States Target Private Equity Ownership in Health Care with New Corporate Practice Restrictions

California, Oregon, and Washington have introduced legislation tightening corporate practice of medicine prohibitions, which could force restructuring of private equity-backed management service organizations and physician practice arrangements. The bills would restrict MSO control over clinical decisions, impose stricter physician ownership requirements, and limit certain contractual arrangements between professional corporations and management companies. These changes could affect how Medicaid managed care plans contract with provider groups that rely on private equity backing or MSO structures, potentially impacting network adequacy and provider availability.

This is outside commentary from Manatt Health, not part of Medicaid Monitor's independently scored news coverage.

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