How Corporate Interference in Healthcare Harms Doctors

What is Corporate Interference in Healthcare? 

Sometimes referred to as “corporatization of healthcare,” corporate interference with health care refers to any situation in which private sector business interests take precedence over quality of patient care in health care facilities. This kind of corporate overreach is a growing public health concern, putting further stress on a system that was already over-taxed by the COVID-19 pandemic. In recent years, acquisitions in the health care sector have only become more aggressive. For example, Vox reports this month that private equity firms now own and operate 40% of emergency rooms nationwide.  

Corporate interference in healthcare can take many forms, but it often revolves around profit-driven strategies that prioritize financial gain over patient outcomes. This includes aggressive billing practices, the push for unnecessary medical procedures, and a diminishing focus on comprehensive, patient-centered care. 

Moreover, corporations often impose standardized protocols designed to maximize revenue rather than enhance the quality of care. It’s not uncommon for corporate entities to pressure healthcare providers to adhere to certain treatment pathways that prioritize cost efficiency over individualized patient needs. This erosion of autonomy for health care practitioners is particularly concerning. Physicians may find themselves navigating a complex web of corporate policies and regulations that attempt to dictate how they practice medicine.  

What Does Corporate Interference in Healthcare Look Like?  

The corporatization of health care can take many forms. Some specific examples might include:   

• Private Practice Buy-Outs: Financial stress in the health care sector can give private equity (PE) firms the leverage they need to buy private practices directly out from under physicians. These purchases often involve non-compete covenants (NCCs) that ensure the physician may not establish another practice of their own. NCCs have been made illegal in some states, but it’s unclear if physicians who previously signed NCCs will be able to seek recourse. 

• Private Purchase of Emergency Medicine Staffing Firms: These firms provide health care professionals for emergency rooms and hospitals across the country. When PE firms purchase these firms, they frequently move to replace more expensive physicians with less costly nurse practitioners and physicians’ associates (PAs).  

• Corporate Overreach in Healthcare Assets: Fortune 500 companies that own and operate hospitals or other healthcare assets may involve themselves with the day-to-day operations of their health care facilities, limiting or otherwise undermining physicians’ ability to provide their patients with safe, high quality health care.  

What Can Happen When Corporate Greed Meets Patient Care? 

In all health care environments, providing quality care to patients should be the number one priority, and most health care providers are focused on doing what’s best for patients under their care. But in the private sector, profit margins often come before people, and corporate rules for health care professionals often put data and revenue first. Thus: when corporations become involved in medicine, the effect on patients and physicians alike can be debilitating.  

One of the most pressing concerns is the compromise of patient safety and the diminishment of physician autonomy. When healthcare systems prioritize profit, there can be a troubling tendency to cut corners—whether that involves reducing staff levels, slashing resources for necessary training, or pushing for quicker patient turnover. This often leads to burnout among providers and ultimately jeopardizes patient care. For example, studies have shown that hospitals with higher nurse-to-patient ratios can dramatically improve outcomes, yet corporate policies frequently push for minimal staffing to maximize profits. 

Moreover, the push for standardized treatment protocols can stifle clinical judgment. Physicians are trained to consider the unique needs and histories of their patients, but corporate-imposed constraints can force them to follow one-size-fits-all approaches that may not align with the complexities of individual cases. This can result in frustration and burn-out for doctors, who should be supported, rather than undermined, in the application of their unique expertise.  

The Impact on Patients: 

• Dramatically raised health care costs: The emphasis on profit often leads healthcare corporations to inflate the prices of medical services and pharmaceuticals. As administrative costs rise due to corporate oversight, the financial burden is transferred to patients, making essential services unaffordable for many. In a study of two emergency medicine staffing firms conducted by the National Bureau of Economic Research, health care cost to patients went up over 80% Ater a corporate entity took ownership. 

• Limited Access to Services: Corporate interests can also result in healthcare providers prioritizing high-revenue services over essential, yet less profitable, specialties. For instance, a corporate hospital may favor lucrative procedures like elective surgeries over critical but less financially rewarding primary care or mental health services. This selective service provision can leave vulnerable populations without adequate care options, exacerbating health disparities. 

• Erosion of Doctor-Patient Relationship: Drastically shortened ER wait times may sound like a good thing, but when combined with an expanded patient capacity, the result is often that patients receive less attention from physicians. A strong doctor-patient relationship is fundamental to effective treatment, but corporate guidelines often treat patients as numbers rather than individuals. This transactional approach can inhibit open communication, result in misdiagnoses, and obstruct adherence to treatment plans. 

The Impact on Healthcare Professionals 

• Disempowerment of Physicians: Physicians often find themselves in a bind between their dedication to patient care and the corporate mandates imposed on them. Many experience feelings of disempowerment as they are forced to comply with policies that prioritize profitability over patient welfare. This disconnection from their core mission can lead to decreased job satisfaction.  

• Limited Professional Advancement: Many physicians who work under corporate interests find there is little investment in the building of professional skills through further education or training. These tools can help doctors to remain at the top of their field – and to treat patients with the highest level of care – but corporate stringency often sees these expenses as unnecessary.   

• Retaliation Against Physicians Who Resist Corporate Interference: When health care providers attempt to fight back against corporate overreach in their health care facilitates, they may face retaliatory action such as demotion, harassment, or wrongful termination. Not only is such retaliation illegal, but it may also further endanger patients by removing qualified physicians who put quality of care above profit.  

What is McCune Law Group Doing to Protect Doctors and Patients from Corporate Interference? 

As the largest contingency law firm focused on representing consumer and small business clients in the Inland Empire, McCune Law Group will not stand for abuse of corporate power in any context. Our expert trial layer teams protect physician independence, because we know supporting patients begins with fighting for excellent doctors. And when we fight, we usually win: we have recovered a total of over $1 billion for our clients. 

MLG has significant experience in this field. Most recently, we filed a lawsuit on behalf of Dr. French, Chief Medical Officer at Corona Medical Center, who alleges she faced retaliation for blowing the whistle on Fortune 500 company interference at the Corona hospital. At our press conference in August, Dr. French shared that she hoped by coming forward about the conditions at Corona Health Center she might ensure more patients remain safe. “If [doctors] do not come forward,” she explained. “Our patients will not have a voice.” 

MLG is dedicated to supporting physicians like Dr. French in their courageous attempts to combat corporate overreach and give voice to the voiceless. 

What Can I Do If I’ve Been Affected by Corporate Interference in the Health Sector? 

As corporate interests continue to buy up hospitals and medical facilities, patients and physicians may suffer from decreased quality of care and potentially hostile working conditions. 

If you’re a health care professional who has been affected by or witnessed significant corporate interference in patient care or physician independence you can contact the expert attorneys at MLG today for a free evaluation. Physicians trust us because we understand how important it is to protect privacy unless you want to take your claims public. By working closely with our clients to tailor legal strategy to their needs, we’ve established ourselves as the leading law firm when it comes to protecting consumers, physicians, and small businesses in the Inland Empire. 

Whatever your situation, we’re ready to fight for you.