State laws and rules generally limit the practice of medicine and nursing to licensed individuals. When a physician or registered professional nurse is not practicing as a sole practitioner but through an entity, the provider has to consider that state rules typically prohibit a non-physician from practicing medicine and a non-nurse from practicing professional nursing. For example, in Georgia, an entity can’t be licensed to practice medicine or nursing, only individuals can, see O.C.G.A. 43-34-21, 43-34-22. Georgia, however, like many other states, has passed laws allowing specific entities to provide medical and nursing services through licensed individuals. In Georgia, those specific entity types are professional corporations (“PC”), professional associations (“PA”), and limited liability companies (“LLC”).
- Specifically, as to PCs, O.C.G.A. 14-7-3 provides: “A person or a group of persons licensed to practice a profession in this state may elect to practice as a professional corporation by complying with this chapter, irrespective of any law which, on March 11, 1970, prohibited the practice of the profession by a corporation.”
- As to PAs, O.C.G.A. 14-10-3 states: “Any two or more persons duly licensed to practice a profession under the laws of this state may form a professional association, as distinguished from a partnership and a corporation, by associating themselves for the purpose of carrying on a profession and dividing the gains therefrom upon compliance with the terms of this chapter.”
- And as to LLCs, O.C.G.A. 14-11-107(f) provides: “The laws of this state relating to establishment and regulation of professional services are amended and superseded to the extent such laws are inconsistent as to form of organization with the provisions of this chapter and are deemed amended to permit the provision of professional services within this state by limited liability companies.”
Not only is the appropriate entity type important to consider when structuring a practice, but at all times, the individual licensed to practice the profession should exercise his or her independent professional judgement in practicing under his or her license. In other words, the entity should never interfere with a licensed individual practicing his or her profession. All documents relating to the organization and employment/hiring of professionals should incorporate this requirement, and, more importantly, followed in the practice.
If you would like to discuss ways to structure your practice or would like to discuss this blog post, you may contact our healthcare and business law firm at (404) 685-1662 (Atlanta) or (706) 722-7886 (Augusta), or by email, info@littlehealthlaw.com. You may also learn more about our law firm by visiting www.littlehealthlaw.com.