This bill seeks to regulate the corporate practice of medicine in Washington State by implementing new legal provisions that prevent unlicensed individuals and entities from owning or managing medical practices and interfering with the clinical decisions of licensed healthcare providers. It introduces requirements for professional service corporations in the medical field, mandating that licensed healthcare providers hold the majority of shares and positions within the corporation and remain actively engaged in practice. Additionally, it prohibits shareholders and directors from relinquishing control over critical operational aspects, ensuring that clinical decision-making is maintained by licensed professionals.

The legislation also establishes prohibitions against unlicensed individuals affiliated with healthcare facilities from interfering with the professional judgment of licensed providers, particularly regarding patient care and management of medical records. New provisions require applicants for medical licenses to attest their awareness of regulations related to the corporate practice of medicine, and the bill expands the list of violations that can lead to disciplinary action. Furthermore, it amends existing regulations to address illegal activities within franchisor business practices, granting the director authority to issue stop orders against misleading or illegal registration statements. Overall, the bill aims to enhance accountability and the quality of healthcare delivery in Washington State.

Statutes affected:
Original Bill: 18.130.180, 19.100.120