Evidence of Over Treatment at Dental Clinics Serving Poor Children
Sen. Charles Grassley, R-Iowa, says that his investigators have found evidence of abuses by corporate dental chains treating children on Medicaid.
For months now, Grassley’s staff has been asking questions of three dental chains serving poor children on Medicaid. Each is owned by a private-equity firm. The chains are Kool Smiles, Small Smiles and ReachOut HealthCare America.
“We’re finding that these dental practices, under pressure from owners who are not licensed dentists, have been providing services with the highest Medicaid reimbursement levels more often than less expensive, arguably more appropriate services,” Grassley said. “There are legitimate concerns that children are receiving unnecessary care, sometimes in a traumatic way, and taxpayers are paying for it.”
Earlier this week, a joint investigation by the Center for Public Integrity and FRONTLINE, revealed that the Atlanta-based chain Kool Smiles’s business model of serving kids on Medicaid has led to complaints that it over-treats children. The company has been accused by regulators in Georgia and Connecticut of overusing expensive stainless-steel crowns to treat small cavities.
Kool Smiles vigorously denies this, saying that it offers quality care to children in dire need. It is the largest Medicaid dental chain with 129 offices in 15 states and the District of Columbia.
Grassley said, “You have dentists under pressure to perform more services than may be necessary — giving a child a crown instead of a filling, for example —because of a bonus payment structure that creates the wrong incentives.”
As reported by CPI and FRONTLINE, one of Kool Smiles most controversial practices is its dentists’ heavy use of stainless-steel crowns to restore decayed baby teeth. Crowns are more profitable than fillings for dentists, because they can charge more for them.Kool Smiles provided analysis intended to show that it doesn’t over bill Medicaid but offers services at a lower cost than other dental providers.
Grassley said the problem was rooted in the structure of these chains, saying that it claims that dentists own the practices but in reality they do not have control.
“These “owner dentists” are effectively ghost owners who maintain none of the traditional aspects of ownership of their operations, allowing the corporate investors to have control over clinical operations,” Grassley said.
The senator is also looking at Aspen Dental Management, another corporate dental chain owned by private-equity firms. Aspen Dental does not accept Medicaid, but Grassley said there are concerns that “the company promotes unnecessary treatment plans with exorbitantly expensive credit arrangements.”
CPI and FRONTLINE also investigated Aspen Dental and found that its business model of serving patients who cannot afford a dentist had led to complaints of over treatment and loading patients who cannot afford it with debt.Aspen Dental denies this. It says it offers services to people that other dentists ignore.
Senator Grassley said he expects to issue a staff report on his findings on companies that serve children on Medicaid. His investigation in Aspen Dental is on-going.

Reprinted by permission from iWatch News
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4 comments on "Evidence of Over Treatment at Dental Clinics Serving Poor Children"
July 02, 2012 4:48pm
Have I heard this somewhere else??? O, Yes it is what conservatives say about any money that does not go straight to the corporation. According to Bernie Sanders America has a dental crisis, I can also attest to the fact. I have worked with the elderly as a nurse for many years. If you think the cost of health care is costly dental fees are beyond the reach of the average American. The elderly have many dental problems; one is that one is unable to eat due to the lack of teeth. The elderly are not able to masticate which begins the digestive process. If one is unable to chew their food in does not digest well and one suffers with malnutrition and digestive problems. Americans need dental coverage that does not demand backbreaking fees when everyone need to have routine dental care. I believe dental rates need to be lower and that dental insurance needs to pay more of the bill.
July 01, 2012 9:31pm
From a legislative audit report in another state:
According to the National Health Care Anti-Fraud Association, the majority of health care fraud is committed by providers. One of the most common types of fraud, according to the OIG, is billing for services that were never rendered. This could occur when a provider knowingly bills Medicaid for a treatment or procedure that was not actually performed, such as blood tests when no samples were drawn or x-rays that were not taken. Because the distinction between error and fraud rests on intent, then the same activity (such as use of incorrect codes) could result from either error or fraud.
Other common types of provider fraud include
- billing for more expensive services or procedures than were actually provided or performed (“upcoding”),
- performing medically unnecessary services,
- misrepresenting services provided (for example, billing a covered procedure code and providing a non-covered service),
- accepting kickbacks for patient referrals, and
- submitting separate bills for services that should be billed in combination, such as tests or procedures that are required to be billed together at a reduced cost (“unbundling”).
Although both fraud and abuse involve intentional action, fraud may be committed without any services being rendered. In contrast, abuse involves the provision of health care. Abuse is defined as actions by providers or recipients that are “inconsistent with sound fiscal, business, or medical practices” and that result in unnecessary cost. Examples of abuse include
- billing and receiving payment from a recipient for the difference between the provider charge and the Medicaid reimbursement for the service,
- billing Medicaid a higher fee than private pay patients, and
- excessive charges for services or supplies.
This is going on in all states. Meanwhile, most people think Medicaid Fraud means undocumented aliens receiving medical care or the like. The vast majority of Medicaid fraud and abuse, by dollar amount or by number of fraudulent bill submissions, are from providers (doctors, clinics, etc.) trying to game the system.
July 01, 2012 6:01pm
See...this is where I get angry. As a person without dental insurance, I can't even get a filling done without deciding if I want to eat that week or not. But if you're on Medicaid, you get over-treatment. I'm not blaming the system....I'm blaming the doctors who exploit the system and rip off full-pay clients.
July 01, 2012 10:35am
Unsurprising. Corporations in healthcare can figure out how to cut costs en masse by underserving when they are paying and by slightly, but routinely, over-treating when they are paid by the procedure. Studies on physician-owned hospitals compared to the next-nearest hospital show clear results of over-ordering lab tests, procedures, referrals to affiliated specialists, admissions, and surgeries.
Evidence-based medicine exists for many situations where research has clearly shown a best-practices course of treatment for a typical patient with "hypothetical disease". When doing a root canal and a crown on a baby tooth, the child's dental situation must be pretty exceptional, or these dentists have too much time free on their appointment sheets. Which is probably true, as too many dentists are graduating as opposed to RN's, and allied technologists and medical personnel who don't make the same annual incomes as dentists, but who are needed in huge numbers, and require long, technical educations.
This is a great article, the kind of thing I would miss if not for Truthout.