” this business?
4. 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

Texas, Nebraska, Ohio, Colorado, Kansas and Kentucky Portions of 24 Million Dollar Settlement

Oklahoma to get $700,000 as it's part of the $24 million dollar settlement.

State to get $70K in case

Oklahoma will get $700,000 as part of an agreement with FORBA Holdings LLC to settle a Medicaid billing dispute. Oklahoma has joined 22 states in the deal with the dental management company. The states and federal government alleged FORBA billed state Medicaid programs for medically unnecessary dental services on children insured by Medicaid. Under the agreement, FORBA will pay the states and federal government $24 million, plus interest, and enter into a five-year corporate integrity agreement with the Department of Health and Human Services’ Office of the Inspector General. FORBA provided management services to Small Smiles dental clinics nationally, including three in Oklahoma.

JULIE BISBEE,

Nebraska to get $270,000.

Attorney General Jon Bruning announced today that Nebraska has joined twenty-two other states and the federal government to settle allegations against FORBA Holdings, LLC., a dental management company that provided management services to Small Smiles dental clinics nationwide.

Under the agreement, FORBA agreed to pay $24 million, plus interest, to resolve allegations that it billed state Medicaid programs for medically unnecessary dental services performed on children. Medicaid is funded jointly by the federal and state governments.

“Taking advantage of taxpayers is bad enough,” Bruning said. “But to do so by performing unneeded dental work on children will not be tolerated.”

Nebraska alleged that FORBA, which operates dental clinics under the name of “Small Smiles,” submitted claims for a wide range of dental services provided to low-income children that were either medically unnecessary or performed in a manner that failed to meet professionally-recognized standards of care.

Nebraska’s portion of the recovery is more than $270,000. In addition, FORBA has agreed to expanded oversight from the federal Department of Health and Human Services.

A team representing the National Association of Medicaid Fraud Control Units (NAMFCU) participated in the investigation and conducted settlement negotiations with FORBA on behalf of the settling states. Team members included representatives from Ohio and South Carolina. Nebraska Assistant Attorney General Mark Collins is the president of NAMFCU.

Courtesy: Nebraska Attorney General's Office

Texas gets $546,000 from FORBA settlement


Kansas to get $1.2 million.

My question here is, why are they in Kansas in the first place. Isn't corporate dental practices illegal in Kansas. Oh, wait, I forgot the story they tell...they don't own it. It's own by, ....well last person to be named as owner was Dr. Mohammad Akbar. Funny thing though, FORBA says it's 'firing' dentists over this. How can they fire dentists in clinics they just 'manage'? If I were to do the bookkeeping for a company that got into deep doo doo, I doubt I would have the power to fire the workers at the company.

Ohio will receive $2.3 million of the $24 million dollars. FORBA/Small Smiles settlement.

Ohio is taking a $2.3 million chunk of a $24 million multi-state settlement with a chain of pediatric dental clinics accused of making Medicaid foot the bill for unnecessary procedures.

Attorney General Richard Cordray on Wednesday said Ohio along with 22 other states and federal officials have struck a settlement with Nashville, Tenn.-based FORBA Holdings LLC, which runs the 23-state Small Smiles chain. In Ohio, the company has pediatric clinics in several cities, including locally in Roselawn and Colerain Township.

Kentucky gets $124,000 of the $24 million dollars.

Kentucky is one of 23 states that reached a $24 million settlement with a chain of pediatric dental clinics accused of billing Medicaid for unnecessary procedures.

Under the terms of the settlement, Kentucky will receive about $124,000 from Nashville, Tenn.-based FORBA Holdings LLC, the parent company of Small Smiles dental clinics. Of that settlement, about $44,000 will go to reimburse Kentucky’s Medicaid program, according to a news release.

In Louisville, Small Smiles has a clinic at 3438 Taylor Blvd. (Home of Dr. Melenie R. Abrams, DDS).

According to the release, some of the procedures billed to Medicaid included extractions, root canals, fillings and crowns. The company, which serves children in low-income families, also allegedly used improper techniques to restrain children.

Through the settlement, FORBA has signed an agreement to change policies at its clinics and establish procedures to detect and ultimately avoid performing unnecessary dental work.

FORBA said in a statement that the agreement “encourages us to continue to focus on vital, high-quality dental care for children in America’s low-income communities and allows us to build on the improvements implemented since the company was acquired in September 2006.”

The $24 million settlement is set to be paid out over a five-year period.

Colorado gets $1.2 million

Colorado is to receive $1.2 million as its share of a $24 million multistate settlement of a series of whistle-blower lawsuits against dental-management company

FORBA Holdings LLC, parent of the Small Smiles chain of pediatric dental clinics, state Attorney General John Suthers announced.

Nashville-based FORBA — which focuses on serving low-income children eligible for state-paid dental care benefits — had been accused in the suits of making Medicaid foot the bill for unnecessary procedures.

The 23-state settlement resulted from lawsuits filed in Maryland, Virginia and South Carolina.

The suits alleged FORBA submitted claims for reimbursement “for a wide range of dental services that were either medically unnecessary or performed in a manner that failed to meet professionally recognized standards of care,” Suthers’ office said in a statement.

As part of the settlement, FORBA signed an agreement to change policies at its clinics and establish procedures to detect and ultimately avoid performing unnecessary dental work.

In a statement Wednesday, FORBA said the agreement “encourages us to continue to focus on vital, high-quality dental care for children in America’s low-income communities, and allows us to build on the improvements implemented since the company was acquired in September 2006.”

FORBA was acquired in 2006 by Arcapita Bank, a Bahrain-based investment firm with an Atlanta-based U.S. unit,

The $24 million settlement is set to be paid out over a five-year period to states where FORBA has clinics.

In Colorado, FORBA operates Small Smiles outlets in Denver, Aurora, Thornton, Greeley, Colorado Springs and Pueblo, according to its website.

New York will get $1.1 million as it's share of the settlement. Steve Flamisch reports below.