Continuing Activity in Application of California’s Corporate Practice of Medicine Prohibition

Short summary

California's Attorney General aggressively enforces the corporate practice of medicine prohibition, with recent settlements against Aspen Dental ($2M) and Carbon Health ($4.5M) targeting MSO control over physician practices. The focus shifts to succession agreements that grant MSOs power to replace physician-owners. Potential market shock if courts broadly ban these common arrangements.

• •California AG settled with Aspen Dental and Carbon Health for improper corporate control of medical practices
• •Enforcement targets successor/share transfer agreements that give MSOs power over physician-owner replacement
• •Industry warns stricter rules could reduce MSO investment and management expertise available to healthcare practices

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