Corporate Practice of Medicine

IPS FOR AVOIDING ALLEGATIONS OF UNAUTHORIZED

CORPORATE PRACTICE OF MEDICINE

Whether you are in a state that prohibits the corporate practice of medicine or not, these tips may help you to avoid any such allegations:

  • All contracts, job descriptions and other documents used in the employment of physicians should consistently stress the requirement of the physician to exercise his or her own independent professional judgment at all times.

  • A corporation entering into a transaction for a physician's services should fully explain that any existing quality assurance, utilization review, capitation/bonus arrangement, or similar plan should not be interpreted to impede or interfere with the independent medical judgment of the physician in treating patients. Documents concerning the transaction should clearly state this.

  • To avoid allegations of violating the corporate practice of medicine prohibition in a state having one, the advice of experienced health care counsel should always be sought, especially in reviewing contracts and transactions involving the practice of health care, the employment of physicians or the management of medical groups in different states.

  • In any event, it is always advisable to obtain an opinion letter from qualified health care counsel after a detailed review of the corporation's proposed arrangement at the outset of any new venture.



STATE

IS THERE A CORPORATE PRACTICE OF MEDICINE DOCTRINE?


Alabama No

Alaska No

Arizona Yes

Arkansas Yes

California Yes

Colorado Yes

Connecticut Yes

Delaware No

D.C. No

Florida No

Georgia No

Hawaii Yes

Idaho Yes

Illinois Yes

Indiana Yes

Iowa Yes

Kansas Yes

Kentucky Yes

Louisiana No

Maine No

Maryland Yes

Massachusetts Yes

Michigan Yes

Minnesota Yes

Mississippi No

Missouri No

Montana Yes

Nebraska No

Nevada Yes

New Hampshire Yes

New Jersey Yes

New Mexico No

New York Yes

North Carolina Yes

North Dakota Yes

Ohio No

Oklahoma Yes

Oregon Yes

Pennsylvania Yes

Rhode Island No

South Carolina Yes

South Dakota Yes

Tennessee Yes

Texas Yes

Utah No

Vermont Yes

Virginia No

Washington Yes

West Virginia Yes

Wisconsin Yes

Wyoming Yes