ACHP vs. EPMG
Affiliated Community Healthcare Physicians (ACHP) has filed suit against
Catholic Healthcare West (CHW), Meriten Physician Management Company,
and Emergency Physicians Medical Group (EPMG). The suit alleges that the
activities resulting from a merger between Meriten and EPMG violate the
corporate practice of medicine bar and laws prohibiting fee-splitting
arrangements.
If left unchallenged, the CHW/Meriten-EPMG deal (or similar deals crafted
by other hospital systems) potentially threatens not only emergency physicians,
but all other hospital-based physicians, with widespread, coercive, long-term
arrangements that could result in massive loss of physician income and
erosion of professional autonomy. ACHP estimates that CHW and EPMG have
committed over $1 million to their legal defense to preserve the lucrative,
30-year CHW/Meriten-EPMG arrangement and pave the way for others like
it with other medical specialties. If such arrangements are allowed, other
hospital systems are likely to clone the CHW/Meriten model.
AAEM strongly supports ACHP in its efforts against the CHW/Meriten-EPMG
deal. Updates of AAEM's and ACHP's progress in this endeavor are detailed
below.
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