California doctors are lobbying state lawmakers to tighten rules on private equity-owned companies that manage medical practice back offices, arguing they are threatening patient care.
The doctors contend such investor-owned management services organizations — which handle tasks such as answering phones, maintaining IT systems, hiring staff and negotiating with insurers — are also making decisions that overstep from business into medicine.
The complex deals between medical offices and MSOs can leave significant power with investors who aren’t licensed to practice medicine, doctors argue, blurring longstanding rules that keep medical professionals in charge of the health-care decisions in their practices.
“Do ...