An Alabama court has rejected a motion by the Alabama Dental Association (ALDA) to dismiss a lawsuit filed by the Sarrell Dental Center, which claims ALDA is trying to drive the clinic out of business.
The lawsuit, filed in May, alleges that "the sole motive for the vindictive actions of ALDA was to suppress and/or eliminate the competition it perceived as emanating from Sarrell's provision of dental services to those who generally could not afford the same elsewhere from for-profit dentists."
The fast-growing nonprofit dental clinic claims in the suit that ALDA perceived it as a "threat," and the group "vigorously encouraged its members to exert pressure and otherwise threaten and discourage dental professionals, including dentists and specialists, from conducting business of any sort with Sarrell and to otherwise 'freeze out' Sarrell."
In April, the U.S. Federal Trade Commission launched an investigation into whether ALDA engaged in unfair competition or deceptive acts by allegedly refusing to deal with Sarrell.
Earlier this year, the University of Alabama at Birmingham School of Dentistry (UAB) ended a five-year relationship with Sarrell Dental, which is 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 allegedly discussing ways to curtail the clinic's operations.
Sarrell CEO Jeff Parker believes the dental school bowed to pressure from alumni dentists in its decision to terminate the contract.
"The transcripts of the Alabama Dental Association's January 2010 Board of Trustees meeting speaks volumes as to the various types of harassment Sarrell Dental has taken from for-profit dentists," Parker told DrBicuspid.com. "A jury of nondentists will now hear the evidence in Anniston, AL, and decide solely on the facts of this case."
Zack Studstill, interim executive director of ALDA, did not return a call for comment but previously has said, "ALDA has no interest in shutting down organizations that service children and adults in need of dental care, nor does it have the power to do so."
UAB spokesman Dale Turnbough has contended that the conflict stems from a disagreement over the supervision of dental students.
Comments from the January meeting of the ALDA trustees are part of a slander lawsuit filed by Sarrell against Steve Mitchell, D.M.D., director of the UAB dental school's pediatric dentistry department.
The acrimony in Alabama is similar to turf battles in other states as companies, rather than private dentists, step in to care for young people covered by Medicaid.
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