Corporate Behavioral Health Care: “Not So Fast” – Behavioral Health Crash Course Webinar Series
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The document is a presentation discussing the corporate practice of medicine, addressing who can employ licensed professionals, management of professional corporations, and related legal obligations. It highlights the prohibition on general business entities practicing medicine, the implications of violating these laws, and considerations for national expansion of practices. The presentation also emphasizes the need for professionals to make clinical decisions and outlines potential penalties for non-compliance.
Corporate Behavioral Health Care: “Not So Fast” – Behavioral Health Crash Course Webinar Series
- 1. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. ebglaw.com Corporate Behavioral Healthcare: “Not So Fast” March 15, 2016
- 2. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com 2 This presentation has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice. Please consult your attorneys in connection with any fact-specific situation under federal, state, and/or local laws that may impose additional obligations on you and your company. Cisco WebEx can be used to record webinars/briefings. By participating in this webinar/briefing, you agree that your communications may be monitored or recorded at any time during the webinar/briefing. Attorney Advertising
- 3. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com Presented by Kevin J. Ryan Member of the Firm [email protected] 312-499-1421 3
- 4. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com This Webinar will provide: A discussion of the concept of the “corporate practice of medicine” and other professional services: • Who is allowed to employ licensed professionals • Professional corporations • The management of professional corporations • National expansion Scope of practice issues 4
- 5. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com Corporate Practice of Medicine General Business Entities May Not Practice Medicine Defined As: • “Any person who practices or attempts to practice, or who advertises or holds himself or herself out as practicing, any system or mode of treating the sick or afflicted in this state or who diagnoses, treats, operates for, or prescribes for any ailment, blemish, deformity, disease, disfigurement, disorder, injury, or other physical or mental condition of any person.” California Business and Professions Code §2502. • Similar Provisions in Other States 5
- 6. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com Corporate Practice of Medicine Practical Aspects on the Prohibition on the Corporate Practice of Medicine • Ownership of a Profession Practice is limited to Professional • Ownership of a Professional’s practice by lay persons is prohibited • Ownership of a Professional’s practice by a general business corporation is prohibited • Certain exceptions apply for ownership by hospitals and HMOs Management Agreements • Professional decision making must be left to professionals • Advertising of professional services can only be done by professional • Determination of how many patients to see in a given period of time cannot be decided by an unlicensed person • Determination of what tests are appropriate for a particular condition can only be done by professional 6
- 7. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com Corporate Practice of Medicine Violation of the Prohibition on Corporate Practice of Medicine • Can be a Felony • Fines • Prison • Licensure Action taken against professional • Can also pursue anyone who aids and abets the violation 7
- 8. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com Professional Corporations The “Friendly PC” Model • A professional corporation is formed by a professional associated with the management company • A Stock Transfer Agreement is entered into between the management company and the professional • The Stock Transfer Agreement allows the management company to designate the owner of the stock of the professional corporation • Certain states may restrict use of Stock Transfer Agreement 8
- 9. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com National Expansion Can set up a PC in each state in which management company will operate Can set up one PC and qualify it as a foreign corporation in other states Not all states allow foreign PCs 9
- 10. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com Scope of Practice State licensure laws govern scope of practice of professionals Scope of practice may vary by state Licensure in state of patient 10
- 11. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com Questions? Kevin J. Ryan Member of the Firm [email protected] 312-499-1421 11
- 12. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. | ebglaw.com Mental Health Parity Implementation: Are We There Yet? March 22 at 2:00 - 2:15 p.m. ET Lesley R. Yeung Managed Care and Behavioral Health March 29 at 2:00 - 2:15 p.m. ET Jackie Selby To register, please visit: http://www.ebglaw.com/events/ Upcoming Webinars Behavioral Health Crash Course Series 12
- 13. © 2016 Epstein Becker & Green, P.C. | All Rights Reserved. ebglaw.com Thank you. 13