FTC investigates Ala. dental association

Apr 29, 2010

The U.S. Federal Trade Commission (FTC) is investigating whether the Alabama Dental Association engaged in unfair competition or deceptive acts by allegedly refusing to deal with a nonprofit dental clinic that treats primarily young Medicaid patients.

In an April 26 letter to the ALDA obtained by the Anniston Star, the FTC stated that its Bureau of Competition is conducting an investigation "to determine whether the Alabama Dental Association (ALDA) or others may be engaging in or may have engaged in conduct in violation of Section 5 of the Federal Trade Commission Act ... by engaging in concerted refusals to deal with competing dentists," in particular, low-cost, nonprofit, and public oral healthcare providers.

The University of Alabama at Birmingham School of Dentistry (UABSOD) recently ended a five-year relationship with the Sarrell Dental Clinic, the largest single provider of Medicaid dental services in Alabama -- a move the clinic claims is due to a turf battle with private practitioners.

The school's decision to end its relationship with Sarrell followed an ALDA meeting in January, during which members were recorded making comments about Sarrell and discussing ways to curtail the operations of the clinic.

The FTC has instructed the ALDA to preserve records relevant to the investigation, including communications between ALDA and individuals at the dental school.

Sarrell CEO Jeff Parker confirmed that FTC antitrust attorneys have contacted him about the situation, and he is cooperating with their investigation. Parker believes the dental school bowed to pressure from alumni dentists in its decision to terminate the contract.

But Zack Studstill, D.D.S., interim executive director of the ALDA, previously told DrBicuspid.com that the organization has not discussed this issue with the school -- "nor, to my knowledge, has it made any suggestions to the school relative to its relationship with the Sarrell Regional Dental Clinics," he said.

UAB spokesman Dale Turnbough has contended that the conflict stems from a disagreement over the supervision of dental students.

NAACP rally

The issue has begun to attract the attention of some public consumer groups as well. On April 30, the National Association for the Advancement of Colored People (NAACP) held a rally outside the country club where ALDA was holding a meeting, accusing the dental association of trying to "drill away access" to dental care for the state's poor children.

"An influential group of members of the Alabama Dental Association is actively working to end the ability of nonprofit dental clinics to operate in Alabama," according to an NAACP media advisory. "If this group's tactics prove to be successful, this would significantly limit access to necessary dental care for tens of thousands of Alabama's children who are poor or low-income and currently Medicaid-eligible."

Sarrell CEO Parker agreed. "It is obvious that our patients, the public, the FTC, and now the NAACP are upset by the actions of a few influential dentists in the Alabama Dental Association," he stated in an e-mail to DrBicuspid.com. "We hope the silent majority of Alabama dentists rise up against the unfair actions of a few and support access to care for Alabama's most needy children. That simple action would help to quiet the growing public outrage."

Dr. Studstill did not return calls for comment, and Turnbough declined to comment on the FTC's decision to investigate the issue.

According to a study released by Pew Report, Alabama failed five out of eight national standards for dental care. Overall, the state received a 'D.' Some states have mandates requiring a certain percentage of a dentist's patients must be Medicaid eligible, but Alabama has no such requirement.