MCEP signed onto a letter spearheaded by the Michigan State Medical Society (MSMS) sent to Dana Nessel, Michigan’s Attorney General, along with Michigan’s societies of dermatologic surgery, orthopedics, radiology, hematology/oncology, and anesthesia, to investigate violations of Michigan’s prohibition on the corporate practice of medicine. Unlicensed individuals may not own medical practices, but there are exceptions to this rule (e.g., if all or the majority of their owners are physicians licensed in the state). Many private equity groups, which now own the contract for several emergency departments in Michigan, circumvent the law by naming physicians as the owners of a PLLC underneath the parent company. These physicians are “in name only”, with no actual control over the delivery of healthcare. The Federal Trade Commission is currently examining the role of private equity in Texas where anesthesiology groups have had private equity evade the intent of the CPOM doctrine. In Michigan, medical clinics owned by non-physicians have previously been convicted of fraud. MCEP firmly believes that financial motives should never supersede a physician’s fiduciary responsibility to make bedside decisions in the best interest of the patient. The letter has initiated a discussion in law and medical journals, and the media has been provided some coverage. MCEP will continue to monitor this legislation.
We welcome input from our MCEP members online and in-person!
