A federal judge has indicated that a planned deal between Atlanta-based staffing firm ApolloMD and Vancouver, Wash.-based PeaceHealth “likely” violates Oregon’s corporate medicine law, Lookout Eugene-Springfield reported May 4.
According to the report, U.S. District Court Judge Mustafa Kasubhai told attorneys that “ample evidence” indicates that operations between the two organizations could be breaking the law. Closing arguments are scheduled for May 6 in Portland in the case brought by Eugene (Ore.) Emergency Physicians.
The report comes after four days of testimony, including physicians from EEP and leadership from PeaceHealth, ApolloMD and Lane Emergency Physicians.
EEP is suing to block PeaceHealth from partnering with ApolloMd, a national physician staffing company. The lawsuit, filed March 20 in an Oregon state circuit court, claims the partnership violates the state’s corporate practice of medicine laws, including restrictions on management services organizations.
PeaceHealth said in February it would not renew its 35-year contract with Eugene Emergency Physicians, instead opting to partner with ApolloMD to staff emergency departments at PeaceHealth Cottage Grove (Ore.) Community Medical Center, PeaceHealth Peace Harbor Medical Center and PeaceHealth Sacred Heart Medical Center at RiverBend.
According to the complaint, the arrangement involves a newly formed Oregon entity, Lane Emergency Physicians, which would hold the staffing contract while ApolloMD provides administrative support. The plaintiffs allege ApolloMD would retain significant control over staffing, hiring and other operations.
At the end of testimonies May 4, Mr. Kasubhai said he believed ApolloMD CEO Yogin Patel, MD, and Lane Emergency Physicians owner Johne Chapman, MD, were “being dishonest with the court,” specifically as it relates to Oregon’s corporate practice of medicine law, SB 951.
“ApolloMD purports to be a [management services organization]. Dr. Patel and Dr. Chapman were not representing the truth accurately under oath. It was a problem for them,” Mr. Kasubhai said, according to the report. He added that he was trying to make “sense” of ApolloMD’s complex corporate structure to determine how much clinical control ApolloMD and Lane Emergency Physicians is positioned to have.
Kim Ruscher, MD, chief medical officer of PeaceHealth’s Oregon network, alongside two other PeaceHealth officials, testified that the contract procurement process was standard and that their voting was not influenced by CEO Jim McGovern, MD, who separately faces allegations of attempting to influence patient care without a license and is currently on administrative leave.
In a response shared with Becker’s, a spokesperson for PeaceHealth said:
“We respect the legal process and will continue to cooperate fully with the proceedings underway. As always, we remain focused on supporting our caregivers and ensuring our emergency departments continue delivering the safe, reliable care our patients and communities expect and deserve.”
Becker’s has also reached out to ApolloMD and Eugene Emergency Physicians and will update this article if more information becomes available.
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