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Can I, a non-physician, open a pain practice in Georgia and

hire a physician?...
Can I, a non-physician, open a pain practice in Georgia and hire a physician?
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Answered in 4 minutes by:
11/3/2012
MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25,285
Experience: Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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Thank you for the post, I am happy to assist you by answering your questions. No, in Clower v. Orthalliance, the court indicated that Ga. Code § 43-34-37 still does not allow a corporation to employ a professional to perform his or her profession on behalf of the corporation. See Clower v. Orthalliance, Inc., 337 F. Supp. 2d 1322, 1330 (N.D. Ga. 2004)

Please let me know if you have any follow up questions.
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Customer reply replied 5 years ago


This is odd because I know of this several instances where this is going on, and I wonder how they are getting around this law. Any ideas?

Yes, if the physician owns a practice but retains a practice management firm to take care of all matters outside of patient care, it actually functions as a quasi partnership because the management firm get a percentage of all reimbursements generated by the physician/practice in exchange for its services. In the alternative, a company can own a surgery center, and the physician utilize the center and the company obtain the technical component but not the professional component of reimbursements.

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Customer reply replied 5 years ago


They are hiring the physicians. I have seen a contract and know what the salary is. Any other ideas?

No, they are likely operating on the fact that GA does not have a statute expressly prohibiting the practice of non-licensed providers owning a medical practice, and thinking that because there is no statute expressly prohibiting the practice that it is authorized. For your reference, here is the applicable statute: http://law.justia.com/codes/georgia/2010/title-33/chapter-18/33-18-17/

 

Also, see http://oversight.house.gov/wp-content/uploads/2012/04/4-25-12-Survey-of-State-Laws-Governing-the-Corporate-Practice-of-Dentistry.pdf (page 17)

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Customer reply replied 5 years ago


So I could do it, but there would be risks? And if so, what are the risks?

The risk is that your operation can be shut down by the state and you fined for the unauthorized practice of medicine. I cannot advise you to open up a medical practice in good conscience. A local attorney may be able to advise you of the nuances of structuring your practice so as to toe the line, but that would require at least one meeting to identify the proper model and operations.
MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25,285
Experience: Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
Verified
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