Physician vs. MSO Disputes: Navigating the Unwinding of the Friendly PC Relationship in the Midst of the CPOM Crackdown

Healthcare attorney Shalyn Watkins will co-lead a Federal Bar Association webinar analyzing the uptick in states' enforcement of corporate practice of medicine (CPOM) rules and the effects on management services organization (MSO) agreements in the healthcare industry. California, Texas and Oregon have passed bills or otherwise engaged in litigation targeting MSOs and defining the boundaries of permissible MSO conduct. California's Senate Bill (SB) 351 and Assembly Bill (AB) 1415, Texas' House Bill (HB) 3007 and Oregon's HB 3410 expand enforcement authority, codify prohibitions non-physician control over clinical decisions and create new civil penalties for violations; this legislation, combined with False Claims Act (FCA) claims and enforcement actions brought by doctors, whistleblowers and state attorneys general (AGs), mean that, for example, California's professional corporation (friendly PC) model is no longer safe, and healthcare providers need to take action now to review existing ownership arrangements and make changes to come into compliance. This comprehensive webinar will walk attendees through these and other legislative, regulatory and enforcement developments, including the Carbon Health settlement and pending Art Center Holdings appeal, and lay out a framework for updating noncompliant MSO structures. Shalyn will outline a state-by-state toolkit for assessing whether contracts may be void, reclaiming professional assets and planning next steps for negotiation.