Bad Medicine

Healthcare Transactions attorney John Saran was quoted in a Private Funds CFO article on the growing wave of state‑level antitrust and corporate practice of medicine (CPOM) legislation targeting private equity ownership in healthcare. The article highlighted how states such as California, Oregon, Rhode Island, New Mexico, New York, Maryland, Illinois and Hawaii are advancing new merger review rules, ownership restrictions and expanded disclosure mandates, significantly increasing compliance risk for multistate healthcare platforms. Mr. Saran commented specifically on bills in Rhode Island and New Mexico creating a private right of action allowing individuals to sue companies who violate CPOM mandates.

"That's something I've never seen before," he said. "I mean, that hasn't been a thing in the corporate practice of medicine law for more than 100 years. You put provisions like that in a large state, that could have a real impact on a firm's litigation risks."

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