What Is . . . the Corporate Practice of Medicine and Fee-Splitting? The Corporate Practice of Medicine Prohibition.

Common Exceptions As is true of most legal prohibitions, the corporate practice of medicine prohibition has exceptions. Prohibitions Implied in State Medical Practice Acts In states where neither legislation, case law, nor attorney general opinions directly express the prohibition in black and white terms, the prohibition may nevertheless be implied within the states' medical practice acts themselves. These are requirements that a corporation cannot meet.[17] Thus, the 1977 opinion concludes that the practice of medicine by a general corporation is illegal and that any licensed physician who aids or abets a corporation to illegally practice medicine can be charged with unprofessional conduct. The prohibition generally bans nonlicensed persons, or certain business entities, including corporations, from employing or contracting with physicians to provide medical professional services. [Extracted from the article]