10 : Heartland's Class Action Nightmare: The AI Mistake Every Dental Practice Is Making with Tammie Powers

Byte Sized

Tammie Powers is a Certified Dental Practice Management Software Trainer at Adams Brown CPA with 18 months at the firm. Previously served as a dental practice manager for 24 years with a multi-doctor practice and now specializes in dental technology and cybersecurity, helping practices optimize their operations while maintaining compliance and security standards.

Episode Overview

Deep dive into cybersecurity for dental practices, focusing on the recent Heartland Dental class action lawsuit and AI implementation best practices.

Key Topics Covered

Heartland Dental Lawsuit

• What happened: Heartland used AI for phone calls via RingCentral without proper disclosure
• The problem: Patient conversations were being recorded and used to train AI agents for other clients
• Legal issues: Federal wiretapping violations, HIPAA privacy concerns
• Status: Class action lawsuit filed, potentially costly settlement ahead
• Apple comparison: Apple facing $95 million settlement for similar Siri recording issues

AI Implementation Best Practices

Essential Requirements for Practices Using AI:

1. Call Disclaimers: Always include recording notification regardless of state law
2. Updated Privacy Practices: Must disclose AI usage in patient communications
3. Business Associate Agreements (BAAs): Required with all AI software vendors
4. Patient Signatures: Get signed acknowledgment of updated privacy practices

Companies & Resources Mentioned

Companies:

• Adams Brown CPA - Healthcare division and technology services
• Heartland Dental - Multi-location dental practice organization
• RingCentral - Phone service provider with AI capabilities
• Dentrix - Practice management software

Organizations:

• AICPA (American Institute of Certified Public Accountants) - Developed SOC 2 standards

Downloadable Resources

• Download Updated Privacy Practices Template (AI-compliant)
• Download Business Associate Agreement Template

This week on Byte Sized, we dive deep into the cybersecurity nightmare that's shaking up the dental industry. Tammie Powers from Adams Brown CPA joins us to break down the Heartland Dental class action lawsuit that's got every practice owner sweating.

Here's what went wrong: Heartland's AI phone system was recording patient calls and using those conversations to train AI agents for other practices – without proper disclosure. The result? A federal wiretapping lawsuit that could cost them Apple-level money (think $95 million).

But this isn't just Heartland's problem. Every practice using AI tools needs to wake up fast. Tammie walks us through the three non-negotiables: call disclaimers regardless of state laws, updated privacy practices that specifically mention AI usage, and bulletproof business associate agreements.

The bottom line? Your patients trust you with their private health information. When they call thinking they're talking to their dental office, they're not expecting that conversation to train an AI brain for practices across the country. That trust violation is exactly what's driving this lawsuit.

We're not just talking theory here – Tammie gives us the exact templates and actionable steps to protect your practice from becoming the next cybersecurity headline. Because in the AI age, ignorance isn't bliss – it's liability.