Raja Sékaran Quoted on PPP Loans for Healthcare Industry
Raja Sékaran was quoted in the Modern Healthcare article, “How Sutter Commonspirit Adventist Affiliates Got Small Business Loans” (subscription required).
For the article, Raja commented on how in California, hospitals mostly cannot employ physicians directly, so some physicians work for medical groups that contract—in some cases exclusively—with a medical foundation operated by a particular nonprofit hospital or health system. This model closely affiliates the medical group with the health system’s medical foundation, yet the group remains a distinct corporate entity.
“They have a client that is well-funded or well-capitalized by a large health system, but the medical group itself, it needs to periodically roll up its sleeves and negotiate its contract with the foundation—so it is a separate entity,” he said. He added that the foundation model can offer stability for practices because they know they will have volume and a hospital partner. However, he said that it does not make those practices any less deserving of the PPP aid than those that are totally independent. “I would look at it on a case-by-case basis.”