Texas suit asks: Is private equity abusing a malpractice shield?

A lawsuit against UT Health East Texas, a for-profit hospital system partially owned by the University of Texas, claims for-profit providers are shuffling their physicians’ employment status as a way to shield against malpractice cases.

When Michael Simington’s prostate cancer diagnosis was delayed, he learned his urologist fell into a legal loophole where doctor’s are afforded governmental malpractice protections that come with employment at state hospitals or medical schools, despite performing all of their work in for-profit, private equity-backed systems. 

The scenario, as reported by the Texas Tribune, is one that could play out again and again as the pace of mergers and acquisitions in healthcare continues to accelerate. 

Get the full story here

Evan Godt
Evan Godt, Writer

Evan joined TriMed in 2011, writing primarily for Health Imaging. Prior to diving into medical journalism, Evan worked for the Nine Network of Public Media in St. Louis. He also has worked in public relations and education. Evan studied journalism at the University of Missouri, with an emphasis on broadcast media.

Around the web

The tirzepatide shortage that first began in 2022 has been resolved. Drug companies distributing compounded versions of the popular drug now have two to three more months to distribute their remaining supply.

The 24 members of the House Task Force on AI—12 reps from each party—have posted a 253-page report detailing their bipartisan vision for encouraging innovation while minimizing risks. 

Merck sent Hansoh Pharma, a Chinese biopharmaceutical company, an upfront payment of $112 million to license a new investigational GLP-1 receptor agonist. There could be many more payments to come if certain milestones are met.