Peter G. Fernandez, DC
"DC": According to the records of the Pinellas County Court and various attorneys nationwide, Practice Management Associates (PMA) has been sued by almost 200 clients and has filed suit against over 380 clients in the past 2 years (more than 200 of those before Dynamic Chiropractic printed its first article on PMA's problems). This is in stark contrast to most other practice consultants who usually don't experience more than one or two court cases per year. Is this true, and if so, why is PMA involved with so much litigation with its clients?
Dr. Fernandez: PMA has far more clients than other management firms; if you are to compare us to others, you must compare us to management firms who have a similar client base of both new and established practitioners. Consistent with most other practice management consultants, PMA is involved in litigation with only a few established chiropractors per year. Essentially, all of PMA's collection suits have involved doctors who were not in practice at the time they joined PMA. (Many beginning chiropractors are also failing to pay their HEAL loans at a default rate of 14 percent.) Most of these young doctors were solicited by attorneys who recommend they sue PMA to be relieved of their contractual obligations. (These chiropractors went through the PMA program and learned how to successfully start and operate a chiropractic practice and then decided not to pay for the services they received.)
"DC": Some PMA clients who have filed suit against PMA, and who also own PMA computer equipment and software, have found that the software "locks" them out of their computers, preventing them from gaining access to information critical to their practice. The ability of PMA to "shut down" a DCs computer system is apparently inherent in the software. This type of tactic is considered illegal in most states. How does PMA justify this action?
Dr. Fernandez: One of the services PMA offers clients is billing computer software. A chiropractor can either lease or purchase this software. We are aware of only one chiropractor who has defaulted on his lease and we terminated the service. If a client decides not to continue his lease, we stop the service, however, that client can still print and retrieve all information up to the date he has stopped payment.
"DC": In the past, PMA has focused on students signing percentage contracts prior to graduation. This appears to have been PMA's primary source of income. Does PMA intend to continue to pursue this avenue of income or does PMA have a new program that it will be featuring in 1991?
Dr. Fernandez: Dynamic Chiropractic stated in its February 15, 1991 issue, "According to Russell Coile, Jr., health care futurist, 50 percent of all health care provided will be through managed care organizations by the year 1995." This scenario, coupled with the recession will make it twice as hard to start a new practice in the 1990s. PMA is dedicated to and will continue to assist students and established chiropractors to overcome barriers and start, build, and maintain healthy chiropractic practices. PMA has restructured some of its programs offered to include a percentage fee contract, a flat fee contract, and also a low overhead program.
"DC": Some have suggested that PMA could end all of its lawsuits by simply settling the approximately 500 lawsuits for $2,000 or $3,000 each (thus netting PMA $1 million to $1.5 million). Why hasn't PMA sought to resolve all of its problems with its clients in this way?
Dr. Fernandez: PMA has never been approached with this resolution. However, PMA is open to settling all outstanding lawsuits, and in many cases clients are bypassing their legal counsel to settle with us. Each case is open for settlement on its own merit, taking into consideration the amount of services rendered by PMA and fees collected by the client.
"DC": Is there anything that you would like to present regarding what is currently happening or has happened with PMA?
Dr. Fernandez: In the 1990s, PMA will be concentrating on practice building in difficult times -- we will be teaching how to cope with the recession, unemployment, changing health programs, and the challenges chiropractors will face working in a managed care environment. It is PMA's intention to teach our clients how to double, triple, and quadruple their practices in these recessionary times.
Peter Fernandez, D.C.
President, Practice Management Associates
Pinellas, Florida
