Bill Summaries: H698 DENTISTRY MANAGEMENT ARRANGEMENT LIMITS.

Printer-friendly: Click to view
Tracking:
  • Summary date: Apr 6 2011 - View Summary

    Enacts new GS 90-40.2 to prohibit a dentist, professional entity, or management company from entering into a management arrangement unless the arrangement meets certain specified criteria. Requires all management arrangements to (1) be submitted to the Board of Dental Examiners (Board) for a review and a determination of compliance with the statute and other provisions under Article 2 and (2) be evidenced by a written agreement that satisfies each of the following: (a) is signed by all parties to the agreement; (b) sets forth all material terms of the arrangement between or among the parties to the agreement; (c) describes all of the types of services to be provided by the management company and the time periods during which those services will be provided; (d) sets forth the precise methodology for calculating the compensation to be paid to the management company by the dentist or professional entity and, whenever possible, the aggregate compensation to be paid under the management arrangement; and (e) is implemented, administered, or carried out between the parties to the agreement consistent with the terms of the writing. Prohibits any management arrangement that (1) has a potential negative impact on patient care, (2) affects the provision of dental services, the professional decision making of the dentist, or other personnel of the dentist or professional entity, (3) assigns control of the dental practice to a management company or unlicensed person, or (4) gives the entity or unlicensed person actual or effective ownership of the dental practice. Also prohibits certain specified provisions to be included in a management arrangement.
    Authorizes the Board to identify other prohibited management arrangement provisions.
    Allows a management arrangement to do either of the following: (1) include a schedule of additional compensation to be paid to the management company during the term of a management agreement based upon the lowering of costs to the professional entity or dentist so long as any additional compensation is based upon a specified schedule or method of computing the additional compensation and is set forth in the management agreement; and (2) include a schedule of decreased compensation to the management company during the term of the management agreement based upon increases in costs to the professional entity or dentist so long as any decreased compensation is based upon a specified schedule or method of computing the decreased compensation and is set forth in the management agreement.
    Prohibits a dentist, professional entity, management company, or unlicensed person from entering into an oral or written arrangement or scheme that the dentist or professional entity knows or should know has a material purpose of creating an indirect arrangement that would violate the statutory provisions.
    Directs the Board to issue a written advisory opinion, upon submission for review, of the compliance or noncompliance of a management agreement with the statutory requirements. Requires that any licensee or management company which is dissatisfied with the Board’s advisory opinion to request a hearing before the Board to be conducted in accordance with specified procedures. Specifies that a licensed dentist is subject to possible disciplinary action pursuant to G.S. 90-41 and a management company or unlicensed person is subject to possible injunctive action pursuant to G.S. 90-40.1 for any noncompliant management arrangement that is executed or in operation before the Board makes a final determination about compliance or noncompliance under Article 2. Provides that all records, papers, investigative files, investigative reports, and other documents in possession of, gathered by, or reviewed by the Board in connection with its review of a management arrangement are not public records, and are privileged, confidential, and not subject to discovery, subpoena, or other means of legal compulsion for release to any person other than the Board, it employees, agents, or consultants, except as specified.
    Requires the Board to provide a management company or licensee access to all information in its possession that the Board intends to offer into evidence in presenting a case in a contested case hearing requested by the management company or licensee, except for certain specified information. Specifies that the provisions of GS 90-29(b)(11) (deemed to be practicing dentistry in certain circumstances) apply. Specifies the venue for actions brought under GS 90-40.1. Authorizes the Board, before filing a complaint or trial, to initiate investigations or inquiries, conduct interviews, administer oaths, and issue subpoenas requiring the attendance of persons and the production of papers and records before the Board to determine whether any person or entity is or may be in violation of GS 90-40.1(a). Authorizes the Board to report any investigative information that indicates that a crime may have been committed to the appropriate law enforcement agency or district attorney and directs the Board to cooperate and assist the law enforcement agency or district attorney with any criminal investigation.
    Authorizes the Board to conduct certain random audits, inspections, and investigations of the management arrangements and management companies, and if the board finds noncompliance, to conduct periodic audits, inspections and investigations to ensure ongoing compliance.
    Authorizes the Board to assess against the other party its reasonable costs, including reasonable attorneys’ fees related to certain, specified matters.
    Effective October 1, 2011, and applies to any dentistry management arrangement entered into or renewed on or after that date.