H-4301.2 _______________________________________________
HOUSE BILL 2867
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State of Washington 55th Legislature 1998 Regular Session
By Representative Dyer
Read first time 01/21/98. Referred to Committee on Health Care.
AN ACT Relating to the corporate practice of medicine; and adding new sections to chapter 18.100 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. (1) The legislature finds and declares that the corporate practice of medicine doctrine, articulated in early court holdings in this state, has become outdated by the fundamental changes occurring in the health care delivery system throughout the nation and in this state. The ban on the corporate practice of medicine by the courts operates as an impediment to innovative practice arrangements and organizational configurations affecting physicians and other health care practitioners in the evolving health care market. The doctrine unduly restricts the ability of corporations to employ physicians and other health care providers, limits the ownership of physician practices, and affects the profits derived from the practices of licensed health care providers. This doctrine has already been eroded by law and in practice. It is the intent of the legislature therefore to abrogate the corporate practice of medicine doctrine to allow for the development of flexible and appropriate organizational structures that best serve the interests and needs of the public health, including access by patients to necessary health services. The provisions of this chapter are to be liberally construed to effectuate these stated purposes.
(2) Nothing in this chapter shall operate to relieve health care providers from their professional responsibilities as provided in law nor affect their obligations to comply with laws addressing fraud.
NEW SECTION. Sec. 2. (1) The corporate practice of medicine doctrine as it applies to health care providers, other than dentists, veterinarians, or hospitals licensed pursuant to chapters 18.32, 18.92, and 70.41 RCW respectively, is hereby abrogated, and health care providers may form and use any type of business organization permitted by law.
(2) A professional service corporation, professional limited liability company, or professional limited liability partnership may convert to a business corporation, limited liability company, or limited liability partnership by amending its articles of incorporation, certificate of formation, or other basic business organizational charter or document, and file the amendment with the secretary of state in accordance with law.
NEW SECTION. Sec. 3. Sections 1 and 2 of this act are each added to chapter 18.100 RCW.
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