Permits doctors of chiropractic to form limited liability companies

Summary of specific provisions

This legislation would amend § 1203(a) and § 1207(b) and § 1301(a) of the limited liability law, 1503(a) of the business corporation law, 121-1500(q) and § 121-1502(q) of the partnership law and § 2801(l) of the public health law to allow chiropractors licensed under Title VIII, Article 132 of the education law. Amends section 6530 of the Education law to make clear that such business entities would not be prohibited from pooling fees.

Justification

This bill would authorize physicians and chiropractors to form limited liability companies, professional corporations and partnerships with one another. In the last two decades, practice in and among the health professions has changed. Artificial barriers in law prohibiting multidisciplinary practices, known as "integrative medicine," which prevents physicians and other providers, including complementary and alternative medicine (CAM) practitioners like chiropractors, from co-owning a practice and collaborating and coordinating on patient care are no longer valid and should not prevail.

While an integrative medical practice appears to be permissible on a macro level, New York state law prohibits collaborative, multidisciplinary practice ownership between physicians and chiropractors. In New York, current law allows medical doctors to form business entities only with other medical doctors. This law would not prevent this practice. Instead, this law recognizes that as the nature of health care changes, it is imperative that there be flexibility to allow chiropractors, who are duly licensed, the ability to be a co-owner or a joint, practice with physicians.

Currently, if a doctor of chiropractic wants to establish a practice with a medical doctor, the doctor of chiropractic must give up their independent practice and become an employee of the medical doctor. This limits the business making decisions of both providers and thus may limit the ability of patients to receive the most effective and efficient healthcare. In today's health care milieu, such artificial barriers to business relationships which inhibit care coordination and collaboration are no longer tenable.

Having multiple health care providers in the same practice creates ease of access, care coordination and collaboration that can only benefit patients. This saves the patient precious time and resources by allowing patient access to multiple health care services in one location and practice.

This legislation is designed to clarify that each provider can practice only within their respective scope of practice and underscores that a doctor of chiropractic would not and could not be in a position to make medical decisions for the practice as a whole. Only the medical doctor can make medical decisions. In addition, this legislation also makes clear that a medical doctor cannot order or direct a chiropractor to practice outside of his or her scope, even if supervised.

As the nature of health care continues to change, this legislation is needed to allow practitioners to find ways to maintain healthy care coordination and collaboration, and sustainable joint practices for the benefit of patients.

Prior legislative history

2013: Passed the Senate (S. 1940/A.5956) 2011-2012: Passed the Senate (S. 5012C/A.7403C)

Fiscal implications

None to the State.

Effective date

This act shall take effect on the thirtieth day after it shall have became law.