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American Academy of Emergency Medicine

Corporate Practice

Texas Medical Association's Amicus Curiae Brief

AAEM and Democratic Group Take Further Action Against TeamHealth in Texas

AAEM files suit against Team Health and Memorial Hermann Healthcare System in Texas Corporate Practice of Medicine Case

David Soria, MD FAAEM, Files Class Action Complaint Against InPhyNet Contracting Services, Inc. and TeamHealth, Inc.

Every emergency physician should have an understanding of what the corporate practice of medicine is, why it is banned or restricted in most states, and how its spread has hurt the specialty of Emergency Medicine. The ban on the corporate practice of medicine is so important that the AMA itself has clearly stated its opposition to attempts to preempt laws prohibiting it.

But what is it and what has been its impact on Emergency Medicine? Simply speaking, the corporate practice of medicine occurs whenever an non-physician individual or corporation exerts control over the medical decision-making or collects reimbursement for the medical services of physicians. Much of the physician practice management industry in Emergency Medicine, through a series of legal loopholes and maneuvers, has been controlling physician practice since the foundation of the specialty.

To help our members understand to factors behind this reality, and to propose solutions for the future, AAEM has published the following report on the history and current state of the physician practice management industry in Emergency Medicine.

In many ways, Texas has been the recent battleground for the fight against the corporate practice of Emergency Medicine. Thanks to a pivotal ruling in the Flynn Brothers Case, physicians in Texas have legal precedent to argue that most of the contractual schemes offered by contract management companies are illegal. An overview of the situation in Texas and a copy of the Flynn Brothers Case itself follow.

Because specific prohibitions and rulings against the corporate practice of medicine vary state by state, AAEM is pleased to provide as a service to its members, the following list of relevant statutes, cases, and opinions on the corporate practice of medicine for every state in the Union.

Other recent headlines regarding corporate practice are listed below.