From HuschBlackwell, Healthcare Law Insights:
Following two weeks of trial testimony, a Travis County jury recently rendered a $10 million verdict in a novel corporate practice of medicine (CPOM) case. The jury found in favor of a physician hospitalist group that claimed a management company repeatedly broke its promise to comply with the state’s CPOM prohibition, putting profits over patients, among other wrongdoings.
An appeal is underway, but the case stands out among CPOM cases that typically focus on terms of a contract or on practice models and are limited to seeking declaratory judgments and not money damages. The case also serves as a reminder that breaching a contractual promise to follow applicable state laws (even those to be enforced by regulators and that do not provide for a private right of action) can carry real risk.