The Boston Channel-See the video report here
May 25, 2011
BOSTON -- A Team 5 investigation is raising questions about the state board in charge of disciplining dentists in Massachusetts. NewsCenter 5’s Sean Kelly reported Wednesday how difficult it is for the average patient to find out the details of why their dentist was disciplined.
“I just felt helpless,” said Sarah, a patient who admits she should have done research on her dentist first.
“I was livid, beyond furious,” said Sandra, another patient who was unsatisfied with her treatment and left her dentist’s chair complaining. She said she didn’t do research either, selecting her dentist from the phone book.
Calling a Spade a Spade! It’s amazing how few want to refer to the dental chain by what they really are-corporations practicing dentistry! Instead they are referred to as “large dental practice groups”. Huh?
September 1, 2009
by Thomas A. Climo, PhD
For more on this topic, go to www.dentaleconomics.com and search using the following key words: dental practice management company, dental service delivery, Thomas Climo.
The American Dental Association has published an annual “Survey of Dental Practice” since the 1950s. Not until the ADA's forthcoming 2009 publication “Survey of Large Dental Group Practices” will any alternative to a sole practitioner office have been subjected to ADA review.
In some respect, the ADA can be forgiven this oversight. After all, as of 2006, dentists using their dental degree in some fashion other than as an active private practitioner in the United States comprised only 8% of the dental population. It sounds comprehensive to account for 92% of the means for delivering dental services in the United States.
It is for that reason the forthcoming 2009 publication takes on greater significance. There must be a movement afoot, a trend if you will, that has led the ADA to consider an alternative to the usual means of delivering dental services, and that this alternative must be making the industry stand up and take notice.
This report will canvass the current market conditions of the dental service industry, highlighting why the sole practitioner office is now meeting a challenge from larger group, centralized managed dental centers.
It is extremely capital intensive to open a dental practice, and operating costs are high. If there is only 25% to 35% of revenues left to reward the sole practitioner from distributions ($18,000 per month) while holding working capital constant at $40,000 to $60,000, plus holding back a suitable 5% to 7% reserve for depreciation and replacement of old equipment with new, the sole practitioner is generating a little under $600,000 of revenue without showing much of a profit.
[Distributions to himself/herself in the form of salary cannot be considered “profit,” otherwise the sole practitioner is working for nothing. Distributions beyond salary would be considered “profit,” but, at $600,000 per annum of revenues, the typical sole practitioner office won't have a lot of that to go around, possibly enough to reward himself/herself and staff a modest holiday bonus.]
And don't think we are being conservative in this projection of sole practitioner revenue. For a dentist in a private practice, the ADA 2002 Survey of Dental Practice estimates adjusted net income of $183,050, practice expense of $295,890, and a total nominal income of $532,850. Let's lay this out and see what is left:
Total Nominal Income $ 532,850
Less Practice Expense $ 295,890 Total Disbursable Income $ 236,960
Less Owner Salary $ 183,050 Net Disbursable Income $ 53,910
Put $10,000 of the net disbursable income into topping off the working capital, set aside another $35,000 for capital replacement reserves (at 7%), and the sole practitioner has a whopping eight or nine grand to share with himself/herself and staff associates for a holiday bonus. Shake out these numbers any way you like, and you cannot turn around the salient fact that far too much capital goes into generating too little revenue for the sole practitioner dental office to be considered anything other than a means of income for the dentist.
At a 1.1% return on capital investment (of $500,000), the sole practitioner office is not set, nor framed to become, an investment vehicle that performs favorably when judged against other endeavors with similar capital costs that either drive down operating expenses or increase revenue in order to be competitive in their respective markets.
The sole practitioner dental office is a professional business with an outstanding record of debt servicing, but also one with an abysmally low return on capital investment. If it were up to an outside Board to determine how much to invest in a dental practice when judged against other available endeavors, capital to dentistry would go wanting. For that reason, dentists buy and sell from fellow dentists, and the merry–go–round of high capital and high operating costs with low margin of returns continues.
When faced with the kind of circumstances and results from above for any kind of business in any kind of industry, economists counsel the quick and immediate adoption of a competing business model rather than one of convenience for the practicing professional.
If capital costs are high, develop a scenario that reduces capital costs. If operating costs are high, develop a management model that reduces these costs. If profit margins are low, while keeping operating costs low, develop a marketing program that will increase revenues.
This is the business model behind larger dental group practices, or what is now being referred to as Dental Practice Management Companies. They are the new subject matter of the upcoming study from the ADA.
If raising $500,000 of capital that the sole practitioner would otherwise seek from the local bank competes with other investments, it might make more sense to combine general and specialty services and raise (instead) $2.5 million spread over both general and specialty practices. This is kind of a five–offices–in–one, economies of scale approach to dental practice.
In so doing, the operating costs of one practice are basically spread over five. Capital costs are shared between practitioners, and referrals from general dentist to specialist no longer take patient revenue away from the practice. Toss into this mix the allocation of accounting, other administrative tasks, marketing to a centralized management company, and staffing to accommodate up to 10 dental centers, and you've created a model that has systematically addressed high operating costs while spreading capital costs over a larger revenue base.
The return on capital moves from a low to a high margin basis. You might not be able to raise outside capital with a 1.1% return on investment, thereby limiting your options to a local bank, but you certainly can raise outside capital when you can show a 20% to 40% return on investment.
Repeating the Net Disbursable Income table we produced for the sole practitioner office, let's recast the ADA numbers as they might look for a large practice management dental center:
Total Nominal Income $ 4,000,000
Less Practice Expense $ 2,000,000
Total Disbursable Income $ 2,000,000
Less Professional Salaries $ 1,200,000
Net Disbursable Income $ 800,000
Whereas we used $500,000 as the capital base for the sole practitioner, in the larger dental practice management center we assume a capital base eight times this, or $4 million. It will include, in addition to top–of–the–line office and dental appurtenances, a suitably large budget for front–end management programs, and a sizable marketing campaign.
Indeed, in a dental practice management start–up, it is not unreasonable to spend $250,000 for installing and assuring sound management, and $750,000 for marketing. Even with this, the return on capital investment is 20%. This return will grow as the managerial and marketing investments are spread over more than one year.
The larger dental practice management center shows a drastically different result from the pittance left over for disbursement in the sole practitioner office.
The significantly improved size of the leftover net disbursable income confirms and substantiates the installation of a modern business model that basically remedies the weaknesses of the sole practitioner model. Although capital costs have grown in the larger dental practice management center, they have fallen with respect to each dental practitioner as well as with respect to revenue earned. Revenues have increased due to the increase in the size of the practice.
Combined, this means that for every dollar earned, the practice keeps more of it in a disbursable form. The ratio of operating costs to revenue has fallen from the sole practitioner's 65% to 75% to be more in the 50% to 55% range. The mission of reducing operating costs as they compare to capital costs and revenue has been accomplished. This will feed into a positive, healthy, and competitive return on capital. The return for our hypothetical large practice management dental center is almost 20 times greater than the hypothetical one demonstrated by the ADA for the sole practitioner.
The commotion surrounding the rise of a new dental service to the dental consumer has been solved. It goes by the name of capital and operating cost efficiency, and can be coupled with the advantage that marketing has for the larger practice management dental center. Competition is driven on many levels, but contrasting top–of–the–line dental offices with the compromised budget of a sole practitioner tells anyone aware of economics that a new form of delivery for dental services has arrived and will become the mainstream within five to 10 years.
The dominance of the sole practitioner circa 1919 to 2009 will give way to the era of the larger dental practice management company beginning in 2010. The ADA, in its forthcoming publication is wise for getting itself on track and ready to embrace this change.
If there is truth to the inevitability of the takeover of large practice management companies in the future, then we would expect this to have evidence in the markets which provide funding to competitive endeavors. This leads to how large dental practice management companies are perceived by the two major forms of capital acquisition, private equity and public capital markets.
The Committee on the Global Financial System in a July 2008 working paper, titled “Private Equity and Leveraged Finance Markets,” accurately describes the emergence and importance of private equity:
“Private equity, which was relatively unknown in the early 1980s, has become an important asset class in global financial markets. Private sector estimates indicate that, as of 2006, there were 2,700 private equity funds, which accounted for 25% of global mergers and acquisition activity, 50% of leveraged loan volume, and 33% of the high–yield bond market. These statistics demonstrate the close links between private equity and leveraged finance markets. A rationale for private equity transactions is better alignment of shareholder and management interests and improvement of the operational efficiency of firms. Private equity firms attempt to achieve this through a number of measures, including higher leverage and greater incentives for management through significant pay–for–performance packages.”
In other words, private investors who are represented by private equity firms are saying if it is money you want, provided you can give us the kind of performance package we require, then it is money we have.
Large dental practice management companies have put their hat in the private equity ring, as it were, and have found an accepting and willing avenue for funding their operations both as start–up or growing those operations through acquisition.
Here's an abridged list of current successful transactions:
There have been no major inroads to date of dental practice management companies in the NYSE or NASDAQ. Public ownership is highly unusual for the medical or dental world. The data that we do have comes from a spurt of companies that went public in the 1990s but expanded too quickly, burdening themselves with debt that drove them into bankruptcy or into the arms of private equity buyers.
The sensitivity of dental practice management companies to market, and their corresponding decline in share prices that fall in line with market forces, is not an attractive forum for investment. Private equity appears to be the more common and superior form of investment for dental practice management companies.
Thomas A. Climo, PhD, is a former professor of accounting and finance at the University of Kent at Canterbury, England. He is currently assisting in the financial structuring for a large dental practice management group. He is also an expert witness in Las Vegas, Nev. E–mail him at thomas.a.climo@cox.net.
Source:
Searching” Private Equity Dental” brings up a whole mess of trouble! Here is just one.
Sentinel Capital Partners, LLC invested $22 million dollars in ReachOut Healthcare America, Ltd in 2007, holding 80% of the company. In August 2008 ReachOut Healthcare bought up Mobile Dentists,it’s closest competitor. In 2010 they added “Help A Child Smile.” ReachOut also offers vision services.
Based in Phoenix Arizona-“ReachOut sends dentists-on-wheels to service low-income children in public schools under the government's Medicaid contracts. It has separate programs for the elderly and the military. ReachOut operates in 21 states.”
“ ReachOut Healthcare America (RHA) is amongst the nation’s leading administrative services organization for mobile dentistry and healthcare.
Founded in 1997 and headquartered in Phoenix, Arizona, RHA provides administrative support to dental PCs. RHA and its affiliate, Home Dental Group, has a staff of motivated professionals who will ensure their commitments are fulfilled to the highest standard. RHA works with PCs that possess a diverse patient base including children in our nation’s Headstart programs, foster programs and public schools.”
At the time of Sentinel’s purchase of ReachOut, the company had less than $5 million in EBITDA. At the time of the sale, the EBITDA had increased to $17 million. Sentinel Capital Partners, LLC unloaded ReachOut Heathcare America, Ltd on Morgan Stanley Private Equity in January 2011.
ReachOut Healthcare America, Ltd. (RHA) was formerly known as Health Kids Dental and Seniors Dental.
Co-Founders of ReachOut Healthcare America:
Michael Howell
Dan Goldsmith
From The Deal.com
ReachOut Healthcare America Ltd. and Sirona Dental Systems Inc. -- Fixing teeth may not be the most glamorous of investment picks, but it has drawn in substantial private equity capital. Two niche providers stood out for the healthy returns that their sponsors extracted through timely exits. Phoenix-based ReachOut sends dentists-on-wheels to service low-income children in public schools under the government's Medicaid contracts. It has separate programs for the elderly and the military. Sentinel Capital Partners LLC invested $22 million in 2007 and held 80% of ReachOut. The company, with less than $5 million of EBITDA at the time, was Sentinel's third investment in a dental business but the first where government reimbursements accounted for nearly 100% of accounts. ReachOut added Mobile Dentists in August 2008 and Help A Child Smile in 2010. With organic growth, EBITDA had reached $17 million by the time Morgan Stanley Private Equity took over as new owner in January. The sale allowed Sentinel to book profits of between 6 and 7 times its cost.
San Francisco-based FFL is investing out of its 2007-vintage Friedman Fleischer & Lowe Capital Partners III fund, which targets companies with enterprise values within the $50 million to $500 million range.Cressey & Company
Terms of the deal have not been disclosed. FFL is acquiring the Mondovi, Wisc.-based target out of Thoma Cressey Bravo Fund VIII LP.
Chicago-based Thoma Cressey led a recapitalization of Midwest Dental in May 2007 and purchased all of its interests from Svoboda Collins LLC. Terms were not disclosed.
Calls to Aaron Money, the FFL partner leading the latest acquisition, were not returned. A spokesperson at Midwest Dental could not be reached.
FFL already owns two companies in the dental space. Portfolio companies NCDR LLC and DPMS Inc. provide facilities and support staff to dental groups operating under the Kool Smiles brand, according to the PE shop’s website. FFL acquired Atlanta-based NCDR and San Ramon, Calif.-based DRMS in 2004 and 2006 respectively.
[ NCDR, LLC and DPMS, Inc were really just Kool Smiles whether it be Kool Smiles 2 or Kool Smiles 3 or whatever. They merged a few months back and guess what, they are still NCDR, LLC - Kool Smiles]
Purchasing Midwest Dental would not serve as an add-on to NCDR or DRMS.
Other midmarket PE firms have capitalized on M&A within the dental space as well. On Dec. 29, Sentinel Capital Partners sold Phoenix-based ReachOut Healthcare America Ltd., a provider of dental support service and care to underprivileged children, seniors, and military personnel. Terms were not disclosed.
A month earlier, dental services company Smile Brands Group Inc., backed by Freeman Spogli & Co., found a new private equity owner in Welsh, Carson, Anderson & Stowe. The price of that secondary buyout was not disclosed, but the Santa Ana, Calif. company said last April that it hoped to go public with an enterprise value of about $470 million.
Here is the story from LBO WireCressey & Co. Passing Midwest Dental To Friedman Fleische Lowe
Shasha Dai
08 April 2011
Midwest Dental Holdings, a provider of management services to dental offices, may have its third private equity owner in four years if a pending sale to Friedman Fleischer & Lowe LLC proceeds as planned.
San Francisco firm Friedman Fleischer is buying the Mondovi, Wis., company from its current owner Cressey & Co., said a person familiar with the situation.
A spokesman for Friedman Fleischer declined to comment. David Schuppan, a Cressey principal; and Jim Myer, president and chief financial officer of Midwest, didn't return calls for comment.
Midwest provides management support for functions ranging from handling back-office work and marketing to finding medical assistants and dental hygienists.
Cressey's predecessor, Thoma Cressey Bravo, bought the company in 2007 from fellow buyout firm Svoboda Collins LLC for an undisclosed sum. LBO Wire reported then that Svoboda Collins saw more than three times its money, representing an internal rate of return of over 50%. Svoboda Collins acquired Midwest in 2004.
Midwest had about 450 employees, LBO Wire reported when Thoma Cressey Bravo bought the companyin 2007. More recent financial or staffing information wasn't available.
Thoma Bravo Cressey split in 2008 into two firms, Thoma Bravo and Cressey & Co., with the latter focusing on health-care investments.
Cressey & Co. closed its current fund, Cressey & Co. Fund IV LP, with $350 million in early 2010.
Reach Cressey & Co. at 312-945-5735.
http://www.cresseyco.com
The dental services provider may have its third private equity owner in four years if the sale goes through.
This is a great example of an informed consumer. “Jenny” sent me this just the other day. Thanks “Jenny”!
From Lincoln Nebraska
My company gives a choice of Aetna PPO or Aetna DMO. I was looking over the options and found the DMO sounded nice but after doing a search it turned up only one option for me, Blome Family Dentistry with Gregory and Sara Blome(father and daughter). I hit one of the many "rate your doctor" websites and found that they both had sanctions against them. Both of the sanctions had to deal with the Mother(Cindy Blome as stated on the staff page of their website). She worked(maybe stills works) at the office and in 2008 the DEA looked into the large amount of hydrocodone being ordered by the office. The father Gregory had gotten himself put on probation claiming he knew nothing about it and then in 2009 the daughter Sara was put on probation about the very same thing. The mother was ordering these for her "migraines" but the sanctions states(Under Sara's) :
Well, I've not been to the dentist in about 5 or so years. I don't remember the last time, to be honest.
I have always had a huge fear of dentists, but my biggest trauma was being held down for cleanings and fillings as a child every 6 months. Even though I was cooperative, I would be strapped down. Being an abuse victim, this scares me to death. My other fear is the pain, as I am on long-term opiate therapy for chronic pain (my spine is just totally obliterated) stemming from an accident and cancer.
I know I have many problems with my teeth, and it is humiliating to go to the dentist. I have a lot of decay at the gum line, I know I have periodontal/gum disease, and I have many cavities I can feel, esp along the molar gum line on the lower jaw. I also have one tooth that cracked off halfway but that never has hurt. I have been eating Motrin like candy for a month, putting this off. Just thinking about calling a dentist made me go into panic mode. But finally I cannot take this lower jaw pain anymore. I know I have impacted wisdom teeth and several huge cavities on that side that hurts. The Motrin doesn't help at all anymore, and although most would probably think that with my narcotics I wouldn't feel pain...I do. It doesn't touch the tooth pain whatsoever.
I don't even know what the cause of my jaw pain is...the whole right lower side hurts. I have TMJ problems from an accident in which I hit my lower jaw on the steering wheel as well. So many problems!!!
Besides the fear of the dentist, my "rationalization" for so long has been that I don't have the money to get these fixed. I know it truly doesn't make sense, but...it was my excuse. For what little income I do manage to get, through selling things and whatnot, goes toward my two young kids. I avoided the dentist for so long because I had such a hard time finding a dentist that would accept payment plans, etc. My mom had to help me call places. Finally I found one yesterday, and I am hoping they will be able to help me. It is there that I will be going this morning.
Sorry for the length of this post. I have not slept all night, partly from the pain of my jaw, but mostly from sheer terror. I am also extremely worried about the pain, as I cannot just get narcotics from anybody. They all must come from my pain management doc, but he is not in the office until Monday. So that just adds one more level of fear on me. I hope and pray the dentist is kind and gentle, cause otherwise I may lose it!
I really appreciate finding that there is a forum out there for people who fear the dentist as much as I do. One of my friends goes to a sleep dentist, and gets knocked out for everything. She has a bad needle phobia as well. I don't' care about needles, I just fear the dentist in general! lol I wish I could afford the thousands of dollars it cost to see a sleep dentist. I will be happy just to be able to eat again and not suck down a bottle of Motrin like candy.
The worst part is, I feel like such a hypocrite for being so adamant about my kids brushing and flossing and seeing the dentist. When I haven't gone for ages. I had so much trouble as a child with teeth problems that I am always telling my kids "You don't want to have teeth like mine!".
I apologize for the long, rambling post. It sure feels good to know I will be understood here, though. My family thinks I'm crazy for avoiding the dentist. To them, quote "I should just get over it." That's their answer to everything. Suck it up and go.
Thanks for listening.
Saturday July 2, 2011
2:18 PM
Subject: You think you are valiant crusaderCame across your blog searching for info on Church Street Management, who sent me glossy brochures trying to hire me.
You are a prolific writer, but a real coward, as you have the comments disabled on all of your posts.
I am an enemy of corporate clinics also, but you don't know crap about dentistry, lady. You are just a pompous windbag.
Kim Henry, D.M.D.
henrius@mindspring.com
Clearly Dr. Kim Henry hasn’t been here before it would be clear that comments are open, even anonymously, and I do not delete for filter any of them.
At one time, when I fist installed the Disgus comment software, it was set to cut comments off at 30 days, that was the default. When I noticed this I immediately corrected this problem!
More of Dr. Kim Henry: Ghana Community.com
I am a US citizen who sent quite a bit of money to a Ghanaian woman to start her in a tailoring business. This included money to buy land for the shop.
A good while later I was contacted by a man purporting to be an Interpol officer, with a record of my money transfers. He told me this woman and her accomplice was a scammer.
He suggested a Ghanaian attorney who would help with their prosecution for a fee. I paid him.
I supposedly won a $21,300 award in a Ghanaian court against these scammers. To pay it, the scammer's bank accounts were supposedly seized. I received a copy of the one-page court decree, but it looks suspiciously phony.
The attorney said Ghana levies a 7% tax on damage award. He said I must forward $1483 to pay the court before the check can be turned over the the Ghanaian Embassy in Washington for me to pick up. Frankly, the whole thing sounds like a scam.
Could anyone with any knowledge of the Ghanian legal system help me? Does this 7% tax exists? How can I verify the court award?
Thank you!
Dr. Kim Henry
henrius@mindspring.com
I think we now know why she was sent a flier to come join the crew at CSHM.
…more on Dr. Kim Henry:
Dr. Kim Henry says:
I traveled to Ghana in 2006 for the first time. I was impressed by the friendliness of people there. I met a young girl in Aburi Garden who was gracious enough to show me around.
When I left, an e-mail correspondence ensued, in which she confessed romantic attraction to me.
Very soon, she wrote to tell me that she lost her job in a sewing factory. As I was grateful for her help as a tour guide one day, I sent her the money for a sewing machine, business cards, and a cell phone.
Later she said it was impossible to work in her house, so I sent her money to have a container converted to an office. She reportedly placed this on a street on Tema until the officials cleaned off the streets and forced her to move.
After that I sent her money to buy a piece of property adjacent to a busy road. The lawyer fees and land registration fees were enormous. And of course along the way, there were the usual illnesses of the girl and her family, them getting thrown out of their house, and countless other supposed difficulties.
When I finally said “no” to sending any more money, I got an e-mail from a supposed Interpol investigator saying they had been tracking these scammers for awhile and wanted to convict them. He had me send a lot of supporting documentation about my transactions.
The the policeman told me in Ghana courts of law, the victim of a scam crime must pay for the prosecution by a good attorney. I thought this was very weird, but I agreed to pay $1400 for the lawyer.
The case supposedly went to trial, and the scammers were convicted. I was awarded $21,300 in damages. But guess what? I was told the Ghana taxed court awards at 7%. When I sent this money, he guaranteed me that a check would be sent me by the Ghana embassy in Washington.
Now every day this attorney pesters me, saying I will lose the court award if I don’t pay the taxes soon. I wanted back-up evidence, and he sent me a scan of a court decree from the proceedings. Only trouble is, some words are not spelled correctly. It looks fishy to me. I remember that the phoney land deed was a very convincing piece of work.
Can anyone help me verify this policy of Ghana taxing victim compensation awards, and possibly verify the existence of the judge and the case number on this decree?
I hear it is common in Nigerian scams to offer “help” to a scam victim, in order to extract more money from them.
Kim Henry’
henrius@mindspring.com
I’m sure this is quite normal, but there just seems like there is something wrong with it and I can’t lay my finger on exactly what it is. Not right now anyway, if you could see my house you would understand.
Seems like receiving a discount for using particular companies is one thing, but if said companies actually contributes to nearly 50% of an organizations income that is whole other ball of wax. I’m sure someone can enlighten me about this.
In the Tennessee Dental Associate 2010 Source Book it highly suggests it’s members use certain companies saying:
“When you use the services and products endorsed by the TDA, you not only obtain a good value but also assist in keeping TDA dues low. These companies provide the TDA with a royalty based on the amount of business generated by TDA members and their offices; non-dues revenue accounts for almost half of the TDA’s yearly income. When contacting these companies, tell them you are a TDA member”
Another example of the “quality” care brought to the “underserved” children by dental mills like Kool Smiles, Small Smiles and various others.
Ever wonder how well these dental mills vet their employees? Not very damn well!
I mentioned in a post a month or two ago, I bet there were all kinds of criminals working in these places. I had in mind, child molesters since abusing children sets pretty well with the folks there.
However, it’s accused murders as well!
Just think of the children this dental hygienist had his hands on. He is accused of suffocating a 26 year old woman to death in 2004. Was he thinking about suffocating your child while he was so close to their little faces? Was he thinking about putting your child in the Charles River where he is accused of dumping Julaine? What about his co-workers? Aren’t you Kool Smiles folks ready to blow the whistle wide open on this retched company.
Probably! How could he not!
Think of all the personal information this creep had at his disposal? Scary!
Here is the woman he is accused of murdering. Julaine Jules, a Hatiean-American woman who had worked at a children’s museum.
Let’s break with tradition and “Read the Bill”.
You can read the proposed bill putting much needed limits on dental management companies in North Carolina by clicking here.
Primary Sponsors - Louis Pate; Austin M. Allran;
Co-Sponsors -Tom Apodaca; Doug Berger; Andrew C. Brock; Ed Jones; William R. Purcell; Richard Stevens;
Click here to keep up with the Bill. See where it has been, and where it’s headed.
Wonder if this was designed to cut the head off the Michael DeRose head. It is my whole heartedly belief he still profits from the Medicaid Dental Centers k/n/a Smile Starters.
Within weeks of the $10 million dollar fine/settlement he and Dr. Tish Balance signed all the clinics were amazingly sold to one of their Lead Dentists, Dr. Raf Rivera. However, the management company remained-Root Dental Management.
In 2010 Michael DeRose was put on the no fly list, i.e. List of Excluded Individuals, where he is not to profit directly or indirectly from collecting Medicaid for services. Well, I consider the sham in North Carolina, Dr. Michael DeRose profiting indirectly
Wonder if Roger Walters is also still involved down there?
Related:
Root Dental Management-FORBA Smell the Same April 21,2008
Arcapita Bank-Manama, Kingdom of Bahrain-is the investment firm who purchased the Small Smiles Dental Centers/Church Street Health Management from the DeRose family in 2006.
The following statement is taken from Arcapita Bank’s Annual Financial Statement as of June 30, 2010, Ernst & Young auditors:
“…and that the Bank has complied with the terms of its banking license and has also complied with the "Islamic Shari’ah Rules and Principles as determined by the Shari’ah Supervisory Board of the Group.”
I’m thinking they would prefer me beheaded.
Related:
From the Wealthy Dentist
Catherine Hughes – June 21, 2011
Dentists Beware: The Government May Want To Tell You How To Manage Your Practice
The North Carolina Senate recently upheld Senate Bill 655, which would require the North Carolina Board of Dental Examiners to examine all business contracts entered into by dental practices in their state.
No other state in the union has implemented such restrictions on dental practice management, or sought such inclusive authority over how dentists manage their business.
Talk about the far-reaching arm of the government!
I am amused at Ms. Hughes last state, about the far-reaching arm of the government! I could blow her friggin mind about the far reaches of the Hedge Funds arms stealing tax payer dollars, causing health care costs to skyrocket! All so the “wealthy dentist” can live like this:
Value: $14 Million Dollars!
Of course that is only his “first” home.
I’m guessing it will be a waste of time and energy but looks good to the voters. AG should be brining criminal charges against the Executive Director of the Dental Board. Her and the Dental Board member are the one that let them set up the illegally operated chop shops and screw the taxpayers of Ohio over, ripped them off and left the with no teeth at all!
By LISA CORNWELL
CINCINNATI (AP) - Ohio's attorney general has sued a closed New York-based dental chain, alleging that the company violated consumer laws by failing to provide services and products paid for by patients.
Allcare Dental and Dentures abruptly shut down its offices nationwide in January.
Ohio Attorney General Mike DeWine filed the lawsuit Friday in Franklin County Common Pleas Court in Columbus. It seeks restitution for consumers and $25,000 in civil fines for each Ohio law violation.
The attorney general's office says it received more than 940 complaints against the company, mostly involving failure to deliver. DeWine's office says consumers disputed about $2 million in payments to Allcare in their complaints.
Telephone numbers listed for the Williamsville, N.Y.-based company have been disconnected. Court records did not list an attorney for the company.
Hey, Church Street Health Management-Small Smiles, NCDR, LLC-Kool Smiles and other dental mills fake owners, listen up:
Ohio AG Announces Sentencing for Cincinnati area Dentist for Medicaid Fraud!
6/22/2011
(COLUMBUS, Ohio) – Ohio Attorney General Mike DeWine announced today that Dr. Jeffrey Glenn, of Cincinnati, has been sentenced to five years of community control and ordered to pay restitution of $225,000, after pleading guilty to one count of aggravated theft, a third-degree felony.
Dr. J. A. Dean is announced as the new Executive Director of the ABPD replacing Arthur J. Nowak, who currently is on the Advisory Board Member of Church Street Health Management.
Word is that upper management at Small Smiles Dental/Church Street Health Management is quite happy about this announcement, saying “…he’s from Indiana and we know him…”, referring to Dr. Dean.
Evidently they are hoping to get Dr. Dean to do what he can to make things favorable for CSHM. Hold you’re ground Dr. Dean. Just be forewarned.
Promoting a fellow crusader
Ohio Attorney General Mike DeWine announced Thursday that Dr. Jeffrey Glenn, of Cincinnati, has been sentenced to five years of community control and ordered to pay restitution of $225,000, after pleading guilty to one count of aggravated theft, a third-degree felony.
An Ohio Department of Job and Family Services review of Glenn's billing indicated an unusual pattern. That triggered an investigation within the Ohio Attorney General's Health Care Fraud Unit.
Investigators interviewed Glenn and employees of his office, Bond Hill Dental Center, sifted through almost 3,000 patient records obtained through a search warrant, interviewed dentists that subsequently treated Glenn's former patients and interviewed Glenn's patients. The results indicate that over the course of four years, beginning in 2006, Glenn repeatedly billed Medicaid for dental work that was not done.
$50,000 in restitution was paid on Thursday. The balance, $175,000, is due within five years.
The money will be repaid to ODJFS and four of Ohio's Medicaid managed care organizations that were also falsely billed.
I hope the folks at “Straight Smiles” are paying real close attention to the Medicaid Orthodontics scams being exposed in Texas, since I’m sure that is exactly what this is as well, if not worse.
[honestly I can hardly even say “straight smiles” since I immediately think of “straight face” and how they keep one I’ll never know]
In the article below the “Lead Orthodontist” said about the patient she was examining:
“ Zulanihs had a loose tooth and small signs of a posterior cross bite. Although she was not ready for braces, interceptive treatment would widen the upper arch of her palette”
(her licenses say she is a “general dentist, searching the Dentaquest site for MA Orthodontists, there is only 2 in a 30 mile radius, and she is NOT one of them)
[she means a palatal expander as seen here and here ]
“If this wasn’t found or not acted upon, it could result in trauma as well as recession of her lower anterior teeth.”
[trauma! really? well dang good thing the child got in there in time to prevent such a trauma]
It really means we found something, ever so tiny and insignificant but I think I found something so we can bill the taxpayers of Massachusetts.
Is it legal? Well, of course not. However I asked a dear friend, a dentist, living in Massachusetts about having to be a “real” orthodontist and advertising as a “specialty” when you are NOT a specialist? Here is their reply:
As for the ortho question, you are going to just love my unclear and muddled answer! In the wacky state of Massachusetts, general dentists can do ortho, provided that they can "perform to the same standards" as specialists. (If that truly is the case, then why would any Orthodontist spend the extra 2-3 years in residency?)
In medicine, that is almost like your ear/nose/throat guy deciding he'll take a swing at open heart surgery.
The regulations, as far as I'm aware mostly have prohibitions against advertising to the public as a specialist. This pretty much falls in line with the ADA position. Hope this helps.
by BYRON HARRIS
Bio | Email
WFAA
Posted on June 19, 2011 at 9:51 PM
Updated yesterday at 4:17 PMNews 8 Investigates
From the air, it looks like there's a shark in swimming pool of the 13,000-square-foot mansion in Frisco. Turns out the shark is only painted on the bottom, complementing the water slide, next to the tennis court, which gives the place the look of a resort.It all belongs to owner of Smiley Dental Clinics, which last year collected at least $1.9 million in Medicaid orthodontics (MO) fees, according to state records.
While the shark in the dentist's pool may be an illusion, it's not imaginary that Texas dentists have been swimming in a sea of Medicaid money over the last three years.
Super Pages
Carecredit
Facebook
According to Molar Magic’s facebook page, they opened in August 2009.
Must be a Medicaid clinic, at least it’s not a mill, but never forget he was trained by Dr. Eddie DeRose,
“Molar Magic is a comprehensive general dentistry and orthodontic for children and young adults ages 1-20. At Molar Magic we believe oral health care can and should be fun, comfortable, and easy. Stop in anytime for a tour! Let us work our magic!”
I would really like to hear from any of you. Please contact me at cckaddie@yahoo.com
Here is a listing for a job opening at Church Street Health Management dated June 17, 2011. Pity the poor fool who takes this job! YIKES! I hope any applicant takes time to read the Corporate Integrity Agreement this company has signed with the Department of Justice and Inspector General’s Office. Read it carefully! Smell the jail?
Duties include:
Reporting to the SVP, Chief Compliance Officer, the selected individual will be responsible for recording, remedying, and responding to comments, concerns and complaints by patients of CSHM Associated Dental Practices. The Patient Advocate is also charged with ensuring that patients and, for minor patients, patients' parents and/or legal guardians are informed of CSHM's commitment to quality care and provided with contact information for submitting complaints. The Patient Advocate will report to the Chief Compliance Officer. The Patient Advocate will also be a key member of the Compliance Department and a member of CSHM's Compliance Committee.
Angela has been the topic of conversation of late at CSHM due to her prior association with Universal Health Services (UHS) and it’s string of “youth education” treatment centers. UHS has complaints out the wazoo about the abuses that goes on behind the doors to pre-teens and young adults.
My point in sharing these links is to point out that even though kids are dying from teeth extractions performed by DDS and Oral & Maxillofacial Surgeons... standards are being lowered still !
States where dental hygienists may administer locals
http://www.adha.org/governmental_affairs/downloads/localanesthesiamap.pdf
States where dental hygienists can administer nitrous
http://www.adha.org/governmental_affairs/downloads/Nitrousmap.pdf
Dental Hygiene Practice Act Overview:
Permitted Functions and Supervision Levels by State
http://www.adha.org/governmental_affairs/downloads/fiftyone.pdf
Comparison of Tasks: Dental Therapist vs Advanced Dental Therapist
http://www.dentalboard.state.mn.us/Default.aspx?tabid=1165
The principles, competencies, and curriculum for educating dental therapists
(American Assoc of Public Health Dentistry Panel)
http://onlinelibrary.wiley.com/doi/10.1111/j.1752-7325.2011.00263.x/full
New Office Marks Extension of Successful Public/Private Partnership Inaugurated in Gary, Indiana
EAST CHICAGO, Ind., June 17, 2011 /PRNewswire/ -- East Chicago residents will soon have something new to smile about. Kool Smiles, a leading dental health provider dedicated to expanding access to quality dental care for children and families in underserved communities, is opening a new office in East Chicago in partnership with the East Chicago Community Health Center (ECCHC).
The new location will open June 20 and is located within the East Chicago Community Health Center at 1313 West Chicago Avenue. It will be the company's third office in the area, bringing East Chicago residents a convenient option for quality dental care. The grand opening was celebrated on June 15th. Attendees included State Representative Earl Harris, State Representative Charlie Brown, State Senator Lonnie Randolph, Ms Gilda Orange, Chairman East Chicago CHC and East Chicago Councilwoman, Frank Mrvan Township Trustee, Mayor Anthony Copeland, Ms Te-Reika Chambers, representing Congressman Visclosky, Mark Vanderheight, Primary Healthcare Associates, Dr. Gerri Browning, East Chicago CHC Chief Medical Director, Mr. Dwayne Mitchell, CEO East Chicago CHC, Dr. Ricardo Hood, East Chicago CHC Medical Director and Health Commissioner of the City of Gary.
This new office aims to replicate the success of the 2010 launch of a similar center in Gary, IN which is celebrating its one year anniversary. In only 3 months after the Gary public/private partnership was established, dental patient access more than doubled from 12 patients receiving oral health care to over 30 patients receiving oral health care each day. To establish a similar access opportunity for East Chicago residents, the new office will increase access to the area's residents who need it the most, offering families a centrally located resource for dental care that will complement the existing medical offices. The East Chicago Community Health Center is funded by taxpayer dollars through the federal Health Resources and Services Administration.
Read the entire Press Release
cckaddie@yahoo.com
Here is the sign off highway US41 in Terra Haute, Indiana pointing to one of the Kool Smiles Dental Centers.
I recently took this during one of my stops on my “where in the world is the next illegal dental clinic” tour which I began in April.
I also took the time to check out the clinic and even spoke with the next door business owners, who had a lot to say.
There was a cute little shop right next door that two lovely grandmother type ladies owned. I was in need of a wedding gift so I went in to see what they had. After I picked out a couple of nice items, the graciously offered to gift wrap them, which gave me time to ask them about the dental clinic next door.
Immediately the woman scowled. I knew that she knew it was a bad bad place. Just a few inquisitive questions got her to talking. She told me about the horrible and terrifying screams they hear through the walls. She told of the many times her patrons who would be shopping would look at her and gasp. She told me there are times where customers have become extremely upset hearing the shear terror in the tiny screams coming through the walls.
She said it was where a lot of Medicaid children went, she didn’t know I l already knew all about these folks. This day, it was nice outside, sun shining and a slight breeze, they had their backdoor open to let the breeze flow though.
She said her and her partner had stepped out back earlier and listened at the back door of the Kool Smiles and it made them both sick. They had called in a complaint a time or two but nothing was ever done, it’s a dentist office, that treats children, who cares if there are screams she was told.
Who cares? I do. Don’t you?
If you are a former employee please contact me, send me what evidence you have, your identity is strictly confidential. I couldn’t know all I know if I didn’t keep my informants identity a secret. Heck, just send me some documents anonymously, that’s fine too.
cckaddie@yahoo.com
Is Church Street Health Management-Small Smiles Dental- the current World Wide Association of Specialty Programs and Schools (WWASPS)? What about NCDR.LLC-Kool Smiles Dental?
WWASPS billed itself as an “umbrella organization” of independent institutions for education and treatment of troubled teenagers. So does CSHM. CSHM insists it only manages independent dental clinics.
WWASPS mistreats minor for federal dollars. So does CSHM. In fact CSHM’s top management, who are 4 of it’s board members, operated the same kind of facilities WWASPS does, under the name Keys Group Holding,LLC. Isn’t that odd.
WWASPS sued a mom who spoke out against their cruelty to children. So did CSHM. - Me.
WWASPS sued for mistreating children. So is CSHM.
WWASPS expose’ was featured by PBS.
Related:
Crimes and Corruption
Romney, Toture and Teens
Over The GW , by Nick – film about these camps for abuse
Much like the DeRose family built their crooked empire then sold out, the current Small Smiles Dental Centers management created these horribly torture facilities and sold to Universal Health Services. Current patient advocate for Small Smiles Dental Centers came over from UHS to work with her old friends - Angela Newberry
Rick Santorum And Universal Health Services: Presidential Hopeful Serves On Board of Hospital Chain Being Sued By DOJ
Huffinton Post
Attention former residents and employees – the HP wants to hear from you. Email them! jason.cherkis@huffingtonpost.com.
June 7, 2011
WASHINGTON -- Former Pennsylvania Sen. Rick Santorum, who announced his bid for president Monday, has spent the past four years serving on the board of Universal Health Services Inc. (UHS), one of the country's largest and most troubled hospital chains.It turns out Santorum may have had a more personal stake in railing against President Barack Obama's signature health care legislation and beating the drum for less government intrusion in our health care system. Both federal and state officials have routinely cited UHS for a seemingly endless number of violations, ranging from Medicaid fraud to patient neglect and abuse. Investigations have uncovered everything from riots to rape to homicide at UHS facilities.
AED REQUIREMENT
201 KAR 8:550, only dentists who perform general anesthesia/deep sedation and moderate sedation would be required to have an automated external defibrillator in their office.
General Dentists and Minimal Sedation permit holders would not be required to have an AED.
*******************************
General Anesthesia/Deep Sedation - A drug-induced depression of consciousness during which patients cannot be easily aroused, but respond purposefully following repeated or painful stimulation. The ability to independently maintain ventilatory function may be impaired. Patients may require assistance in maintaining a patent airway and spontaneous ventilation may be inadequate. Cardiovascular function is usually maintained.
Chad administrator McDuffie assured DHS that Chad was a "nurturing and positive environment." He said the facility had hired more staff and made children's safety a priority. The former owners of Chad also said it was a safe and therapeutic place for children when they handed over the keys to Universal Health in October 2005. "Our goal was to effect treatment in as nonphysical a way as possible," former chief executive officer Michael G. Lindley said. Al Smith, another former top executive with Chad's former owner, said: "Did untoward events happen? Absolutely. But was it a culture? I don't believe so."
DHS staffer Haiying Xi reported, a youngster had been cut on the chin in a restraint, requiring stitches. Chad had not reported this to regulators, DHS learned. Finally, DHS official Stephen Rosenberg wrote to Chad. "The investigation could not determine any pattern for the use of illegal physical restraints," Rosenberg wrote. But children died.
by BYRON HARRIS
Bio | Email
June 8, 2011
Last year, lax state regulations allowed dentists to legally collect nearly $200 million to straighten the teeth of poor children in Texas at taxpayer expense.
That's more than the rest of the United States combined.
Orthodontic treatment for children is generally an elective, cosmetic procedure that many parents spend thousands of dollars on for their children. But Texas pays for orthodontics under Medicaid like no other state in the country.
In 2010, Texas spent $184 million on Medicaid orthodontics.
Medicaid is designed to provide health care for the poor.
To serve as a resource by providing a national forum for exchange, development and dissemination of information to assist dental regulatory boards with their obligation to protect the public.
Values Held by the AADB
AADB values protection of the public whenever it seeks dental health care.
AADB values collaborative relationships within organized dentistry among educators, accreditors, examiners and regulators.
AADB values meeting the needs of all its members.
Really??
I’m hearing is only temporary, hope to reopen in the fall. I hope that is NOT possible by the time fall gets here!
Isn’t Oklahoma where that waterboarding dentist, Megann Scott worked?
Someone found this on the Internet and sent it to me. I felt it absolutely should be reposted as it is yet another picture of what is happening right under our noses and we all need to wake up from our peaceful slumber:
We will soon see a massive influx of foreign-trained dentists. While everything else has been outsourced, the last majorly unaffected areas of the American economy are health care and the service sector. By virtue of the logic that health care not be outsourced, we as a profession were complacent.
2007 $399,000,000
2008 $768,000,000
2009 $961,000,000
2010 $1,235,000,000
In essence, Medicaid expenditures in Texas for dental services have gone up 300% in 4 years. I suppose it’s a case of out of control kids going to sleep with Sippy cups. Or theft on a monumental scale. No wonder every dentist in the country wants to come to Texas to make his/her fortune!
Actually you don’t have to actually be a dentist to profit, just hire one. I’m packing now, look out Texas, here I come.
Section 5 page 6 of Texas Medicaid and CHIP 8th edition – January 2011
Yet today, Texas announced it was “expanding” it’s Medicaid spending for dental care! Texas taxpayers, your Texas government has lost it’s ever lovin’ mind!
Here ya go, Texas, bend over! Oh wait, sorry, you already are bent over, well, stand back up and do it again.