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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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The corporate practice of medicine doctrine is a state-law prohibition on unlicensed or lay entities practicing medicine. The policy behind it bans lay organizations from practicing medicine, exercising undue influence over physicians’ medical decision-making, and splitting professional fees with physicians. The doctrine’s nature and scope vary by state but generally prohibit unlicensed entities from employing physicians, controlling a physician’s practice of medicine, or splitting professional fees or profits with physicians. In a time of growing investment in health care, these restrictions can impact how and to what extent business entities or investors may financially benefit from or share in the profits of physician practices.

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Ohio once had a corporate practice of medicine doctrine that resulted in physician practices incorporating under Ohio Revised Code Chapter 1785 as professional associations, which could only be owned by licensed professionals. In 1998 the Ohio legislature changed the law, allowing physicians to practice through, and be employed by, business corporations, limited liability companies, and other entities. Based on these changes, the Ohio State Medical Board in 2012 issued a position statement concluding that Ohio no longer has a corporate practice of medicine doctrine, with the following exceptions:

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Physicians should continue to be mindful of Ohio’s fee-splitting law that prohibits them from engaging in the division of fees for the referral of patients or receiving anything of value in return for a referral of a patient to utilize a particular service or business.<a href="#note 1" target="_self" rel="noopener">1</a>&nbsp;This could be relevant if a physician engages a manager to provide services for which the manager will be paid a percentage of fees.

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Cori R. Haper 937.443.6856 <a href="mailto:Cori.Haper@ThompsonHine.com">Cori.Haper@ThompsonHine.com</a>

This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.

<a id="note 1"></a>1 Ohio Revised Code Section 4731.22(B)(17).

https://admin.thompsonhine.com/wp-content/uploads/2022/04/Health_Care_Law_Update_-_Ohio_Corporate_Practice_of_Medicine_Doctrine.pdf

Ohio Corporate Practice of Medicine Doctrine

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