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Does anybody know if licensure is required to "own" a practice in NY?
Does anybody know if licensure is required to "own" a practice in NY?
I think the OP is talking about the rules governing who can employ doctors and have control/input into their medical decision making. In some states it's illegal for a non-physician to own a medical practice because, as the boss, they have input on medical decision making and are then practicing without a license.
Here's some info from CA which does not allow a non-physician to own a medical practice. The points they bring up illustrate the issue pretty well.
http://www.medbd.ca.gov/Corporate_Practice.htm
As for the law in NY I don't know.
That's a good point. I have heard of some practices where the physician partners have a partner who is a business type or even a lawyer. I think the way they avoid issues is that there is a clear delineation of who does and does not have input on medical issues.That's what I figured they were asking...but wasn't sure if it was for a solo practice (in which as you state, *someone* needs to have a medical license) or a group practice, in which I'm not sure that every owner needs a license.
That's a good point. I have heard of some practices where the physician partners have a partner who is a business type or even a lawyer. I think the way they avoid issues is that there is a clear delineation of who does and does not have input on medical issues.
These countless bogus tests are sent to Sleazy Pathology and Sleazy Radiology. Guess who controls Sleazy Pathology and Sleazy Radiology? That's right! Joe Sleazy. The worst of this corruption happens in the New York State managed Medicaid program.
If a group of physicians introduces a non-physician to you as a "partner", be careful, very careful.
Meet our new Board of Directors at Sleazy Medical Group:
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This has been an interesting discussion. It has raised some interesting points. DrezLeptin talks about medical corporations in NY, which I assume is a special type of corporation. The statement is made, "It is illegal for a non-physician to employ a physician or run a medical corporation in New York."
Likewise, similar comments are made for California.
Where my curiosity is aroused is how do firms like 21st Century Oncology, US Oncology and Cancer Centers of America do business in these states?
These firms are publically traded, for profit corporations run by a shareholder elected board of directors and traded on the NASDAQ (RTSX in the case of 21st Century Oncology). These companies own medical treatment facilities in both NY and CA, hire physicians as employees (properly licensed, of course and boarded, in most cases). There is no guarantee that the board members who are out of state are licensed MDs.
The companies hire, for a salary and bonus, medical directors and the physicians that work for them.
Also, hospitals, which are run by boards which generally include non-physicians at the exec level also hire "hospitalists" as employed physicians. This practice is done in all 50 states.
So, if the above comments are true, then how do these companies operate legally in NY and CA? Inquiring minds want to know!
Remember that many of these docs are not employed by the hospitals but are independent contractors. When that's the case they don't get paid by the hosptial. They bill the patient.Also, hospitals, which are run by boards which generally include non-physicians at the exec level also hire "hospitalists" as employed physicians. This practice is done in all 50 states.
So, if the above comments are true, then how do these companies operate legally in NY and CA? Inquiring minds want to know!
Remember that many of these docs are not employed by the hospitals but are independent contractors. When that's the case they don't get paid by the hosptial. They bill the patient.
This is not the case with the groups I mentioned above. I have been offered an employment contract with a hospital and with one of these publically traded groups. While the all have a medical director, my line supervision would not necessarily be through the medical director. The professional fees are billed by me, but paid to the corporation which in turn, if I decide to accept this arrangement would give me a paycheck, which is fixed, whether I bill half my salary or double my salary.Remember that many of these docs are not employed by the hospitals but are independent contractors. When that's the case they don't get paid by the hosptial. They bill the patient.
Here is a link to a summary of state law. It seems even in those states if a non physician employs the physician they can't exercise control over independent medical decision making.I pasted together the following info from a legal website:
The Doctrine is simply a law which prohibits those persons who are not medical physicians from owning a medical practice. Over the years this Doctrine has been eroded in many states and in some states done away with altogether.
The following states currently do not have a corporate practice of medicine Doctrine and would permit you to own shares in a health care company providing medical services.
Alabama Alaska District of Columbia Florida Louisiana Maine Mississippi Missouri
Montana Nebraska New Hampshire New Mexico Rhode Island South Dakota Utah
Vermont Virginia Wyoming
In those states where the Doctrine has been eliminated, anyone may own a corporation which renders medical care however, the corporation must employ a medical physician who is responsible for making all health care related decisions. The owner of the corporation, unless a medical doctor or an osteopathic physician (hereinafter, "MD") him or her self, may have no input with respect to any medical decision concerning any patient.
In all instances there is a medical director who is a licensed medical physician who makes all medical decisions. This medical director is employed by a medical professional corporation in those states where the "corporate practice of medicine" doctrine (the "Doctrine") is in effect, or, in some states where the Doctrine is not in effect, by a general business corporation. Additionally, the Practice may employ chiropractors, physical therapists, acupuncturists, phlebotomists, nurse practitioners, physician assistants, and various other types of health care providers