One of the most common questions that our health care practice and/or facility clients ask when organizing their business and retaining staff is whether - or in what capacity - a health care related business may offer the services of licensed health care professionals. Generally speaking, most states have laws and regulations concerning the "corporate practice of medicine" that prohibit (with varying levels of prohibition and complexity) a general business corporation or unlicensed individual from practicing medicine.

In the State of New York, "professional services" can only be offered by licensed professional or authorized professional organizations. Therefore, a licensed medical professional or professional medical firm cannot share with other than members of their own professional medical firm the fees earned for providing professional services. Only an individual practitioner and certain qualified professional organizations are authorized to offer professional services. It is also important to note that licensed professionals or professional firms cannot share with other than members of their own professional firm the fees earned for providing professional services.

In the State of New Jersey, with limited exceptions, corporations are prohibited from employing physicians to provide medical services. A practitioner may be employed within the scope of the practitioner's licensed practice and in circumstances where quality control of the employee's professional practice can be and is lawfully supervised and evaluated by the employing practitioner. Thus, a practitioner with a plenary license shall not be employed by a practitioner with a limited license.

If you are interested in establishing and/or expanding a health care practice or facility, please contact Ilana Sable, Esq. for a comprehensive consultation to review and evaluate the options that are available to you.