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June 27, 2012 2:53 PM
Raleigh, N.C. — A high profile legislative battle -- complete with television ads and attention from federal bureaucrats -- between various groups of dentists has ended in compromise.
The North Carolina Board of Dental Examiners and the state's Dental Society had been pushing a bill that would limit dentistry management arrangements. Under those agreements, dentists affiliate with companies that handle certain aspects of their business.
Some of those agreements ceded too much power to the corporations, members of the board and society said. They worried that corporate officials based in other states would make treatment and scheduling decisions for the dentists.
But the dental management companies and dentists allied with them said the board was interfering in private businesses. They said DMAs give younger dentists trying to open a practice and older dentists winding down their work options that lone practitioners don't have.
"The DMA organizations are going to grow," Dr. Alec Parker, executive director of the dental society, said today. "We just want to make sure their growth includes patient protections."
The House Health and Human Services Committee approved a much shorter bill than the society had originally sought. Language in early versions of the bill that would have given the dental board sweeping policy powers -- such as being able to scrutinize business records -- were not included in the compromise bill.
Existing dental board rules will be allowed to stand, but both sides agreed to create a task force that would recommend changes that would accommodate new business arrangements.
Representatives from both sides say they expect that task force and the dental board to hammer out a revised set of rules to the liking of all parties and avoid a return trip to the General Assembly.
Over the past several months, both the dental society and the Alliance for Access to Dental Care, a group funded by dental management executives, aired hundreds of thousands of dollars worth of television ads.
Advocates fighting for the bill painted the fight as one that pitted dentists in traditional practices against big corporations funded by private equity groups more concerned with making money than providing quality care. Dental management firms hit back that old-school dentists were trying to limit competition as thousands of North Carolina residents went without affordable dental care.
Lobbying was intense and involved well known figures in the national Republican Party such as former Florida Gov. Jeb Bush and Grover Norquist of Americans for Tax Reform. In addition, the Federal Trade Commission weighed in, saying the bill first proposed by the Dental Society would have improperly cut down on competition and consumer choice.
"The tensions between both groups will be considerably less," said Tom Fetzer, the alliance's lead lobbyist in Raleigh.
Making the negotiations even touchier was the push and pull between members of the legislature who were dentists and the stated goal of most Republicans to cut back on regulations.
"It is in the best interest of all parties that the law be clarified," said Rep. Bert Jones, R-Rockingham, a dentist and one of the members tasked with helping both sides find consensus.
In addition to creating a task force, the bill also redefines terms in dental regulations and clarifies how and when the dental board can exercise oversight powers over dentists entering into dental management contracts.
The full House is expected to hear the bill Wednesday afternoon.
Grand Opening on June 30, 2012 for a new “SmileBest Dental in San Antonio.
SmileBest is really Western Dental - P.O. Box 14226, Orange, CA 92863
The..(clearing throat and trying not to choke)… “owner” is Soumava Sen, D.D.S
See press release here
Media contact:
WesternDentalPR@gmail.com
Kurt Hilzinger, Partner, Court Square – is on the board of Western Dental – see here, pg 11.
May 30, 2012
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Western Dental Services, the private dental clinic chain, has mandated Jefferies for a sale process, a source familiar with the matter and an industry banker told mergermarket.
The Orange, California-based company generated USD 71m in EBITDA for 2011, said the source familiar. Books have been distributed to potential bidders, but a first round bid date has not yet been set, the source said.
Western Dental will appeal to private equity firms, said the banker and the source. Jefferies has been reaching out to private equity firms regarding the sale, said the banker.
The company was acquired by Court Square Capital Partners, formally known as Citicorp Venture Capital, in 2005. This news service previously reported that Court Capital was one of the bidders in the final round of the previous process for the company in 2005, at which time Western Dental had USD 45m in EBITDA and was said to be selling for a multiple of 8.2x EBITDA, according to previous reports by this news service.
For Immediate Release
Wednesday, June 27, 2012
Grassley investigates allegations against dental clinics
WASHINGTON – Senator Chuck Grassley is scrutinizing Medicaid-funded dental clinics in response to allegations of abusive treatment of children in clinics controlled by corporate investors rather than dentists.
“We’re finding that these dental practices, under pressure from owners who are not licensed dentists, have been providing services with the highest Medicaid reimbursement levels more often than less expensive, arguably more appropriate services,” Grassley said. “There are legitimate concerns that children are receiving unnecessary care, sometimes in a traumatic way, and taxpayers are paying for it.”
Grassley has asked questions about ownership structures, incentives, parental notification policies, and participation in Medicaid from Small Smiles, Kool Smiles, and ReachOut Healthcare America. The companies have been responsive to his inquiries, he said. All three treat Medicaid children almost exclusively.
“We’re finding that the business model has led to abuses because dentists are under pressure to perform as many high reimbursement services on the maximum number of children on Medicaid as possible,” Grassley said. “You have dentists under pressure to perform more services than may be necessary – giving a child a crown instead of a filling, for example – because of a bonus payment structure that creates the wrong incentives.”
The issue involves an investment structure that technically meets some state-level requirements that dental practices be dentist-owned but do not, in practice, have dentists in control. These “owner dentists” are effectively ghost owners who maintain none of the traditional aspects of ownership of their operations, allowing the corporate investors to have control over clinical operations.
A majority of states and the District of Columbia have laws that require owners of a dental practice to be licensed in the state where the practice is located.
Last year, Church Street Health Management owned 70 Small Smiles dental clinics in 22 states and the District of Columbia. At least five of these clinics have been closed by state regulators. NCDR, LLC owned more than 130 Kool Smiles clinics in 16 states and the District of Columbia. ReachOut Health Care America operates mobile clinics that treat children at schools around the country.
Grassley’s review of allegations about dental clinics also has led to Aspen Dental Management, Inc., which doesn’t accept Medicaid patients. Questions there have been about complaints that the company promotes unnecessary treatment plans with exorbitantly expensive credit arrangements. Aspen Dental Management, Inc. operates more than 300 clinics in 22 states.
Grassley said he expects to issue a staff report on his findings involving the companies that serve children in the Medicaid program. His investigation into credit arrangements offered by Aspen Dental Management, Inc. is ongoing.
Click here to see the June 26, 2012, PBS Frontline piece on these issues.
Twenty five minutes after FRONTLINE’s “Dollars and Dentists” aired at 10PM Eastern Time, a link to a “rebuttal” landed in my inbox. Amazingly, June Thomas, it’s author, doesn’t know night from day. She watched the FRONTLINE “Dollars and Dentists” tonight, at 12:32PM. Just saying…
Collection of Documents
Collection of Documents
Texas AG lawsuits spurred by WFAA dental investigation – June 26, 2012
CANCELED (again)
…more on the Ocean Dental arrest
KFOR-TV June 21, 2012
Posted on: 5:34 pm, June 21, 2012, by La'Tasha Givens, updated on: 07:41am, June 22, 2012
OKLAHOMA CITY — A local dentist from a popular chain is accused of falsifying documents to cheat the Medicaid system out of money. Officials say they are seeing an increase in this kind of scam. Robin Lockwood, D.D.S. is one of the latest to be charged. While working at an office on the 1600 block of Southwest 74th Street investigators say Lockwood “engaged in a scheme to defraud Medicaid by submitting claims for dental services she did not provide.” She no longer works at the office and the company says it’s cooperating with authorities.But NewsChannel 4 found another office near Lockwood’s home that bears her name. No one answered the door or returned our phone call. Investigators says Lockwood isn’t the only doctor trying pad their paycheck on taxpayer’s dime. Susan Rogers Executive Director of Oklahoma State Board of Dentistry said, “Medicaid fraud is a very big problem in Oklahoma right now among dentistry. We have one case where a child was diagnosed with having two cavities behind their front teeth and the dentist in question capped 15 teeth within an hour (not typical according to officials). The ex-rays don’t show there were cavities or caries.”
To ALL Dentists!
So you want to work for a corporate dental chain? Better think twice. Dr. Robin Lockwood is now facing 10 years in prison and $250,000 fine all for trying to meet those production quotas. What are you doing to meet yours?
June 21, 2012
OKLAHOMA CITY—Robin R Lockwood, 44, a dentist from Oklahoma City, has been charged with committing health care fraud, announced Sanford C Coats, United States Attorney for the Western District of Oklahoma.
Lockwood is a dentist licensed to practice in the state of Oklahoma and was employed under contract by Ocean Dental at offices located at 1610 Southwest 74th Avenue, Oklahoma City. Ocean Dental’s dentists provided dental care to Medicaid-eligible children. The Medicaid Program is a cooperative program that provides federal and state funds to pay for health care benefits for individuals with insufficient incomes to meet the costs of necessary medical expenses. In Oklahoma, Medicaid is administered as “SoonerCare” by the Oklahoma Health Care Authority (OHCA), a state governmental agency.
An Oklahoma City dentist has been charged in a complaint of committing health care fraud
Oklahoma City dentist Robin Lockwood, 44, has been charged in a complaint of committing health care fraud at Ocean Dental.
FROM STAFF REPORTS | Published: June 21, 2012
An Oklahoma City dentist has been charged with committing health care fraud, authorities announced Wednesday.
Robin Lockwood, 44, is accused of defrauding Medicaid by submitting claims for dental services she didn't provide, according to a news release issued by U.S. Attorney Sandford Coats.
The news release states the fraud occurred from July 2007 through December 2010 while Lockwood was employed by Ocean Dental, 1610 SW 74. The clinic provides dental care to Medicaid-eligible children and submits claims for reimbursement to the Oklahoma Health Care Authority. The dentists are reimbursed based on the treatment notes they write for each patient.
Lockwood was charged on a complaint that she submitted notes about treatments she hadn't done. Relying on Lockwood's treatment notes, Ocean Dental submitted claims for reimbursement to Medicaid and paid her a percentage of those reimbursements.
If convicted, Lockwood faces up to 10 years in prison and a $250,000 fine.
Personally, I wish it had been that nasty woman, Megann Scott, DDS.