Thirty-three states plus the District of Columbia have rules on their books against the so-called corporate practice of medicine.
Kaiser Health News
Officials with Envision and TeamHealth said they prioritize patient care and said such lawsuits lack merit.California lawsuit against Envision “Any decision anywhere in the country that says the corporate ownership of a medical practice is illegal has the possibility to reverberate throughout the country, absolutely,” said North Carolina state Sen. Julie Mayfield. “And I hope that it would.”
The California case involves Placentia-Linda Hospital in Orange County, where the plaintiff physician group lost its ER management contract to Envision. The complaint accuses Envision of using the same business model at numerous hospitals around the state. TeamHealth, an indirect target in the case, said its “world-class operating team” provides management services that “allow clinicians to focus on the practice of medicine and patient care through a structure commonly utilized by hospitals, health systems, and other providers across the country.
Private equity-backed firms have been attracted to emergency rooms in recent years because ERs are profitable and because they have been able to charge inflated amounts for out-of-network care — at least until a federal law cracked down on surprise billing. So far, erts by emergency ffophysicians and others to challenge private equity staffing firms have yielded frustrating results.
McNamara, who serves as the chief medical officer of the physicians’ group in the California Envision case, also filed a complaint with Pennsylvania Attorney General Josh Shapiro, accusing a group called Emergency Care Services of Pennsylvania PC –which was trying to contract with ER physicians of the Crozer Keystone Health System — of being wholly owned by TeamHealth and serving as a shell to avoid scrutiny.
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