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An Arm and a Leg

These docs are trying to kick private equity out of their ER

An Arm and a Leg

An Arm and a Leg

Society & Culture, Medicine, Health, Health & Fitness, Documentary

4.81.1K Ratings

🗓️ 16 June 2022

⏱️ 22 minutes

🧾️ Download transcript

Summary

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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Transcript

Click on a timestamp to play from that location

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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