BILL NUMBER: S3350
SPONSOR: SCARCELLA-SPANTON
 
TITLE OF BILL:
An act to amend the limited liability company law, the business corpo-
ration law, the partnership law, the education law and the public health
law, in relation to authorizing certain licensed health services profes-
sionals to form limited liability companies
 
PURPOSE OR GENERAL IDEA OF BILL:
To allow various licensed allied professionals to form multidisciplinary
partnerships with limited liability companies, and professional service
corporations.
 
SUMMARY OF PROVISIONS:
Sections 1-3 would amend sections of the limited liability company law
to allow the following licensed professionals to form multidisciplinary
professional service limited liability companies: physicians, chiro-
practors, pharmacists, midwives, podiatrists, optometrists, ophthalmic
dispensers, psychologists, social workers, massage therapists, occupa-
tional therapists, nurse practitioners, and applied behavior analysts.
Section 4 would amend the business corporation law to allow licensed
health professionals to form professional service corporations.
Sections 5 and 6 would amend the partnership law to allow licensed
health professionals to form limited liability partnerships.
Sections 7-9 would amend the limited liability company law to allow
licensed health professionals to form professional service limited
liability companies.
Section 10 would amend the business corporation law to allow licensed
health professionals to form professional service corporations.
Sections 11 and 12 would amend the partnership law to allow licensed
health professionals to form limited liability partnerships.
Section 13 would amend section 6509-a of the education law to allow for
the pooling of fees or monies by multidisciplinary services practice
formed under the partnership, business corporation or LLC laws.
Section 14 would amend section 6530 of the education law to allow
licensed health professionals to share fees with a physician for profes-
sional's services rendered as part of a multidisciplinary services prac-
tice.
Section 15 would amend section 6531 of the education law to allow for
the pooling of fees or monies by multidisciplinary services practice
formed under the partnership, business corporation or LLC laws.
Section 16 would amend section 2801 of the public health law to ensure
that a multidisciplinary services practice does not fall under the defi-
nition of hospital.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
The amended version adds the practice of applied behavior analysis.
 
JUSTIFICATION:
The healthcare field is changing rapidly. Collaboration and the ability
to offer multidisciplinary services are the present and future. The
advent of patient-centered medical homes, health homes and accountable
care organizations all promise to shift health care delivery to more
collaborative models. As such, New York State's prohibitions on the
formation of limited liability companies, partnerships and professional
service corporations by allied health professionals is outdated.
This bill seeks to further bring collaboration among licensed health
professionals into the 21st century by allowing various professionals to
integrate their services under one roof as a partnership, LLC or profes-
sional service corporation. In permitting such organizational entities
to be formed by licensed professionals, it broadens the array of colla-
borative options available to health care practitioners looking to offer
multidisciplinary services. The bill does not change the existing rules
surrounding the organizational structures addressed through the legis-
lation. It recognizes that the allied health professions should be
treated equally, rather disparately through a piecemeal approach to
allowing for a broader array of organizational formation.
Finally, the bill would prohibit the alteration, expansion or curtailing
of the scope of practice of any licensed professional providing services
through one of the newly formed organizations and provide that no member
or partner shall interfere with the clinical judgment or practice of
another member. These protections are critical to guarding against the
exercise of undue influence over another licensed professional.
 
PRIOR LEGISLATIVE HISTORY:
2024; Amended and held in Corporations, Authorities, and Commissions.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect 30 days after becoming law.

Statutes affected:
S3350: 1203 limited liability company law, 1207 limited liability company law, 1301 limited liability company law, 1503 business corporation law, 121-1500 partnership law, 121-1502 partnership law, 6509-a education law, 6530 education law, 6530(19) education law, 6531 education law, 2801 public health law, 2801(1) public health law