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Can a chiropractor form a corporation with an unlicensed individual to perform medical management services?

Lakewood, CA |

The corporation will perform billing services and contract with satellite facilities to provide health care to personal injury patients. The chiropractor and the unlicensed partner will be compensated on a percentage basis after each PI case settles.

Attorney Answers 3

Posted

Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania, Delaware, New Jersey or Federal law apply, unless otherwise specified.

That being said, you are asking a very complicated question involving the corporate practice of medicine, anti-kickback laws, etc. You should meet with an experience health care attorney for the state in which you intend to do business in order to iron out these issues - they are too complicated to answer on Avvo. Furthermore, you may want to consider one company for billing services and a second for the provision of health care services - I would be very hesitant to mix the two under any circumstances. The recent changes in health care law mean that an error in billing or a violation of antikickback and Stark laws can create felony liability for you if you are not careful.

/Christopher E. Ezold/
The Ezold Law Firm, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com

Answered 8 months ago. Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania, New Jersey or Federal law apply, unless otherwise specified. /Christopher E. Ezold/ The Ezold Law Firm, P.C. One Belmont Avenue, Suite 501 Bala Cynwyd, PA 19004 (610) 660-5585 Cezold@Ezoldlaw.com www.ezoldlaw.com

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Posted

Such an arrangement can be possible. But because it is fact specific, and there are plenty of prohibitions involved, you will need to find a healthcare attorney near you.

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Posted

I am not licensed in California, so you will have to seek advice from a California Attorney for a more precise analysis; but based on the information you have included, that they will not actually be performing any medical procedures, merely managing the case for the companies, I can't see why not. However, if the Choropractor begins to engage in separable chiropractic rather than case management or billable activities, my answer would probably change.

I am licensed in New Mexico and Pennsylvania, and therefore any discussion of issues related to other states must considered within that context. In addition, my comments are not intended to create a legal representation but merely to respond to the limited facts presented by the question. Any opinion herein is not meant as a precise statement of legal rights or as a recommendation of any particular course of action. A more complete legal review can be obtained through local counsel.

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3 comments

Asker

Posted

The billing will be done by the corporation, however the chiropractor also owns 2 of the satellite facilities.

Norman Antonio Stiteler

Norman Antonio Stiteler

Posted

This could be a problem for the chiroprator depending on the source of the patients. Are they workers compensation cases?

Asker

Posted

No, these are personal injury cases. The corporation will be managing each PI case and negotiating the settlement with the attorney.

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