You've got to be kidding.  Some dentists get along with
so-called "managed" care, which is really "unmanged" care --
a better appellation would be "rationed care."  Most dentists,
however, don't like it, because it is based on the premise that
the dentist is NOT paid for his work; instead, he profits by
NOT providing the best quality of care for the patients.
Would you like YOUR income cut by 60% - 80% ??   Well,
neither would we!
      Dental capitated care (what you call "managed") is
parasitism at its worst.  The dentist does all the work
that is of any value.  Without the dentist, there is NO care
at all -- yet these "managed" care executives, who probably
don't know one tooth from another, presume to "sell" dental
care that they can't even provide.  They rely upon the skills
of desperate dentists who perform all the dental work, but the
executives think that THEY will reap the profits from work
that they don't even understand.
       No wonder capitated care is despised by the dental
community.  If it weren't for the current oversupply of
dentists, nobody would consider working for these parasitic
organizations.  When market forces eventually reverse the
current dentist oversupply, dentists will desert these plans
in droves -- but that won't be for years.  Plenty of time for
financial parasites to prey upon the dental community.

Rapid growth for five to eight years, then saturation of the
market.  (You won't find the company executives using their
own managed care for THEIR families!  They are smart enough
to value their own dental health more than that.)
   You can count on a shakeout within ten years.  Small managed
care companies will be eaten alive by the big firms.  If your
stock triples before then, DUMP IT.

The entire capitated care industry is based upon exploiting the
dentist, and grabbing the lion's share of profit while adding
nothing of value to dental health.  Since managed care's ONLY
attraction to purchasers is COST, then it is easy for a new
managed care company to come along and UNDERCUT the bids of
the old managed care company.  Since the purchaser is interested
only in cost (or he wouldn't have bought a capitated plan in the
first place), then he will always abandon a company for a cheaper
bid.  There's NO purchaser loyalty in this business.
Be prepared for constant low-bidding wars which drive down the
quality of dentistry obtained by the patients.

The reputation of capitated dental care companies varies from
bad to TERRIBLE.  From the standpoint of the dentist, it's a
matter of choosing the lesser of evils.  We realize that these
capitated dental care firms know NOTHING about dental health,
and they care even less.

Patients who are enticed (or forced, in some cases) into these
capitated plans are told by their employers that they will get
Cadillac care for Volkswagen prices. Unfortunately, all they
get is a Volkswagen -- if they're lucky!  The unlucky ones will
get even less.  These plans have a good reputation among the
financial community, because financiers care only about the
profit.  They have a poor reputation among dentists, because
dentists care about the health of the patient, and the plans
simply don't.

What are the financial community's thoughts?

: > In mid-May, my firm is taking APPS Dental public with a stock offering.  
: > This is a managed dental care company.  From a financial standpoint, it
: > is very profitable and has great potential.  However, I am interested in
: > hearing what the dental community has to say concerning the following
: > questions:
: >    
: >     What are your thoughts on the managed dental care industry?
:  
: You've got to be kidding.  Some dentists get along with
: so-called "managed" care, which is really "unmanged" care --
: a better appellation would be "rationed care."  Most dentists,
: however, don't like it, because it is based on the premise that
: the dentist is NOT paid for his work; instead, he profits by
: NOT providing the best quality of care for the patients.

: ...more excellent comments deleted...

Ahem... I am forced to agree with Dr. Combs 100%.  There are some
contradictions in "managed" (capitated) dental care that are truly
extraordinary.

I have been intimately acquainted with two dental practices in California,
one rather large, the other not so large, that both subscribed to numerous
capitation programs.

Even with all of the oversight, burdensome paperwork and frequent denials
of requested treatment; *unemployed* patients under the state (taxpayer)
funded medical/welfare system still receive superior dental treatment than
any capitation program that I have seen for patients who *work* and *pay*
premiums and copayments out of their own pockets.  Why should working folks
be penalized and non-working folks be rewarded?

Some office managers I have met may provide some insight.  The young
uninitiated dentist, regarding a "capitation patient," may be told
something like, "Don't do too much on this patient because we're only
getting $X.XX per month.  And, you know, these patients come in here
expecting the world..."  Regarding a non-working "medical/welfare" patient,
"Do as much as you can at the first appointment.  We'll try to get the rest
approved..."

Imagine, in dental school you're trained to sell the best dentistry you
can; you go to work and have to make a 180 degree shift -- trying to talks
folks *out* of work that they need.

James