Can a non physician own a medical practice in california

Non-Physicians Owning or Investing in Medical Practices in Idaho

can a non physician own a medical practice in california

How an unlicensed person can work with a medical practice, including the use of Only physicians who are licensed in California may own shares in a medical.

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Meet Us and Schedule a Free Meeting. Investing in a corporation involves money, time and effort. It is not as simple as just putting in your money and then get your share of the profit. Owners or shareholders must always remember that for every decision being made and every step being done, there are legal aspects that must be taken into consideration. It is a common mistake for business persons in California to start investing in a corporation without even consulting an expert small business lawyer! Let us take for example the case of one of our clients who called us because of a serious legal concern involving a medical corporation.

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Here is my conclusion up-front: An unlicensed person can work with a medical practice so long as there is NO ownership in the practice, where ownership includes not only stock in a medical corporation but also a share in revenues. Usually these people are related to the physicians or work closely with them. Sometimes they are the accountants for the medical practice. The fit seems natural and beneficial for all concerned because the physicians only want to focus on patient care not admin or marketing while the non- physicians only want to work on the business side of the practice. Only physicians who are licensed in California may own shares in a medical corporation or be a partner in a medical practice with exceptions for certain other licensed health-care professionals. The physician must have sole control over all health care decisions.

These legal nuances are important whether the business involves a medical spa, day spa, integrative medicine center, multidisciplinary professional practice i. Corporate Practice of Medicine.
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Enter your email address to receive notifications of new posts by email. CPM is a variation of the statutory prohibition against unlicensed practice of medicine. This generally means that physicians cannot be employed by non-medical professional corporations or LLCs absent an exception [these are usually very limited and do usually apply to a for-profit corporation]. In this regard, The California Medical Board CMB states that the following clinical decisions should only be made by a California-licensed physician and would constitute the unlicensed practice of medicine if performed by an unlicensed person:. The types of decisions and activities described above cannot be delegated to an unlicensed person, including for example management service organizations MSO. Finally, a recent development is that in January , California exempted certain rural hospitals from the CPM ban.

The Idaho Board of Medicine's recent disavowal of the corporate practice of medicine doctrine has made it easier for corporations and non-physician individuals to invest in or own medical practices in Idaho. The Corporate Practice of Medicine. For decades, the Idaho Board of Medicine took the position that, with limited exceptions, the Idaho Medical Practice Act "prohibits unlicensed corporations and entities from hiring physicians as employees to provide medical services to patients. Uranga to Idaho State Bd. Such practices are contrary to public policy.

The Corporate Practice of Medicine CPM doctrine continues to befuddle, beleaguer, and bewilder healthcare companies seeking to venture with physicians and non-physician entrepreneurs. The corporate practice of medicine CPM rule or doctrine forbids medical management organizations MSOs from meddling with and effectively, directly or indirectly, control or in some way influencing, the affairs of medical practice. The challenge is that the healthcare venture managed by able healthcare entrepreneurs wants to call the shots. The non-physician entrepreneur dreams up the healthcare venture, gets it funded, even staffs it with the right medical doctor. In the eyes of the law, the services offered by a managed care company can blur the distinction between professional judgment and utilization review. In other words, medical judgment and practice should not by unduly influenced by the MSOs. But what does this mean and how far does the practice of medicine doctrine go?

Matt Dickstein

Professional Medical Corporation or LLC? Fictitious Name Permit?

Many healthcare ventures seek to avoid corporate practice of medicine or psychology and fee-splitting violations, but they need to first understand how deeply down the rabbit hole these prohibitions go. Although we focus on California, corporate practice prohibitions exist in many states, and vary by state. For legal counsel to properly structure your venture, contact our healthcare attorneys. Corporate Practice of Medicine. Unlicensed Practice and Corporate Practice Violations. Corporate Practice of Medicine is a variation of the statutory prohibition against unlicensed practice of medicine.



  1. Rabican M. says:

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  2. Roni B. says:

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  3. Georgina R. says:

    But he is a non-physician or any other medical related professional. licensed health-professionals can be owners or partners in a medial practice in California.

  4. Henriette G. says:

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