Questions about regulatory authority stall proposed overhaul of GW medical practice group
GW Medical Faculty Associates in Washington, D.C.
WASHINGTON - A major legal dispute is looming over a proposed takeover intended to rescue George Washington University’s Medical Faculty Associates (MFA), even as local patients report widespread disruptions and failing medical services.
What we know:
The MFA, the largest medical practice group in Washington, D.C., treats more than 4,600 patients daily. However, the organization has over $400 million in debt, a financial burden officials acknowledge is unsustainable.
Under the proposed transaction, which has been in development for months, Universal Health Services (UHS) would take over Medical Faculty Associates. The majority of MFA doctors would become UHS employees to preserve regional patient care.
Patient care disrupted
As negotiations continue behind closed doors, patients have reported experiencing significant care disruptions, long appointment delays, and sudden departures of their long-term physicians.
Several patients who were highlighted on the local blog PoPville described growing frustration with the medical group's operations. Among them is District resident Jen Iacovelli, who characterized the ongoing transition as a "nightmare" for her family while managing cancer diagnoses for both her husband and son.
"Our radiation oncologist, when we went for a checkup after my husband completed 28 rounds, she said, 'Okay, this is the last time you guys will see me. I'm leaving,'" Iacovelli said. "When you go through such a diagnosis... it's just been challenging getting to talk to anyone, finding out any information."
Iacovelli noted that her husband's treatment ends during the first week of September, yet she is uncertain about who will issue the final medical bill or how to advise her health insurance company.
Legal dispute over regulatory approval
What they're saying:
Adding to the instability is an ongoing jurisdictional battle between D.C.’s top law enforcement official and the parties involved in the acquisition.
D.C. Attorney General Brian Schwalb announced a court order requiring George Washington University, MFA, and UHS to submit all documentation regarding the acquisition to his office.
According to Schwalb, under the District’s Healthcare Entity Conversion Act, the Office of the Attorney General (OAG) holds the legal authority to approve or reject the acquisition by September 30.
However, GW, MFA, and UHS have disputed the Attorney General's legal standing in the matter.
In a statement, UHS said:
"The parties to this transaction continue to maintain that the OAG does not have jurisdiction over this transaction. Despite this ongoing objection, the parties have entered into this agreement because an operational close on July 31 is critical to ensuring continuity of care in the District of Columbia."
If Attorney General Schwalb decides to reject the acquisition, legal experts expect the dispute to head to court, potentially delaying or upending a resolution for the practice and leaving thousands of patients in limbo.
The Office of the Attorney General declined to comment pending its official review.
Other parties involved in the transaction have not responded to requests for comment.
The Source: This information is from FOX 5 DC reporting.