In December 2021, American Academy of Emergency Medicine Physician Group (AAEM-PG), a professional medical association of emergency medicine physicians, filed suit against Envision Healthcare, a national hospital-based physician group and one of the largest emergency medicine staffing companies in the country. Kohlberg Kravis Roberts & Company, a large private equity firm, owns Envision.  

AAEM-PG claims that Envision violates California’s Unfair Competition Law and corporate practice of medicine laws and seeks declaratory and injunctive relief. Envision’s takeover of Placentia Linda Hospital in California was the catalyst for the suit; AAEM-PG alleges that they lost their contract with that hospital as the result of Envision’s unlawful conduct.   

The case has garnered significant attention. Many see it as emblematic of a renewed interest in enforcement of corporate practice of medicine laws and hope that a decision in favor of AAEM-PG could signal increased scrutiny of private equity ownership in healthcare.   

AAEM-PG brought their claims in state court but Envision removed the case to district court based on diversity jurisdiction. On May 27, 2022, the district court judge denied Envision’s motion to dismiss. In May 2023, Envision filed for bankruptcy, resulting in an automatic stay on the litigation. In July 2023, the bankruptcy court judge denied AAEM-PG’s request for relief from the stay.