Mergers and Acquisitions

A newly introduced federal bill aimed at prohibiting the corporate practice of medicine, titled the “Stop Corporate Takeovers of Physicians Act,” was introduced on September 16 by several Democratic lawmakers in the Senate and House. The bill would impose sweeping restrictions on corporate ownership and control of medical practices and could significantly affect…

We have previously reported that a number of states have proposed legislation to address growing concerns about the potential negative impacts of private equity (PE) investments in healthcare businesses. Vermont has now joined this list by passing legislation on June 15 (H.583, “An act relating to clinical decision making”) that imposes significant limitations…

California Attorney General Rob Bonta recently announced a proposed settlement with Carbon Health Technologies, Inc., which operates primary care clinics throughout the state. The settlement follows allegations that the company’s physician practice management structure ran afoul of California’s corporate practice of medicine (CPOM) doctrine, as well as certain state consumer protection and billing laws. Carbon…

The American College of Physicians (ACP) recently issued a new position paper entitled “Regulatory Framework for Private Equity and Corporatization in Health Care” that examines the impact of private equity on healthcare costs, access, equity, innovation, and clinical autonomy. The ACP is the largest specialty organization in the U.S., with 163,000 members including…

Aspen Dental, one of the nation’s largest dental service organizations (DSOs), recently settled charges alleging violations of California’s corporate practice of medicine (CPOM) and unfair competition laws. This was not the first time similar charges had been lodged against Aspen Dental; in 2015, it entered into a settlement with the New York Attorney General after…

A recent report issued by The NYU Stern Center for Business and Human Rights entitled “Private Equity and Healthcare: Balancing Profit with Wellness” examined the expanding role of private equity in the healthcare sector, concluding that “Private Equity’s combination of legal immunity, public anonymity, and financialized ownership creates a culture that often prioritizes profits over…

On March 20, the Federal Trade Commission (FTC) issued a memorandum announcing the formation of a Healthcare Task Force dedicated to addressing unlawful business practices within the healthcare sector. The memorandum emphasizes that industry consolidation and anticompetitive conduct have contributed to “higher prices, decreased quality, less access and transparency, and stifled innovation.” According to the FTC…

On February 6, Rhode Island introduced legislation that would significantly expand its corporate practice of medicine (CPOM) restrictions and impose new healthcare ownership transparency requirements. The proposal would prohibit unlicensed entities from owning medical practices or employing licensed providers, while requiring physicians to hold majority ownership and control. It also targets MSO arrangements by banning…

This week, Governor Hochul announced a proposal significantly expanding state scrutiny over corporate health care transactions. This proposal reiterates previously expressed concerns that both private equity and health system acquisitions of medical and dental practices lead to reduced access to care, declining quality and higher prices.

While stopping short of requiring actual Health Department…