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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118199
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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can a non physician own a clinic that provides medical care

Resolved Question:

can a non physician own a clinic that provides medical care in oregon. They hire an independent contractor physician to see patients and provide Rx. The patients pay the clinic. The charts remain in possession of the clinic. Is this okay? The doctor is either paid per person or hourly. and lastly, can that doctor be "medical director" if he/she not owner of clinic?
Submitted: 7 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 7 years ago.

Oregon has a limited common law ban on the corporate practice of medicine.

See: Or. Rev. Stat. §677.080; State ex rel. Sisemore v. Standard Optical Co., 182 Or. 452, 188 P.2d 309 (1947) (corporate employment of optometrists is unlawful and contrary to public policy because only individuals, not corporations, can be licensed and therefore corporations employing optometrists violated the requirement that a person engaged in the practice of medicine be licensed); Neiss v. Ehlers, 135 Or. App. 218, 899 P.2d 700 (1995) (court limits scope of Sisemore to situations where corporation controls professional services). This means that a licensed physician needs to own and hire the physician employees.

 


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Customer: replied 7 years ago.
so a specialty clinic - like a med spa or a weight loss clinic - must be owned in part or full by a licensed physician?
Expert:  Law Educator, Esq. replied 7 years ago.
Anything that deals with practice of medicine must be owned by a licensed physician because only the physician can practice medicine in the state.
Customer: replied 7 years ago.
thanks. so even hospitals fall under this rule?
Expert:  Law Educator, Esq. replied 7 years ago.
Hospitals are corporate ownership run by doctors who are licensed to practice medicine and must have doctors in place who are solely liable for all medical aspects of the practice (chief of staff, chief executive officer and etc) and hospitals fall under different guidelines than medical practices and clinics.
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