A dental service organization (DSO) that partnered with dentists between Colorado and New Mexico lasted 18 months, but clinicians say it was enough time to shutter practices and rack up big expenses and lawsuits, according to a news story by Denver7.
DSO Ssun Health, founded by Eric Nuss, collapsed after allegedly failing to pay staff and vendors, and practice leases weren’t upheld. Nuss and the DSO reportedly defaulted on more than $8 million in loans, which were used to fund the startup. A court-appointed receiver is now overseeing the operation and trying to recoup as much money as possible.
Some of the DSO's affiliated practices have closed, but some dentists, like Dr. Judson Valstad, a Colorado dentist whose practice partnered with Ssun in 2020, have spent significant sums to save their practice. Valstad said he has spent $300,000 to save his office; other dentists said they have spent more. Also, lawsuits have been filed against Nuss and the DSO, according to the story.
In addition to the lawsuits, Nuss is accused of questionable spending, causing the DSO to fail. Nuss has filed for personal bankruptcy. In April, the state sent Nuss a cease-and-desist letter ordering him to divest his ownership interest in any dental practice in the state. In Colorado, only a licensed dentist can own a practice. Furthermore, the state dental board has no oversight of Nuss because he is not a dentist, according to the story.
A former staff member claimed that Nuss may have used his company credit card for items unrelated to managing the DSO's practices, including $11,000 in charges at sporting goods stores and nearly $15,000 in purchases at gun shops.
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