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In Texas, Favorable Regulations for Physicians May Backfire in Light of Market Downturn

Published in Surgery Litigation and Law Weekly, April 10th, 2009

HealthLeaders-InterStudy, a leading provider of managed care market intelligence, reports that while Texas laws favoring physicians have traditionally enabled doctors practicing in the state to compete directly with health systems, these regulations may actually yield increasing challenges for this sector. According to the recent Houston Market Overview and San Antonio Market Overview, positives for the physician sector are tempered by economic conditions and a challenging contracting environment.

Texas has no certificate-of-need requirements for healthcare facilities and state law bars hospitals from employing physicians in most cases--two factors that have allowed...

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