AAEM-PG vs Envision Healthcare Lawsuit
On December 20, 2021, the American Academy of Emergency Medicine Physician Group (AAEM-PG) filed suit in the Superior Court of California against Envision Healthcare Corporation. AAEM-PG is responding to the takeover of an emergency department contract at Placentia Linda Hospital, part of the Tenet system.
AAEM-PG alleges that Envision, as a lay entity owned by the private equity firm Kravis, Kohlberg and Roberts, is in violation of the CA prohibitions on lay ownership of medical practices as embodied in the Business and Professions Code §§ 2400 and 2052.
Issues at stake include lay influence over the patient-physician relationship, as well as control of the fees charged, prohibited remuneration for referrals, and unfair restraint of the practice of a profession. AAEM-PG and its parent organization, the American Academy of Emergency Medicine, believes this arrangement is not in the public interest.
Learn more about the lawsuit below, the corporate practice of medicine, and how you can support it.
Envision Lawsuit in the News
"Viewpoint: Facing Malpractice Suit? Sue the CEO and Board" (3/1/23)
"How AAEM's lawsuit against Envision could change physician practices, with Dr. Bob McNamara" (2/22/23)
"'Blended Model': Why Seeing A Doctor Is Not A Certainty In The ER" (2/17/23)
"Litigation Update: Corporate Practice Of Medicine" (2/17/23)
"Where Envision Healthcare stands today" (2/14/23)
"Emergency Medicine Group Suing Over Alleged Corporate Practice of Medicine Violations in California" (1/25/23)
"Litigation Update: Corporate Practice of Medicine" (1/24/23)
"Should You Trust Private Equity to Take Care of Your Dog?" (1/18/23)
"Corporate Practice of Medicine Doctrine: Increased Enforcement on the Horizon?" (01/17/23)
"Listen: Noise Pollution, a Private Equity Lawsuit, and College Health Fees" (01/06/23)
"Complaint Alleges ‘Sham Owner’ of Hundreds of CMG ED Practices" (01/01/23)
"Envision Health-California Lawsuit Tackles Private Equity In Medicine" (12/30/22)
"Physician group sues Envision Healthcare over corporate practice of medicine laws" (12/22/22)
"ER Doctors Call Private Equity Staffing Practices Illegal and Seek to Ban Them" from Kaiser Health News (12/22/22)
"ER Doctors Call Private Equity Staffing Practices Illegal and Seek to Ban Them" from WPLN (12/22/22)
"A Friendly Reminder: Friendly PC Arrangements are Subject to Scrutiny" (06/20/22)
"AAEM's lawsuit against Envision" (06/17/22)
"Doctor fired from ER warns about effect of for-profit firms on U.S. health care" (03/28/22)
"AAEM Sues Envision for Corporate Practice of Medicine" (03/01/22)
"EP Sues for ‘Wrongful Dismissal’ over COVID-19 PPE" (01/01/22)
"Docs Sue Envision Over Violation of Bans on Corporate Practice of Medicine" (12/26/21)
"6 latest healthcare industry lawsuits" (12/22/21)
"Emergency Doctors Sue KKR-Owned Healthcare Company" (12/22/21)
"Envision sued over role in California emergency departments" (12/22/21)
"ER Physicians sue Envision, accuse firm of practicing corporate medicine" (12/21/21)
"Doctors sue Envision Healthcare, say private equity-backed firm shouldn’t run ERs in California" (12/21/21)
Judge Denies Envision Healthcare's Motion to Dismiss Lawsuit
May 31, 2022
In January, Envision filed a motion to dismiss the complaint. On May 20, 2022, the Court met to hear the argument. We are excited to update you that the judge denied their motion to dismiss.
This decision means that the Court has held that the allegations we make, if proven, are sufficient to sustain a violation of California law.
It demonstrates our theory of the case is sound. The judge sustained the entire complaint with its many components, which you can read below.
Know that this doesn't mean we've won, and it doesn't mean we will. This is however, the first step we needed to move forward to stop Envision's corporate practice of medicine.
American College of Emergency Physicians Submits Brief of Amicus Curiae in Support of AAEM-PG
March 25, 2022
The American College of Emergency Physicians (ACEP) submits Brief of Amicus Curiae in support of the AAEM-PG vs Envision Healthcare Lawsuit.
California Medical Association Submits Brief of Amicus Curiae in Support of AAEM-PG
March 25, 2022
The California Medical Association (CMA) submits Brief of Amicus Curiae in support of the AAEM-PG vs Envision Healthcare Lawsuit.
Envision Healthcare Files a Motion to Dismiss Lawsuit
March 4, 2022
Envision Healthcare responded to the lawsuit by filing a motion to dismiss.
AAEM-PG Files Suit Against Envision Healthcare Alleging the Illegal Corporate Practice of Medicine
December 20, 2021
The American Academy of Emergency Medicine Physician Group (AAEM-PG) filed suit in the Superior Court of California against Envision Healthcare Corporation. AAEM-PG is responding to the takeover of an emergency department contract at Placentia Linda Hospital, part of the Tenet system.
AAEM-PG alleges that Envision, as a lay entity owned by the private equity firm Kravis, Kohlberg and Roberts, is in violation of the CA prohibitions on lay ownership of medical practices as embodied in the Business and Professions Code §§ 2400 and 2052.
Issues at stake include lay influence over the patient-physician relationship, as well as control of the fees charged, prohibited remuneration for referrals, and unfair restraint of the practice of a profession. AAEM-PG and its parent organization, the American Academy of Emergency Medicine, believes this arrangement is not in the public interest.
AAEM advocates that physician groups comprised of local physician owners provide the highest level of care and are most invested in the long-term success of their hospital partners and community.
“A physician’s first duty is to the patient,” says AAEM-PG Chief Medical Officer, Robert McNamara, MD. “This duty is heightened in the emergency department where physicians care for society’s most vulnerable patients. Corporations who owe their first duty to the investors have no place at the bedside. Doctors must be free to treat each patient without the pressure to maximize profits.”
AAEM Immediate Past President Lisa A. Moreno, MD MS MSCR FAAEM FIFEM adds: “Emergency department patients are the most vulnerable patients. Either they are experiencing the sudden onset of frightening symptoms and present with an as yet undiagnosed illness, or they are presenting with exacerbation of known illness secondary to lack of access to primary care, inability to afford medications, lack of insurance or lower health literacy. Such patients deserve treatment by a board certified emergency physician whose fiduciary duty is to place the patient’s medical needs above all else, and not by a private equity or lay corporation whose fiduciary duty is to place profit before the patient. The AAEM Mission Statement clearly defines the right of every patient with an emergency condition to be treated by a board certified emergency physician and further endorses the fact that every medical team must be led by a board certified physician and not by a private equity or lay corporation. These entities have no role in the care of the emergency patient, nor do they have the right to intrude upon the sanctity of the physician-patient relationship. For them to do so is unjust and unsafe for the patient population.”
San Francisco lawyer David Millstein, who represents AAEM-PG in the suit, said: “This suit seeks to end Envision’s illegal corporate practice of Medicine in the State of California. It requests the Court to prevent Envision from using captive medical groups, restrictive covenants in physician contracts, payment of consideration to acquire ED contracts, control over staffing, billing and payor contracts and similar practices which violate California’s Corporate Practice of Medicine prohibition as well as other laws.”