Structure and Governance of Health Care Entities - Feb. 13 & 18

Question 1

What is the corporate practice of medicine doctrine? (Q)

Answer 1

This doctrine prohibits corporations or other business forms from practicing medicine, including hiring doctors or other professionals to practice medicine on the business’s behalf.

Question 2

Under the corporate practice of medicine doctrine, how may a business be allowed to provide medical care? (Q)

Answer 2

At most, a state’s professional-corporation laws may allow a business to provide medical care if it’s owned entirely by licensed medical professionals.

Question 3

What three different approaches do states use to sidestep the corporate practice of medicine doctrine? (Q)

Answer 3

States may reject the doctrine entirely, states may create an exception for nonprofit healthcare entities, states may create an exception for all hospitals.

Question 4

What does it mean that states may reject the corporate practice of medicine doctrine entirely? (Q)

Answer 4

States may reject the doctrine entirely, finding that a business that hires medical professionals isn’t practicing medicine itself but is only making medical treatments available through those professionals.

Question 5

What does it mean that states may create an exception for non profit health care facilities regarding the corporate practice of medicine doctrine? (Q)

Answer 5

States may create an exception for nonprofit healthcare entities, finding that because these entities are charitable and aren’t pressured to make profits, they aren’t likely to interfere with a provider’s medical judgment.

Question 6

What does it mean that states may create an exception for all hospitals regarding the corporate practice of medicine doctrine? (Q)

Answer 6

States may create an exception for all hospitals, including for-profit ones, finding that special laws requiring hospitals to provide care impliedly allow hospitals to employ professionals to provide that care.