exclusive
Patients of Perth Dental Rooms dentist David Hurst left in financial limbo and pain after practice collapses

More than 130 dental patients — many in pain and discomfort — are stuck in limbo following the collapse of a leading Perth dental practice in which $7.1 million was syphoned out by its now-deceased owner. The liquidator reached out to the State Government for help in the extraordinary situation, but got “no meaningful assistance”. The dire financial state of the business only became apparent after its principal dentist and sole director, Dr David Hurst, tragically ended his own life in December. Many patients who paid tens of thousands of dollars for implants and other expensive dentistry had received partial or no treatment when he died. Also, multiple patients reported defective dental work, which required medical attention. “There are just victims everywhere you look in this horrible mess,” liquidator Bryan Hughes told The Sunday Times this week. The Perth Dental Rooms business in Raine Square was being sold to a new owner this week. Dr Hurst’s patients were now unsecured creditors of his defunct company Hurst Group Pty Ltd as Trustee for the Hurst Family Trust. Although the company is set to recoup proceeds from the sale, it’s unclear whether patients will get any of their money back. “Drawing on patient prepayments in advance of earning them has left a very large financial deficit,” Mr Hughes reported. “That financial deficit is causing enormous personal suffering for many patients. “The director appears to have withdrawn significant funds from the company in excess of profits earned. The funds were withdrawn from the company’s trading account which contained money provided by patients in the form of pre-payments for dental work which had not been commenced or only partially completed.” Dr Hurst had insisted patients pay all their fees upfront. Many had drawn on their superannuation funds to pay for the expensive treatments. The Australian Tax Office allows early access to superannuation on compassionate grounds in some circumstances, including for dental treatment. One of the patients, Amanda from Greenwood, last year paid $60,000 from her superannuation to Dr Hurst for implants. After initially saying he could the do the work before Christmas, she was given a date in February for it to commence. For Amanda, the treatment was about so much more than new teeth. “My story is that 30 years ago I was beaten so badly by my then-partner that the nerves in my teeth were all killed,” she said. “I knew from the age of 24 that my teeth were all going to fall out. I brought up three children on my own. I couldn’t afford to get my teeth done (then). My kids are all grown now. I thought, I’m 56, I’ve still got life in me. I’m going to take the money out and get my teeth fixed so I’m not reminded every morning of what happened to me 30 years ago. “This is why I’m so mad. It’s taken away my dream and my chance to rid myself of trauma.” Annette Young, 56, from Singleton, near Rockingham, was the victim of a hit-and-run accident 30 years ago in which most of her teeth were destroyed. She paid $52,800 to Dr Hurst for a mix of implants and veneers. Like Amanda, she drew on her superannuation. She is now in pain and struggles to eat after Dr Hurst botched the dental work. She recently remortgaged her home to free up $30,000 to fix the mess in her mouth. “I can’t live like this,” she said. “I’ve got exposed nerves. I’ve on my second lot of antibiotics for an infection. I’m a wharfie (working outside) ... the wind blowing on (the nerves) is unbearable. Come winter, I cannot go through cold air on these teeth. “Everything that (Dr Hurst) did was done wrong,” she added. “The bottom jaw does not fit. I have food that gets stuck under there. The top implants were put in too close, so no teeth were ever going to fit on there. I’m basically biting the insides of my cheeks when I eat. I’ve got lines on both sides of my cheeks that I think is scar tissue. When I talk, my teeth rub on my cheek. “He ground one of my top teeth back to nothing. That needs to now come out, and I’m going to have to have an implant placed there. I struggle to eat. I cut my food up like a baby.” The liquidator reported that $4.1m was drawn by Dr Hurst in the past 18 months. Profits over the same period were $2.7m. As a consequence of all the money being taken out of the company, he believed it had been trading whilst insolvent since mid-2023, and possibly earlier. Dr Hurst’s sudden death at just 43 was a massive shock to his family, friends and colleagues. “It is with a heavy heart that we share the news of the passing of our beloved principal dentist and owner, David Hurst,” the business posted on its website and social media accounts. “His unwavering dedication to our patients and the practice has left a lasting impact, and he will be profoundly missed by all who knew him.” In the immediate aftermath, his widow Dr Clara Hurst stepped in and conscientiously tried to keep the business afloat despite her own grief and having had nothing to do with the downfall of the business. Dr Clara Hurst is well known in Perth’s western suburbs as a glamorous cosmetician. She is the owner of luxury Cottesloe salon Blanc and co-owner of The Secret Skincare. Trained as a dentist, she was a director of Hurst Group Pty Ltd from July 2016 until March 2021, when she resigned. She separated with her husband in 2020. She is the executor of the deceased estate of her husband. “Following the Director’s death, (Clara Hurst) stepped in to caretake the business during what was a particularly difficult time for all involved, including staff, dentists, patients, the executor and her family,” Mr Hughes reported. “(She) inherited a period of significant turmoil resulting from her husband’s death, and her actions facilitated the continuation of the Perth Dental Rooms business.” “The executor took advice from her lawyer on all matters and believed that this was a good and profitable business that she could run under management once she had dealt with the funeral of her husband,” he reported. “At no point did she suspect the company was insolvent.” Mr Hughes said he was engaged in mid-January to assess the company’s finances. It was in late February that he discovered a massive financial hole in what was otherwise a profitable business. “I then advised the executor that the company was insolvent and an administrator should be appointed,” he reported “It appears that the underlying insolvency had been hidden by the director ... (it) was a complete shock to all.” Mr Hughes was appointed administrator on March 6. He said that after her husband’s death, the executor had engaged another firm, Aria Dental, to attend to a number of patients who required urgent attention. Aria Dental has not yet been paid for the work and was now a significant creditor in the liquidation, owed $465,858. “Upon my appointment and assessment of the financial position of the company ... (it) was not in a position to pay for any further services,” Mr Hughes reported. “I requested Aria Dental cease providing dental services ... in order to prevent further debt accruing. “There are many patients with partially completed work which the company is unable to complete. This is very distressing for those people.” Other dentists who worked at Perth Dental Rooms on a contractor basis were also creditors, having not been paid for work done in the five weeks prior to the company entering administration. All up, the company owes almost $4.8 million to creditors, who voted earlier this month to wind it up. Company records showed $2.36 million in prepayments from patients. “The prepayment funds are no longer with the company and I am conducting investigations as to any actions available to recover funds for the benefit of creditors,” Mr Hughes reported. Mr Hughes said he had been trying to see if any of the patients could claim against the deceased director’s professional indemnity policy, but it was complicated by several factors. Firstly, it appears to only cover negligent or deficient dental treatment, not work yet to commence, or incomplete. Also, the policy is now in the name of the deceased estate, which meant that the liquidator had no legal standing in regard to it. Mr Hughes advised the patients earlier this month that probate had yet to be granted for the deceased estate, and as a result Clara Hurst as executor was also incapable of acting on the insurance policy. He reported the executor had sought legal advice regarding the potential claims and that her lawyer had cautioned him not to contact patients regarding the insurance policy at this stage “I note the Executor was placed in a very sad and difficult position following the death of her husband ... which left the business without any leadership at a traumatic time,” he reported. “It should be noted that the director did not draw a wage and accordingly, an assessment of the reasonableness of the drawings should consider an appropriate level of remuneration for the director.” Mr Hughes said it appeared the company would have a claim against the deceased estate. But he had been advised by the lawyer of the executor that the estate was insolvent and upon probate being granted, a bankruptcy trustee may be appointed over it. The liquidator said he had no visibility over where David Hurst spent the funds, but a bankruptcy trustee could assist in tracing these funds. Any return to the patients and other unsecured creditors depended on future recovery actions by the liquidator. Mr Hughes advised that the sale price would likely be sufficient to pay out the amount outstanding to the secured creditor and employee entitlements, with an estimated small surplus remaining. Amanda said she was distraught and said she felt as if her money had been stolen. She said her consumer and patient rights had been trampled over. “I will never be able to afford my dental treatment that I so desperately needed to free myself from being reminded every morning of the trauma I suffered 30 years ago. I cannot concentrate on my work or have a good night’s sleep,” she said. She said she had requested a refund before Dr Hurst’s death because she’d lost confidence in him, but was refused. “When I saw Aria Dental (afterwards) I was told that David Hurst had not been qualified to do the work, much more work was needed than he said, including bone grafts, and that had he done the work it probably would have failed. Aria Dental also said the true cost of my treatment would have been $100,000.” Ms Young said that Aria had also confirmed to her that “everything was wrong” with the dental work performed by Dr Hurst. She said she’d found out he’s used cheap overseas materials. “It’s not even Australian compliant,” she said. “The bottom jaw, we don’t even know where that was made, and there’s no warranty. So, I’ve paid $52,800, and haven’t got a warranty for anything that’s in my mouth.” “We (patients) have been told if we do anything to our teeth, it could jeopardise any insurance claims we make (against Dr Hurst’s estate).” “I’m on stand-by at the moment,” Ms Young added, but wasn’t sure how much longer she could wait. “I’ve run out of sick days. It’s just s**t. It really is.” Mr Hughes said he would be contacting patients on Monday with an update. “The purchaser of the business has kindly offered to do a free consultation for all of those past patients to make an assessment as whether they do fit under the insurance prospects for an insurance claim or not,” he said. “And then we will guide them towards the (deceased) estate. “There are rightfully some very aggrieved people in this process, and I have nothing but sympathy for the poor patients who have been left partially treated or in a state of limbo wondering what to do,” he added. Lifeline: 13 11 14

The West Australian exclusivePatients of Perth Dental Rooms dentist David Hurst left in financial limbo and pain after practice collapses

exclusive
Patients of Perth Dental Rooms dentist David Hurst left in financial limbo and pain after practice collapses