What is...the Corporate Practice of Medicine and Fee-Splitting?

The business of providing medical care is in the midst of dramatic change. To keep pace with evolving economics and reimbursement practices, the small physician practice, which stood as the standard arrangement for so long, is giving way to larger, more corporate models. These models have led to a highly regulated business environment in the health care services industry, which involves interpreting areas of the law without clear guide rails. The corporate practice of medicine and fee-splitting prohibitions, depending on which state’s laws you are interpreting, can be one of those areas of the law that lack those guide rails. Advising clients on compliance with the prohibitions may require more finesse and risk analysis than legal research in some jurisdictions.

This primer on the prohibitions provides practitioners with

• the historical context in which they arose;
• a concise discussion of each of the prohibitions and how they affect the business of medicine;
• what they mean for the ownership and day-to-day operation of healthcare practices; and
• practical assistance in helping your clients navigate this particular area of law.