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What is the "corporate practice of medicine"?
The corporate practice of medicine is a legal doctrine, which generally prohibits corporations, entities or individuals (i.e. non-physicians) from practicing medicine.
A general summary of the corporate practice of medicine doctrine is that it ... ”
“... he current exemptions from the prohibition of the corporate practice of medicine to include a hospital in a county with a population of less than 50,000, a hospital designated as a critical access hospital, or a hospital that is a sole community hospital.
... ”
“... cians as an exception to the general rule against corporate practice of medicine.
162.001(c) Biennial Recertification – instructions, Checklist
162.001(c) Biennial Recertification application
If you have any questions, please send an email to Nonprofits@tmb.state.tx.us &nbs ... ”
“... cians as an exception to the general rule against corporate practice of medicine.
162.001(c) Initial – Instructions, Checklist
162.001(c) Initial - Application
If you have any questions, please send an email to Nonprofits@tmb.state.tx.us
Biennial Recertificat ... ”
Description: Rule Changes March 07, 2012
Document: ... e amendment to §177.17, relating to Exceptions to Corporate Practice of Medicine Doctrine, consistent with SB 894 (82nd Regular Legislative Session), provides that physicians have certain rights when employed by a hospital that provides professional liability coverage.
...
Description: Rule Changes December 22 and 25, 2011
Document: ... d entities. New §177.17, concerning Exceptions to Corporate Practice of Medicine Doctrine, sets out exceptions to the corporate practice of medicine doctrine that prohibits physicians from being directly employed by nonphysicians. http://www.sos.state.tx.us/texreg/archive/December162011/adopted/22.E ...
Description: Press Release August 31, 2006 (PDF File)
Document: ... ation in the areas of geriatrics, ethics, and the corporate practice of medicine each year of the order, and assessing an administrative penalty of $3,000. The action was based on allegations that Dr. Anwar failed to meet the standard of care in treating six elderly patients in nursing homes and hos ...
Description: Press Release February 23, 2012 (PDF File)
Document: ... e amendment to §177.17, relating to Exceptions to Corporate Practice of Medicine Doctrine, consistent with SB 894 (82nd Regular Legislative Session), provides that physicians have certain rights when employed by a hospital that provides professional liability coverage. DISCIPLINARY ACTIONS REVOCATIO ...
Description: Press Release September 07, 2012 (PDF File)
Document: ... mendment to §177.17, concerning the Exceptions to Corporate Practice of Medicine Doctrine, provides an exception to doctrine for rural health clinics that meet the requirements of 42 CFR 491.8.
Chapter 187, PROCEDURAL RULES: Amendment to §187.18 concerning Informal Show Compliance Proceeding and Se ...
Description: TEXAS PHYSICIANS ASSISTANT BOARD Physician Assistant Owned Clinics Ad Hoc Committee December 3, 2010
Document: ... mploy physicians, they are in violation of either corporate practice of medicine prohibitions or requirements pertaining to physician supervision and delegation. Accordingly, a proposed amendment to Physician Assistant Board Rule 185.16 was drafted, adding Subsection 185.16(e) to permit PAs to own h ...
Description: Medical Board 2006 August Executive TEXAS MEDICAL BOARD EXECUTIVE COMMITTEE AUGUST 24, 2006
Document: ... ation of Anesthesiologist Assistants (undated) P. Corporate Practice of Medicine (undated)
Agenda item #4, Report regarding Policies of the Governing Boards adopted and made effective after September 1, 2005. Ms. Shackelford gave a report on the policies of the Governing Boards adopted and made eff ...
Description: Medical Board 2010 - June - Full board Committee Meeting Minutes
Document: ... cerning the confidentiality of complaints and the corporate practice of medicine for hospitals directly hiring physicians. Tony Merritt in the Information Technology department gave an update on the evaluation of a teleconferencing system for board members. The board directed staff to schedule a dem ...
Description: Medical Board 2012 - August - Full Board Committee Meeting Minutes
Document: ... 177. Business Organizations 177.17 Exceptions to Corporate Practice of Medicine Doctrine Ms. Robinson gave a brief summary of proposed amendments to Chapter 177. Written comments were received and reviewed. No one signed-in to present oral comments. After discussion, Dr. Arambula moved, Mr. Gallard ...
Description: Medical Board 2012 - February - Full board Committee Meeting Minutes
Document: ... ion passed to adopt Section 177.17, Exceptions to Corporate Practice of Medicine Doctrine, as published. Agenda item #30, Open forum for public comments. Dave Claunch, Mayor of West Lake Hills, signed-in to present oral comments regarding proposed rules for tick-born disease. Agenda item #26, Discus ...
Description: Medical Board 2012 - June - Licensure Committee Meeting Minutes
Document: ... he motion passed.
c. 22 TAC 177.17 Exceptions to Corporate Practice of Medicine
Dr. Crocker moved to recommend to the full Board that the rules be published as presented in the Texas Register for public comment. Mr. Gallardo seconded. All voted in favor. The motion passed.
Agenda Item 6 - Discuss ...
Description: Medical Board 2012 - June - Licensure Committee - Agenda Item 5c: Proposed Changes to Board Rule 177
Document: ... 2012
V1-177-Initial Draft
177.17. Exceptions to Corporate Practice of Medicine Doctrine (a) Corporate Practice of Medicine Doctrine. The corporate practice of medicine doctrine is a legal doctrine, which generally prohibits corporations, entities or non-physicians from practicing medicine. The pro ...
Description: Texas Medical Board - Complaint Form: The Board investigates complaints against physicians, physician assistants, acupuncturists, surgical assistants, respiratory care practitioners, medical radiologic technologists, medical physicists, and perfusionists. If you wish to complain to the Board, please ...
Document: ... regarding the unlicensed practice of medicine or corporate practice of medicine.
HOW DO I FILE A COMPLAINT?
A complaint must b
e submitted in writing. You may mail in your complaint or submit it on the TMB Website.
HOW ARE COMPLAINTS INVESTIGATED AND WILL I BE TOLD THE STAUTS OF MY COMPLAINT ...
Description: List of 162.001(b) Non-Profit Health Organizations, as of 04/28/2025 *NOTE: All organizations ever certified are listed regardless of current status. Only those without a decertification date are considered active. Decertifications are due to non-renewal. ...
Document: ... OW, M.D. 700 EAST MARSHALL AVE GPA HEALTH WATCH CORPORATE CARE, INC KATHY ENOCHS 12770 MERIT DR 2ND FLOOR PARK CENTRAL 8 STE 200 GRACE CLINIC OF LUBBOCK DUNCAN BURKHOLDER, MD 4515 MARSHA SHARP FREEWAY GRACE CLINIC SERVICES, INC RANDALL S HICKLE, M.D. GRANITE ANESTHESIA SCOTT LAROQUE 291 ...
Description: List of 162.001(c) Non-Profit Charitable Health Centers as of 4/28/2025 *NOTE: All organizations ever certified are listed regardless of current status. Only those without a decertification date are considered active. Decertifications are due to non-renewal. ...
Document: ... NTEZ HOUSTON COMMUNITY HEALTH CENTERS, INC 7001 CORPORATE DR. #120 ANDREA CARACOSTIS HOPE CLINIC WACO 1600 PROVIDENCE DRIVE DR. JACKSON GRIGGS HEART OF TEXAS COMMUNITY HEALTH CENTER, INC. BEEVILLE 407 N ADAMS MARY H. RAMIREZ HEALTH, INCORPORATED-HEALTH EDUCATION AWARENESS LEADS TO HEALIN ...
“The corporate practice of medicine is a legal doctrine, which generally prohibits corporations, entities or individuals (i.e. non-physicians) from practicing medicine.A general summary of the corporate practice of medicine doctrine is that it prohibits physicians from entering into partnerships, emp ... ”
What is the "corporate practice of medicine"?
The corporate practice of medicine is a legal doctrine, which generally prohibits corporations, entities or individuals (i.e. non-physicians) from practicing medicine.
A general summary of the corporate practice of medicine doctrine is that it prohibits physicians from entering into partnerships, employee relationships, fee splitting, or other situations with non-physicians where the physician's practice of medicine is in any way controlled or directed by, or fees shared with a non-physician. Generally, physicians may enter into independent contractor arrangements with non-physicians. However, whether an independent contractor situation exists is a question of law and attendant facts.
Section 165.156 of the Medical Practice Act makes it unlawful for any individual, partnership, trust, association or corporation by use of any letters, words, or terms, as an affix on stationery or advertisements or in any other manner, to indicate the individual, partnership, trust, association or corporation is entitled to practice medicine if the individual or entity is not licensed to do so.
Section 164.052(a)(13) of the Medical Practice Act authorizes disciplinary action against any licensee for impersonation of a licensed practitioner or permitting another to use his license to practice medicine. Section 164.052(a)(17) authorizes disciplinary action against a practitioner for aiding or abetting, directly or indirectly, the practice of medicine by non-licensed individuals or entities.
Beginning in 2011, the Texas Legislature enacted laws authorizing certain types of hospitals and specific hospital districts to directly hire physicians.
Because of the highly technical aspects of this doctrine, a physician should consult with private counsel regarding any actual or contemplated arrangement. Please be advised that the Board staff is not authorized to provide private legal advice.
The following case law/legal authority may be helpful in the analysis and are available from any local law library or private counsel:
a. Garcia v. Texas State Board of Medical Examiners, 384 F.Supp. 434 (W.D. Texas 1974);
b. F.W.B. Rockett v. Texas State Board of Medical Examiners, 287 S.W.2d 190 (Tex. Civ.App.- San Antonio 1956, writ ref'd n.r.e.);
c. Watt v. Texas State Board of Medical Examiners, 303 S.W.2d 884 (Tex. Civ. App.- Dallas 1957, writ ref'd n.r.e.);
d. Flynn Brothers, Inc. v. First Medical Associates, 715 S.W.2d 782 (Tex. Civ. App.- Dallas 1986, writ ref'd n.r.e.)
e. Woodson v. Scott & White Hospital, 186 S.W.2d 720 (Tex. App. 1945, writ ref'd w.o.m.)
f. Tex. Atty. Gen. Op. JM-1042 (1989)
g. Tex. Atty. Gen. Op. WW-278 (1957).
h. Tex. Atty. Gen. Op. JM 369 (1985)
i. Tex. Atty. Gen. Op. DM-138 (1992)
j. Tex. Atty. Gen. Op. M-551 (1970)
k. The Medical Practice Act, Texas Occupations Code Annotated, Title 3, Subtitle B as amended, section 162.001.
l. The Medical Practice Act, Texas Occupations Code Annotated, Title 3, Subtitle B as amended, section 162.001.
m. The Medical Practice Act, Texas Occupations Code Annotated, Title 3, Subtitle B as amended, 151.055.
n. Occupations Code, section 102.001.