corporate practice of medicine

corporate practice of medicine

(in the United States) the role of nonpracticing physicians or nonprofessional corporations in employment relationships with physicians engaged in providing health care. Laws governing corporate practice of medicine vary among different states, but generally they require practitioner control over diagnosis and treatment, practitioner setting of fees, a reasonable relationship between services provided by layperson or corporation and amounts charged to the practitioner, and an unaltered practitioner-patient relationship.
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Many states have enacted laws for medical groups, commonly referred to as corporate practice of medicine or CPOM laws.
The public policy prohibition against the corporate practice of medicine by hospitals stems from concern about lay control over profession medical decisions.
In this theoretical examination, the term corporate practice of medicine refers to any provision of healthcare services for a profit.
In late 1998, the California Medical Association joined a physician lawsuit against UCLA School of Medicine, charging the school with violating the state bar against the corporate practice of medicine.
McMurray said California laws such as the Knox-Keene Act of 1975 and the ban on the corporate practice of medicine are intended to prevent unlicensed persons from interfering with or influencing a physician's professional judgment.
Should the merger go through, HCP will allegedly be in violation of the ban on corporate practice of medicine.
This is good news for hospital-affiliated groups, which now may be structured (subject to state corporate practice of medicine prohibitions) as physician-hospital joint ventures.
She also advises health care clients on a variety of regulatory issues such as Medicare compliance and reimbursement, federal and state anti-kickback and self-referral laws, and state regulatory issues such as corporate practice of medicine and fee-splitting prohibitions.
The corporate practice of medicine is a concept that has long been anathema to the American Medical Association, whose crusade against it began in state legislatures after World War II.
Although this structure is perhaps the safest way to avoid price-fixing exposure, ancillary legal issues may arise, including the corporate practice of medicine doctrine (discussed below) and licensing issues under state insurance or other regulatory laws.
This structure is usually found in states with strong prohibitions on the corporate practice of medicine, such as California.
The DJA includes: fraud, misrepresentation, corporate practice of medicine, unjust enrichment, practicing psychology without a license and illegal fee splitting.
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