Corporate Practice Claim Against Doctor Staffing Firm Tossed

Jan. 24, 2019, 7:36 PM UTC

A central Texas physicians group can’t pursue claims a medical staffing services agency illegally engaged in the corporate practice of medicine.

Texas law prohibits non-physicians from owning, operating, or controlling health-care practices, but it doesn’t allow private entities like Hospital Internists of Austin PA to sue for violations, the U.S. District Court for the Western District of Texas said Jan. 23.

The group’s filing of the suit under the federal Declaratory Judgment Act didn’t create a cause of action where there was none to begin with, the court said.

Quantum Plus LLC provides medical staffing services to hospitals. It contracted ...

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