& Corporate Practice of Medicine
2012 ATA Annual Meeting
Alexis S. Gilroy, J.D.
April 30, 2012
On-Going Legal Hurdles for Telemedicine
Prescribing medication without in-person exam
Credentialing and Privileging
Privacy and Data Security (HIPAA & HITECH)
Intellectual Property (Who owns the data?)
Corporate Practice of Medicine &
Splitting Fees with Professionals
One without a license by the medical board has
no professional rights, privileges or powers
and therefore may not engage in the practice of
medicine directly or indirectly by employing
Some States prohibit fee-splitting or revenue-
sharing with physicians.
Long-standing exemptions in most States
Where do the States Stand?
•Around 30 States have some form of CPOM or
•Some States are notably active with enforcing
CPOM requirements—NY, CA, NC, TX
So, What's the Big Deal?
Protecting a generation of
Licensed better business
Professional's Vs. economics
Integrity for within delivery
Decision-Making of Healthcare
So, can we let professionals focus on
healthcare while others handle business issues
Potential Corporate Relationship with
-Professional Management -Equipment
Services Company -Administrative
Documentation must carefully maintain corporate separateness and
each party's responsibilities in an arms-length manner.
*Corporate Practice of Medicine evolves and states differ widely in enforcement and doctrine. This slide is for
demonstration purposes only.
Practical Issue to Consider
•Employer/Contractor of Professionals
(including Nurses & NPs)
Contact for Additional Information
Alexis S. Gilroy
Nelson Mullins Riley & Scarborough
101 Constitution Ave., NW
Washington, DC 20001