Fourteen dentists with partnership interests in 17 DentalWorks practices in North Carolina filed a lawsuit on Monday, February 18, 2013 against their management firm, DentalCare Partners, Inc. (DCP), for breach of contract (see attached fact sheet). The North Carolina State Board of Dental Examiners (Dental Board), the regulatory and licensing board for NC dentists, also filed suit on the same day against DCP for practicing dentistry without a license. These same 14 dentists are named as necessary defendants in the Dental Board lawsuit as they are licensees of the Board.
In 2011 and 2012, the 14 dentist partners completed a thorough review of their service agreements and legal counsel determined that DCP’s management practices and attempts to influence patient care violated the North Carolina Dental Practice Act, which prohibits corporations from owning a dental practice or practicing dentistry. The Dental Practice Act also governs dental management companies’ financial practices and clinical oversight.
We took our concerns to the Dental Board to put a stop to DCP’s illegal management practices and coercive attempts to influence patient care. Our lawsuit charges that DCP exceeded its legal authority by exercising excessive control over our practices’ finances and operations, and in some instances, interfered with our ability to make independent decisions regarding patient care by aggressively promoting cosmetic and clinical treatments.
Our dentists are singularly focused on running high quality dental practices that provide the highest quality of care to our patients, and an ideal work environment for our employees. This lawsuit will not affect our day-to-day operations or inconvenience our patients and employees in any way. All insurances will continue to be honored. Our #1 commitment is to our patients and that will remain the same throughout this process. We are confident that the filing of this lawsuit is in our patients’ and employees’ best interest and look forward to a swift and positive resolution.
Dr. Eric Roman, partner in three DentalWorks locations in Fayetteville, NC and spokesperson for the 14 plaintiffs who filed suit against Dental Care Partners, Inc.
www.ncdentistsforpatients.com
FACT SHEET
Dentists versus DentalCare Partners, Inc.
Filed February 18, 2013
CLAIMS
- Fourteen dentists with partnership interests in 17 DentalWorks practices in North Carolina filed a lawsuit on Monday, February 18 against their management firm, DentalCare Partners, Inc. (DCP), for breach of contract.
- The North Carolina State Board of Dental Examiners (Dental Board), the regulatory and licensing board for NC dentists, also filed suit on the same day against DCP for practicing dentistry without a license.
- The Dentists’ lawsuit charges that DCP exceeded its legal authority by exercising excessive control over its practices’ finances and operations, and in some instances, interfered with the dentists’ ability to make decisions regarding patient care.
- DCP’s actions are in direct violation of the North Carolina Dental Practice Act, which prohibits corporations from owning a dental practice or practicing dentistry. The Dental Practice Act also governs dental management companies’ financial practices and clinical oversight.
WHY LAWSUIT WAS FILED
- In 2011, DCP launched an aggressive lobbying effort in the NC Legislature to eliminate the Dental Board’s regulatory oversight of their management practices. This action caused DentalWorks’ dentists to question the legitimacy and legality of their contracts with DCP.
- In 2011 and 2012, the dentist partners completed a thorough review of their service agreements and determined that DCP’s management practices violated the Dental Practice Act.
- The dentist partners entered into these service agreements with DCP based on false representations and assurances of the legality of the arrangements.
- They were also assured that all agreements had been submitted to and approved by the Dental Board. This was not the case.
DCP’S CONTROL OF PLAINTIFFS’ FINANCES & OPERATIONS
- Direct and indirect control over the distribution of the practices’ revenue streams
- Exclusive control over patient records and scheduling through DCP’s proprietary software.
- DCP’s website touts that DentalWorks’ patients are their own, not those of the practicing dentists.
- Direct and indirect control over the hiring and firing of clinical personnel.
- DCP, through its own employees, is a manager and operator of each practice.
- DCP failed to provide capital for growth of dental practices and expressed unwillingness to invest in North Carolina in light of the Dental Board’s aggressive enforcement of the Dental Practice Act.
- DCP’s complete control of finances, including billing, accounting and bank accounts is in direct violation of the Dental Practice Act and threatens the long-term growth and stability of the plaintiffs’ dental practices.
- DCP provided financial incentives to non-clinical employees for co-pay collections at or above 90%. This practice caused non-clinical employees to give preferential scheduling (or refuse to schedule) patients based on their ability to pay.
- DCP failed to provide coherent, professionally executed financial reports, including tax returns, to dentists in a timely manner.
DCP’S IMPACT ON PATIENT CARE
- Consistent scheduling errors caused delays in treatment and increased patient wait times.
- Improper billing practices resulted in numerous statement disputes.
- DCP exercised such tight control over expenditures that it neglected to replace defective equipment, purchase new clinical equipment, upgrade lighting and furniture, etc.
LAWSUIT’S IMPACT ON PATIENT CARE
- This lawsuit will not impact or inconvenience patients or the quality of their care in any way.
- Operations, billing and scheduling will continue as normal for the foreseeable future.
- All insurances will continue to be honored.
LAWSUIT’S IMPACT ON EMPLOYEES
· This lawsuit does not endanger the financial integrity of the plaintiffs’ practices or their employees’ job security.
RESOLUTION
- The 14 dentists partners look forward to a positive resolution of this lawsuit that will enable each to provide the type of patient-focused dental care they stand for.
- Specific actions the lawsuit seeks include:
- Appointment of a third-party receiver to ensure that all plaintiff practice accounts are protected throughout this process and not under the control of DCP.
- A ruling that DCP is engaged in the unlicensed practice of dentistry.
- A ruling that the various management agreements between DCP and the plaintiffs are null and void.
- Injunctive relief that gives plaintiffs time for a reasonable transition into a fully compliant ownership and management structure without jeopardizing the continuity of care for our patients.