The District of Columbia’s Office of the Attorney General has asked a court to extend its review of the transfer of Washington, D.C.-based George Washington University’s physician group to a nonprofit controlled by Universal Health Services, The GW Hatchet reported Oct. 5.
An office spokesperson confirmed the request to the Hatchet but did not say why the office needs more time or how long an extension it is seeking.
The review covers the transfer of the Medical Faculty Associates’ clinical operations to Capital Medical Group, a nonprofit physician group whose sole member is a UHS entity. GW and King of Prussia, Pa.-based UHS reached a definitive agreement in May under which most MFA physicians and staff would move to CMG and UHS would assume full financial responsibility for clinical practice operations. GW agreed to provide up to $230 million to support the transition and absorb prior loans to MFA, which has lost more than $450 million since 2022.
The attorney general’s office opened its investigation in April under the District’s Healthcare Entity Conversion Act, which requires the office’s approval before a for-profit company can take control of a nonprofit healthcare entity in D.C. On July 27, the office filed a civil complaint in D.C. Superior Court against GW, MFA, CMG and UHS, alleging the parties delayed turning over documents the office needed for its review.
The parties reached an agreement with the office the same day that allowed the deal to close operationally July 31 while the review continued. Under that agreement, the office would have until at least Sept. 30 to approve the transfer, reject it or approve it with conditions, and UHS agreed to pay the District $610,000 for delays in the review process. CMG began providing clinical services to MFA patients Aug. 1.
GW, MFA and UHS have disputed that the attorney general’s office has jurisdiction over the transaction but have said they will cooperate with the review. A university official told the Hatchet in July that GW has a strong case for approval, citing the deal’s protections for continuity of patient care and MFA’s financial condition. If the office rejects the transfer, the official said the parties would work with the office to address reasonable concerns or ask the court to step in if they view the decision as unreasonable.
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