4.8 • 1.1K Ratings
🗓️ 16 June 2022
⏱️ 22 minutes
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About a third of ER doctors now work for companies backed by private equity. A lot of those docs do not like the arrangement, which they say puts profits ahead of patients. Now, a group of ER docs are suing to kick one of those private-equity owned companies out of their hospital-- and all of California. They see it as the first step in a long, long fight.
The suit cites California’s ban on the “corporate practice of medicine” — which is supposed to outlaw situations where non-doctors tell doctors what to do, for profit.
Which raises a question: How did it get left to a group of doctors to get that law enforced?
We break it down, with help from:
And while you're here, why not:
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0:00.0 | Hey there, we've talked on this show about how private equity investors have been aggressively |
0:04.7 | moving into American healthcare. They are credited with, among other things, |
0:08.6 | pioneering surprise billing as a business model. And a lot of doctors do not like working for |
0:15.0 | private equity. Here's Dr. Lisa Moreno. She's an ER doc, a professor of emergency medicine, |
0:20.5 | an immediate past president of the American Academy of Emergency Medicine. |
0:24.9 | A doctor takes a hypocriticals and our duty is to do the right thing for every patient, |
0:33.1 | every time. That is what we swear to do. Corporations, on the other hand, have a fiduciary |
0:39.2 | duty to make money for their shareholders and, of course, to make big salaries for the people |
0:45.7 | that run the corporations. You can see how there could be a conflict there. The doctor thinks |
0:50.0 | you need to be seen for longer. The corporation wants the doc to move on to the next person. |
0:54.8 | And you might think, shouldn't there be laws against corporations having the last word in |
0:58.8 | those kinds of conflicts? And in a lot of states, there are laws against non-doctors telling |
1:03.8 | doctors what to do for profit. They are called laws against the corporate practice of medicine. |
1:09.9 | But who exactly is supposed to enforce those laws? And how? |
1:14.9 | Dr. Lisa Moreno and her colleagues at the American Academy of Emergency Medicine have decided |
1:19.7 | they're going to take a stab at it. They are suing a private equity back company called |
1:23.9 | Envision and they're asking a judge to kick Envision out of the business of telling emergency |
1:28.7 | room doctors what to do, at least in California. And the judge says, they may have a case. |
1:36.9 | This is an arm in the leg. The show about why healthcare costs so freaking much and what we can maybe |
1:41.3 | do about it. I'm Dan Weissman. I'm a reporter and I like to challenge. So my job on this show |
1:46.5 | is to take one of the most enraging, terrifying, depressing parts of American life and bring you |
1:51.6 | to show entertaining, empowering, and useful. And along with our producer Emily Pisa Kretta, |
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