What does the law of New York say about splitting the medical board?
As a rule, the law of New York prohibits a split in the practice of medicine. This prohibition applies to both corporate and individual settings. In particular, Section 4501 (1) of the New York Health Act prohibits both enterprises and individual practitioners from practicing medicine for profit in a manner that includes “referring or recommending individuals to a doctor, dentist, hospital, medical institution or dispensary for forms of medical or dental care or treatment of any ailment or physical condition. " The law also prohibits physicians and other health care professionals and institutions from “accepting for medical or dental care or treatment any person who is directed or recommended for such care or treatment by a medical or dental referral agency that is in business or doing business in another country if medical or the dental referral service would be banned ... if the business were located or operated in New York. " Simply put, it is forbidden to give or receive payment for referrals of patients.
Does the law make any distinction between individual and corporate medicine practices when it comes to the distribution of contributions?
In New York, businesses and non-profit organizations are not allowed to practice medicine as such unless they are certified by the Public Health Council. Thus, any New York physician who shares or allows others to participate in medical service fees in a business entity will be discriminated against in accordance with section 6530 (19) of the Education Act in New York. Illegal collection of fees with the participation of business entities may take various forms. For example, in a recent case, the court ruled that the payment of a portion of the income of doctors from their private practice of the clinic to the university as a state of the doctors; university employment was an illegal divorce agreement when doctors were not employees of a corporation practicing university departments, and the university did not provide doctors with salaries, employee benefits, funds, supplies, staff, or insurance against abuse. (Odrich v Trs. Columbia Univ.) Illegal termination is not always associated with cash payments. Granting or receiving any valuable payments, such as credit, omission, discount, tips, etc., can qualify as a distribution of remuneration.
So, what is the corporate practice of medicine or illegal termination of the fee?
As an example, several court cases demonstrate the corporate practice of medicine and illegal termination of fees. In one case, the doctor entered into an agreement with his technical specialists, according to which technical specialists would perform EEG and ECHO tests, and the doctor would pay them 50% of the test fee. In another case, the corporation used doctors and provided them with office space and equipment in exchange for a percentage of their income. Another example is one of the doctors who has suspended his license to pay referral fees at the medical center for women, which meant his patients for abortions.
Are there any exceptions?
Yes. The law permits physicians to practice medicine and pay contributions through partnerships, professional corporations, university practice plans, hospitals, HMOs, and employee / student health programs. Although this is allowed, such mechanisms may be limited. For example, a doctor who is not a member of a partnership cannot share fees with a partnership.
What about employee payroll?
Paying salaries to employees is not an illegal distribution of fees, if the salary does not depend on the doctor’s income and constitutes a certain percentage of income. In certain circumstances, sharing with another physician is permitted, for example, in the case of a consultant or a professional subcontractor.
Is it a problem for the doctor to use a billing company or a collection agency?
It depends on the type of agreement between the doctor and the billing company. By default, many billing companies prefer a contingency model in which they charge a doctor a percentage of the doctor’s income. Although this is permitted for billing companies, this practice is the right way for a professional discipline for a doctor. The right way is to arrange a fixed rate reflecting the fair market value of the services. However, this is different from collection agencies. Payments of agencies to collect payments on random terms, depending on the amount of compensation, are not illegal termination.
What are the legal consequences of violating the law on charging and corporate medicine practice?
In the latter case, since enterprises are not allowed to practice medicine, this practice is considered “unlicensed medicine practice”, which is a class E felony. If convicted, defense can last from one to four years in prison and incur fines. The essence itself will be dissolved. Physicians who enter into contracts with unlicensed business entities may be charged with fraudulent medical practice or practice that goes beyond the approved scope and be subject to professional discipline. Illegal termination of slavery is a professional offense, and any doctor who is found to have violated the rules for exchanging fees will be disciplined.
