Corporate Practice of Medicine
The corporate practice of medicine doctrine is of particular importance in California, as it is strictly construed in this state and arises in the context of many transactions involving physicians and non-physicians, as well as in transactions involving other licensed professionals and non-licensees. Many situations that present fraud and abuse or kickback issues, as well as fee-splitting concerns, also raise corporate practice of medicine issues. The involvement of a physician or other professional in a transaction raising corporate practice of medicine issues can result in disciplinary action for unprofessional conduct, so these issues cannot be taken lightly by physicians or other professionals. The negotiation and drafting of management agreements often present these issues, particularly where the manager seeks to exercise control over or participate financially in the professional practice, but corporate practice of medicine issues can arise in many other contexts, as well.
We have extensive experience advising clients regarding these issues and in structuring transactions and preparing appropriate documentation to avoid problems in this area.