The bill seeks to regulate the corporate practice of health care in Washington State by establishing new legal requirements that ensure licensed health care providers maintain control over clinical decision-making. It introduces a prohibition against unlicensed individuals or entities owning or managing health care practices, employing licensed providers, or interfering with their professional judgment. Licensed health care providers are required to hold a majority of shares and positions within professional service corporations, and the bill outlines specific prohibitions against conflicts of interest, such as receiving substantial compensation from management services organizations. Additionally, the bill adds new sections to various chapters that restrict unlicensed individuals from interfering with clinical decisions in hospitals, nursing homes, and other health care facilities, emphasizing that compliance policies must not undermine licensed providers' professional judgment.

Moreover, the bill introduces new requirements for health care license applicants, mandating that they attest to their awareness of the new regulations regarding corporate practice. It amends existing laws to classify violations of these provisions as unprofessional conduct and grants the attorney general exclusive enforcement authority under the consumer protection act for related violations. The bill also allows for the denial or suspension of registration statements if found misleading or in violation of the law, explicitly including violations of the new provisions in the criteria for issuing stop orders. The act is set to take effect on January 1, 2027, aiming to enhance the autonomy of health care providers and protect patient care from undue influence by unlicensed individuals.

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