House Bill 2098 (2011) allows entities to be jointly owned by physicians and physician assistants subject to certain limitations, including percent of ownership by physician assistants. There are annual reporting requirements for physician and physician assistant owners.
Highlights include:
- the organizers must be physicians and a physician or physicians must control and manage the entity
- for corporations, the professional services offered by the entity must consist of one or more of the following:
carrying out research in the public interest in medical science, medical economics, public health, sociology, or a related field;
supporting medical education in medical schools through grants or scholarships;
developing the capabilities of individuals or institutions studying, teaching, or practicing medicine or acting as a physician assistant;
delivering health care to the public; or
instructing the public regarding medical science, public health, hygiene, or a related matter
- for corporations, professional associations or professional limited liability companies, physician assistants cannot be officers
- for partnerships, physician assistants cannot be a general partner nor can any physician assistants participate in the management of the partnership
- a physician assistant or combination of physician assistants can have no more than a minority ownership interest
- the ownership interest of an individual physician assistant cannot not equal or exceed the ownership interest of any individual physician owner
- a physician assistant or combination of physician assistants cannot interfere with the practice of medicine by a physician owner or the supervision of physician assistants by a physician owner
- a physician cannot contract with, or be employed by, a physician assistant as a supervising physician
- a physician assistant cannot contract with or employ a physician to be his/her supervising physician
- a physician assistant cannot contract with or employ a physician to supervise another physician in the entity who, in turn, supervises the physician assistant
- nothing in statute may be construed to allow the practice of medicine by someone not licensed as a physician, or to allow a person not licensed as a physician to direct the activities of a physician in the practice of medicine
Applicability:
- The restrictions on ownership interests apply to entities formed on or after June 17, 2011.
- Entities formed before June 17, 2011 are governed by the law in effect at the time the interest was acquired.
Joint Ownership - Summary of Legislation & Requirements
Reporting forms:
For entities formed before June 17, 2011, fill out the Jointly Owned Entity Annual Reporting Packet - Before June 17, 2011
For entities formed on or after June 17, 2011, fill out the Joint Ownership Annual Reporting Packet - On or After June 17, 2011
Note: The TMB cannot give legal advice. Please consult an attorney if you have questions regarding whether or not your entity is required to report. However, the owners of entities that have not been properly reported can be investigated.