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Senate committee urges congressional review of private equity and ‘corporate medicine’ practices
Summary
SCR 27, advanced by the Senate Health and Welfare Committee, asks Congress to examine private-equity and corporate ownership of medical practices after testimony from the Louisiana State Medical Society that such ownership can impede physicians' medical judgment.
The Senate Health and Welfare Committee reported Senate Concurrent Resolution 27 favorable after proponents said private-equity and corporate ownership of medical practices are affecting clinical decision-making.
Sponsor Senator Troy Presley described “corporate medicine” as ownership structures in which entities “not entirely comprised of healthcare professionals” make business decisions that can conflict with clinical ethics. Lauren Bailey, who said she represents the Louisiana State Medical Society, told the committee that private equity and venture-capital firms have been purchasing practices and “are administratively attempting to remove the medical judgment of the physicians.”
Presley said the move is intended as a national request: “we believe that this is an issue across the nation again and that Congress needs to look at it.” No insurer or owner representatives testified in opposition during the committee hearing.
Senator Presley moved to report SCR 27 favorable, and with no objections the committee reported the resolution favorable by voice consent. The resolution is a memorialization asking Congress to review corporate ownership of medical practices; it does not itself change state law.
