Senate committee hears wide-ranging debate on corporate practice of medicine bill

Senate Bill 5,387, which would codify restrictions on corporate ownership and management of medical practices, drew hours of testimony on Feb. 7 before the Washington State Senate Health & Long Term Care Committee. The bill’s prime sponsor, Senator June Robinson, told the committee the measure is designed to “safeguard patient care by upholding the corporate practice and medicine laws” and to limit private equity influence on clinical decisions.

The bill would make it unlawful, except through recognized professional entities such as professional LLCs and professional service corporations, for entities without a license to practice medicine to own a medical practice, employ licensed health care providers, or “otherwise engage in the practice of medicine,” and would require licensed providers to be majority owners and to exert “meaningful control.” Committee staff described additional language that would bar non‑licensed individuals from directing or otherwise interfering with a licensed provider’s professional judgment.

Supporters emphasized risks they say stem from commercialization and private equity. Jane Beyer of the Office of the Insurance Commissioner summarized national and state acquisition trends,…