Excerpts from the recently unsealed False Claims Action against Dental Professionals of Texas, (MB2), Dr. Chris Villanueva and his pack of cohorts

Keep in mind they admitted no guilt to the claims but agreed to pay $8.45M to settle the issue. They are currently still in operation and open for business; which is scary once you read the allegations. You can read the entire Complaint by clicking here. Buyer Beware!! Never take your children to any of these clinics!  EVER!

Civil Action Number: 3:12-cv-02126-P
Filed: September 26, 2012
Settlement reached: December 27, 2016 (when the Corporate Integrity Agreement was signed)

The DEFENDANTS: CHRIS STEVEN VILLANUEVA, Individually and as member/managing member of Defendant companies; TRUNG MINH TANG, Individually and as member/managing member of Defendant companies; MAURICIO DARDANO, Individually and as member/managing member of Defendant companies; MB2 DENTAL SOLUTIONS, PLLC; DENTAL PROFESSIONALS OF TEXAS, PLLC; VILLANUEVA UNIVERSAL ENTERPRISES, LLC; PEPPERMINT DENTAL, PLLC; ARCHSTONE DENTAL, PLLC; PICASSO DENTAL, PLLC; DENTAL FAMILY CIRCLE, PLLC; VILLANUEVA PLAZA, LLC; PEPPERMINT DENTAL-MCKINNEY, PLLC; DFW FDC-REDBIRD, PLLC; PICASSO DENTAL-MANSFIELD, PLLC; ARCHSTONE DENTAL-BEACH, PLLC; VIVA ORTHODONTICS, PLLC; PICASSO DENTALCORSICANA, PLLC; CHRISS VILLANUEVA DENTAL, PA; DFW-FDC, PA; CROWN NOW DENTAL, PLLC; MINT REALTY, LLC; LEGEND DENTAL, PLLC; ARCHSTONE DENTALGRANBURY, PLLC; PEPPERMINT DENTALGREENVILLE, PLLC; CRESCENT DENTAL, PLLC; FRESH DENTAL, PLLC; ELEMENT DENTAL, PLLC; BLISS DENTAL, PLLC; SAGE DENTAL, PLLC; BLISS DENTAL-MIDLAND, PLLC; SAGE DENTAL-DEER PARK, PLLC; CRESCENT DENTAL-SAN MARCOS, PLLC; ELEMENT DENTAL-BRYAN, PLLC; ELEMENT DENTAL-CONROE, PLLC;

SAGE DENTALPEARLAND, PLLC; SAGE DENTAL-PASADENA, PLLC; TIDE DENTAL-CORPUS CRISTI, PLLC; SPEARMINT DENTALWITCHITA FALLS, PLLC; SCARLET PEGASUS GROUP, LLC; FRESH DENTAL-LONGVIEW, PLLC; LEGEND DENTAL-GEORGETOWN, PLLC; WOW DENTAL-OAK CLIFF, PLLC; BLISS DENTAL-LUBBOCK, PLLC; GALAXY DENTAL-GARLAND, PLLC; PEACH TREE DENTAL-CARROLLTON, PLLC; ARCHSTONE DENTAL-HULEN, PLLC; IRVING TOWN CENTER DENTAL, PLLC; SOUTHERN GEM DENTAL, PLLC; LUCKY DENTAL, PLLC; CRESCENT DENTAL-INGRAM, PLLC; ELEMENT DENTAL-SPRING, PLLC; VIDA DENTAL, PLLC; GULFSIDE DENTAL BEAUMONT, PLLC; DENTAL CENTERS, PLLC; SLAP-ON, INC.; PEPPERMINT DENTAL MCKINNEY, PLLC; DENTAL CENTRAL, PLLC; ARCHSTONE DENTAL-WEATHERFORD, PLLC; PEPPERMINT DENTAL-SHERMAN, PLLC; PEPPERMINT DENTAL-LEWISVILLE, PLLC; ELEMENT DENTAL-HUMBLE, PLLC; ELEMENT DENTAL-TOMBALL, PLLC; BALENTIMES HOLDINGS, LTD., PEPPERMINT DENTAL-MONTGOMERY, LLC, PEPPERMINT DENTAL-RIO BRAVO, LLC, PEPPERMINT DENTAL-SAN MATEO, LLC, RED ROCK DENTAL-FARMINGTON, LLC, FRESH DENTAL-BOSSIER CITY, PLLC, FRESH DENTAL-SHREVEPORT, PLLC;

Dental Professionals of Texas=DPT now known as MB2
Relator = Whistleblower
Dental Practices = DP

…This action is also brought under the qui tam provisions of the Texas Medicaid Fraud Prevention Law, V.T.C.A., Hum. Res. Code Ann. §36.001 on behalf of the State of Texas, the Louisiana Medical Assistance Programs Integrity Law, La. Rev. Stat. Ann. §§46:439.1 et seq.; 438.3 on behalf of the State of Louisiana and the New Mexico Medicaid False Claims Act N.M. Stat. Ann§§ 27-14-1 et seq.on behalf of the State of New Mexico.

Kevin Howard Byington ("Byington") is and was in the marketing department for DPT. Byington works directly for Frank Villanueva, Defendant Chris Villanueva's brother and head of the marketing Division of DPT. Byington and Frank Villanueva were responsible for recruiting willing marketers and paying them kickbacks for locating likely Medicaid families with children eligible for dental services and referring those patients and their families to the DP defendants.

When DPT's kickback scheme was aired by Dallas news stations, Byington formed KHB Community Outreach Associates, LLC. This was done at the request of Defendants, including DPT (a/k/a MB2), Villanueva and Tang, to cover up and conceal the illegal kickback solicitation scheme.

Frank Villanueva is the brother of Defendant Chris Steven Villanueva and the person primarily responsible for obtaining illegal referrals and direct solicitation of patients for the Defendants. He is and was an employee of DPT (now MB2) and was the person who hired Relator, coercively persuaded her to accept the "promotion" to work for KHB Community Outreach Associates, LLC and coordinated the kickback payments to the referring marketers and the Medicaid parents or family members.

Ann Villanueva, the sister of Defendant Chris Steven Villanueva, is and was the Human Resources Director for DPT (now MB2) and the DP defendants. She assisted in the recruitment of dentists and other staff and paraprofessionals for the dental offices of DP defendants and for DPT.

Mary Pu is Trung Tang's wife and the Vice President of Finance for Dental Professionals of Texas, PLLC (now MB2). In her position, Pu was knowledgeable about the illegal billing practices, the solicitation of patients, and the budgeted "promotion accounts" for every practice which were actually used for kickback payments. She was and is responsible for the entire accounting team.

John Steen is the Chief Financial Officer of DPT. Steen is shown as the "Authorized Agent" for DPT in signing the February 23, 2012 Certificate of Amendment to the Certificate of Formation of Dental Professionals of Texas, PLLC changing the name to MB2 Dental Solutions, PLLC. Steen ostensibly served as "compliance officer" for Medicaid and in

Byron’s Lens: Dental Kickbacks The Story Behind The $8.45 Million Dentists’ Settlement

There’s a McDonald’s on Garland Road in Dallas near the old Lochwood Mall, almost across the street from what used to be Galaxy Dental.  Galaxy’s florescent green and yellow paint scheme made it stick out, even in the clutter of Garland Road.

I spent several mornings at that Mcdonald’s in the spring of 2012, nursing a coffee while everybody else was dining on McMuffins. I was there to try to overhear the conversation a group of women who often met there for business. They were “community outreach workers,” they said. But what they talked about were their plans to scour low income neighborhoods for children eligible for Medicaid.  Their mission: to recruit Medicaid eligible mothers to bring their children into Galaxy Dental. The outreach workers talked loud enough that I could tell they were pumped.  

A federal lawsuit unsealed in Dallas last week alleges why they were so excited.

See the entire story by Byron Harris at WFAA’

https://creatavist-g49brf5.atavist.com/byrons-lens-dental-kickbacks-?units=us

Haunting Headline: “Hands-On Training Helps DSO’s Profit from Pediatric Dentistry”

“Hands-On Training Helps DSO’s Profit from Pediatric Dentistry” Boy, that’s a headline at Group Dentistry Now (GDN) that grabbed my full attention.

I felt no better when I read the following quotes from GDN page and The Institute for Pediatric Dentistry (IPD) website. IPD is the company offering this “training”. (more on IPD below)

“It’s often said, that children are the future, and that’s certainly true in the field of dentistry.”

“Dental benefits have increased dramatically to bring more children into dental practices, with all but 6% of children being insured by either government or private plans.”

“For DSOs and large group practices treating children, it’s hard to find qualified clinicians who can provide quality dental care while also being efficient enough to meet production goals.”

“As a leader in a DSO or large group practice, the demands on your time are constant. Developing and offering ongoing Continuing Education for your dentists and their staff that is relevant and capable of improving their skills and your bottom line is extremely challenging.”

The IPD website also asks “Why should you attend”. Their answer is “Unlock the potential of pediatric dentistry for your practice” WHOA!

TEXAS: Chris Villanueva, DDS and others finally NAILED! Sadly they are not JAILED

FOR IMMEDIATE RELEASE

Monday, January 9, 2017

Texas Dental Management Firm, 21 Affiliated Dental Practices, and Their Owners and Marketing Chief Agree to Pay $8.45 Million to Resolve Allegations of False Medicaid Claims for Pediatric Dental Services

DALLAS – Texas-based MB2 Dental Solutions (MB2) and 21 pediatric dental practices affiliated with MB2, along with their owners and marketing chief, have agreed to pay the United States and the State of Texas Medicaid program $8.45 million to resolve allegations that they violated the False Claims Act by knowingly submitting, or causing the submission of, claims for pediatric dental services that were not rendered, were tainted by kickbacks, or falsely identified the person who performed the service, announced U.S. Attorney John Parker of the Northern District of Texas.

“Today's settlement demonstrates our unwavering commitment to protect the Medicaid program and the patients it serves from unscrupulous providers,” said U.S. Attorney Parker. “Providers who waste taxpayer dollars by billing for services that were not provided, or were otherwise improper, will be held accountable.” U.S. Attorney Parker commended the Texas Medicaid Fraud Control Unit, the Civil Division of the Texas Attorney General’s Office, the FBI and the Health and Human Services Office of the Inspector General for their coordinated efforts to investigate and resolve these allegations.

This settlement resolves allegations that between Jan. 1, 2009, and Dec. 31, 2014, MB2 and affiliated dental practices submitted claims to the Texas Medicaid Fee for Service Program for single-surface fillings in children that were not provided. The settlement also resolves allegations that MB2 paid kickbacks to Medicaid beneficiaries and their families, marketers, and marketing entities, in violation of the Anti-Kickback Statute, and that MB2 and affiliated dental practices used erroneous Medicaid provider numbers misrepresenting the dentists performing the pediatric procedures.

Medicaid is funded jointly by the states and the federal government. The State of Texas paid for part of the Medicaid claims at issue and will receive approximately half of the settlement amount.

MB2 is a dental management firm based in Carrollton, Texas, that provides management services to affiliated dental offices. The dental practices included in the settlement are Dental Professionals of Texas PLLC; Archstone Dental PLLC; Bliss Dental PLLC; Crescent Dental PLLC; Dental Central PLLC; Dental Family Circle PLLC d/b/a Forney Wellness Dental; DFW Family Dental Centers PLLC; Element Dental PLLC; Fresh Dental PLLC; Galaxy Dental PLLC; Legend Dental PLLC; Peppermint Dental PLLC; Picasso Dental PLLC; Sage Dental PLLC; Spearmint Dental PLLC; Tide Dental PLLC; Vida Dental PLLC; Viva Orthodontics PLLC and Wow Dental PLLC.

As part of the settlement agreement today, Drs. Christopher Steven Villanueva, Trung Minh Tang, Mauricio Dardano, Gabriel Shahwan and Akhil Reddy agreed to pay $250,000 each to resolve the governments’ claims against them individually. They are owners or part owners of MB2 and the dental practices included in this settlement, and practice dentistry in Texas. Frank Villanueva, MB2’s head of marketing, also will pay $100,000 to resolve his alleged personal liability.

As part of this settlement, MB2, Drs. Villanueva, Tang, Dardano, Shahwan, and Reddy have entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires an independent review organization to annually assess whether claims reimbursed by a federal health care program were correctly coded, medically necessary and appropriately documented.

“HHS-OIG is particularly vigilant about potential abuses in Medicaid pediatric dental offices where patients and their families are especially vulnerable to questionable practices,” said Special Agent in Charge CJ Porter for the HHS-OIG in Dallas. “Today’s settlement should ensure other dental clinics are aware that we are watching how they operate and will pursue appropriate resolutions when profits are put before patient care.”

Part of the allegations resolved by this settlement were originally filed under the qui tam, or whistleblower, provisions of the False Claims Act by Veronica Garcia, a former MB2 employee. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. It also permits the government to intervene in such lawsuits, as it did in this case. Ms. Garcia will receive $1.521 million from the United States and the State of Texas.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.8 billion through False Claims Act cases, with more than $19.3 billion of that amount recovered in cases involving fraud against federal health care programs.

The matter was handled by Assistant U.S. Attorneys Kenneth G. Coffin and Scott Hogan. The claims resolved by the settlement are allegations only and there has been no determination of liability.

MB2 Corporate Integrity Agreement

All current companies under Corporate Integrity Agreement

Aspen Dental Complaints Top $1.7M in “Claimed Losses” by Consumers

One would think Aspen Dental would have cleaned up their act after it was one of the chain clinics featured on FRONTLINE’s Dollars and Dentist in 2012.  However, over at Pissedconsumer.com complaints about the horrible dental care, upcharging and down right fraud from patients continues to grow—now topping 2,000 (the additional “me too” comments to the posted complaints is off the charts). In addition, patient “claimed losses” is nearing the $2M mark. With the average loss: $3, 300 each. (personally I would say it is much more than this). Out of all the complaints only a pitiful 10 (yes, just 10!) are reported as “resolved”. Frankly, I’m shocked 10 are reported.

Doctors Selling Practices to Corporate Dentistry; or Dancing with the Devil

 

Title: “Doctor No Control” By: Vaidya Selvan, DDS

Dr. Michael W. Davis maintains a general dental practice in Santa Fe, NM. He serves as chairperson for Santa Fe District Dental Society Peer-Review. Dr. Davis also provides a fair amount of dental expert legal work for attorneys. He may be contacted via email: MWDavisDDS@comcast.net

 

Doctors Selling Practices to Corporate Dentistry; or Dancing with the Devil

More and more, dentists owning and operating private practices are approaching retirement age. In today’s dental practice sales market, and within numbers of demographics, practice buyers are limited. Younger practitioners are saddled with student loan debts between $250,000 and $330,000 upon graduation. These junior professionals usually lack adequate credit ratings to assume the purchase of a small business. They often must pay down mountains of debt over an extended period of years, to demonstrate credit worthiness.

Most states have statutes which require only duly licensed dentists may own and clinically operate dental practices. These laws were established because a doctor has a primary ethical and legal obligation to place interests of patients to the fore. By contrast, a corporate entity has a primary obligation to place generation of profits and the interests of shareholders (not patients) to the fore. The conflict of interest is obvious.

The dental service organization (DSO) industry (a/k/a corporate dentistry) has stepped into the mix seeing an opportunity to generate profits for Wall Street and the private equity investment industry. Over most of the past decade, the feds have kept interests rates artificially low for the intended purpose of economic stimulation. DSOs have moved into this buying opportunity and purchased many hundreds of dental practices.

DSOs often retain selling doctors for a limited time after the sale of their dental practices. However, with maximal profit generation being the bottom line, not patient welfare, these doctors are usually dispensed in short order. A recent dentist graduate may be retained, regardless of limited skill and clinical experience, for far less salary remuneration.

Also favorable to the DSO, the recent grad employee doctor has little emotional or professional ties to the existing patient base. These doctors are unlikely to question policies of the DSO diminishing quality of patient care. If they do raise ethical questions, they are quickly replaced with others who play along with the DSO’s practice of dentistry, with the ultimate goal of maximizing quarterly profits. Most of these young doctors are primarily focused on paying down educational loans, and moving out of the DSO clinic, as soon as reasonably possible. Most of these doctors truly do care about providing patients with the best care possible, but their hands are tied.

(Author’s note: To circumvent state statutes about only doctors owning dental practices, DSOs establish shell companies for nominee ownership of their dental practices.^1-6 These may be individual dentists who purportedly “own” one or several dental clinics, or a group of dentists who are assigned “ownership” status for an entire chain of clinics. In no case do these doctors exercise any real control or benefits of ownership of these dental practices. The “big lie” of the DSO industry is that they only control the non-clinical aspects of a dental practice and doctors contract with them for this service. In reality, doctors are employees of corporate management and do what they’re told, or forced out or fired.)

Case of Dr. Susan McMahon vs. Refresh Dental Management, LLC, et al

Legal cases arising out of disputes between selling doctors and the DSO industry is highlighting many of these problems. Dr. Susan McMahon alleged in her action against Refresh Dental Management, et. al., that she was financially and professionally damaged after selling her practice, to a shell company subordinate of a DSO.^7,8 Within a couple of years, she was terminated from employment, as is common.

(Author’s note: Dr. McMahon’s resume includes very substantial clinical achievements, as well as professional teaching assignments. Although the legal filing was against Refresh Dental Management, LLC, et al, the parent company is North American Dental Group⁹, which is in the private equity portfolio of ABRY Partners- a Boston-based private equity investment firm.¹⁰)

Dr. McMahon alleged that for numbers of months after leaving employment, her name remained on the DSO’s clinic signage and advertising from insurance companies. Clinic staff was instructed to misrepresent to patients her employment status; claim she now worked in the restaurant industry, and claim she had a license suspension for abuse of controlled substances, or had retired from dentistry, all according to signed affidavits in Dr. McMahon’s legal pleadings. Dr. McMahon further alleged that patient records were denied her, upon patient request. Allegedly, Refresh Dental staff was using the name and positive reputation of Dr. McMahon to get patients in the clinic door, but invent falsehoods as to why she wasn’t there when they got there—the classic bait-&-switch scam.

 

2016 The 32 Most Influential People in Dentistry

Incisal Edge Magazine released their very first “top 32” list.  Not shocking only 14 of the “Most Influential People” are actual dentists. Incisal Edge is published by Benco Dental.

1. Jeffery Slovin – DentsplySirona
2. Rick Workman – Heartland Dental
3. Howard Farran – Dentaltown website – Dentaltown Magazine
4. Stanley Bergman – CEO of Henry Schein
5. Martha Somerman – Dir. of National Institue of Dental and Crainofacial Research
6. Steve Bishop – Group President of Procter & Gamble
7. Marco Gadola – CEO Straumann Holdings
8. Ben Carson – Potential Secretary of Health and Human Services
9. Kathleen O’Loughlin – Executive Director of the American Dental Association
10. Michael Graham – SVP ADA Division of Government and Public Affairs
11. Gordon Christensend – Practical Clinical Courses
12. Amir Aghdaei – Group Ex. VP KaVo Kerr Group/Danaher Corp.
13. “Dr. Doe” – Some plaintiff who is suing Henry Schein, Benco and other suppliers
14. Michael Cohen – Founder of Seattle Study Club
15. Steve Thorne – Founder of Pacific Dental Services
16. Mike Simpson – U.S. Congressman of Idaho’s 2nd Congressional District
17. James Glidewell – CEO Glidewell Laboratories
18. James Ingebrand – President 3M ESPE Dental Division
19. Kevin Jackson – SVP Delta Dental of California
20. John Kois – Founder The Kois Center
21. Don Moody – Partner at Waller, Lansden, Dorth & Nashville
22. Linda Niessen – Dean at Nova Southeastern University’s College of Dental Medicine
23. Michael Helgeson – CEO of Apple Tree Dental
24. Gary Price – CEO Dental Trade Alliance
25. Susannah Schaefer – CEO of Smile Train
26. Jack Dillenberg – Dean of Arizona School of Dentistry & Oral Health
27. Ed Snyder – Managing Director of Northcoast Research
28. Gwyneth Paltrow (yes the actress) – Oral Cancder Foundation Activist
29. Roger Levin – Founder and CEO of The Levin Group
30. Ann Battrell – CEO of American Dental Hygienists Association
31. Major Gen. Rososevelt Allen – Chief of Dental Corp, USAF
32. Peter Dubois – Executive Director of California Dental Association

My list would have been much different! (or maybe it would have been the title)

Pacific Dental Services Teams with American Dental Assistants Association to Provide Additional Benefits to Dental Assistants

Huh?  Well, that’s the headline of Pacific Dental Service’s (PDS) press release dated December 28, 2016.

IRVINE, Calif., Dec. 28, 2016 /PRNewswire/ -- Pacific Dental Services^® (PDS^®) today announced that it is teaming with the American Dental Assistants Association (ADAA) to provide additional membership benefits and services to dental assistants in the PDS-supported environment.

With the common goal of ensuring the public receives the best quality dental care, PDS and the ADAA will continue their shared mission by providing hundreds of dental assistants with additional resources needed to obtain that objective. 

With their ADAA membership, dental assistants in the PDS-supported environment will be offered: free online continuing education; additional insurance coverage options including professional liability, (because they are going to need it!) accidental death and dismemberment; and participation in the ADAA Fellowship and Mastership programs. (huh?) In addition, the dental assistants will receive: a free subscription to the Dental Assistant Journal; the monthly ADAA Update E-newsletter; membership in State and Local Chapters; and leadership position opportunities.

As the oldest, largest professional association for dental assistants in the country, ADAA has been elevating the careers of dental assistants for over 90 years.  Since Juliette A. Southard formed the association in 1925, ADAA has been the foremost advocate for the dental assisting profession and is widely recognized as the voice of the dental assisting profession in America.  One of ADAA's goals is to advance the dental assisting field in a manner which will enhance the delivery of quality dental care to the public. 

Dr. John E. Kasper, ADAA Executive Director, stated, "As the premier dental assisting community in America, ADAA is proud to welcome dental assistants from the PDS-supported environment into the ADAA family.  The partnership with PDS represents a giant step towards advancing the dental assisting profession in America, and ADAA is excited about the wonderful opportunities this relationship provides." (Oh, I bet ADAA and PDS is “excited”, maybe not the actual assistants so much though)

Judith Forsythe, Director of Dental Assistant National Strategy for Pacific Dental Services said, "I am thrilled to be a part of this partnership between Pacific Dental Services and the ADAA. PDS and its supported clinicians value the role of the dental assistant and this partnership is yet another way to show we are always looking to enhance the dental assistant's career within the PDS-supported environment. "

About Pacific Dental Services
Founded in 1994, PDS^® is one of the country's leading dental support organizations, providing Supported Autonomy that allows dentists to concentrate on clinical excellence and the highest levels of cost-effective comprehensive patient care. PDS originated the PRIVATE PRACTICE + model to allow dentists to focus on their passion: serving patients.  

About the American Dental Assistants Association (ADAA)
The ADAA is America's oldest and largest dental assisting association serving over 310,000 dental assistants in the United States. It is dedicated to the development and recognition of professionalism through education, membership services and public awareness programs. The ADAA is a strong advocate for legislation mandating credentialing for clinical dental assistants and greater recognition of the assistant's role in the professional dental team.

My takeaway is PDS has sold their dental assitants to the ADAA, in return PDS plans on teaching ALL memebers of the ADAA  the PDS way of milking the cow dry. (the cow being patients).

Like always, I could be wrong.

Does The National Black Caucus of State Legislators Support Illegal Business Practices of Dental Service Organization?

Apparently so. It also appears they do NOT care thousands of children are abused and have their mouths mangled by said Dental Serivice Organization. It seems to me, the children have been sold to the DSO’s. Interesting, being that it comes from the Black Causus, right?  Just saying!

From Dentistry IQ:

“As part of its policy priorities for 2017, the National Black Caucus of State Legislators (NBCSL) has resolved to support the nation’s leading dental support organizations (DSOs) in their mission to provide affordable, quality dental services to underserved populations across the United States. The policy resolution, “HHS-17-17: A Resolution to Stand in Support of Dental Support Organizations,” was ratified during the NBCSL’s Annual Legislative Conference, held Dec. 2-5, 2016.”

Read the story here

Corporate Dental Branding- What Dental Consumers Need to Know

Dr. Michael W. Davis maintains a general dental practice in Santa Fe, NM. He serves as chairperson for Santa Fe District Dental Society Peer-Review. Dr. Davis also provides a fair amount of dental expert legal work for attorneys. He may be contacted via email: MWDavisDDS@comcast.net
 

   

Corporate Dental Branding- What Dental Consumers Need to Know

A brand is a name, term or symbol which one company uses to differentiate its products and services, from that of another company.¹ Corporations employ numbers of different strategies in branding. Healthcare professionals are generally fairly ignorant on corporate branding practices, as this is not an element of their formal education. By contrast, those parties which beneficially own corporate dental practices retain individuals well-skilled and well educated in all forms of retail sales, marketing, and finance. Their abilities include a plethora of differing and complex branding methodology.

In its simplest form, a chain of corporate dental clinics may seek direct brand recognition by consumers. They may market “outstanding dental care at reasonable prices”, all associated with their brand. Branding may be part of a marketing program to generate public goodwill via broad mechanisms, ranging from well-publicized charitable events to sponsoring a NASCAR driver.² Branding may also be associated with the business model of dental Medicaid care.

Unfortunately for the corporate dental industry, many of their more established brands have become associated with abuses to the public welfare.^3-9  

(Author’s note: References only cite a mere handful of well reported abuses generated from corporate dentistry, disclosed by government officials.) 

Dental clinics managed and directed by non-doctor corporate management often have a troubling record, which the public is witnessing. Likewise, dentists who may be employed in such workplaces are also witnessing abuses to the public interest generated and facilitated by brand-name companies in corporate dentistry. As such, many in the public are avoiding dental services offered by branded corporate dental practices. Further, these branded corporate practices are finding employee/doctor attraction and retention increasingly challenging. One corporate chain recently reported over 10% loss in total dentist staff for a one-year period.¹⁰

Crowd Sourced Branding-

Numbers of branded corporate dental groups are increasingly discovering their branded identity has negative consequences. In fact, the term “corporate dentistry” is an example of “crowd sourced branding”, in which the public assigns a company a brand (positive or negative), versus the traditional method of branding, in which a company designs their branding scheme.

Some dental corporations have fought back by explicitly marketing their distance from “corporate dentistry”. One such ad from a corporate dental chain openly states, “You Hate Corporate Dentistry and So Do We”. The veracity of their claim seems highly suspect, especially when one views their multiple settlement agreements with multiple states’ attorney generals. However, corporate dental management is evidently far more concerned with negative fallout of crowd sourced branding, versus presenting truth in the public marketplace. 

To further counter the negative public impression of corporate dentistry generated by crowd sourced branding, numbers of corporate dental chains market the misrepresentation of doctors, and not faceless Wall Street types, as owning dental practices. The reality is very different and highly disturbing. 

Numbers of dental chain corporations establish specific individual doctors to act fully as sham-owners, who have no control of management, the sale of “their” asset of the dental practice, or control of clinic bank accounts. In fact, these shame-owner dentists have no idea how the funds generated by “their” dental clinics are allocated; depositions in the Small Smiles mass action lawsuit made that abundantly clear.

Other corporate dental chains establish a group of dentists acting as sham-owners, via the accounting mechanism of a professional corporation (PC). Again, these doctors have no true and valid ownership privileges of dental practices, as beneficial ownership passes to non-doctor corporations, often private equity investment firms. Some of the world’s largest and most well-known private equity firms currently are or formerly have been the beneficial holders of corporate dental chains, which direct patient dental care. Examples include Morgan Stanley¹¹, Valour Investments Ltd.¹², Carlyle Group¹³, American Capital Strategies¹³, FFL Partners¹⁴, Gryphon Investors¹⁵, MSD Capital (holdings of Michael Dell  family)^16,17, etc.