Malecki Brooks Ford Law Group, LLC | Healthcare Law

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Can I Own A Medical Practice With A __________? Your Primer on Related Professions

In this day of trying to maximize the services provided at a medical practice, we are often asked about bringing in new partners who provide services different from the original owners. Often, professionals are unaware that Illinois law is clear and restricts the ability of certain professionals to form or own a business together. This article provides basic information for your consideration.

Same Profession

A group of individuals who render the same professional services and are who are licensed under the same Illinois law can own a practice together. For example, a person licensed under the Medical Practice Act (“MPA”) can own a practice with any number of individuals who are also licensed under the MPA. However, for example, an individual licensed under the MPA CANNOT own a practice with an individual licensed under the Nurse Practice Act or the Clinical Psychologist Licensing Act.

This also applies to certain entities. A medical corporation and an individual licensed by the MPA can together own a PLLC medical practice. However, a PLLC owned by professionals licensed under the MPA CANNOT own a medical corporation regardless of who else may own the medical corporation.

Related Professions

There are exceptions to the above. Illinois law allows certain “related professions” to own professional entities together. These related professions are as follows:

  1. Architecture/structural engineering/land surveying;
  2. Medicine/podiatry/dentistry/optometry;
  3. Clinical psychology/social work or clinical social work/marriage and family therapy/professional counseling or clinical professional counseling/sex offender evaluations; and
  4. Acupuncture/massage/naprapathy/occupational therapy/physical therapy/speech language therapy.

A frequent inquiry we receive involves behavioral health therapy services. According to Illinois law, a psychiatrist licensed under the MPA CANNOT own a professional entity with a clinical psychologist or a social worker, but a clinical psychologist and a social worker can own a professional entity together.

Another frequent inquiry involves medical spas or “medspas.” While a physician, a podiatrist, a dentist, and an optometrist can own a practice together, medspas are considered to solely be a medical practice and can only be owned by physicians licensed under the MPA.

Conclusion

Illinois law is clear about the ownership of professional entities. It is best practice to verify that the professional entity’s ownership structure is legally sound before starting a new business or adding a partner. Laws vary from state to state, and we recommend an attorney with knowledge of professional entity ownership be consulted.

This article was written by Raya Bogard.

For further information, contact Raya at [email protected] or send a message through our contact form.