Hundreds of dentists are under investigation by Medicare over the possible misuse of government funds.
The investigation has uncovered instances where dentists billed Medicare for work that was never done, or failed to prepare any paperwork explaining what treatment was carried out, Fairfax newspapers reported on Friday.
Minutes of an Australian Dental Association branch meeting have warned the investigation could force dentists into bankruptcy and has indicated the NSW branch is setting money aside for a possible legal battle.
Medicare has identified 626 dentists for overuse of the Chronic Disease Dental Scheme as it attempts to recoup almost $20 million of unaccounted benefits paid in the past four years.
Just 60 investigations have been completed.
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The Australian Dental Association's federal president, Dr Shane Fryer, said he was not aware of any "proven" cases of fraud.

