This pretty much covers where the settlement is today.
Tuesday, June 09, 2015
Friday, June 05, 2015
Basic Economic Models of Large Scale Corporate Dentistry
Basic Economic Models of Large Scale Corporate Dentistry
By: Michael W. Davis, DDS
June 5, 2015
The first misnomer and misrepresentation which must be addressed is dental service organizations (DSOs). These are primarily business structures designed to circumvent state laws relating to ownership of dental practices. Most state statutes require only licensed dentists in their states may lawfully own a dental practice. DSOs falsely allege they restrict management to non-clinical areas.
In reality, the corporate entity DSOs own the dental practices they manage. Doctors in those practices are merely employees, whose employment may be terminated at the will of their employer, the DSO. The DSO fully controls the bank accounts of each and every clinic they manage, with accounts usually swept into Delaware banks at least bi-weekly. They establish monetary production quotas and bonuses for patient services. They establish the hours of operation and staff. They usually dictate office equipment, patient clinical supplies, and dental laboratories for patients. They supervise and control patient scheduling. They also dictate numbers of clinical protocols bypassing the doctor/patient relationship, such as mandating crowns over fillings, often unnecessary and more costly “deep cleanings”, antibiotic therapy into alleged “deep gum pockets”, etc.
Most “owner” doctors in these larger corporate practices are sham figureheads. They provide the corporate managers a layer of liability protection, for their unlicensed and unlawful practice of dentistry (see: Federal Fifth Circuit ruling 07-30430). These alleged “owner” doctors are not allowed to freely sell their asset of the dental practice, under their contract service agreements with the DSO. They aren’t as “owners” allowed discontinuing services with the DSO, and must retain the DSO’s services into perpetuity. In effect, the doctor owner(s) represent a façade of nominee ownership. The valid beneficial owner of the dental practices is obviously the DSO.
By: Michael W. Davis, DDSJune 5, 2015
The first misnomer and misrepresentation which must be addressed is dental service organizations (DSOs). These are primarily business structures designed to circumvent state laws relating to ownership of dental practices. Most state statutes require only licensed dentists in their states may lawfully own a dental practice. DSOs falsely allege they restrict management to non-clinical areas.
In reality, the corporate entity DSOs own the dental practices they manage. Doctors in those practices are merely employees, whose employment may be terminated at the will of their employer, the DSO. The DSO fully controls the bank accounts of each and every clinic they manage, with accounts usually swept into Delaware banks at least bi-weekly. They establish monetary production quotas and bonuses for patient services. They establish the hours of operation and staff. They usually dictate office equipment, patient clinical supplies, and dental laboratories for patients. They supervise and control patient scheduling. They also dictate numbers of clinical protocols bypassing the doctor/patient relationship, such as mandating crowns over fillings, often unnecessary and more costly “deep cleanings”, antibiotic therapy into alleged “deep gum pockets”, etc.
Most “owner” doctors in these larger corporate practices are sham figureheads. They provide the corporate managers a layer of liability protection, for their unlicensed and unlawful practice of dentistry (see: Federal Fifth Circuit ruling 07-30430). These alleged “owner” doctors are not allowed to freely sell their asset of the dental practice, under their contract service agreements with the DSO. They aren’t as “owners” allowed discontinuing services with the DSO, and must retain the DSO’s services into perpetuity. In effect, the doctor owner(s) represent a façade of nominee ownership. The valid beneficial owner of the dental practices is obviously the DSO.
Wednesday, June 03, 2015
ADSO and Gryphon Investors: OneSmile to buy existing dental practices.
We are all F’d!
June 3, 2015
Gryphon Investors and dental industry vets launch OneSmile
Gryphon Investors has teamed up with dental industry veterans Steven C. Bilt and Bradley E. Schmidt to form OneSmile. No financial terms were disclosed. OneSmile will initially focus on buying existing dental practices in the western U.S.
PRESS RELEASE
June 3, 2015, San Francisco –Gryphon Investors (“Gryphon”), a San Francisco-based private equity firm, announced today that it has formed a partnership with Steven C. Bilt and Bradley E. Schmidt to establish OneSmile, LLC (“OneSmile”). The new company will initially focus on acquiring existing dental practices and groups in the western United States, as part of a strategy to build a comprehensive Dental Services Organization (“DSO”) platform.
Mr. Bilt, a seventeen-year veteran of the dental industry, is OneSmile’s CEO. He previously served as the president and CEO of Smile Brands, Inc., one of the largest providers of support services to general and multi-specialty dental groups in the United States. Brad Schmidt will be OneSmile’s CFO, a position he previously held at Smile Brands, Inc. Together with Gryphon’s financial backing, Mr. Bilt and Mr. Schmidt built that company from inception to over 250 locations with revenues of over $350 million before Gryphon sold a majority of its shares in 2005. The executives continued to lead the company for subsequent investors, eventually expanding it to more than 400 locations and over $500 million in revenues.
Mr. Bilt, who is a founding member and former director and president of the Association of Dental Support Organizations (ADSO), said, “There is a compelling opportunity to build a leading DSO in the Western U.S., and I look forward to working with Gryphon again in this exciting new venture. Their experience helping to build Smile Brands’ predecessor starting in 1998, along with their financial and operational support, will benefit us as we establish a unique model bringing comprehensive general, pediatric and specialty dental care and healthy, happy smiles to millions of people.”
Monday, June 01, 2015
Dentist the Menace Reader Quiz, June 1, 2015
June 1, 2015 Dentist the Menace Reader Quiz
Designed to test readers knowledge and add a bit of humor while educating others
By: Debbie Hagan and Michael W.
Davis, DDS
The dental
profession has a good number of abusers to the public welfare. Dentist the Menace readers are well
aware of these violators, the companies they represent or work for, and complicit
state and federal regulators. This quiz will test your knowledge of the dirty
dark underbelly of the dental profession.
Multiple Choice Questions
1. The following is true for Dr. Eddie DeRose of Pueblo, CO:A. He has a history of gambling junkets on private jets to Las Vegas to visit his goomarahs and play a Vegas gambling “whale”.
B. His favorite clinic quote in reference to female staff is, “I could train monkeys to do a better job than you girls.” This led to wild speculation that Dr. DeRose’s Italian ancestors may have been trainers of organ grinder monkeys.
C. As a dentist primarily treating low-income disadvantaged Medicaid children, he also owned a stake in DD Marketing, which placed junk food and soda pop vending machines in low-income public schools.
D. All of the above.
2. The following is true for Dr. Michael DeRose of Pueblo, CO:A. He has special-needs & mentally challenged younger brother, who formerly played football for the LSU Tigers. This formed the basis for the Adam Sandler movie, Water Boy.
B. As part of a consent agreement with the State of North Carolina for alleged Medicaid fraud, Dr. DeRose agreed to surrender his dental license and agreed to pay the State of North Carolina several million dollars.
C. This is an individual who enjoys the simple things in life, and today continues to live in the modest 3-bedroom home he purchased 20-years ago.
D. All of the above.
3. The following is true for criminal defense law firm of Waller Lansden Dortch & Davis LLC of Nashville, TN:A. They are an industry member of the Association of Dental Support Organizations (ADSO).
B. This law firm has previously represented Dr. Richard Malouf, an alleged Medicaid fraudster of Dallas, TX notoriety.
C. This law firm has previously represented Church Street Health Management (d/b/a Small Smiles Dental, today bankrupt & disgraced), with law partner, Sheila Sawyer formerly acting as Chief Administrative Officer.
D. All of the above.
2004 Cease and Desist Letter from Colorado Dental Board: Michael A. DeRose, Eddie DeRose, William (Bill) Mueller
I've heard the Michael DeRose out there in Pueblo under oath say he did not "train" dentists. They were simply there to "observe" for a few days. Yet, here is the 2007 C & D letter from the Colorado dental board where he admits the dentists performed general dentistry and it was the program offered by his father, Eddie DeRose and William Mueller as well as himself.
Sunday, May 31, 2015
Howard S. Schneider of Jacksonville, Florida files Motion to Dismiss and asks for Sanctions against Gust Sarris attorney-Adsum Law Firm
Jacksonville, Florida
On May 22, 2015 Howard S. Schneider's attorney Richard E. Ramsey of Wicker, Smith, O'Hara, McCoy and Ford, has filed a Motion in Jacksonville Circuit Court asking the court to Dismiss the lawsuit filed, Expunge it from court records and Sanction attorney Gust Sarris of Adsum Law Firm. I read it as they firmly believe Gust Sarris / Adsum Law Firm failed to follow proper procedures before the filing of the suit.
On May 22, 2015 Howard S. Schneider's attorney Richard E. Ramsey of Wicker, Smith, O'Hara, McCoy and Ford, has filed a Motion in Jacksonville Circuit Court asking the court to Dismiss the lawsuit filed, Expunge it from court records and Sanction attorney Gust Sarris of Adsum Law Firm. I read it as they firmly believe Gust Sarris / Adsum Law Firm failed to follow proper procedures before the filing of the suit.
Saturday, May 30, 2015
Previously Indicted Dentist Gilberto Nunez Arrest for Perjury. WHAT?
Seems things continue to worsen for dentist Gilberto Nunez. After his April 2015 Indictment of Grand Larceny, Insurance Fraud, and 5 counts of Falsifying Business Records he was released on $15,000 cash bail ($30,000 bond). (court documents below) According to Mid Hudson News, he's been arrested on charges of perjury brought by the Ulster County Sheriff's Office. I seldom hear of perjury charges these days! The original Indictment stems from a February 2014 fire in which he claimed an $8,400 loss. I'm serious.
Poughkeepsie dentist arrested for perjury
May 29, 2015
KINGSTON, NY – A Poughkeepsie dentist was arraigned on Thursday (May 28, 2015) in Kingston City Court on a felony complaint charging him with two counts of perjury, two counts of offering a false instrument for filing, and making an apparently sworn false statement.
Nunez
Gilberto Nunez, a dentist with offices in Kingston, is also under indictment in Ulster County Court on charges of grand larceny, insurance fraud, and falsifying business records.
Both cases are being prosecuted by the Orange County District Attorney’s Office acting as special prosecutor.
The latest charges, brought by the Ulster County Sheriff’s Office, stem from several allegedly false statements contained in a pistol permit application Nunez filed in February 2014. They pertained to his previous military service.
The complaint alleges Nunez was AWOL from the US Marine Corps from August 1987 until he was apprehended in July 1990, and that his subsequent “Separation in Lieu of Trial by court Martial” was a “discharge for cause” that had to be reported on the application.
In his 2014 pistol permit application, Nunez checked off the “no” box in answer to questions as to whether he had ever been “terminated/discharged from any employment or the armed forces for cause” and whether he had ever “been arrested… anywhere for any offense.”
Kingston Judge Lawrence Ball released Nunez on his own recognizance pending a future court appearance in county court on the indictment charging him with grand larceny, insurance fraud and falsifying business records.
Wednesday, May 27, 2015
Dr. Behzad Nazari, "talented Houston general dentist". Really?
I just don't have the energy, take it away guys...expand on this...
HOUSTON, TX--(Marketwired - May 27, 2015) - Dr. Behzad Nazari, a talented Houston general dentist, has launched a new website that includes video, easy-to-use features and convenient scheduling options for new and existing patients.
Dr. Nazari’s dental practice, Antoine Dental Center, recently partnered with SmartBox Web Marketing to build the state-of-the-art website and provide online dental marketing.
"This new partnership allows us to have a beautiful new website that provides our patients with detailed information about our practice," Dr. Nazari said. "When it comes to having a good presence on the Internet, convenience and accessibility are both key. We want our patients to have the ability to access information anywhere and schedule their appointments at any time or place."
The new website, www.antoinedental.com, includes video testimonials from staff and patients; comprehensive information about practice services; a smile gallery filled with Antoine Dental Center patients, and convenient scheduling options. Patients can access free eBooks about the power of dental implants and orthodontics, and the website will be updated monthly with blogs relating to services at Antoine Dental Center and recommendations about at-home oral hygiene.
"I'm excited for patients to visit our new site so they can see our superior dental work and hear from patients who have absolutely had their lives changed after becoming a patient at Antoine Dental Center," Dr. Nazari said.
Tuesday, May 26, 2015
DeRose / Padula Family - FORBA files Objection to $39M Settlement
So today was the deadline to file Objections in the $39M Small Smiles
Dental Center's settlement. I'm perplexed. How the hell did this thing
even get filed?!?! At least 3 Objections were filed today! Old FORBA
(The DeRose/Padula family) don't like it, the victims don't like it
(neither do I) and one Insurance Company doesn't like it! So who the
hell liked it enough to call it "Settled" Honestly! Who was it?!?!?!
Could it be the a select group of attorney's wanting their money and
run, or the Trust Administrator who will snatch up a quick million or
two within days of it's approval? Could it be AIG, who has filed so many
pleadings courts have had to reprogram their systems or maybe AIG ran
out of "stalking" attorneys to follow jurors around.
Apparently they know children will be seeking compensation for their abuses for years to come and low and behold, old man Dr. Adolph Padula and others have figured out they are included in the count of 333 dentists who will lose their malpractice coverage for all their misdeeds. Yeah, I laughed pretty hard at this one.
Creepy ole Aldoph Padula says his retroactive coverage is to last until the end of time. No wonder he's scared!
Be sure to hit page 6 and 7 for the long list of clinics!! And note that it says "among others"...that a boat load of clinics!! One thing is for certain, these old boys haven't been enjoying their retirement as much as I bet they thought they would.
Continental Casualty filed an Objection as well.
It must have been a real party at the court today, down there in Nashville.
For more and real time conversation, join us on Facebook
Apparently they know children will be seeking compensation for their abuses for years to come and low and behold, old man Dr. Adolph Padula and others have figured out they are included in the count of 333 dentists who will lose their malpractice coverage for all their misdeeds. Yeah, I laughed pretty hard at this one.
Creepy ole Aldoph Padula says his retroactive coverage is to last until the end of time. No wonder he's scared!
"The Objectors believe that some or all of the Claimants will continue pursuing claims against the Objectors which claims are covered by the insurance policies that are the
subject of the Motion and Settlement and Release Agreement.Upon information and belief, the Supplemental Extended Reporting Period Endorsement provides for a period of “unlimited duration” during which “claims” arising from “dental incidents” that occurred after the retroactive date (i.e., February 1, 2001) and before the end of the policy period (i.e.,September 26, 2010) may be reported under the Entities Policy."
Be sure to hit page 6 and 7 for the long list of clinics!! And note that it says "among others"...that a boat load of clinics!! One thing is for certain, these old boys haven't been enjoying their retirement as much as I bet they thought they would.
Continental Casualty filed an Objection as well.
It must have been a real party at the court today, down there in Nashville.
For more and real time conversation, join us on Facebook
Objection filed opposing the $39M settlement for small victims of FORBA/CSHM’s Small Smiles Dental Centers
Actually there were at least 3 Objections filed today, this is just one.
Objection to $39M Settlement for victims of Small Smiles Dental Centers