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JOHN L. SMITH: One way or another, Desai was always in control at endoscopy factory

Of all the unanswered questions surrounding the Endoscopy Center of Southern Nevada, one thing we know with certainty: It was a thriving business for Dr. Dipak Desai and his partners.

The facility at 700 Shadow Lane was an extremely efficient, if at times dangerously medically substandard, factory that served dozens of patients each day. The pressure to perform increasing numbers of procedures was always present, one medical professional with knowledge of Desai's practices tells me. Although he doesn't recall doctors ever being asked to cut corners, physicians and the center's other medical professionals were regularly reminded by Desai to cut costs whenever possible.

For example, that includes such minor expenditures as the type of small paper sacks commonly used to hold prescriptions and medical samples. The white sacks were slightly more expensive than the brown ones. Use the brown ones, they were told.


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  • And, the source says, the center's doctors were reminded not to use excessive amounts of the lubricating jelly that coats the probes during sensitive medical procedures. Although many physicians apparently disregarded Desai's obsessive attempt at micromanaging, the source says the scrutiny only added to the factory feeling.

    Desai was always looking for ways to speed the process to squeeze ever more patients onto the schedule, the source says.

    But while Desai was pushing to save money, he would sometimes act without his partners' consent and purchase expensive medical equipment he deemed necessary to the center's productivity and daily operation. One way or another, Desai was always in control.

    Although the center's management style and structure haven't always been understood, and Desai hasn't made himself available to explain the nuances of his operation, a document I've obtained may help shed some light on the subject. It's a page from the June 2002 "Operating Agreement of the Endoscopy Center of Southern Nevada, LLC" and it details the flow of its management structure.

    Not surprisingly, Desai kept tight control over the center, from the ability to sell the business to the issuance of stock and bonuses through a designated "operations manager."

    "The company may be bound by written execution of any instrument by the Operations Manager, acting individually, or all Managers acting collective," the document states. The Hari Om Limited Partnership served as the Operations Manager in 2002 with Dr. Clifford Carrol acting as the "non-Operations Manager." The Hari Om Partnership lists Dipak Desai, Kusum Desai and Dilip Patel as partners, according to the secretary of state.

    Favored physicians were given more stock and bigger bonuses, the source says. Those on the outs with Desai were treated accordingly.

    When it came time to make campaign donations, Desai was generous. But, one source alleges, the doctor first hit up the center's physicians for contributions to what eventually became Desai's personal donation.

    The boss was very focused on building his business and expanding his influence. That's no scandal. In fact, such behavior is common among aggressive businessmen.

    All of which is a way of confirming what inside sources at the center have said for weeks: The activity reflected Desai's business philosophy, which at times contradicted standard medical practices.

    It's appropriate to level criticism at the center's management for its insistence on jamming through numerous patients per day, my professional source says, but he explains that the treating physicians' duties were separate from those of the anesthesia nurses on duty. The problem, he concedes, is that most of the doctors and the nurses would have to admit they put up with the rapid pace and factory feel of the center. It was business first and last.

    Desai's business interests are varied. I've heard the center sent a lot of its lab work to a California company called Apex. Given his parsimonious nature, why did the work go to this California company?

    It would be unethical for Desai to pay a doctor to refer patients to his center. But did Desai secure lucrative physician referrals by "renting" office space from local doctors?

    While I'm asking questions, how long do you suppose Desai's current and former minority partners will be willing to face the heat from the multiple law enforcement investigations and what promises to be a bombardment of civil litigation?

    They may share responsibility for the inferior medical quality down at the factory, but they weren't in charge of the operation.

    John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. E-mail him at Smith@reviewjournal.com or call (702) 383-0295.



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    spike wrote on March 27, 2008 02:04 PM: Well we all know that Desai wasn,t an environmentalist so it only makes sense that a brown bag was considered as trash,as were his victims! Why not spend more money on a colonoscope You really didn,t expect him to buy a cap gun? He would,nt have got his moneys worth how much damage can a cap gun really do? And thats all I have to say about that!


    ralph wrote on March 27, 2008 07:02 AM: Doc's point of view---- I could not possibly agree with you more. It's a tragic shame, that after you invested 18 years of work and study, incurred thousands of dollars in debt, sacrificed your personal and family life then, and continue to do so now, that you can't get paid what you deserve. It's more than tragic becuase people like you who are now 17-18 years of age will probably opt for a different career. What's even worse is that the cause of this already quite visible downgrading of skilled and competent docs in this country, is directly correlated with the level of government's involvement. One can quite easily chart the increase in government meddling and the matching declination of competence in our Doctors. Just like the Doc said, being a doctor is a crappy job nowadays. He's right, and we're all going to pay the price down the road when the Medical School of Grenada, Mexico, or India, is educating most of our caretakers.


    Incredulous wrote on March 27, 2008 12:15 AM: A Doc's Point of View wrote: "Dr. Desai’s error appears to be that he was so consumed by monetary GREED that he forgot his role as a physician is to care about people first. There is nothing morally or ethically wrong with a doctor being paid a reasonable sum for his services. But a doctor should NEVER put financial gain before proper patient care."

    What's even more disgusting is that the way in which Desai INTENTIONALLY structured his limited liability company, he is personally insulated from monetary liability for the effects of the policies he sets...because managers of LLC's are not personally liable for the consequences of their business decisions.


    A Doc's Point of View wrote on March 26, 2008 10:51 PM: As a physician in Henderson for over 13 years, (and not a gastroenterologist), I for one am nauseated and disgusted by the whole affair. Dr. Desai violated every standard set forth in the Hippocratic Oath, the first one being "DO NO HARM".

    Dr. Desai’s error appears to be that he was so consumed by monetary GREED that he forgot his role as a physician is to care about people first. There is nothing morally or ethically wrong with a doctor being paid a reasonable sum for his services. But a doctor should NEVER put financial gain before proper patient care.

    The stupidity of these actions couldn’t have come at a worse time. Many patients have already lost their faith in local healthcare. The truth of the mater is majority of doctors in Clark County are struggling to administer quality, ethical and moral care at all times. Most of us sacrifice time with our families and personal needs to care for and put the patient first. When colleagues do something so reprehensible, the community has reason to loose faith in its physicians and we are all shamed.

    I implore the patients of this city not to judge the morals and ethics of our entire profession on the actions of some misguided individuals who unfortunately lost there way.


    ralph wrote on March 26, 2008 10:06 PM: Sorry I meant *averted*--not *adverted*..please excuse!


    ralph wrote on March 26, 2008 10:05 PM: St.Steve, are you suggesting that the terrorist attacks on 9/11 would have been adverted if the government were running security then? Highly unlikely. In fact, look this up if you like, a recent study of airport security across the nation revealed that the San Fran (as I recall) airport had the best security. Security there is OUTSOURCED to a private company. I will agree with you that *my kind* have one answer. That's true, and it's true because *we* strongly believe that we would all be better off and have a higher standard of living if we didn't look to the government to provide for everything down to wiping our butts. Services delivered by the govt. are shoddy, expensive, and in the long run, a failure. Personally, I would like to retain more of my money and get way less in *services* from uncle sam. For example, I can only dream about all the money I have paid into social security the past 45 working years, and what I may have been able to invest it in and what it would be worth today. I don't believe like I do becuase I'm a conservative scrooge either, far from it. I just believe all of us would have a better life if the government would get out of it.


    st.steve wrote on March 26, 2008 05:05 PM: Hey ralph,

    Whatever the issue, you and your kind have just one answer: fire everybody and privatize the whole ugly mess.

    Reminds me of our airports before the 9/11 attacks. Back then all airport secuity had been passed off from the government to the airlines who in turn passed it off the lowest bidder. burger King and McDonalds paid their people more than airport secuity workers back then. That's what called "privatization".

    We all know what happened then as the terrorists whet on 'practice' flights and realized America was wide open for their bloody, devastating plan.

    You, ralph, are way wrong. We know exactly what happens when our government falls asleep. People die.


    ralph wrote on March 26, 2008 04:38 PM: John describes Desai as parsimonious based on brown paper bags? Yet, he buys expensive medical equipment? That doesn't square. I'm not thinking Desai's anything but a snake, but the PROBLEM here isn't Desai, it's the STATE of NEVADA failing to DO THEIR JOB!!. Let's dis-mantle the ENTIRE dept. of health and outsource inspections to an independent company. At least if they don't do the job we can fire them instead of giving them a raise.


    st.steve wrote on March 26, 2008 02:50 PM: The saddest aspect of this deplorable mess is that people thought they were doing the right thing. They were advised by the medical establishment that a colonoscopy was a preventative measure for those over fifty years of age, that if you wanted to live a longer, happier life you should have this procedure done.

    We, as citizens, have been failed. Our state government has let us down...again. The local medical community has seen it reputation tarnished, again. There's a lot of head shaking and wondering where we're headed as a nation.


    Cynical Observer wrote on March 26, 2008 12:21 PM: "One way or another, Desai was always in control at endoscopy factory". That does not necessarily mean that Dipak Desai MD is personally liable for each element of malpractice at every clinic.

    Based on the LLC Operating Agreement you have found, the "Operations Manager" or "Managing Member" is Hari Om Partnership.

    Under the limited liability company laws, the operations manager/managing member IS NOT personally liable for either the bills of the LLC or the malpractice of the LLC.

    If the Endoscopy Center LLC was operated properly, i.e. the patients and their insurers paying the LLC, rather than individual doctors or the Hari Om Partnership, then the "creditors" of the Endoscopy Center, e.g. patients, suppliers and landlords, can only attack the assets of the LLC, i.e. the malpractice insurance policies, the office furniture and equipment, and any real estate actually owned by the LLC (probably none). With this LLC set up, each doctor is liable for his own malpractice, but not the malpractice of the others.

    Pretty slick, huh? Wouldn't it be wild if NONE of the patients Dr. Desai personally did colonoscopies or endoscopies on came down with HIV or HepC?

    Under the limited liability company laws, he would probably keep his mansion and the other doctors' sick patients would get chump change for their future medical costs.


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