Some states let hospitals employ physicians
Many hospitals employ their physicians through an affiliate for-profit or not-for-profit entity. Hospitals in Illinois, however, can now employ physicians directly. That state's Supreme Court recently overturned two lower-court decisions holding that employment violates a ban on the corporate practice of medicine. The decision was based on reasoning that hospitals are already in the business of providing medical services and have systems in place that prevent control over a physician's medical judgment. But unanswered is whether the exemption extends to non-hospital entities such as ambulatory surgery centers and radiology clinics. Thirty-five other states view the issue similarly. California, Texas, and Ohio continue to vigorously enforce bans on corporate practice of medicine.
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