Question

Discuss the corporate practice of medicine requirements and what happens if they are violated.

Answer 1

The corporate practice of medicine requirements:

When establishing a corporation to hire doctors in an outpatient clinic in compliance with the corporate practice of medicine regulations, the state's professional service corporate regulations must be followed. According to the law, every medical care provider must also be licensed. A physician licensed in the state must typically own all of the shares in the company providing the services, and all board members must likewise be licensed medical practitioners. However, under New York state law, all doctors who work for the professional service corporation are permitted to be stockholders. Normally, one doctor controls all the shares.

 

If the such corporate practice of medicine requirements are violated, there will be raising of various concerns, these points are stated below,

· Allowing corporations to practice medicine or hire physicians will lead to the commercialization of the medical profession;

· a corporation's duty to its shareholders might not line up with a physician's duty to his patients;

· a physician employed by a corporation might be prevented from exercising independent medical judgment.