New York Governor Kathy Hochul in the 2024 Executive Budget is proposing a wide-ranging approval requirement for health care transactions that appears to target investor-backed physician practices. The bill introduces a broad transaction approval requirement, which would apply to material transactions involving physician practices and newly-formed MSOs or MSAs, Healthcare Law Brief reports.
The legislative intent section of the proposed law sets forth that “there has been a proliferation of large physician practices being managed by entities that are investor-backed.” The bill states that “physician practices are subject to far less oversight than [other facilities]” but that they “remain unregulated by the state outside of the licensure of the individual practitioners who practice at these sites and Medicaid enrollment.” Moreover, the bill notes that physician practices are generally not subject to costly change of ownership or control review, and as such, “the state is not able to track or monitor the impact of these transactions on cost, quality, access, equity, and competition.” Read more.
