News

How Sutter, CommonSpirit, Adventist affiliates got small-business loans

published in Modern Healthcare | July 10, 2020

McAfee & Taft healthcare attorney Terra Parten was one of several business and legal experts from across the United States who were interviewed by Modern Healthcare for an article titled “How Sutter, CommonSpirit, Adventists affiliates got small-business loans.”  The article sought to explain why certain physician practices were eligible to receive millions of dollars in Paycheck Protection Plan loans while the major health systems they are affiliated with received hundreds of millions of dollars of COVID-19 financial aid under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Turns out that just because a medical practice bears the health system’s logo and branding doesn’t mean they get financial support from those systems.

Parten explained that the Small Business Association’s Paycheck Protection Program regulations specified eligibility requirements, including what it means to be an affiliate. Therefore, the physician practices in question may have qualified for the small business loans because they employ less than 500 people, have their own governance, and are not controlled by the health systems, she said.