Attorney General Opinion Addresses Non-Physician Ownership of Medical Practices
Knoxville Academy of Medicine Bulletin – November 2007
By Jason P. Lambert and Ian P. Hennessey

In August 2007, the Tennessee Attorney General issued an opinion concerning the corporate practice of medicine with regard to certified nurse practitioners, registered nurses, advanced practical nurses, licensed practical nurses and physician assistants.  The corporate practice of medicine doctrine is a legal principle which holds that a corporation cannot practice one of the learned professions, such as medicine. 

In the opinion, the Attorney General concluded that it is unlawful for a certified nurse practitioner, registered nurse, advanced practical nurse, licensed practical nurse or physician assistant to own and operate a professional corporation or professional limited liability company for the provision of medical services. 

On the other hand, it is lawful for physician assistants to form and own shares in a medical professional corporation, but only in combination with licensed physicians or osteopathic physicians, though not radiologists, pathologists, or anesthesiologists.  Similarly, it is lawful for a physician assistant to be a member of, or holder of financial rights in, a medical professional limited liability company, in combination with licensed physicians or osteopathic physicians, but not radiologists, pathologists, or anesthesiologists.

Nevertheless, there may be certain circumstances in which these health care professionals might legitimately own and operated a practice providing medical services so long as such services are provided under the “supervision, control, and responsibility” of a licensed physician.  It is unlawful for a licensed physician to be an employee of a certified nurse practitioner, registered nurse, advanced practical nurse, licensed practical nurse or physician assistant for the sole purpose of providing “supervision, control, and responsibility” over their practice. However, a licensed physician may enter into an independent contractor arrangement with a certified nurse practitioner, advanced practice nurse, or physician assistant to provide “supervision, control, and responsibility” for the provision of medical services by such health care professionals at remote practice sites.  A licensed physician may not, however, contract independently with a licensed practical nurse or registered nurse for such a purpose.

Disclaimer: The information contained herein is strictly informational; it is not to be construed as legal advice.