Public opinion of private equity is bound to take another massive hit as a result of a new report from Bloomberg. There’s no telling what effect it will have on public opinion of dentists.
The gist of the article is that dental management service companies, backed by private equity, may have taken advantage of children who qualified for Medicaid (and the Medicaid program) by giving them unnecessary dental services at their schools without parental consent. Obviously, in addition to the terror that small children suffered from unnecessary dental work, the government is upset about the money that was defrauded. Some dentists are also accused of billing Medicaid for services that were never performed.
These management companies are now “at the center of a U.S. Senate inquiry, and audits, investigations and civil actions in six states over allegations of unnecessary procedures, low-quality treatment and the unlicensed practice of dentistry,” according to Bloomberg.
One Dallas orthodontist testified that only ten percent of the Medicaid cases she reviewed actually qualified for Medicaid coverage.