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Who cares
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Sponsors
3 Co-sponsors
History
- Print number 5862a
- Amend and recommit to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Authorizes certain licensed health service professionals to form limited liability companies
In Assembly Committee · Higher Education · Sponsor Crystal Peoples-Stokes
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the limited liability company law, the business corporation law, the partnership law, the education law and the public health law, in relation to authorizing certain licensed health services professionals to form limited liability companies
Purpose
To allow various licensed allied professionals to form multidisciplinary partnerships limited liability companies and professional service corporation.
Summary of provisions
Section 1-3 would amend section of the limited liability company law to allow the following licensed professionals to form multidisciplinary professional; service limited liability companies: physicians, chiropractors, pharmacists, midwives, podiatrist, optometrist, ophthalmic dispensers, psychologists, social workers, massage therapists, occupational therapist and nurse practitioners.
Section 4 would amend the business corporation law to allow the aforementioned licensed health professionals to form professional service corporations.
Sections 5 and 6 would amend the partnership law to allow licensed health professionals to form limited liability partnerships.
Sections 7-9 would amend the limited liability company law to allow licensed health professionals to form professional service limited liability companies.
Section 10 would amend the business corporation law to allow licensed health professionals to form professional service corporations.
Sections 11 and 12 would amend the partnership law to allow licensed health professionals to form limited liability partnerships.
Section 13 would amend the section 6509-a of the education law to allow for the pooling of fees or monies by multidisciplinary services practice form under the partnership, business corporation or LLC laws.
Section 14 would amend section 6530 of the education law to allow licensed health professionals to share fees with a physician for professionals services rendered as part of a multidisciplinary services practice.
Section 15 would amend section 6531 of the education law to allow for the pooling of fees or monies by multidisciplinary services practice formed under the partnership, business corporation or LLC laws.
Section 16 would amend section 2801 of the public health law to ensure that a multidisciplinary services practice does not fall under the definition of hospital.
Justification
The healthcare field is changing rapidly. Collaboration and the ability to offer multidisciplinary services are the present and future. The advent of patient-centered medical homes, health homes and accountable care organizations all promise to shift health care delivery to more collaborative models. As such, New York State's prohibitions on the formation of limited liability companies, partnerships and professional service corporations by allied health professionals are outdated. This bill seeks to further bring collaboration among licensed health professionals into the 21St century by allowing various professionals to integrate their services under one roof as a partnership LLC or professional service corporation. In permitting such organizational entities to be formed by licensed professionals, it broadens the array of collaborative option available to health care practitioners looking to offer multidisciplinary services. The bill does not change the existing rules surrounding the organizational structures addressed through the legislation. It recognizes that the allied health professions should be treated equally, rather disparately through a piecemeal approach to allowing for a broader array of organizational formation.
Finally, the bill would prohibit the alteration, expansion or curtailing of the scope of practice of any licensed professional providing services through one of the newly formed organizations and provide that no member or partner shall interfere with the clinical judgment or practice of another member. These protections are critical to guarding against the exercise of undue influence over another licensed professional.
Legislative history
New bill.
Fiscal implications
None to the State.
Effective date
30 days after becoming law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.