All Smiles Files Bankruptcy

May 3, 2012
Another one down.

Texas dental chain, All Smiles, that has been the subject of investigations files for bankruptcy protection.

All Smiles Bankruptcy.

Drilling for Dollars

It appears some is preparing for something, not sure what, a book, a movie, a fiasco. Church Street Health Management's PR firm, Rubin Meyers registered the domain drillingfordollars.com.  It was registered on April 19, 2012. 

Church Street Health Management-Small Smiles Dental burned through another Compliance Officer? Seriously doubt they are going to need one anyway.

Job Posting

If the company isn’t willing to “comply” it doesn’t matter how many “compliance officers” you hire.

Who would want to go to work for a company:

1. on the chopping block
2. has been in serious financial difficulty for 3 or more years!
3. blows through compliance officers like kids thru bubble gum
4. who has failed to even want to comply with the Corporate Integrity Agreement they are under. (see the Auditors Report for 2009 and 2010 in the below Sales Agreement link.
 

Here is a Sales Agreement between the entities to the new CSHM,LLC in 2011. That not would be, old FORBA, not new FORBA, but FORBA III. It’s a real page turner.

Anyway here is the job description.. lol

Church Street Health Management LLC (CSHM) is one of the largest (bankrupt)dental practice management companies in the nation, and focuses exclusively on supporting dental centers caring for pediatric Medicaid beneficiaries and their families. CSHM seeks an SVP, Chief Compliance Officer, who will be based in the company’s Nashville office (that we owe a ton of back rent to) and responsible for overseeing the compliance efforts of the company nationwide (that we have no intention of following”.  Reporting to the CEO, (who we aren’t clear will be)  the selected individual will be responsible for implementing and maintaining policies, procedures and practices designed to ensure compliance with the requirements of all Federal health care programs as well as its Corporate Integrity Agreement with the Department of Health and Human Services’ Office of Inspector General. (that up to this point we’ve basically disregarded because we can’t make moola if we comply)This position is a high profile (it will be when you are jailed) and fast paced (looking for places to hide) position with visibility (too visible) to Executive management, the Board of Directors and (very) significant governmental constituents. Attention to detail, organization skills, ability to see the big picture and accuracy are critically important skill sets.

Morally Bankrupt Carlyle Group Continues with Bankrupt Theme

From PEU Report

Carlyle's Latest Bankruptcy: Medicaid Dental for Kids

The Tennessean reported: A Nashville-based company that manages dental care centers in 22 states has filed for bankruptcy to restructure its debt and eventually attempt to sell its operations and assets.

Church Street Health Management LLC’s filing with the Middle Tennessee U.S. Bankruptcy Court this week listed roughly $85 million of assets and $300 million of liabilities.

How much goodwill did it take to get Church Street's sheet to balance?  Owners not only stretched the value of the company, they took liberties with kid's teeth and billing Uncle Sam.

That debt includes $150 million owed to its lenders and $17 million owed to several states and the U.S. Department of Justice under a settlement of charges that it billed Medicaid for unnecessary dental procedures for low-income children.

The settlement period runs from September 2006 to January 2010, all years under PEU ownership. Church Street's sins include:

(1) causing claims to be submitted by the Centers for reimbursement for performing pulpotomies that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care

(2) causing claims to be submitted by the Centers for reimbursement for placing crowns that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care

(3) causing claims to be submitted by the Centers for reimbursement for the administration of anesthesia (including, without limitation,nitrous oxide) that was not medically necessary, that was performed in a manner that did not meet professionally-recognized standards of care, and/or was administered by an unlicensed, non-certified, or otherwise unauthorized individual

(4) causing claims to be submitted by the Centers for reimbursement for extractions that were not medically necessary and/or were performed in a manner that did not meet professionally recognized standards of care

(5) causing the Centers to fail to obtain informed consent for certain dental procedures and services

(6) causing claims to be submitted by the Centers for reimbursement for fillings that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care

(7) causing claims to be submitted by the Centers for reimbursement for sealants that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care

(8)causing claims to be submitted by the Centers for reimbursement for radiographs (i.e., x-rays) that were not medically necessary, were taken in a manner that did not meet professionally recognized standards of care, and/or were taken by an unlicensed, non-certified, or otherwise unauthorized individual

(9) causing claims to be submitted by the Centers for reimbursement for behavior management techniques, including without limitation those techniques involving a papoose board, that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care.

The above behavior resulted in a $24 million (plus interest) fine.  It seems Carlyle and Church Street are morally bankrupt as well as literally.

Did Church Street pay dividends or special distributions since The Carlyle Group invested in the company in September 2006? 

 If so, did PEU owners load Church Street with debt to fund payouts?

Medicaid considers management fees and capital cost reimbursable items on the acute side of health care.  Does it do the same for dental? 

How much did Carlyle, American Capital Strategies and Arcapita pull out of Church Street before it imploded? 

[A LOT!]

Did any buy credit default swaps on Church's debt? That could help ease the ache, but it would continue the morally bankrupt theme.

Private equity purports to be the savior of America's lopsided health care system.  Greed won't help, not in the least.

---

Arcapita(f/d/b/a First Islamic Bank), another principal part of the terrorizing company, also filed bankruptcy.

Below are Statements and Reports of Church Street Health Management – Small Smiles filed with the Bankruptcy Court. You don’t want to miss these.

• March Monthly Operating Report
• Statement of Financial Affairs for Small Smiles Holding, LLC
• Statement of Financial Affairs for Church Street Health Management, LLC
• Statement of Financial Affairs for EEHC, LLC (the executives and directors arm of Small Smiles dental centers)
• Statement of Financial Affairs for FORBA NY, LLC
• Statement of Financial Affairs for FORBA Services, LLC

Church Street Health Management/Small Smiles Dental; See from where the money flows and to where it goes.

Church Street Health Management-Small Smiles Dental Centers Monthly Operating Report March 2012

If you have trouble reading, you can open and read it the PDF here

Why did Church Street Health Management/Small Smiles Dental pay Little Darlings Dental/General Dentistry 4 Kids - Arizona $25,000.00

Why did Church Street Health Management pay Little Darlings Dental in Arizona $25,000.00 on Friday before filing bankruptcy on Tuesday?  Searching the address will give you General Dentistry 4 Kids that has 6 locations in and around Tucson.
General Dentistry 4 Kids is who sued Kool Smiles in AZ for copyright infringement and unfair business practices, General Dentistry 4 Kids lost in a Summary Judgment for the Defendant – Kool Smiles. General Dentistry 4 Kids v. Kool Smiles
An even better question is why they gave Waller law group $250,000.00 on that same Friday.  In fact they gave Waller over $673,000.00 over a period of 60 days.  Hmmm
Little Darlings Dentist, PLLC
2102 N. Country Club  Ste A
Tucson, AZ  85716
generaldentistry4kids@gmail.com
2-17-2012 $25,000.00
Waller, Lansden, Dortch and Davis
12-21-11   $77,199.28
1-12-12  $171,297.63
2-9-12    $178,203.73
2-17-12  $250,000.00               $676,700.64
Church Street Health Management Statement of Financial Affairs – start on page 12. Little Darlings Dental payment on page 39, Waller law payments on page 50.

As a side note: Looking at the “new patient” forms for General Dentistry 4 Kids, just before the guardian signature it says:

“I hereby authorize treatment and use of nitrous oxide, anesthesia, oral sedation and/or other medications necessary for dental treatment.”

Wow!

Inside Edition investigates papoose board use in dentistry

For some kids a trip to the dentist can be a traumatic experience. But just imagine what it might be like strapped into a cocoon-like restraining device called a papoose board that is sometimes used to immobilize children at the dentist's office.

They're smiling today, but eight children say they were strapped into a papoose board while visiting the same dentist for routine work.

They're all patients of Dr. Edward Dove. Dr. Dove has a huge pediatric dentistry practice in Southern California and his commercials are specifically targeted to kids like a friendly Saturday cartoon show. But these kids' parents say their experience was nothing to smile about.

"He hit me on the head and said, ‘You better shut your mouth,' four-year-old Abigail Webb told INSIDE EDITION's Chief Investigative Correspondent Lisa Guerrero.

"He strapped me down on a papoose board and I started crying and he kept slapping my cheeks," said six-year-old Tyler Catalfamo, another patient of Dr. Dove.

Dr. Dove says he uses the papoose board properly, after sedating the youngsters.

Read the full story here at Inside Edition

 

When there is news about dentistry in the media, the American Dental Association issues a Red Alert.  Here is the ADA Red Alert issued after the “Inside Edition” story about the use of papoose boards aired April 26,2012. And the ABC Chris Como report about Florida’s children access to dental care; It’s in a “crisis”. Link to ADA Red Alert

Inside Edition and ABC World News Media Stories

"Inside Edition" airs segment on the use of papoose boards

"Inside Edition," a nationally-syndicated newsmagazine show aired a story April 26 about dentists' use of papoose boards during dental treatment. As a result of this rather sensational segment, parents of young children under your care may ask if you use a papoose board in your practice.

Creditors Checking the Validity of Actual Property and Liens of Church Street Health Management’s held by its Collateral Agents - SSO FUNDING CORP.; SSH FUNDING CORP.;CIT HEALTHCARE LLC; AMERICAN CAPITAL, LTD.

Church Street Health Management Unsecured Creditors

vs.

SSO Funding Corp. is a special purpose entity acting as a conduit for the
provision of financing between Debtors and the entities providing financing to the Debtors and may be served in care of Global Securitization Services, LLC, 68 South Service Road, Suite 120, Melville, New York, 11747.

SSH Funding Corp. is a special purpose entity acting as a conduit for the
provision of financing between Debtors and the entities providing financing to the Debtors and may be served in care of Global Securitization Services, LLC, 68 South Service Road, Suite 120, Melville, New York, 11747

CIT Healthcare LLC, is the Collateral Agent and Administrative Agent for
the Prepetition First Lien Facility Lenders and the Prepetition Second Lien Facility Lenders. CIT Healthcare, LLC, may be served at 11 West 42nd Street, Floor 7, New York, New York, 10036.

American Capital Ltd. is the Collateral Agent under the Subordinated
Murabaha Facility Agreement and maybe served at 505 Fifth Avenue, 26th Floor, New York, New York, 10017.

Complaint by Unsecured Creditors to Determine Validity of Property and Liens-Doc 299

Bids for Small Smiles centers in by May 4, 2012, auction set for May 11, 2012, hearing for court to approve sale (if any) on May 22, 2012–trying to settle malpractice cases in the mean time.

Here is the latest filings in the bankruptcy case.
I think these so called Management Service Agreements these corporations claim they have with fake owners dentists like the Small Smiles clinics should also be used in other places to skirt laws and social practices.

What’s your thoughts?

Maybe they should replace marriage licenses. What about drivers license? I just manage the car, take care of the upkeep, fuel, taxes, etc.

Even in Church Street Health Managements latest filings on Tuesday of this week, they still contend they don’t own them, just manage them. I beg to differ.

Related:
Small Smiles Owner Doctors - A. Smith
Small Smiles ownership program – A. Smith
Fraud at Small Smiles? – The employees say yes.

After what you’ve just heard, don’t you everyone who has filed all the legal document, that are subject to perjury needs some serious jail time for each offense.

CBS Atlanta Exclusive - Three Georgia boys die unexpectedly after dental procedure

ATLANTA (CBS ATLANTA) -

CBS Atlanta News is breaking an exclusive investigation into what caused three Georgia boys to lose their lives following what should have been routine medical procedures.

All three boys, ages 14 to 21, died within a month of each other in a string of tragic and bizarre deaths. They all had their wisdom teeth extracted 16 to 72 hours before they died.

"You take your kids to doctors and dentists, and you don't expect this. You don't expect to lose them," said Bobbie Ellis, the father of Ben Ellis, one of the victims.

The grieving families are speaking out for the first time, only to CBS Atlanta Chief Investigative Reporter Wendy Saltzman.  They're sharing their emotional stories as a warning to other parents.

"He was the baby, I miss him terribly," Karan Ellis said about the loss of Ben.

The pain is still extremely raw for the Bobbie and Karan Ellis and the other families, who all lost their sons just four months ago.

"A family should be informed that there is a possibility that your child may not wake up," Lisa Robinson said.

The Robinsons and the Ellis family agreed to speak with CBS Atlanta News to warn others of the dangers they say they were never told about.

"You don't want to go through what we've went through. There are too many kids dying out there. Something needs to be done," Bobbie Ellis said.

The Ellis' son was just 14 years old when they say their oral surgeon recommended that he have all four of his wisdom teeth removed.

"That's my baby, and his beautiful smile" Karan Ellis said.  "That's all I've got now is his pictures."

"We have pictures, but we don't have our son," Bobbie Ellis cried.

Ben's wisdom teeth were removed on Dec. 7, 2011.