Most states have laws prohibiting corporate interference in the practice of medicine. But, corporations and private equity firms have been getting around these laws, buying up primary care and specialty practices, by enlisting physicians to run their businesses. Amelia Templeton writes for OPH.org that Oregon is working to prevent some of this activity because it is benefiting corporations at the expense of patients.
The opposition is fighting back, dragging out the standard arguments that any law preventing corporate ownership of physician practices will kill innovation and business. The question the Oregon lawmakers must ask is whether concerns about the health and well-being of their constituents resulting from the corporate ownership of medical practices should be paramount.
As it is, nursing homes, health systems and hospitals are not likely to be covered under any new law in Oregon, even though their corporate ownership raises serious patient safety, health care access and health care cost concerns. Corporate owners can direct physicians to spend less time with patients or to see fewer Medicaid patients.
Private equity ownership of medical practices is almost always a short-term play. The private-equity firm takes as much money out of the business as possible or implements ways to generate more revenue and then tries to flip it for a profit. Patient care is at best a secondary concern after profits.
Right now, some types of corporations must abide by a loosely written Oregon law that requires physicians to have a majority stake in any medical practice that is corporate-owned. Oregon legislators are looking to broaden that to extend to more health care corporate entities.This Oregon law does not apply to hospitals and nursing homes.
If passed, the new legislation would still allow corporate-owned medical practices to exist for the next seven years. After seven years, they would need to have transitioned to a different ownership structure. Sadly, that’s plenty of time for the corporate owners to lobby the Oregon legislature to repeal the legislation if it is passed.
Here’s more from Just Care:
- Private equity profiting wildly on home care at the expense of older adults
- Private equity buying up specialists and driving up health care costs
- Private equity succeeding at keeping Congress from ending surprise medical bills
- Medical debt is a profit center for banks and private equity
- Private equity-owned hospice and home health agencies drive up Medicare spending, jeopardize quality of care
