Pennsylvania has reached a $1 million settlement with a dental group that allegedly misled patients -- mostly seniors on fixed incomes -- into obtaining loans to pay for procedures and failing to notify them of specific terms and conditions.
The state settled with Infinity Dental Management, which does business under the name Alpha Dental Excellence in Langhorne, PA, according to a press release dated June 18 from the Pennsylvania Office of the Attorney General.
Under the settlement's terms, which is awaiting approval by the court, Alpha Dental will pay $517,000 in restitution to impacted patients, civil penalties of $232,983, and investigation costs of $250,000.
Additionally, the settlement prohibits Alpha Dental and others named in the agreement from:
- Using any fraudulent, deceptive, and/or misleading misrepresentations -- direct or implied -- in their advertising or when communicating with patients regarding insurance coverage or reimbursement, financing options, payment options, or consumer billing
- Misrepresenting their status, affiliation, or participation with Medicare and insurers
- Advertising or representing that services will be covered or reimbursed by dental insurance, medical insurance, or Medicare when they won’t be eligible for reimbursement
- Providing advice or assistance to patients about obtaining credit beyond informing them that this option exists and is available from third parties
In September 2023, the state attorney’s office filed a lawsuit against Infinity Dental Management; Infinity Dental Staffing; its owner, Dr. Arpan Patel; and employee Cheryl Sander. They were charged with violating unfair trade practices and the Consumer Protection Law.
Patel and the other defendants reportedly deceived patients into agreeing to “expensive dental procedures costing tens of thousands of dollars,” insisting that Medicare or private insurance would reimburse them even though the suggested care was not covered.
The dental group allegedly required patients to pay out of pocket in advance of the procedures under the false promise that they would be reimbursed by their insurance providers after the claim was submitted. Individuals who could not afford the high upfront costs were purportedly offered a loan to cover the procedures. However, the patients were not notified of their consumer rights and protections while the defendants charged fees for third-party loans.
From January 2015 to August 2022, Alpha assisted patients in applying for approximately 5,329 loans totaling over $10 million. Some loan applications were submitted for patients without their knowledge or consent. Other patients attempted to cancel the loans immediately but were reportedly charged exorbitant cancellation fees that were assessed by the dental practice.
Furthermore, Alpha Dental allegedly failed to notify patients that fees were charged upfront with the loans. Alpha collected more than $500,000 in fees. Additionally, the dental practice misrepresented the price of its services. One patient paid $15,000 for dentures and was told they needed to pay $4,176 more when they went to pick up the prosthetic teeth.
