The increasingly common private equity-backed management services organization (MSO) and professional corporation (PC) model is facing heightened legal and regulatory scrutiny, particularly as disputes arise over clinical decision-making authority and compliance with corporate practice of medicine (CPOM) laws. A recent California case involving a fertility clinic underscores the potential risks associated with blurred lines between clinical and non-clinical oversight, highlighting the importance of carefully structured MSO/PC arrangements and clearly defined governance frameworks.
In an article published by Part B News, Daniel Frier discussed the risks that arise when MSOs exert too much influence over clinical operations and the vulnerabilities created by improperly structured arrangements.
“MSOs are a target, and those that don’t play it safe when it comes to avoiding any sort of clinical involvement are being shortsighted.”
He cautioned that plaintiffs’ attorneys and regulators are increasingly scrutinizing these models and that organizations should address concerns proactively before disputes escalate.
Co-Managing Partner
