A Discussion on Corporate Dentistry's Workings

Click Here for the sales pitch so to speak about Heartland Dental.

Includes how it works, what cuts the docs get and Employee Stock Options.

But what I find interesting is this: (The Interesting Part, is the Investment Bank involved. They were at this site for several hours last week. Houlihan Lokey Howard & Zukin.

Anyway this is a information release concerning Employee Stock Option...

EMPLOYEES ACQUIRE 38.5% OF DENTAL HEALTH RESOURCES, INC.
IN PARTIAL ESOP BUYOUT
EFFINGHAM, Ill. (January 21, 2004) – Employees of Dental Health Resources, Inc. (d/b/a Heartland Dental Care, or “Heartland”) have acquired a 38.5% ownership stake in the dental practice management company. The price of the acquisition was not disclosed.

Houlihan Lokey Howard & Zukin, an international investment bank, acted as exclusive financial advisor to Heartland. Houlihan Lokey structured the transaction, designed the ESOP security and arranged the financing for the purchase.

Heartland’s newly formed Employee Stock Ownership Trust, or ESOT, purchased convertible preferred stock representing 38.5% of the ownership of Heartland using senior credit and mezzanine funding. The transaction provided liquidity for certain selling shareholders, including Dr. Richard Workman, who founded Heartland in August 1997. The unique structure of the ESOP security and transaction provides the ESOP with an annual dividend yield while providing the company with significant future tax savings.

Workman, president and chief executive officer of Heartland, said, “Everyone is extremely excited about the ESOP and what it means for our future. The employees understand they have an opportunity to have a positive impact on the dental profession. They also realize they will create an economic interest for their knowledge by helping dental practices with management responsibilities.”

“We appreciate the dedicated professionals Houlihan Lokey Howard & Zukin assembled for the ESOP. The entire transaction team should be complimented for all their hard work and professionalism,” Workman said.

Lou Paone, managing director of Houlihan Lokey’s Washington, D.C., office said the transaction is expected to generate significant value to the employee owners in future years. “Heartland and its executive management team have a very strong employee ownership orientation,” Paone said. “The ESOP transaction and implementation marries a shareholder liquidity event with the corporate goal of aligning the employees with the future direction of the firm.” The Heartland transaction represents an innovative example of the growing trend of shareholders seeking liquidity by implementing a partial ESOP buyout structure, Paone said.

Patrick Hurst, managing director and head of Houlihan Lokey’s Healthcare Group, stated, “There haven’t been many liquidity events for shareholders of dental practice management companies in recent years. The ESOP structure is a creative alternative to selling to a financial or strategic buyer, and has the added benefit of giving the employees a real economic stake in the future success of the company.”

About Dental Health Resources, Inc.
Dental Health Resources, Inc. is a privately held company headquartered in Effingham, Ill., that provides a full range of management, administrative, and financial services to dental practices in the states of Illinois, Indiana, Iowa, Kentucky, Missouri, Ohio, and Tennessee throughout cities with populations that range from 40,000 to 500,000. By providing management services to handle the business aspects of the dental practices, the company allows dentists to use their management and business skills to be responsible for certain operations of the company and to focus primarily on delivering quality patient care. Heartland also provides capital for the development, growth, and acquisition of additional dental practices.

Houlihan Lokey Howard & Zukin, an international investment bank established in 1970, provides a wide range of services, including mergers and acquisitions, financing, financial opinions and advisory services, financial restructuring, and merchant banking. In 2003, Houlihan Lokey ranked as the No. 1 M&A advisor for transactions under $200 million and the No.4 advisor for transactions under $1 billion. The firm has been the No. 1 provider of fairness opinions for the past four years and has the largest financial restructuring practice of any investment bank in the country. The firm has approximately 600 employees in nine offices in the United States and the United Kingdom. It annually serves more than 1,000 clients ranging from closely held companies to Global 500 corporations. For more information, visit Houlihan Lokey’s Website at www.hlhz.com.

© 2004 Houlihan Lokey Howard & Zukin. All rights reserved.
Unauthorized duplication is prohibited.

Dr. Alireza Nazeri: Suspended Washington Dentist Practicing In Palm Springs

4-29-2008


Read the Full Report here on Dr. Alireza "Allen"' Yekta Nazeri, WA license # DE00006673.

What blows me away in this is that it too 32 complaints before his licenses were suspended!

Here is the final order:

California: In April 2005 the Dental Commission placed the license of Alireza Y. Nazeri, a dentist licensed in Washington (DE00006673), on a stayed suspension for five years, but he may not practice in Washington until the commission authorizes.

Nazeri failed to comply with the terms and conditions of a prior order.

Dr. Nazeri was to undergo psych evaluation.

Here is Dr. Nazeri's now practice Cornerstone Dentistry in Palm Desert, CA.

Be sure to check the "In The Media" link for a nice picture.

Dr. Alireza (Allen) Y. Nazeri is another graduate of Creighton University, same as the DeRose's. See Dr. Nazeri's bio here, and is a member of the Iranian American Dental Association.

I guess Dr. Nazeri is still working, here is where he taught a class in December 2007 on:

Secrets behind your patients saying “YES” to an Elective and Comprehensive treatment revealed!!!

You just gotta check this one out! He shows you how to get more fee for service from dental patients.

This man should not be practicing dentistry anywhere yet has a posh clinic in Palm Desert. What is wrong with this dental system anyway! Is anyone at all watching!!!!!

Anyone reading this board what to take a guess where Dr. Nazeri went to dental school?

Creighton of course! What the living hell are they teaching these dentists over there anyway?

Heartland Dental Management Dentists Accused Of DEA Number Sharing

From Federal Compliant File 4-2008

US vs Heartland Dental Care, Inc.

Heartland Dental Care, Inc. referred to as "Heartland" is a
Delaware corporation in good standing located at 1200 Network Centre Dr., Effingham, Illinois.

Heartland manages dental practices throughout the state of Illinois and elsewhere. Heartland
Dental Care, Inc., which was not incorporated until 2006, is the successor entity to Dental Health
Resources, LLC, Dental Health Resources, Inc. and Heartland Dental Development, Inc.
(collectively "DHR entities"). The DHR entities managed the dental practices, entities, dentists
and employees whose conduct is described below.

Richard E. Workman, D.M.D. is the President and Chief Executive Officer for Heartland.

In the Complaint dentists employees by Heartland at various locations used DEA numbers of other registered dentists to write prescriptions regulated medications.

DEA Inspector reviewed conduct between 2003 and 2007 and found numerous instances of misuse of DEA numbers.

Heartland employed newly graduated dentist who were not yet registered and issued a DEA number for dispensing prescription of controlled substances. Therefore in order to conduct business these dentists used DEA numbers of established dentists.

Heartland Dental was aware and facilitated in this procedure.

Wow, I wonder if this goes on at other Dental Management Companies as well, namely FORBA!

If any of you employees out there know of fraud and corruption at FORBA you could well end up like the woman in Illinois who reported them under the false claims act as a Whistle Blower entitling her to a portion of the fine/settlement. As well she won over $300K for wrongful termination.

I've put links on the side bar regarding the False Claims Act Laws and Whistle Blower Protection.

New York Leave State Vulnerable to Corportate Dental Abuse

§ 6604. Requirements  for  a  license  as  a dentist. To qualify for a
license  as  a  dentist,  an  applicant  shall  fulfill  the   following
requirements:

 (1) Application: file an application with the department;
(2) Education: have received an education, including a doctoral degree
in dentistry, in accordance with the commissioner's regulations;
(3)  Experience:  have  experience  satisfactory  to  the board and in
accordance with  the  commissioner's  regulations,  provided  that such
experience    shall    consist   of   satisfactory   completion   of   a
clinically-based  postdoctoral  general  practice  or  specialty  dental
residency  program,  of  at  least one year's duration, in a hospital or
dental  facility  accredited  for  teaching  purposes  by   a   national
accrediting  body approved by the department, provided, further
that any such  residency  program  shall  include  a  formal  out come
 assessment evaluation of the resident's competence to practice
dentistry acceptable to the department;
(4)  Examination: pass a written examination satisfactory to the board
and in accordance with the commissioner's regulations;
(5) Age: be at least twenty-one years of age;
(6) Citizenship or immigration status: be a United States  citizen  or
an alien lawfully admitted for permanent residence in the United States;
provided,  however,  that  the  board  of regents may grant a three year
waiver for an alien to practice in an area which has been  designated  a
federal  dental  health professions shortage area, except that the board
of regents may grant an additional extension not to exceed six years to
an  alien  to  enable  him  or  her  to  secure citizenship or permanent
resident status, provided such status is being actively pursued;
(7) Character: be  of  good  moral  character  as  determined  by  the
department; and
(8)  Fees:  pay  a fee of two hundred twenty dollars to the department
for admission to a department conducted examination and for  an initial
license,  a fee of one hundred fifteen dollars for each reexamination, a
fee of one hundred  thirty-five  dollars  for  an  initial  license  for
persons  not  requiring admission to a department conducted
examination,and a fee of two hundred ten dollars  for  each  triennial
registration
period.

Dr. George C. Brain: Another Terrorist Dentist In Tacoma Washington

The state Department of Health has opened a new investigation into a Tacoma dentist accused of mistreating young patients.That action comes on the heels of an exclusive KIRO Team 7 Investigation into Dr. George C. Brain.

Children have repeatedly complained over the years that Brain choked, shoved, assaulted or grabbed them by the throat.Now, Investigative Reporter Chris Halsne pins down the Dental Board about its handling of Dr. Brain.Dr. Brain's resume includes nine police reports from kids who claim to have been assaulted during dental work.

Those resulted in a charge of assault on a child, but no criminal convictions.However, in addition, for the first time, we dig inside Dr. Brain's licensing file to discover more accusations of assaultive or threatening behavior.Pediatric dentist Dr. George Brain has been under scrutiny for professional misconduct for years.

Records at the Dental Quality Assurance Commission show seven complaints of assault, abuse or verbal threats towards children.One led to disciplinary action. A 2006 case shows a girl complained Dr. Brain choked her and pulled some teeth without permission. The board assigned Dr. Brain to a "monitoring" program and required an "anger management evaluation."Laurie Jinkins, an Assistant Secretary at the state Department of Health, oversees dental licensing complaints.She tells KIRO Team 7 Investigators, “That would not be a typical number of complaints. That is a high number and it is something that causes us concern.”Jinkins defends the state’s disciplinary process, saying Dr. Brain has been on their radar and they’re watching him.“We're concerned when any patient has a bad experience with their health care provider, but especially with kids or vulnerable people.

That makes us especially concerned because kids can't protect themselves.”Five-year-old Cameron Laducer and his sister, Courtney, are the latest kids to accuse Dr. George Brain of hurting them. A complaint, on file with the dental board this week, alleges Dr. Brain overmedicated Courtney, yanked a tooth, and filled a cavity in another tooth without parental permission.It also accuses Dr. Brain of creating scratches on Cameron's face and causing a grossly infected lip.The children’s mother, Brooke Laducer, tells KIRO Team 7 Investigative Reporter Chris Halsne, “I'm very, very angry with the State of Washington. Number one, I want to know why this man still holds a license. I want to know why he can still work on children. “Laurie Jinkins says she can't talk about the Lacuder's new complaint; it's under active investigation.

She did, however, address another of our questions.We discovered Dr. Brain made around $1.5 million last year from the state in return for treating low-income children and their families.Halsne: “Does a patient who doesn't have any money, who has to use a state welfare voucher to get that work done -- should they receive any lesser care than someone with premium insurance?”Jinkins: “Everyone in this state, no matter how rich or how poor they are, whether they have insurance or don't have insurance, they are entitled to the same level of care, the same quality of care in this state."

Dr. Brain has chosen to remain silent and is not speaking with us regarding our investigation.Others are not so quiet.Dozens of people have called and e-mailed Tuesday, wanting to tell KIRO Team 7 Investigators about their treatment inside Dr. Brain's office.If you have any concerns about his conduct or the conduct of any other dentist in Washington, the state Health Department wants to hear from you.

Click Here for Video Report, Interviews with patients, police reports and more.

Should Michael DeRose Ever Been Licensed In North Carolina?

Should Michael DeRose or any corporate dentist group actually have access to treating patients under North Carolina Law is the question here. I say unless that dentist is licensed and actively practices in North Carolina, they should have their licenses revoked! But of course this is where dentists like Dr. Raf Rivera and Dr. Tish Ballance come in isn't it. They become the "local" actively practicing dentists.

If you "google" those in charge of Small Smiles, Kool Smiles, Ocean Dental and others, they have offices as well as licenses in various states across the US. But you and I both know they don't "actively" participate.

For instance, Dr. Adolph Padula, Mike DeRose's uncle) with FROBA Small Smiles says he can be seen in New York, Massachusetts, Colorado and Ohio. In the MassHealth Directory it says Dr. Padula is accepting new patients. I see this over and over. Now grant you they are a bit careful. But in the instance of getting on lists of providers not so much. The names crop up in state after state.

I understand that each state is different, but most require them to "actively" practice dentistry and it's that way for a reason. This is where Tennessee got Dr. William Mueller a few years back that was reduced to an advertising sanction. They get licensed and advertise in states where they have a licenses, but fail to "actively" practice dentistry.

Let's Look At North Carolina:

North Carolina General Statutes:

§ 90-36. Licensing practitioners of other states.

(a)The North Carolina State Board of Dental Examiners may issue a license by credentials to an applicant who has been licensed to practice dentistry in any state or territory of the United States if the applicant produces satisfactory evidence to the Board that the applicant has the required education, training, and qualifications, is in good standing with the licensing jurisdiction, has passed satisfactory examinations of proficiency in the knowledge and practice of dentistry as determined by the Board, and meets all other requirements of this section and rules adopted by the Board. The Board may conduct examinations and interviews to test the qualifications of the applicant and may require additional information that would affect the applicant's ability to render competent dental care. The Board may, in its discretion, refuse to issue a license by credentials to an applicant who the Board determines is unfit to practice dentistry.

(b) The applicant for licensure by credentials shall be of good moral character and shall have graduated from and have a DDS or DMD degree from a program of dentistry in a school or college accredited by the Commission on Dental Accreditation of the American Dental Association and approved by the Board.

(c) The applicant must meet all of the following conditions:

(1) Has been actively practicing dentistry, as defined in G.S. 90-29(b)(1) through (b)(9), for a minimum of five years immediately preceding the date of application.

G.S. 90-29 (b)(1) thru (b)(9)

(1) Diagnoses, treats, operates, or prescribes for any disease, disorder, pain, deformity, injury, deficiency, defect, or other physical condition of the human teeth, gums, alveolar process, jaws, maxilla, mandible, or adjacent tissues or structures of the oral cavity;

(2) Removes stains, accretions or deposits from the human teeth;

(3) Extracts a human tooth or teeth;

(4) Performs any phase of any operation relative or incident to the replacement or restoration of all or a part of a human tooth or teeth with any artificial substance, material or device;

(5) Corrects the malposition or malformation of the human teeth;

(6) Administers an anesthetic of any kind in the treatment of dental or oral diseases or physical conditions, or in preparation for or incident to any operation within the oral cavity; provided, however, that this subsection shall not apply to a lawfully qualified nurse anesthetist who administers such anesthetic under the supervision and direction of a licensed dentist or physician;

(6a) Expired pursuant to Session Laws 1991, c. 678, s. 2.

(7) Takes or makes an impression of the human teeth, gums or jaws;

(8) Makes, builds, constructs, furnishes, processes, reproduces, repairs, adjusts, supplies or professionally places in the human mouth any prosthetic denture, bridge, appliance, corrective device, or other structure designed or constructed as a substitute for a natural human tooth or teeth or as an aid in the treatment of the malposition or malformation of a tooth or teeth, except to the extent the same may lawfully be performed in accordance with the provisions of G.S. 90‑29.1 and 90‑29.2;

(9) Uses a Roentgen or X‑ray machine or device for dental treatment or diagnostic purposes, or gives interpretations or readings of dental Roentgenograms or X rays;

(2) Has not been the subject of final or pending disciplinary action in the military, in any state or territory in which the applicant is or has ever been licensed to practice dentistry, or in any state or territory in which the applicant has held any other professional license.

(3) Presents evidence that the applicant has no felony convictions and that the applicant has no other criminal convictions that would affect the applicant's ability to render competent dental care.

(4) Has not failed an examination conducted by the North Carolina State Board of Dental Examiners.

(d) The applicant for licensure by credentials shall submit an application to the North Carolina State Board of Dental Examiners, the form of which shall be determined by the Board, pay the fee required by G.S. 90-39, successfully complete examinations in Jurisprudence and Sterilization and Infection Control, and meet the criteria or requirements established by the Board.

(e) The holder of a license issued under this section shall establish a practice location and actively practice dentistry, as defined in G.S. 90-29(b)(1) through (b)(9), in North Carolina within one year from the date the license is issued. The license issued under this section shall be void upon a finding by the Board that the licensee fails to limit the licensee's practice to North Carolina or that the licensee no longer actively practices dentistry in North Carolina. (1935, c. 66, s. 9; 1971, c. 755, s. 7; 1981, c. 751, s. 6; 2002-37, s. 2.)

Does anyone reading this blog think that Michael DeRose, living in his Pueblo Colorado 3.4 million dollar recording breaking home EVER "actively" practice dentistry in North Carolina as defined?

Michael DeRose has sanctions in other states, namely Colorado for one.

He would have had to one of the following to be considered actively practicing dentistry:

(1) Diagnoses, treats, operates, or prescribes for any disease, disorder, pain, deformity, injury, deficiency, defect, or other physical condition of the human teeth, gums, alveolar process, jaws, maxilla, mandible, or adjacent tissues or structures of the oral cavity;

(2) Removes stains, accretions or deposits from the human teeth;

(3) Extracts a human tooth or teeth;

(4) Performs any phase of any operation relative or incident to the replacement or restoration of all or a part of a human tooth or teeth with any artificial substance, material or device;

(5) Corrects the malposition or malformation of the human teeth;

(6) Administers an anesthetic of any kind in the treatment of dental or oral diseases or physical conditions, or in preparation for or incident to any operation within the oral cavity; provided, however, that this subsection shall not apply to a lawfully qualified nurse anesthetist who administers such anesthetic under the supervision and direction of a licensed dentist or physician;

(6a) Expired pursuant to Session Laws 1991, c. 678, s. 2.

(7) Takes or makes an impression of the human teeth, gums or jaws;

(8) Makes, builds, constructs, furnishes, processes, reproduces, repairs, adjusts, supplies or professionally places in the human mouth any prosthetic denture, bridge, appliance, corrective device, or other structure designed or constructed as a substitute for a natural human tooth or teeth or as an aid in the treatment of the malposition or malformation of a tooth or teeth, except to the extent the same may lawfully be performed in accordance with the provisions of G.S. 90‑29.1 and 90‑29.2;

(9) Uses a Roentgen or X‑ray machine or device for dental treatment or diagnostic purposes, or gives interpretations or readings of dental Roentgenograms or X rays;

Kool Smiles Turned Away in Arkansas March 2007

I'm wondering how Kool Smiles PC was able to skirt the laws and get two offices opened in Arkansas.

In March 2007, Drs. Tu Tran, Thien Chi Pham and Dr. David M. Strange, Jr. went before the Arkansas Dental Board to apply for licenses, they were turned down.

From the Minutes Dated 3-2-2007

Drs. Thien Pham and Tu Tran each appeared before the Board for an Arkansas dental license by examination. After some discussion, a motion was made and seconded to grant Dr. Pham a license. With 4 Board members voting in favor of granting him a license and 4 Board members voting against granting him a license, the Board President broke the tie and voted against granting a license to Dr. Pham. After additional discussion, a motion was made and seconded to table Dr. Tran’s application until the Board office receives a copy of his dental school diploma and New York license verification.

David M. Strange, Jr., DDS appeared before the Board for an Arkansas dental license by credentials. After some discussion, a motion was made to grant him a dental license, but the motion died for lack of a second.

Maybe Drs. Thien Pham and Tu Tran, two Vietnamese dentists finally came up with copy of his dental school diploma. However as you can tell, at first it was a no go for these two, then it was decided that if they came up with actual diploma's they would reconsider.

As for Dr. David M. Strange, Jr, DDS, it was a flat NO.

To see the minutes of the meeting click here.

update:

Looks like Dr. Pham came back on September 14, 2007 with Paul Walker and got Kool Smiles in the door.

Click here to see the minutes.

Former Dental Management Employee Awarded $750,000 For Stepping Forward

4-11-2008

Dental Management Companies are on notice.

A former employee was awarded $412,500 for stepping forward and exposing over billing, over treatment, and unnecessary procedures billed by Heartland Dental Management. Heartland also agreed to pay Lori Jamison another $325,000 for wrongful dismissal and attorney fees.

Lori had the courage to step forward and file a claim under the Federal False Claims Act and Illinois' Whistleblower Reward and Protection Act.


My hat is off to Miss Lori, how about yours?

Read The Full Story Here

2 Year Old Leaves Winston-Salem Smile Starters With Bloody Nose

Recently, and I mean VERY recently 2 year old Kimora, visited the Smile Starters Clinic, located in Winston-Salem, NC on Silas Creek Parkway with a bloody nose.

Her mother reports this was the child's second visit, her first was for a cleaning. This time they wanted to put crowns on four of the two year old's teeth.

After about 30 minutes the child was returned to her mother and the mother was told that only cleaned her teeth but wanted her back for more treatment. Mom said you could tell she had been crying and blood was "dripping" from her nose.

Her mother told the people at the clinic she would NOT be bringing her child back. When mom got home and looked on the Internet and found all the negative reports with Smile Starters she immediately called the clinic to have her daughter's dental records sent to her.

Her mother says the child is now acting strange, even after getting some rest from the incident. Her mother said her son has also visited this clinic and they have put 7 crowns on his teeth. Mom feels like none of the were necessary since she sees to it the children take good care of their teeth and limits sweets etc.

When I questioned mom if she was able to go back with her child or if there was a window to observe the treatment she told me they wouldn't let her go back with her small daughter. She said there was a small two way mirror where she could look see in, but as reported by others on this site it only lets one see into the "cleaning" room and her daughter was taken further back into the clinic.

Now what did those people do to give a 2 year old child a bloody nose. When I try and picture it in my mind, knowing what I do about these people, I would say it happened while trying to wrestle her into the papoose board!

Shame on Smile Starters Once Again!

New Management! HA!

Dr. Steven Adair Is Small Smiles New Cheif Dental Officer-Ya Gotta Love it!

See how smart these people are:

They hired the one doctor who wrote an article for the American Academy of Pediatric Dentist on how papoose boards need to be modified for use in dental practice.

(chew on that in a minute...)

Small Smiles hired a Papoose Board Expert!!!!!!!!!!!!!!!! Click Here

Doesn't sound like they plan on doing away with tied kinds down now does it?!

What surprises me is that someone with Dr. Adair's credentials would going up with such a child abusing company as FORBA/Small Smiles. If he thinks he's going to ride in on his white horse and "clean things" up that certainly will not happen. The DeRose's have been doing this since for darn near 20 years, they are set in their ways. Plus I'd say within the next year, this place will be in even worse shape in the eyes of the public, and that's all that really counts isn't it?

Funny how I just posted his article yesterday. Then I see where someone on my site had searched Dr. Adair, so I followed that link and low and behold there was this........... click here.

At the link above is a press release where Dr. Tara Schafer was appointed as the Medical College of Georgia's interim chair by the School of Dentistry Dean, Connie Drisko, a position previously held by Dr. Steven Adair.  

Paula Hinely -  2008 March 20

Dr. Tara Schafer, associate professor in the Medical College of Georgia Department of Pediatric Dentistry and an MCG alumna, has been appointed as the department’s interim chair by School of Dentistry Dean Connie Drisko.

“Dr. Schafer is a highly skilled pediatric dentist,” Dr. Drisko says. “I am certain her leadership and forward thinking will continue to advance the department in its mission of providing quality training for students and residents while maintaining a focus on patient- and family-centered care.”

Dr. Steven Adair, the department’s chair since 1990, has reduced his work commitment in the school to assume the position of chief dental officer for FORBA, Inc., the parent company of Small Smiles Dental Clinics, which treats underserved children.

God works in mysterious ways!