Dentistry is apparently not immune to Medicaid fraud. A dental management company that provides services to low-income children in its "Small Smiles Centers" has agreed to pay $24 million to settle allegations that it bilked Medicaid for unnecessary and substandard treatment. Three whistleblowers brought the company's activities to the government's attention.

Posted on Wednesday, 01.20.1

'Small Smiles Centers' company to pay $24 million

WASHINGTON -- A dental management company that serves low-income children insured by Medicaid will pay $24 million to settle allegations that it provided medically unnecessary and substandard services, the Justice Department announced Wednesday.

FORBA Holdings LLC of Nashville, Tenn., which is associated with 69 "Small Smiles" dental centers nationwide, came under government scrutiny when three whistleblowers stepped forward with allegations about the company's operations.

In the past year, the Justice Department has used the False Claims Act to recover $2.2 billion in cases involving fraud against federal health care programs. The $24 million in the FORBA case will go to federal and state governments.

Carrying out unnecessary and often painful procedures on children is "pretty disgusting; it doesn't get much more disgusting than that," Tony West, the assistant attorney general in charge of the Justice Department's civil division, told a news conference.

Under the settlement, FORBA will enter into a five-year corporate integrity agreement with the inspector general of the Department of Health and Human Services that will subject the company to strict monitoring.

In a statement, FORBA said the settlement "encourages us to continue to focus on vital, high-quality dental care for children in America's low-income communities."

SOURCE The Miami Herald/The Associated Press

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