Oregon Legislature Passes Nation’s Strictest Restrictions on the Corporate Practice of Medicine

By Adam Appleberry on Posted in Articles

Oregon is on the verge of passing a bill that would block private-equity ownership in healthcare practices. If passed, this measure would be the strictest ban on the corporate practice of medicine in the nation (read press release here). The bill would prohibit Management Services Organizations (MSOs) and their affiliates from owning or controlling shares in, serving as directors or officers of, being employees of, or otherwise managing professional medical entities with which they have Management Services Agreements (MSAs). The bill would void restrictive covenants such as non-compete, non-disclosure, and non-disparagement agreements between MSOs and medical professionals, with certain exceptions.

The bill was passed by the Oregan State Senate on May 29th, and as of June 5th, the bill remains awaiting signature with Governor Tina Kotek. To view the bill in its entirety, click here.

Oracle, Cleveland Clinic, and G42 Announce Strategic Partnership to Launch AI-Based Global Healthcare Delivery Platform

By Adam Appleberry on Posted in Articles

In attempt to deliver more effective and affordable care, Oracle, Cleveland Clinic, and G42 have announced a strategic partnership that will build a global AI-powered healthcare platform (see news release here).

Per the news release published by Cleveland Clinic, the platform will: (i) deliver an AI-driven healthcare infrastructure rooted in data privacy, clinical quality, and operational efficiency; (ii) establish a scalable and cost-effective care model that positions the U.S. and UAE as co-leaders in supporting next-generation healthcare solutions; (iii) use AI to enhance diagnostics, personalize treatments, optimize outcomes, and reduce costs at scale; and (iv) deliver high-quality, affordable care worldwide, addressing the rising pressures of aging populations and chronic diseases.

The news release did not provide a potential timeline for the partnership’s development or the platform’s integration.

Virtual Healthcare Law Presentation: Understanding Restrictive Covenants and Key Contract Terms

By Adam Appleberry on Posted in Uncategorized

On Thursday, May 22, from 6:00 – 7:00 PM, attorneys Michael Cassidy and Adam Appleberry will present a virtual program focused on the legal framework surrounding restrictive covenants in healthcare employment contracts.

The presentation will cover recent developments in the law, including the Fair Contracting for Health Care Practitioners Act, and other regulatory changes that may affect physician agreements and practice arrangements.

This session is intended for healthcare professionals interested in better understanding the legal terms that shape employment relationships.

Details:

  • Date: Thursday, May 22
  • Time: 6:00 PM (virtual)
  • CME credit available
  • Cost: Free for Allegheny County Medical Society members; $50 for non-members
  • Open to all healthcare professionals

Topics to be discussed:

  • Employment contracts
  • Compensation
  • Term and termination
  • Schedule
  • Benefits
  • Professional liability insurance
  • Restrictive covenants

This program is offered in partnership with the Allegheny County Medical Society. Click here to register.

2025 Medicare Final Rule Highlights

By Michael Cassidy and Adam Appleberry on Posted in Articles, Medicare & Reimbursement

Attorneys Mike Cassidy and Adam Appleberry co-authored an insightful article, 2025 Medicare Final Rule Highlights, featured in the December 2024 issue of the Allegheny County Medical Society (ACMS) Bulletin. The article explores the key updates to Medicare regulations and their implications for healthcare providers.

Click here to access the ACMS Bulletin to read the full article and stay informed on the latest developments impacting the healthcare industry.

Federal and Pennsylvania Corporate Reporting Requirements: Subject to Nationwide Injunction

By Michael Cassidy on Posted in Articles

This is a last in a series of client alerts and blog posts we’ve issued over the last year designed to inform you of the new Federal and Pennsylvania corporate reporting obligations. 

ALERT:  The U.S. District Court E.D. Texas has issued a nationwide preliminary injunction against enforcement of the reporting rules below.

Federal

The financial crimes enforcement network (FinCEN) issued a final rule implementing the Corporate Transparency Act passed in 2022.  This is designed to identify the owners of corporation and limit the ability to engage in illegal financial conduct. 

This is a fairly simple process, much like registering with the TSA to obtain a known traveler number.  You log on to the website, identify yourself via scanning your driver’s license, and fill in the blanks asking for ownership information for your corporation.  Click here for access to that information.

Contact us if you need assistance. 

Pennsylvania Law

Act 122, passed in 2022, requires annual reports from all organizations, i.e. corporation, limited liability companies, and most partnerships.  This is merely a change to make the reporting requirements annual rather than biennial.  Click here for Pennsylvania reporting. 

The filing deadlines are as follows:

  • Corporations – July 1st of each year
  • Limited Liability Companies – October 1st of each year
  • All other entities – December 31st of each year

You will be required to report the entity name, jurisdiction of formation, address, a name of at least one director, manager, member or partner, the names and titles of the principal officers, the address of the principal office, and the entity number issues by the Pennsylvania Department of State.

As with the federal reporting requirements, please contact us if you need further assistance.

Medicare Telehealth Reimbursement Update

By Michael Cassidy on Posted in Medicare & Reimbursement, Telehealth & Telemedicine

Our Introduction to Telehealth, Technology and Federal Enforcement chapter was published in the Thomson Reuters 2025 Health Law Handbook.  It reviewed a number of telehealth Medicare revisions, both permanent and temporary, enacted by a series of consolidated appropriation acts and physician fee schedule amendments arising out of the 2020 COVID pandemic.

The temporary telehealth provisions currently due to expire after December 31, 2024 are:

  • Waiver of geographic and originating site requirements
  • Coverage of audio only services
  • Expansion of the eligible distance site telehealth providers
  • Waiver of in-person visit requirements for behavioral telehealth

The Telehealth Modernization Act of 2024 has been introduced to permanently extend the following flexibilities:

  • Rural health clinics and federally qualified health centers serving as distant sites
  • The home of a beneficiary serving as an originating site
  • The authorization of any type of practitioners to furnish telehealth services as determined by CMS

We will keep you advised of developments in that area. In the meantime, please contact Mike Cassidy or Adam Appleberry with questions.

Medicare Decreases Physician Fee Schedule by 2.93%

By Michael Cassidy on Posted in Medicare & Reimbursement

The final Medicare Physician Fee Schedule was issued on November 1st for calendar year 2025.  Attached is a link to both the Press Release describing all of the Medicare changes and the link to the entire Final Rule.

The Medicare Conversion Factor for the Physician Fee Schedule was decreased from $33.29 from 2024 to $32.35 for 2025, i.e. 2.93%.

Texas Judge Stops FTC Non-Compete Ban From Going Into Effect

By Adam Appleberry on Posted in Articles

In a continuation of the saga surrounding the FTC’s ban on non-compete agreements for for-profit businesses, on August 20, 2024, a ruling from the United States District Court for the Northern District of Texas struck down the FTC’s final rule. In the Texas court’s ruling, U.S. District Judge Ada Brown stated that the FTC’s authority to police unfair methods of competition couldn’t be used to issue substantive regulations that ban an entire category of conduct. According to Judge Brown, this action by the FTC exceeds its authority granted by Congress. This ruling is effective nationwide and not just limited to the Texas case.

The FTC is considering an appeal to this ruling, but for now, the FTC’s ban on non-compete agreements will not go into effect on September 4, 2024. As the situation continues to develop, we will monitor and update on this blog as further updates become available.

Gov. Shapiro Signs Fair Contracting for Healthcare Practitioners Act Into Law

By Adam Appleberry on Posted in Legal News, Physicians' Contracts and Restrictive Covenants

On July 17, 2024, Pennsylvania Governor Josh Shapiro signed the Fair Contracting for Health Care Practitioners Act into law, which will become effective as of January 1, 2025 (click here see the full bill). Any noncompete covenants that are greater than one year in length in an employment agreement for a healthcare provider, entered into after the effective date, are void and unenforceable. The exception that allows for noncompete covenants that are one year in length or less only applies to situations where the healthcare provider departs on their own volition; if a healthcare provider is terminated or dismissed by the employer, the noncompete covenant is not enforceable.

Employers are still authorized to recover reasonable expenses from a healthcare provider for expenses “related to the relocation, training, and establishment of a patient base,” but these expenses can only be recovered if the healthcare provider left on his or her own volition and was not terminated or dismissed by the employer.  

Additionally, any noncompete covenants related to the sale of an ownership interest or the sale of all or substantially all of the assets of a practice are not subject to the restrictions in this Act. If a provider is not a party to the sale, however, the noncompete agreement is void and unenforceable. This exception only applies to those with ownership interests in a practice.

Per the Act, the Health Care Cost Containment Council will perform a study of the effects of this Act within three years following its effective date and will report its findings back to the State Senate’s and State House’s Health and Human Services Committees.

LexBlog