The proposed bill seeks to regulate the corporate practice of health care in Washington State by establishing stringent requirements for health care practices and their management. It introduces a new section to chapter 18.100 RCW, making it unlawful for unlicensed individuals or entities to own or manage a health care practice, employ licensed providers, or engage in licensed health care professions. The bill mandates that licensed health care providers must hold a majority of shares and positions within professional service corporations, ensuring they maintain control over clinical decision-making. Additionally, it prohibits shareholders and directors from transferring control over the practice's operations or entering into conflicting financial arrangements with management services organizations.

Furthermore, the bill adds provisions to various chapters, including 70.41, 71.12, and 18.51, to prevent unlicensed individuals from interfering with the professional judgment of licensed health care providers in various settings. It explicitly prohibits unlicensed individuals from directing clinical decisions, controlling patient interaction time, or influencing treatment recommendations. The bill also classifies violations of these regulations as unfair or deceptive acts under the consumer protection act, allowing enforcement by the attorney general, and establishes that unlicensed practice constitutes a gross misdemeanor, escalating to a class C felony for subsequent violations. Additionally, it requires applicants for health care licenses to attest their awareness of these regulations, reinforcing the importance of professional autonomy in clinical decision-making. 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
Second Substitute: 18.130.180, 18.130.190, 19.100.120