Corporate Practice

AAEM is unique in that it is the only EM professional society that is willing to take legal action against contract management companies on behalf of our members.

What is Corporate Practice of Medicine?

Every emergency physician should have an understanding of what the corporate practice of medicine is, why it is banned or restricted in most states, and how its spread has hurt the specialty of emergency medicine. The ban on the corporate practice of medicine is so important that the AMA itself has clearly stated its opposition to attempts to preempt laws prohibiting it.

AMA Policies Regarding the Corporate Practice of Medicine:

H-215.981 Hospital Employed Physicians
The AMA vigorously opposes any effort to pass federal legislation preempting state laws prohibiting the corporate practice of medicine. (Res. 247, A-91)

But what is it and what has been its impact on emergency medicine? Simply speaking, the corporate practice of medicine occurs whenever an non-physician individual or corporation exerts control over the medical decision-making or collects reimbursement for the medical services of physicians. Much of the physician practice management industry in emergency medicine, through a series of legal loopholes and maneuvers, has been controlling physician practice since the foundation of the specialty.

To help our members understand to factors behind this reality, and to propose solutions for the future, AAEM has published the following report on the history and current state of the physician practice management industry in emergency medicine.