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Mark Kadzielski Comments on Status State Bans on Corporate Practice of Medicine

News / September 17, 2018

Partner Mark Kadzielski is quoted in an article published Sept. 13, 2018, in Bloomberg Law’s “Daily Health Care Report.” The article, “Time to Loosen Curbs on Company-Employed Doctors? Maybe,” reports on debate over the future of state laws prohibiting general business corporations from employing licensed physicians and other medical professionals. Such corporate practice of medicine (CPOM) restrictions exist in most states, but some critics claim they are out of date with the way medicine is practiced today and should be loosed or abolished. On the other side, some argue that medical judgments might be subject to corporate budget pressures if CPOM restrictions are lifted.

In Kansas, a state judge recently questioned the viability of the CPOM doctrine in a case in which a medical center that formerly operated as a hospital changed its status to that of an outpatient ambulatory surgical center.

Kadzielski told Bloomberg Law that decisions about the CPOM doctrine probably should be made by state legislatures, not the courts. He said the doctrine remains relevant in states where it is well-established and strictly enforced, such as California, New York and New Jersey. Other states include multiple exceptions or do not strictly enforce their CPOM laws.

Read the article (registration required).

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