What's happening
This bill allows psychologists and physicians in New York to jointly form limited liability companies, corporations, and partnerships.
Why it matters
Facilitates integrated care. By allowing psychologists and physicians to jointly own and operate legal business entities, the bill encourages closer collaboration between mental and physical health professionals, potentially improving patient outcomes through easier coordination of care.
Reduces administrative barriers. Current law prevents psychologists and physicians from co-owning practices, forcing artificial divisions between disciplines. The bill removes these barriers, allowing for more modern, multidisciplinary healthcare organizations better suited to today’s healthcare landscape.
Maintains professional boundaries. The legislation includes safeguards ensuring that each professional operates only within their licensed scope of practice and cannot interfere with the clinical judgment of the other. This protects patients by preserving clear lines of responsibility and accountability within multidisciplinary practices.
Expands business opportunities. Psychologists and physicians will be able to form limited liability companies, corporations, and partnerships together, providing greater flexibility in structuring their practices, attracting investment, and managing liability, which could lead to more innovative healthcare business models.
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Who cares
Licensed psychologists
The bill would let them co-own professional LLCs, corporations and limited liability partnerships with physicians and share fees for services in the same practice.
Physicians
The bill would allow joint practices with psychologists while preserving professional scope-of-practice limits and making physicians’ clinical decision-making controlling in integrated professional corporations.
Patients needing medical and psychological care
The bill would permit jointly owned practices intended to coordinate physical and behavioral health care.
Physician–healthcare professional businesses
The bill would exempt corporations, limited liability corporations and partnerships between a medical doctor and a licensed healthcare professional from the Public Health Law’s hospital-regulation article.
Headline styles
Let Psychologists Form LLCs
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
2 Multi-sponsors
History
- Referred to higher education
- Referred to higher education
Full text
10 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4227
2019-2020 Regular Sessions
IN ASSEMBLY
February 1, 2019
Introduced by M. of A. WEPRIN, BUCHWALD -- Multi-Sponsored by -- M. of A. PAULIN, WALKER -- read once and referred to the Committee on Higher Education
AN ACT to amend the limited liability company law, the business corporation law, the partnership law, the public health law and the education law, in relation to allowing psychologists licensed under title VIII, article 153 of the education law to form limited liability companies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative intent. This bill would authorize physicians and psychologists 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 current law prohibit multidisciplinary practices, which prevents physicians and other providers, including psychologists, from co-owning a practice and collaborating and coordinating on patient care. Such restraints should not prevail, as they are no longer in keeping with best practices in modern health care which espouse the integration of behavioral and physical health.
§ 2. Subdivision (a) of section 1203 of the limited liability company law, as amended by chapter 475 of the laws of 2014, is amended to read as follows:
(a) Notwithstanding the education law or any other provision of law, one or more professionals each of whom is authorized by law to render a professional service within the state, or one or more professionals, at least one of whom is authorized by law to render a professional service within the state, may form, or cause to be formed, a professional service limited liability company for pecuniary profit under this article for the purpose of rendering the professional service or services as such professionals are authorized to practice. With respect to a profes-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08544-01-9
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sional service limited liability company formed to provide medical services as such services are defined in article 131 of the education law, each member of such limited liability company must be licensed pursuant to article 131 of the education law to practice medicine in this state. With respect to a professional service limited liability company formed to provide dental services as such services are defined in article 133 of the education law, each member of such limited liability company must be licensed pursuant to article 133 of the education law to practice dentistry in this state. With respect to a professional service limited liability company formed to provide veterinary services as such services are defined in article 135 of the education law, each member of such limited liability company must be licensed pursuant to article 135 of the education law to practice veterinary medicine in this state. With respect to a professional service limited liability company formed to provide professional engineering, land surveying, architectural, landscape architectural and/or geological services as such services are defined in article 145, article 147 and article 148 of the education law, each member of such limited liability company must be licensed pursuant to article 145, article 147 and/or article 148 of the education law to practice one or more of such professions in this state. With respect to a professional service limited liability company formed to provide licensed clinical social work services as such services are defined in article 154 of the education law, each member of such limited liability company shall be licensed pursuant to article 154 of the education law to practice licensed clinical social work in this state. With respect to a professional service limited liability company formed to provide creative arts therapy services as such services are defined in article 163 of the education law, each member of such limited liability company must be licensed pursuant to article 163 of the education law to practice creative arts therapy in this state. With respect to a professional service limited liability company formed to provide marriage and family therapy services as such services are defined in article 163 of the education law, each member of such limited liability company must be licensed pursuant to article 163 of the education law to practice marriage and family therapy in this state. With respect to a professional service limited liability company formed to provide mental health counseling services as such services are defined in article 163 of the education law, each member of such limited liability company must be licensed pursuant to article 163 of the education law to practice mental health counseling in this state. With respect to a professional service limited liability company formed to provide psychoanalysis services as such services are defined in article 163 of the education law, each member of such limited liability company must be licensed pursuant to article 163 of the education law to practice psychoanalysis in this state. With respect to a professional service limited liability company formed to provide applied behavior analysis services as such services are defined in article 167 of the education law, each member of such limited liability company must be licensed or certified pursuant to article 167 of the education law to practice applied behavior analysis in this state. In addition to engaging in such profession or professions, a professional service limited liability company may engage in any other business or activities as to which a limited liability company may be formed under section two hundred one of this chapter. Notwithstanding any other provision of this section, a professional service limited liability company (i) authorized to practice law may only engage in another profession or business or activities or (ii)
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which is engaged in a profession or other business or activities other than law may only engage in the practice of law, to the extent not prohibited by any other law of this state or any rule adopted by the appropriate appellate division of the supreme court or the court of appeals. Notwithstanding any other provision of this section, with respect to a limited liability company formed to provide integrated, multidisciplinary medical and psychological services, as such services are respectively defined under articles 131 and 153 of the education law, (i) each member of such limited liability company must be licensed pursuant to article 131 or article 153 of the education law to practice his or her profession in this state, (ii) each member shall only practice his or her profession as specified in his or her respective professional enabling statute under article 131 or article 153 of the education law, and (iii) the clinical integration of professional practices within an integrated, multidisciplinary entity organized under this section does not alter, expand or curtail the scope of practice of any of the individuals licensed under the statute of his or her respective professional enabling law, provided that: (a) members licensed under article 153 of the education law, shall not, directly or indirectly, interfere with the clinical judgment or legitimate clinical practice of a professional licensed under article 131, (b) members licensed under article 131 shall not, directly or indirectly, interfere with the clinical judgment or legitimate clinical practice of a professional licensed under article 153, and (c) individuals licensed under article 131 may not order or direct a professional licensed under article 153 of the education law to practice beyond the scope of his or her license under article 153 of the education law, even if supervised directly or indirectly by a professional licensed under article 131.
§ 3. Subdivision (b) of section 1207 of the limited liability company law, as amended by chapter 475 of the laws of 2014, is amended to read as follows:
(b) With respect to a professional service limited liability company formed to provide medical services as such services are defined in article 131 of the education law, each member of such limited liability company must be licensed pursuant to article 131 of the education law to practice medicine in this state. With respect to a professional service limited liability company formed to provide dental services as such services are defined in article 133 of the education law, each member of such limited liability company must be licensed pursuant to article 133 of the education law to practice dentistry in this state. With respect to a professional service limited liability company formed to provide veterinary services as such services are defined in article 135 of the education law, each member of such limited liability company must be licensed pursuant to article 135 of the education law to practice veterinary medicine in this state. With respect to a professional service limited liability company formed to provide professional engineering, land surveying, architectural, landscape architectural and/or geological services as such services are defined in article 145, article 147 and article 148 of the education law, each member of such limited liability company must be licensed pursuant to article 145, article 147 and/or article 148 of the education law to practice one or more of such professions in this state. With respect to a professional service limited liability company formed to provide licensed clinical social work services as such services are defined in article 154 of the education law, each member of such limited liability company shall be licensed pursuant to article 154 of the education law to practice licensed clin-
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ical social work in this state. With respect to a professional service limited liability company formed to provide creative arts therapy services as such services are defined in article 163 of the education law, each member of such limited liability company must be licensed pursuant to article 163 of the education law to practice creative arts therapy in this state. With respect to a professional service limited liability company formed to provide marriage and family therapy services as such services are defined in article 163 of the education law, each member of such limited liability company must be licensed pursuant to article 163 of the education law to practice marriage and family therapy in this state. With respect to a professional service limited liability company formed to provide mental health counseling services as such services are defined in article 163 of the education law, each member of such limited liability company must be licensed pursuant to article 163 of the education law to practice mental health counseling in this state. With respect to a professional service limited liability company formed to provide psychoanalysis services as such services are defined in article 163 of the education law, each member of such limited liability company must be licensed pursuant to article 163 of the education law to practice psychoanalysis in this state. With respect to a professional service limited liability company formed to provide applied behavior analysis services as such services are defined in article 167 of the education law, each member of such limited liability company must be licensed or certified pursuant to article 167 of the education law to practice applied behavior analysis in this state. Notwithstanding any other provision of this section, with respect to a professional service limited liability company formed to provide integrated, multidisciplinary medical and psychological services, as such services are respectively defined under articles 131 and 153 of the education law, (i) each member of such limited liability company must be licensed pursuant to article 131 or article 153 of the education law to practice his or her profession in this state, (ii) each member shall only practice his or her profession as specified in his or her respective professional enabling statute under article 131 or article 153 of the education law, and (iii) the clinical integration of professional practices within an integrated, multidisciplinary entity organized under this section does not alter, expand or curtail the scope of practice of any of the individuals licensed under the statute of his or her respective professional enabling law, provided that: (a) members licensed under article 153 of the education law, shall not, directly or indirectly, interfere with the clinical judgment or legitimate clinical practice of a professional licensed under article 131, (b) members licensed under article 131 shall not, directly or indirectly, interfere with the clinical judgment or legitimate clinical practice of a professional licensed under article 153, and (c) individuals licensed under article 131 may not order or direct a professional licensed under article 153 of the education law to practice beyond the scope of his or her license under article 153 of the education law, even if supervised directly or indirectly by a professional licensed under article 131.
§ 4. Subdivision (a) of section 1301 of the limited liability company law, as amended by chapter 475 of the laws of 2014, is amended to read as follows:
(a) "Foreign professional service limited liability company" means a professional service limited liability company, whether or not denominated as such, organized under the laws of a jurisdiction other than this state, (i) each of whose members and managers, if any, is a profes-
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