Private Equity Owning Doctor Practices... Corporate Practice of Medicine Laws Explained

Corporate Practice of Medicine Laws Dictate That Doctors Cannot Work for a Corporation.

These Laws Were Put Into Place So That Doctors Would Not Put Shareholders Before Patients and So That Corporations Would Not Interfere with Doctor Judgement.

Corporate Practice of Medicine Laws are at the State-Level, NOT the Federal Level. Each State Has Their Own Exceptions Such as 1) Doctors Can Work for Companies That Are Owned by Other Doctors and 2) Doctors Can Work for Hospitals.

Private Equity Firms Have Been on a Physician Practice Buying Binge.

Private Equity Firms Bought 355 Physician Practices from 2013 - 2016.

Two of the Largest Purchases Were KKR's Purchase of Envision's 25,000 Doctors for Almost $10 Billion and Blackstone's Purchase of Team Health's 20,000 Doctors for $6 Billion.

If Corporate Practice of Medicine Laws Say that Doctors Cannot Work for a Corporation, How are Private Equity Purchases of Physician Practices Legal?

This Video Explains How.

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[baferdgang]

Thank you for covering such an important issue. I'm a practicing ER physician and I'm horrified everyday at the unsafe way we're forced to practice medicine nowadays due to PE not willing to staff appropriately in order to maximize profits. Doctors are doing 2x the amount of work, taking all of the liability, seeing pts being actively harmed by these practices, and we're the ones getting pay and benefits cuts as execs continue to profit year over year. We all need to wake up. This is not the way to continue for our own sanity and well being as well as for all of our patients safety. I'm so upset at the state of American healthcare. The worst part is patients continue to pay higher and higher premiums, all the while being blind to what's going on behind the scenes. More people need to speak out!

[kenstephenson]

Dr. Bricker: Thank you for bringing this issue to light. One item you mention in your talk is the 'Surprise Bill' issue. It should be pointed out the EMTALA (the Emergency Medical Treatment and Labor Act 'having a baby Labor') was passed in 1986 to address this issue. The problem is, no one seems to know about it. The specialist you mention in your talk are Hospital based. We refer to them as R.A.P.E. (Radiology, Anesthesiology, Pathology, and ER). Most of the issues we see, as Patient Advocates, come about as a result of an ER visit. While they may be 'Out-of-Network', EMTALA and its accompanying 'Lay Person Rule' were designed so these RAPE physicians are treated as 'in-network' by your insurance company, regardless of their contractual affiliation. If you are going in for an elective surgery, a price can be negotiated with the Anesthesiologist, prior to surgery. I welcome the opportunity to educate anyone on this issue and keep it up. Your work is very beneficial!

[duancoviero]

oh wow, it's incredible how no one is talking about this! 😳😳😳😳😳

[Carterhulkboy]

Thank you for sharing! I see both sides. On one hand, you don’t want profits to determine patient care. That would be a huge disaster. On the other hand, most physicians don’t understand business as much as they think they do which drives up administration cost. Coding, billing, EHRs and revenue are specialized skills. I’d like to see data on patient outcomes CPOM states vs Non CPOM states.

[theresapryor]

They -hospitals and insurance companies- also are buying primary care physicians (PCP)and turning them into urgent care facilities so they can Bill higher fees. Causes a lack of PCP

[bryanh]

Thank you covering this issue I have been approached by a private equity company summit partners (management company is alpine) to buy my primary care practices. While an enticing offer, the fact that a hedgefund would own the practice scared me from going any further. I am an avid investor in the stock market so I see both sides. But in healthcare this is not the way to go, since it will be putting patients lives in harms way financial/physicially.

[theresapryor]

Our seniors are the most at risk for several reasons

[Xanadu]

I can guarantee that no radiologist every got $10, 000 for reading an xray!

[PhillyDBCoach]

State AGs ignore these abuses. Patients pay the price

[JulesUS]

I found an obit for Richard T. Burke in the Chicago Tribune. 71, late of South Chicago Heights, beloved husband of the late Phyllis J., nee Gendon…

[DrWAS]

Very interesting video and in depth! Subscribed

[georgethornock]

Thank you for the video! I hear this a lot... "How do these big companies do it without being a MD? Especially in California, for example.
Regarding the "New" entity/Practice, wouldn't they have a hard time getting the payor agreements? Or, is the sale of the existing practice simply split into 2 parts; assets and clinical operations? I have heard that insurance companies are getting tight on adding or even replacing names on their payor agreements. And are you saying that the fact there is a sale of some sort (assets) brings them too close to the providers compared to a traditional management company that doesn't own any of their assets?
Thanks again!

[farahsalahuddin]

It does not matter any longer if you are hospital employed or private equity backed as both models ultimately deal with insurance and nigotusted contracts. The corporate practice of medicine law is redundant in practice now. Hospital groups can just charge x3-4 and private equity is stepping in to consolidate the remaining ambulatory settings to deliver more efficient care at lower price. Neither options are health for physician autonomy.

[hyderagood]

Do you think legislation targeting surprise billing will disincentivize PE from acquiring physician practices?

[YacuvlevVadim]

CPOM is so interesting. On one hand it protects the public from corporate influence on medical services, but on the other, it limits the development of medical practices as a business by hindering its internal entrepreneurial structure. Either way, the government is making more money at the end AND insuring the availability of more jobs for tax payers in their territories. USA!! I love it.

[DilissaHatcher]

Can I get a chemistry class in work studies since the doctor talking about p. A I got my reasons

[leongasperment]

I have seen first hand the way doctors have changed the way they practice everytime a private practice sold to a hospital or equity corporation i stopped going to them.

[suemilkbone]

Well, Dr. Bricker, this is one of the most alarming videos you've made. So, as a patient, how do we find out if our physician or health care clinic is owned by one of these private equity firms? After all, we have a right to know if the physician whom we are entrusting with our lives has a conflict of interest.

[xlrXC]

Frankly, it’s just a more extreme form of having to deal with insurance companies.

[tuvale]

This brings to mind ONEM (publicly traded)!