An interesting brief has been filed with the Fifth Circuit Court of Appeals on behalf of at least 2 Texas doctors.  There are several more Texas docs who are not a party to this particular action, as well as some who are apparently still performing without much complaint.  However, the final outcome on the appeal will potentially affect all the OrthAlliance and OCA docs currently practicing in Texas.

 

     Case # 07-30430   US Cour of Appeals for the Fifth Circuit 

     Risinger, Crosby et al vs. OrthAlliance/New Image

 

I believe there have been 3 separate decisions from District Courts (federal) in Texas finding that the OCA/OrthAlliance contracts are illegal under the Texas Dental Practice Act.  Judge Brown of the bankruptcy court in New Orleans also affirmed those rulings.  However, OCA is attempting to have all those decisions reversed and their contract found to be legal under the TDPA.  My personal guess is that the appeal is a stalling tactic by OCA?

 

The brief goes into case law from "Painless Parker," a California dentist who tried a similar scheme 60 - 70 years ago.  (The unusual name comes from the fact that CA law forbid any reference to "painless dentistry" in advertising or other solicitations.  The dentist went to court and had his first name changed to "Painless" as a way around that prohibition.)

 

A quote from correspondence I believe written by Bart, Sr., is interesting.  "In concept, we would operate as a partnership with our being responsible for all business activities and your being responsible for treating patients.  However, we have been advised that to comply with stae laws, we would enter into a managment contract with one or more professional corporations.  For purposes of this agreement and subsequent documents, THE ECONOMICS AND FLOW OF FUNDS WILL BE DEAL WITH AS IF A PARTNERSHIP EXISTED IN WHICH YOU [...] ARE THE DOCTOR PARTNERS AND ORTHODONTIC CENTERS OF AMERICA (OCA) WAS THE BUSINESS PARTNER."  (Emphasis added.)

 

Some states, such as Georgia, appear to be less concerned about corporate practice of dentistry than Texas, Washington, Colorado, and Illinois.  However, for anyone thinking about mounting a legality challenge, I'd strongly suggest reading this brief of nearly 70 pages plus the Michaels decision in Illinois.

 

For legal advice, of course, one should consult a licensed attorney in your area, and/or an attorney already familiar with the OCA cases.

 

Entirely my own, personal opinion.