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.
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