Rick Perry and Greg Abbott Culpable in Debacles of Corporate Dentistry DSO Poster-Boy, R. Kirk Huntsman

 

by Dr. Michael Davis

 

December 17, 2014

Soon to assume the Texas governor position, from his prior office of Texas state attorney general, will be Greg Abbott. Mr. Abbott takes over the governor’s office from another dental industry failure, current Governor Rick Perry. Mr. Perry is most noted in dentistry for his dubious appointments to the Texas State Board of Dental Examiners (TSBDE). The consumer protection group, Texans for Dental Reform, have highlighted a number of these self-serving and corrupt appointments. Members of the TSBDE included a number of notorious Medicaid fraudsters, and at least one convicted sex offender.

Hapless state watchdogs for Texas citizens extended not only to the TSBDE and their incompetent legal counsel, but also to the Texas Office of Inspector General. Despite the fact that Texas is currently the state most recognized for the severity and volume of dental Medicaid fraud, the Texas Office for Inspector General has so far failed to effectively prosecute violator after violator. These habitual failures go directly to the (in)activity of Greg Abbott and Rick Perry.

Federal Fifth Circuit Ruling 07-30430

Let’s examine a case in point. Federal Fifth Circuit Court ruling 07-30430, which is largely based on Texas state statutes, determined that non-dentist ownership of a dental practice in Texas represents the unlicensed and unlawful practice of dentistry. The ruling further stipulates that corporate violators are to receive the same legal penalties, as individual person violators, with no special treatment. The acts of establishing doctor production quotas and bonuses are an action only lawfully permitted by a licensed dentist. State dental regulatory boards are charged under this federal ruling with the responsibility and obligation, of disciplinary actions against both individual person violators and corporate violators. The federal court also determined OCA (f/k/a Orthodontic Centers of America) could not enforce employment contracts with duly licensed Texas doctors, because the corporate entity OCA was not in fact a licensed doctor. The dentist employment contracts were determined unlawful and unenforceable, in their entirety, without being severable.

The federal court clearly saw though the sham presented by OCA (a dental service organization, “DSO”). OCA presented licensed dentists, whom they retained to misrepresent themselves as clinic “owners”. OCA controlled the dental clinics’ bank accounts. OCA held the power to buy and sell assets, such as the doctor employment contracts and individual clinics. In reality, these “owner dentists” were merely nominee owners. OCA, like nearly all DSOs, was the true and unlawful beneficial owner.

In conflict with this federal ruling —and further, avoiding addressing this ruling —the TSBDE has repeatedly stated they have no mandate to enforce the unlicensed practice of dentistry by a corporate entity. This flagrant obfuscation of law by legal counsel for the TSBDE is highly disturbing. Even more troubling is watching Rick Perry and Greg Abbott hide under their desks. Additionally, Mr. Abbott further abandoned his duty as Attorney General by failing to provide a legal advisory opinion based on clear and current legal precedence.

Xenith Practices, LLC & Austin Cosmetic Dentistry

Let’s examine another case, where Mr. Abbott was asleep at the wheel leaving dental consumers in harm’s way. In October 2014, Austin Cosmetic Dentistry simply closed and locked their doors. No notice of the closure was given to patients or staff. The staff was left unexpectedly unemployed and patients were illegally abandoned. Many patients were in the middle of their treatment. Many others, who had pre-paid, were scheduled to begin or finalize their restorations.

Representatives of Xenith Practices purchased the now-failed Austin Cosmetic Dentistry clinic from Dr. John Schiro, a couple of years earlier. The highly disturbing public record of Dr. Schiro with the TSBDE must have been aware to Mr. Huntsman and principles of Xenith Practices. It’s easy to download from the TSBDE website, with the slightest due diligence check. The earlier legal disputes between Dr. Schiro and Dr. Douglas Terry, who openly spoke out about alleged improper clinical care by Dr. Schiro, were also of public record. I have no idea what matters the investors were informed, by way of a lawful full disclosure by Mr. Huntsman. None of this should have escaped the attention of the Texas attorney general’s office, governor’s office, nor the TSBDE.

Xenith Practices, LLC, a DSO, managed the failed Austin dental clinic. Mr. R. Kirk Huntsman, —a business executive with no formal dental education and unlicensed to practice dentistry—formerly served as CEO of Xenith. As we shall see, Mr. Huntsman has quite the storied history in the dental industry. As for the true beneficial ownership of Austin Cosmetic Dentistry, that will be for the courts to sort out. It is alleged that Mr. Huntsman’s son-in-law—a Texas licensed dentist who lives and works in Colorado— signed on as the figurehead, “owner dentist”. Mr. Abbott could not have missed this obvious violation to Fifth Circuit ruling 07-30430, and negative fallout to the public health and safety.

Sentinel Capital Partners has played big role in DSO cancer spreading across the states

In an article dated January 4, 2011, AltAssets published a story about Sentinel Capital Partners.  It had been announced Sentinel Capital had acquired Chase Doors on the same day it unloaded ReachOut Healthcare. If I remember correctly this is where Morgan Stanley stepped in, with the help and assistance of R. Kirk Huntsman. 

As what usually happens in these type of things, a little history is given; that is where the bodies are found buried.

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January 4, 2011

 

Lower mid-market private equity firm Sentinel Capital Partners has acquired US door manufacturer Chase Doors, on the same day that it announced the sale of dental support service ReachOut Healthcare America.

In both cases, financial terms were undisclosed.

Chase Doors, founded in 1932, produces specialty door systems employed in a variety of industrial and commercial settings including corrosion-resistant doors used for hazardous material handling; cold storage doors used in walk-in freezers and refrigerators; double impact traffic doors used in supermarkets and restaurants; and strip and roll-up doors used in warehouses.

The company’s revenues are evenly distributed across new construction, remodeling and replacement, and maintenance in the retail, industrial, pharmaceutical, food processing and markets.

“One of Sentinel’s areas of focus is branded, niche manufacturing businesses,” said Scott Perry, a vice president at Sentinel.

“Our previous investments in the niche manufacturing sector have given us a keen understanding of how to foster growth for businesses like Chase and financial guidance that positions our team to enhance Chase’s current market position while continuing to grow.”

New York-based Sentinel’s investments in other specialty niche manufacturing businesses include pressure regulator provider Engineered Controls International, industrial lubrication equipment maker Alemite, and Fasloc, which produces roof support systems used in underground mines.

• ReachOut, which the firm has just sold, provides a diagnostic, preventative, and restorative dental services to underserved children in schools and foster programs, the aged and disabled in residential facilities, and to US Army National Guard units.
• Sentinel made its initial investment in the company in 2007 in partnership with its two founders.
• In 2008, ReachOut acquired its largest competitor, Mobile Dentists, acquiring Georgia-based Help A Child Smile in early 2010.
• Today, (January 2011) ReachOut operates in 25 states and provides dental care to more than 425,000 underprivileged children, seniors, and military personnel each year.

“It has been extremely rewarding to work with the ReachOut and Mobile Dentists management teams,” said David Lobel, managing partner at Sentinel.

• “ReachOut is now firmly established as a powerful growth platform that delivers critical dental care to large and underserved segments of the population. We are proud to be affiliated with a business that not only has done well for its investors, but also provides a greatly needed healthcare service.”
• “We are fortunate to have enjoyed considerable success investing in the dental industry and will continue to seek new dental investment opportunities in the future,” said Paul Murphy, a partner at Sentinel.
• In the past, Sentinel has taken stakes in Castle Dental Centers, sold to Bright Now! Dental in 2004, and Metro Dentalcare, sold to American Dental Partners, in 2007.

Was this the meeting that started the corporate dentistry phenom?

Here is a 2004 picture of the group it appears may have been the one who planned the take over of modern dentistry. They called this meeting a “CEO Consortium “ and it took place June 10, 2004 at the “Institute at Heartland Dental Care”. All but one or two went on to become the founders of the Dental Group Practice Association which now includes corporate CEO’s in Canada and Australia as well as dental supply companies, products companies and our favorite corporate dentistry law firm, Waller Lansden  Dortch and Davis.










Pictured above is: Dr. Rick Workman, Mike Bileca, Steve Thorne, Mitchell B. Olan, Mark Freidman, Bob Fontana, Kirk Huntsman, Dr. Jeff Moos, Douglas W. Brown.

Was this the meeting where the idea to sell this illegal business model to Private Equity was born? What were the Dental Practice Acts in 2004? How many of these guys should have been in jail then? What about now?
Where are they now
Dr. Rick Workman – still with Heartland Dental, Vice President of the Dental Group Practice Association, not in jail.
Mike Bileca – Florida State Representative, still with Towncare Dental, Treasurer of the Dental Group Practice Association and not in jail.
Stephen (Steve) E. Thorne lV – remains at Pacific Dental, President of the Dental Group Practice Association and not in jail.
Mitchell B. Olan -  Still CEO of Dental Care Alliance/Gentle Dental Group Services, not in jail.
Mark E. Friedman – CEO of UAI Technology, Inc. President of Mid-Jersey Realty, LLC, Board of Directors of Klein Decisions, and not in jail.
Bob Fontana – Still reigning king at Aspen Dental, wanting to bring dental service to the “underserved” and not in jail.
R. Kirk Huntsman – Dental One, which was supported by ABN AMRO Private Equity, merged with DentalCare Partners to become DentalOne Partners, with Kirk as joined up with the disgusting Reachout Healthcare America crew, recently wrote an article on how to beat the Dental Practice Management groups he largely assisted in creating, when at the same time he started Nexus Dental Alliance, which is not a Dental Practice Management, it’s even better, it’s his Dental Practice Management Group, he has the R. Kirk and Julie M. Huntsman Foundation, he is not in jail.
Dr. Jeff Moos – Still with Mid-West Dental that merged with Mountain Dental and backed by Private Equity firm Friedman, Fleischer & Lowe of Kool Smiles fame, he is not in jail.
Douglas W. Brown – Mr. Brown is eyeball deep in a number of the dental mills, Affordable Care, DentalOne Partners, Dental Works, Dental Care Partners, Secretary of the Dental Group Practice Association, not in jail.

Lost files on R. Kirk Huntsman discussion

The Dental Leader no longer exists other than in cached format. But I located this discussion and going to repost it.  I’m not sure when it was written, but here is the cached copy. By looking at the Wayback Machine, it was archived the first time in February 2001, and this News Letter was there at that time.  So this goes back a while. I guess, sadly, no one listened to Dr. Maroon.  Look where we are in 2012! Maybe too much nitrous in the operatories and folks were sleeping!

The Dental Leader Inc - Michael Maroon, DMD, FACE, FAGD - Editor & Publisher
39 Webster Square Road, Berlin, CT 06037
Email: contact@TheDentalLeader.com (no longer works)

Great Article...Great Newsletter

Mike,

I thoroughly enjoyed the June issue of your newsletter, especially "There’s Always Tomorrow." I read quite a few parallels to my own life in that article.

The rest of the newsletter also contained quite a bit of meat along with some thought-provoking, insightful articles. Keep up the good work!

Dr. Kit Weathers, Griffin, GA

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The Devil Revisited

Well, I don’t quite know how to respond to all this DPMC (Dental Practice Management Company) stuff that is starting to manifest in our profession. However, I do know when I see a biased and self-serving article when I read one. Case in point, the reply of a one Mr. R. Kirk Huntsman (sounds like an attorney to me Vern) to the article written by a fellow dentist Mike Maroon.

I believe Mr. Huntsman referred to Dr. Mike’s article as a condescending diatribe (a long, violent, or blustering speech, according to Webster). This description would more appropriately fit the pen that wrote the reply. Dear R. Kirk, should I call you "R" or "Kirk", the R. Kirk just didn’t sit well with my simple Midwestern mind. Makes me feel like I gotta have sum one ta represent me. So I’ll jist call ya Kirk then. I’m sorry, I’m jist a Dennust. Ya know...sore on the hind end from rollin’ over so many times to ya’all. So Kirk, please enlighten me on your credentials that enable you to speak so intelligently about the dental profession. Are you one of us? Do you have a DDS or DMD degree? Or, are you yet another wonderful, charismatic and caring purveyor of management expertise who beckons to save us by convincing us that big brother (DPMC) is here for the good of all?

I don’t know, but I’ve been told, ReachOut America is as low as they go.

I’m hearing ReachOut Healthcare America mobile dentistry, and their Big Smiles program has a “service center” type place with hoards of telemarketers in cubicles, burning up the phone lines with a list of potential victims to contact that is as long as your arm. 

Telemarketers? Yes,telemarketers. This is where the “ReachOut” part comes into play. Each telemarketer has a list of the names of children, parents, your child’s school, and parent or guardian contact information.

For example, let’s say you are home, the phone rings, you answer and it’s a nice lady telling you the mobile dental clinic your school has approved, which is staffed with a highly qualified dentist and two assistants will be at your school on such and such date. Sounds just like picture-day doesn’t it?

The telemarketers have their expertly crafted scripts ready, which makes this phone call really a “high pressure” sales call. You’re probably going to be quoted statistics and such about the poor status of children’s dental health here in America, your state or even your town.

The telemarketer tell you they just your verbal permission - probably recorded- or so they might tell you. ReachOut can have their highly qualified and well trained dentist do just a little look-see, a screening so to speak, or maybe its been a while since your child’s last cleaning, they could do that for you too. They may tell you they will send home a report detailing Susie’s dental health.

They might ask, if their highly trained staff does find a problem, with Susie, do you what them to fix it, right then and there, since it is a full service mobile clinic. It will save you all kinds of time and we know as parents, time is a valuable commodity, right? Plus, how can you neglect your child by withholding dental care? Free dental care?! Free, you may ask?

The telemarketer, I mean company representative, tells you there will be no cost to you, since your child is eligible for free dental services because of your states Child Health Insurance Program (CHIP). Sounds like if you are on the “free lunch” list you get free dental care at school too, doesn’t it? 

In fact you may feel at the end of the phone call your this is all arranged by your school system as a service to all the children, included as a normal as the school nurse. Remember the fluoride rinses back in the 1980’s?

You could be lead to believe it’s nothing more than dental hygiene instruction – remember those Bell Telephone movie reels that used to make the rounds at schools?  No, well you’re not as old as me then.

If you decide you would like to be there for the event, you’re likely to be told that since they aren’t sure exactly what time Susie will be called, you could possibly be sitting there in the school all day, and you don’t want to be doing that, right? That’s just another classic separate the child and the parent ploy.

Speaking of that “free lunch” list, is that where ReachOut Healthcare got your contact information?

R. Kirk Huntsman’s- The Beginning: Reachout Healthcare America-Dental One, Nexus Dental Alliance and more

Last September(2011) R. Kirk Huntsman’s was featured at a seminar entitled “Beat The Dental Practice Management Companies”  Warning attendees of the “Walmart Effect” taking over dentistry.

Yet, among many other ventures in Dental Practice Management, R. Kirk Huntsman has been Managing Partner of Montage Venture Group LLC since March 2010, according to Business Week. 

R. Kirk Huntsman Bio from Nexus Dental Alliance, his virtual Dental Management company.  Virtual, meaning you just “pretend”, “not real”? 

Mr. Huntsman has been active in the dental industry for over 23 years.

Yet, never took time to become a dentist, wonder why?  If he was so into it, you’d have thought he would want to actually be one, right?

In 1988, he became the Dallas/Ft. Worth licensee for Associated Financial Transition Consultants, Inc.(AFTCO Associates,) a dental practice brokerage company with over 65 offices nationwide.  Within two years, his was the top performing office in the nation.   In 1991, he acquired the Houston license and continued to rapidly expand. 

By 1995, he was ready to begin owning and operating practices, so he launched Dental One as a dental management services organization, or DMSO.

In 1995, as well as today, it was illegal for a non-dentist to own dental practices!  I guess Mr. Huntsman failed to read the following page of info over at the AFTCO website, but it’s easy to see how he could become confused, since it’s written in a lot of double speak BS. Plus, it used the word “Goodwill” which I’m sure is not in his vocabulary.  Had the word, “Greed” been used, it would have had his complete attention.  Here is what is on the AFTCO’s website: