How to Avoid Allegations of Unauthorized Corporate Practice of Medicine

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

• 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.