516-228-8766 schaum@schaumlaw.com

December 2022


Did you know that seventeen states permit business corporations or unlicensed individuals to employ physicians to conduct a medical practice?    Fortunately, New York is one of the thirty-three states which ban the so-called corporate practice of medicine.   As is true in almost all the states banning corporate practice exceptions are made for non-profit corporate entities engaged in health delivery- i.e.-hospitals and similar corporations.

The largest state permitting business entities to employ physicians is Florida with the reservation being that medical decision making must be in the provenance of the health care professional.  In Florida, the Walgreens’ and CVS’ of the world are rapidly expanding the availability of clinics within the walls of the pharmacies and employ physicians to compete in the medical marketplace.  Did you know – surprise- that through some twisted logic the State of Florida does NOT permit unlicensed corporations or individuals to employ either dentists or optometrists!

So yes- one who is not a physician may employ an eye surgeon – but- may not similarly employ an optometrist. New York has long upheld the belief, in all professions, that only those licensed shall be the owners of the entities delivering the services with the exception in health care, as earlier noted, of nonprofits devoted to health care.

As in all things, one can never say never. Over the years CVS has shown its ability to overcome obstacles.   Example- New York blinked to permit CVS to expand its licenses to blanket the state.  The ability of physicians to own pharmacies was abolished by the Legislature.

The professions have been successful in maintaining their primacy but as business opportunities continue to appear one cannot be sanguine and we must remain vigilant. 

Respectfully Submitted,
Schaum Law Offices