The proposed bill seeks to regulate the corporate practice of health care in Washington State by instituting new legal requirements for health care practices and providers. It establishes that only licensed individuals or entities may own or operate health care practices, ensuring that licensed health care providers maintain a majority of shares and positions within professional service corporations. This is intended to preserve their control over clinical decision-making and the quality of care. The bill also prohibits unlicensed individuals from interfering with the professional judgment of licensed providers in various settings, including hospitals and telemedicine practices, while emphasizing the need for management services organizations to avoid exerting undue influence over health care providers.

Additionally, the bill introduces a new section to chapter 18.290 of the Revised Code of Washington, requiring medical license applicants to attest their awareness of regulations concerning the corporate practice of medicine. It amends RCW 19.100.120 to expand the conditions under which the director may issue a stop order against registration statements, particularly addressing illegal activities related to franchisor business methods. The legislation aims to enhance the integrity and accountability of health care providers, particularly in the context of telemedicine, while ensuring that applicants are informed of the legal framework governing their practice. The bill is set to take effect on January 1, 2027.

Statutes affected:
Original Bill: 18.130.180, 19.100.120
Substitute Bill: 70.41.020, 18.130.190, 19.100.120