Bill Summary for S 570 (2025-2026)

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Summary date: 

Mar 28 2025

Bill Information:

View NCGA Bill Details(link is external)2025-2026 Session
Senate Bill 570 (Public) Filed Tuesday, March 25, 2025
AN ACT TO RESTORE THE SUPREMACY OF MEDICAL PROVIDERS' PROFESSIONAL JUDGEMENT AND TO PROHIBIT THE "CORPORATE PRACTICE OF MEDICINE".
Intro. by Mayfield.

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Bill summary

Amends GS 55B-2 (Definitions) to include a definition of “management services organization” as an entity that provides non-clinical services to a professional corporation, and “stakeholder” as an incorporator, officer, director, shareholder, or employee of a professional corporation. Makes organizational, clarifying, and technical changes to the statute.

Prohibits stakeholders of a professional corporation providing services under GS Chapter 90, Article 1 (Practice of medicine), from being stakeholders of a management services organization with which the professional corporation contracts or services unless the management services organization is owned and held entirely by licensees of this state, by adding new subdivision (5) to GS 55B-4 (Formation of corporation). Requires certification when filing the articles of incorporation that the corporation complies with this new requirement.

Directs the North Carolina Medical Board (Board) to adopt rules that require every application for certificate of registration or renewal include a statement certifying that no stakeholder is also a stakeholder of a management services organization with which the professional corporation or limited liability company contracts for services, unless the management services organization is owned and held entirely by licensees of this state. Rules must be adopted no later than October 1, 2026.

Creates new GS 90-8.3 (Control over medical decisions of patient care) requiring that every employment agreement or contract for a medical licensee employed by or who is an independent contractor ensures that the licensee has control over all medical decisions for patient care without clinical interference from non-licensees, stakeholders of management services organizations, or out-of-state physicians who may be employed by or affiliated with the professional corporation.

Creates new GS 90-8.4 (Practice of medicine permitted entities; enforcement), outlining the acceptable employers for a medical licensee, and empowering the Board to pursue enforcement actions against employers that do not comply with the requirements. Outlines a procedure where the Board may request a response from an employer subject to a complaint, specifying the structure and ownership of the employer and certifying that the employer complies with the requirements of GS Chapter 90, Article 1, and the Board’s rules. Permits the Board to take disciplinary action against licensees who work as employees or independent contractors for unapproved employers. Allows the Board to suspend or revoke certificates of registration for non-compliance and to consult with the Attorney General’s Office to investigate violations of the statute or GS Chapter 55B.

Authorizes the Board to adopt rules to implement this act.