In the Press
December 22, 2022

ER Doctors Call Private Equity Staffing Practices Illegal and Seek to Ban Them (Kaiser Health News)

A group of emergency physicians and consumer advocates in multiple states are pushing for stiffer enforcement of decades-old statutes that prohibit the ownership of medical practices by corporations not owned by licensed doctors. State laws and regulations governing the corporate practice of medicine vary widely on multiple factors, including whether there are exceptions for nonprofit organizations, how much of doctors’ revenue outside management firms can keep, who can own the equipment, and how violations are punished. Kirk Ogrosky, co-chair of the Healthcare Government Enforcement & False Claims Act Defense practice, said this kind of management structure predates the arrival of private equity in the industry. “I would be surprised if a company that is interested in investing in this space screwed up the formation documents; it would shock me,” Ogrosky said to Kaiser Health News.