DESCRIPTION OF BUSINESS AND ORGANIZATION

12 Months Ended

Dec. 31, 2012

DESCRIPTION OF BUSINESS AND ORGANIZATION [Abstract]

DESCRIPTION OF BUSINESS AND ORGANIZATION

(1)  DESCRIPTION OF BUSINESS AND ORGANIZATION

Birner Dental Management Services, Inc., a Colorado corporation (the ''Company''), was incorporated in May 1995 and provides business services to dental group practices. As of December 31, 2010, 2011 and 2012, the Company managed 64, 64 and 65 dental practices (collectively referred to as the ''Offices''), respectively.  The Company provides business services, which are designed to improve the efficiency and profitability of the dental practices. The Offices are organized as professional corporations ("P.C.s") and the Company provides its business services to the Offices under long-term management agreements (the ''Management Agreements'').

The Company has grown primarily through acquisitions and development of de novo Offices. The following table highlights the Company's growth through December 31, 2012 as follows:

	Acquisitions		De Novo Developments		Office Consolidations/ Closings
2003 and Prior		42		18		(6	)
2004		-		2		(1	)
2005		-		2		-
2006		-		4		(1	)
2007		-		-		-
2008		-		1		-
2009		3		-		-
2010		-		2		(2	)
2011		-		-		-
2012		-		2		(1	)
Total		45		31		(11	)

The Company's operations and expansion strategy depend, in part, on the availability of dentists, dental hygienists and other professional personnel and the ability to hire and assimilate additional management and other employees to accommodate expanded operations.

During the fourth quarter of 2012, the Company opened two de novo Offices.  One Office, which is located in the Tucson, Arizona market, opened on October 31, 2012.  The second de novo Office is located in the Denver/Boulder, Colorado market and opened December 21, 2012.  During December 2012, the Company consolidated the specialty dental services of one of its Denver, Colorado Offices into two other Offices and subsequently closed this Office.