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Trump’s health secretary nominee sought special treatment for industry donors

January 09, 2017
Business Affairs

Support for traveling doctors

In Congress, Price has been a vocal critic of America’s medical malpractice system — a bugaboo for many surgeons but also for a company based in his district that has provided reliable campaign donations. That firm, Jackson Healthcare, staffs hospitals and practices with temporary doctors, called locum tenens.

One of Price’s largest PAC contributors is Richard L. Jackson, the company’s chairman and CEO. The two spoke together in 2009 at a forum aimed at limiting malpractice lawsuits. Both men have asserted doctors’ attempts to avoid such lawsuits have led to costly and excessive medical care. In a 2010 interview, Jackson mentioned that he had discussed “defensive medicine” with Price, and other Congress members. Price, for his part, has referenced Jackson Healthcare’s study on the high cost of such health care.

The malpractice issue has had particular relevance to the locum tenens industry and to Jackson’s company in particular. It has faced multiple lawsuits over the alleged misdeeds of temporary doctors, including care of patients in Veterans Affairs and Indian Health Service hospitals.

Price has repeatedly introduced legislation to curtail malpractice cases and, on another front, to protect the tax status of traveling doctor companies. In September he introduced the House version of a bill that would help change the IRS code to classify traveling doctors as contractors, not employees, so that the company providing them wouldn’t be legally vulnerable for taxes in distant states. A Senate version was introduced earlier by Georgia Republican Sen. Johnny Isakson. The bills died in committee last year.

Jackson and his son, Shane, the company’s president, have supported Price with donations to his campaign and joint fundraising committee, which contributes to Republican campaigns. Since 2011, Jackson and his son, have contributed at least $43,000 to Price’s campaign or a joint fundraising committee, with $35,000 arriving last January.

A spokeswoman for Jackson said Price’s bill would not have affected his company since, in practice, it already regarded its doctors as contractors, as did the government.

But Sean Ebner, president of another major traveling doctor company, said the measure would have eliminated the possibility of a surprise tax bill.

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