OCA Inc. (OTC:OCAI)
Industry: Healthcare

Listed 23 Consecutive Market Days. On List as of 05/02/2006 Through 06/05/2006

OCA, Inc., formerly Orthodontic Centers of America, Inc. (OCA), is a provider of business services and systems to orthodontic and pediatric dental practices located throughout the United States and in parts of Japan, Spain, Puerto Rico and Mexico. The Company provides its affiliated practices with a range of business, operational and marketing services, as well as complementary Internet-based information systems and capital for growth. To complement its existing focus on orthodontic and pediatric dental practices, The Company initiated a new division called OCA Outsource, through which OCA intends to provide business services to general dental practices and other dental and medical practices. As of December 31, 2003, the Company was affiliated with 362 practices, of which 334 were orthodontic practices and 28 were pediatric dental practices. OCA is not a healthcare provider and it is not involved in the clinical operations of a practice. The practitioners maintain full control over their practices and set their own standards of practice. The Company handles the business operations of the practice, enabling the practitioner to focus on patient care. Its own business and financial systems provide readily accessible information about the practice in an easy-to-understand format. At December 31, 2003, the Company was affiliated with 362 practices located in 46 states of the United States and in parts of Japan, Spain, Puerto Rico and Mexico. Fee revenue from international operations as a percentage of its total fee revenue, during the year ended December 31, 2003, was 4%, and long-lived assets located in foreign countries as a percentage of its total long-lived assets were 4.6%. The Company provides its services to these practices under long-term service, consulting and management service agreements. Of the 362 affiliated practices, 334 were orthodontic practices and 28 were pediatric dental practices. The total number of affiliated practices excludes 62 orthodontic and pediatric dental practices that were engaged in litigation with OCA. It was also engaged in litigation with one practice for which it was still recording fee revenue because this practice was still paying service fees to the Company at year-end 2003. The total number of affiliated practices includes 38 other practices that were not engaged in litigation with OCA but for which it has generally ceased to record fee revenue at that date. Practices can use OCA's Internet-based financial and statistical system to view their operating and financial data. The system provides customized reports for financial and clinical data and performance measures for each practice that are updated continually. A practitioner can view his or her practice's financial information in real time, 24-hours a day. The Company provides practices with monthly and quarterly financial data, including analyses of the financial results and recommended changes to improve financial and operating performance. It has also developed a centralized billing and collection system that frees practices from the day-to-day function of billing and collecting patient fees. This service includes billing patients, as well as insurance companies and other third-party payors. By leveraging the combined purchasing power of its affiliated practice base, the Company is able to make bulk purchases of equipment, office furniture, clinical supplies and office supplies. OCA negotiates arrangements with suppliers that provide cost savings to practices. It has also implemented an online inventory ordering system, which allows practices to order supplies directly from vendors through its private computer network. Its online inventory ordering system contains approximately 35,000 products from over 375 vendors. OCA does not charge additional fees on items sold through its system.

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As Of: 10/07 00:00 ET
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