Emergency medicine physicians group sues Envision Healthcare alleging that it violated California laws barring corporations from practicing medicine when it took over staffing of the emergency dept. at Placentia-Linda Hospital in August.
, attorneys general and state medical boards have done little to enforce the laws. As a result, AAEM officials said they felt compelled to act. Because California is often a bellwether for health care, the group hopes the suit will bring attention to the issue.
When Envision took over the emergency practice at the Placentia hospital, it did so by acquiring a medical group, the suit contends, and then creating a separate legal entity to control the group of physicians. That is Envision’s business model, the suit alleges, and the entities are managed and operated by people who are employed by or connected to Envision.
The suit also contends that Envision establishes internal standards for treating patients, a form of clinical oversight. Envision pits physician performance against the standards, “with the intention of modifying and interfering with” the physicians’ independent medical judgment, the lawsuit said.
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