This bill seeks to regulate the corporate practice of medicine in Washington State by establishing strict ownership and operational guidelines for medical practices. It prohibits non-medical licensees from owning or controlling medical practices, ensuring that all voting shares and key positions (excluding secretary and treasurer) are held by medical licensees who are actively engaged in practice. The bill also restricts these licensees from transferring control over clinical operations or entering financial arrangements that could compromise their professional judgment. Exceptions are made for certain healthcare entities, such as hospitals and nursing homes.

Additionally, the bill introduces provisions to protect the professional judgment of licensed healthcare providers by prohibiting non-licensed individuals from interfering in clinical decision-making across various healthcare settings. It specifies that only licensed medical professionals can direct clinical decisions and outlines prohibited conduct that constitutes interference. The bill also establishes new violations related to the corporate practice of medicine, requiring medical license applicants to attest to their understanding of these regulations. It enhances the authority of the secretary to investigate unlicensed practice and enforce compliance, with penalties escalating from gross misdemeanors to class C felonies for repeated violations. The act is set to take effect on January 1, 2028.

Statutes affected:
Original Bill: 18.130.180, 19.100.120
Substitute Bill: 70.41.020, 18.130.190, 19.100.120
Second Substitute: 18.130.180, 18.130.190, 19.100.120
Third substitute: 18.130.180, 18.130.190, 19.100.120