New State Laws to Bar Private Equity from Medicine Start to Show Their Teeth

Healthcare Transactions attorney John Saran was quoted in a WSJ Pro Private Equity article about actions in California and Oregon demonstrating that the state governments are ready and able to enforce new corporate practice of medicine (CPOM) laws targeting private equity involvement in the healthcare industry. California Attorney General Rob Bonta announced a settlement with a dental management services provider accused of violating the Golden State's new CPOM rules, and an Oregon hospital operator canceled plans to contract with an out-of-state medical staffing company after a federal judge characterized the move as attempting to circumvent a ban on the corporate practice of medicine. Mr. Saran emphasized that these developments should serve as a wake-up call for private equity investors.

"These laws are real and you need to make a good-faith attempt to comply," he said. "The time of putting your head in the sand is over."

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