In granting the preliminary injunction, Judge Chirlin's ruling saw merit in most causes of action in the suit, and she found that "there is a likelihood that plaintiffs will prevail on the merits of one or more of the causes of action," including state laws banning the corporate practice of medicine
and unfair competition.
We have suggested ways for UCLA to structure its proposed community networks consistent with California law, prohibits the corporate practice of medicine
, and assures that physicians are not unduly influenced by business-related factors when caring for their patients," Dr.
Goran, "PHOs now need to pay attention to corporate practice of medicine
laws that prohibit corporations from employing physicians in the practice of medicine.
Many states have enacted laws for medical groups, commonly referred to as corporate practice of medicine
or CPOM laws.
the risk that laws regulating the corporate practice of medicine
could restrict the manner in which HCP conducts its business,
In this theoretical examination, the term corporate practice of medicine
refers to any provision of healthcare services for a profit.
The public policy prohibition against the corporate practice of medicine
by hospitals stems from concern about lay control over profession medical decisions.
In late 1998, the California Medical Association joined a physician lawsuit against UCLA School of Medicine, charging the school with violating the state bar against the corporate practice of medicine
McMurray said California laws such as the Knox-Keene Act of 1975 and the ban on the corporate practice of medicine
are intended to prevent unlicensed persons from interfering with or influencing a physician's professional judgment.
Should the merger go through, HCP will allegedly be in violation of the ban on corporate practice of medicine
This is good news for hospital-affiliated groups, which now may be structured (subject to state corporate practice of medicine
prohibitions) as physician-hospital joint ventures.
She also advises health care clients on a variety of regulatory issues such as Medicare compliance and reimbursement, federal and state anti-kickback and self-referral laws, and state regulatory issues such as corporate practice of medicine
and fee-splitting prohibitions.