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Delivery-date: Mon, 14 May 2018 12:38:51 -0500
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From: Amanda Cantelmi <amandac@webhstech.com>
Date: Mon, 14 May 2018 13:38:06 -0400
Message-ID: <CAGJ=7XFK3Qy2LWhq-7b3WTM1+C+fge_0CZAH7MyW11PK4ANo5g@mail.gmail.com>
Subject: Medical Corporations in PA
To: "Chris Farrugia, DDS" <info@smbdu.com>, Dave Novak <davenovak@webhstech.com>, 
	Geoff Lusty <geoffl@webhstech.com>, Ryan Wakim <ryanwakim@fortunemgmt.com>
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Hi Team,

3rd time is a charm; I finally got a response from the State Board of
Medicine.  The Senior Counsel guy basically said that they do not give
advice or pre-approve any requests, but he did have a suggestion for what
regulations we (and our legal counsel) may want to review regarding the
formation of new corporations.  Very kind of him :)

At first glance, it appears that a medical corporation must be entered into
by a medical doctor or other health care practitioner, but it will take
some digging to know for sure.

After you review the information and the regulations (he provided a link),
let me know if I can help with any next steps.

Thanks,
Amanda




Hi Peter,

I have a question regarding the ownership of a new Medical Corporation in
PA.  Is it possible to be a partner of a corporation if you are not a
physician?  I am working with two doctors and two business owners who wish
to start a new business that will involve some medical services
(tele-health exams, possibly imaging, and medical billing services for
private practices).  Is it possible for all four partners to be listed as
owners, or will the owners have to be the physicians only?

Thank you for any light you can shed on the subject.

Best Regards,
Amanda


*Amanda Cantelmi*
Executive Assistant



*315 9th Street*
*New Brighton, PA 15066*
Direct
: 724-906-4832
Toll Free: 800-372-7790 Ext. 24




Kovach, Peter
12:57 PM (27 minutes ago)
to me

Ms. Cantelmi:

              As a governmental agency, the State Board of Medicine's
activities are limited to only those activities authorized by the Medical
Practice Act of 1985 (MPA), Act of December 20, 1985, P.L. 457, No. 112, as
amended, 63 P.S. =C2=A7=C2=A7 422.1-522.53.  While some state agencies (e.g=
. State
Ethics Commission) are granted specific statutory authority to provide
advisory opinions concerning the interpretation of the acts and regulations
they enforce, no such authority has been granted to the various licensing
boards within the Bureau of Professional and Occupational Affairs,
including the State Board of Medicine.  Pennsylvania's Commonwealth Court
has held that where the legislature has not provided authority for a
licensing board to preapprove conduct or interpret its act outside of
enacting a binding regulation or adjudicating an actual
disciplinary/application action, such pre-approval decisions are in the
nature of an impermissible advisory opinion and are thus a nullity.  See
e.g. *Morrison v. Com. State Bd. of Medicine*, 618 A2d 1098 (Pa. Cmwlth
1992).  See also *Avis Rent-A-Car Systems v. Department of State*, 548 A.2d
402 (Pa. Cmwlth. 1998).  Because the MPA does not confer authority on the
Board to issue advisory opinions, provide legal advice to outside persons
or entities, pre-determine whether or what type of authorization to
practice is required in order to be able to lawfully engage in an activity,
or otherwise pre-approve/disapprove specific conduct, this office cannot
provide you with a specific response to your inquiry and you should consult
with your own legal counsel for an opinion regarding this matter.

               While this office cannot provide you with an advisory
opinion or pre-approve/disapprove any conduct, you and your legal counsel
may wish to start your review with the State Board of Medicine=E2=80=99s re=
gulation
at 49 Pa. Code =C2=A7 16.21, which provides that =E2=80=9CA medical doctor =
may form a
professional corporation with other medical doctors or other health care
practitioners who treat human ailments and conditions and who are licensed
in this Commonwealth to provide health care services without receiving a
referral or supervision from another health care practitioner, if the
boards which regulate those practitioners also permit the formation.=E2=80=
=9D  You
and your legal counsel may also wish to review the recent changes to the
Pennsylvania Partnership Code regarding ownership of certain professional
partnerships and limited liability companies which became effective in
February 2017 (15 Pa.C.S.A. =C2=A7 8105), as well as similar legislation in
Title 15 related to other business forms to ensure that ownership is not
otherwise prohibited based on the type(s) of services provided.

              The MPA and the Board's regulations may be found on the
Department of State's website at http://www.dos.pa.gov/
ProfessionalLicensing/BoardsCommissions/Medicine/Pages/default.aspx*.*
Links to the MPA and regulations are located in the Board Resources box on
the right hand side of the page.

              Please note that the sections referenced above are only
intended to assist you and your legal counsel in starting your research on
this matter.  You and your legal counsel should also review the remainder
of the MPA and the Board's regulations to ensure that there are no other
provisions which might also impact your inquiry.  Finally, you and your
legal counsel should consider and review other applicable federal and state
laws/regulations, including those which may have been promulgated and are
enforced by other licensing boards or other agencies (e.g. Department of
Health, Medicaid/Medicare regulations), as well as private contractual
agreements (e.g. insurance participation agreements, facility by-laws, etc.
to the extent that they are more restrictive than the MPA and the Board=E2=
=80=99s
regulations or other applicable law/regulation) which may also affect your
inquiry.





*Peter D. Kovach* | Senior Counsel in Charge

Office of General Counsel | Department of State | Counsel Division

2601 North 3rd St
<https://maps.google.com/?q=3D2601+North+3rd+St&entry=3Dgmail&source=3Dg>.

P.O. Box 69523

Harrisburg, PA 17106-9523

Phone: 717.783.7200 | Fax: 717.787.0251

www.dos.pa.gov <http://www.dos.state.pa.us/>



*PRIVILEGED AND CONFIDENTIAL ATTORNEY-CLIENT COMMUNICATION ATTORNEY WORK
PRODUCT*

*The information transmitted is intended only for the person or entity to
whom it is addressed and may contain confidential and/or privileged
material. Any use of this information other than by the intended recipient
is prohibited. If you receive this message in error, please send a reply
e-mail to the sender and delete the material from any and all computers.
Unintended transmissions shall not constitute waiver of the attorney-client
or any other privilege.*

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<div dir=3D"ltr">Hi Team,<div><br></div><div>3rd time is a charm; I finally=
 got a response from the State Board of Medicine.=C2=A0 The Senior Counsel =
guy basically said that they do not give advice or pre-approve any requests=
, but he did have a suggestion for what regulations we (and our legal couns=
el) may want to review regarding the formation of new corporations.=C2=A0 V=
ery kind of him :)=C2=A0=C2=A0</div><div><br></div><div>At first glance, it=
 appears that a medical corporation must be entered into by a medical docto=
r or other health care practitioner, but it will take some digging to know =
for sure.</div><div><br></div><div>After you review the information and the=
 regulations (he provided a link), let me know if I can help with any next =
steps.</div><div><br></div><div>Thanks,</div><div>Amanda</div><div><br></di=
v><div><div><div class=3D"gmail_signature" data-smartmail=3D"gmail_signatur=
e"><div dir=3D"ltr"><div dir=3D"ltr"><div dir=3D"ltr"><div><br></div><div d=
ir=3D"ltr"><div style=3D"font-size:12.8px"><br></div><div><br></div><div>

<div class=3D"gmail-h7" tabindex=3D"-1" style=3D"clear:both;padding-bottom:=
0px;max-width:100000px;outline:none;color:rgb(34,34,34);font-family:arial,s=
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font-variant-caps:normal;font-weight:400;letter-spacing:normal;text-align:s=
tart;text-indent:0px;text-transform:none;white-space:normal;word-spacing:0p=
x;background-color:rgb(255,255,255);text-decoration-style:initial;text-deco=
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rgb(216,216,216);border-radius:0px;margin-bottom:0px;margin-left:0px;margin=
-right:0px"><div><div id=3D"gmail-:29t"><div><div class=3D"gmail-adn gmail-=
ads" style=3D"border-left:1px solid transparent;padding-bottom:20px;padding=
-left:8px"><div class=3D"gmail-gs" style=3D"margin-left:44px"><div id=3D"gm=
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tr;margin:5px 15px 0px 0px;padding-bottom:5px"><div id=3D"gmail-:1z0" class=
=3D"gmail-a3s gmail-aXjCH gmail-m1635f737dd0c3856" style=3D"overflow:hidden=
"><div dir=3D"ltr">Hi Peter,<div><br></div><div>I have a question regarding=
 the ownership of a new Medical Corporation in PA.=C2=A0 Is it possible to =
be a partner of a corporation if you are not a physician?=C2=A0 I am workin=
g with two doctors and two business owners who wish to start a new business=
 that will involve some medical services (tele-health exams, possibly imagi=
ng, and medical billing services for private practices).=C2=A0 Is it possib=
le for all four partners to be listed as owners, or will the owners have to=
 be the physicians only?</div><div><br></div><div>Thank you for any light y=
ou can shed on the subject.</div><div><br></div><div>Best Regards,</div><di=
v>Amanda<br><div><br></div><div><br><div><div><div class=3D"gmail-m_-259905=
7501363357291m_1295304755617599208gmail_signature"><div dir=3D"ltr"><div><d=
iv dir=3D"ltr"><div><div dir=3D"ltr"><div><font color=3D"#741b47" size=3D"4=
" face=3D"trebuchet ms, sans-serif"><b>Amanda Cantelmi</b></font></div><div=
><font color=3D"#741b47" size=3D"2" face=3D"verdana, sans-serif">Executive =
Assistant</font></div><div><font color=3D"#741b47" face=3D"garamond, serif"=
 size=3D"2"><b><br></b></font></div><div dir=3D"ltr"><div><div style=3D"fon=
t-size:12.8px"><b style=3D"font-size:small"><font color=3D"#274e13" face=3D=
"verdana, sans-serif"><img src=3D"https://docs.google.com/uc?export=3Ddownl=
oad&amp;id=3D0B_Ejq69JjdFnc3pNNlQ5Y21mU00&amp;revid=3D0B_Ejq69JjdFnYm55Qkp5=
ektpSWtRTFVmcEtUVkN6dDg3NzZJPQ" width=3D"200" height=3D"37" class=3D"gmail-=
CToWUd"><br></font></b></div><div style=3D"font-size:12.8px"></div><div sty=
le=3D"font-size:12.8px"></div><div style=3D"font-size:12.8px"><font face=3D=
"verdana, sans-serif" color=3D"#741b47"><b><span style=3D"font-size:12.8px"=
>315 9th Street</span><br></b></font></div><div style=3D"font-size:12.8px">=
<font face=3D"verdana, sans-serif" color=3D"#741b47"><b>New Brighton, PA 15=
066</b></font></div><div style=3D"font-size:12.8px"><span style=3D"font-siz=
e:12.8px"><span style=3D"font-size:12.8px"><font color=3D"#000000"><div sty=
le=3D"display:inline"><font face=3D"verdana, sans-serif">Direct</font></div=
><font face=3D"verdana, sans-serif">:</font><span>=C2=A0</span><font face=
=3D"verdana, sans-serif">724-906-4832</font></font></span></span></div><div=
 style=3D"font-size:12.8px"><span style=3D"font-size:12.8px"><div style=3D"=
display:inline"><font size=3D"2" color=3D"#000000" face=3D"verdana, sans-se=
rif">Toll Free:<b>=C2=A0</b>800-372-7790=C2=A0Ext. 24</font></div></span></=
div></div><div style=3D"font-size:12.8px"><br></div><div><font face=3D"verd=
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margin:inherit"><span name=3D"Kovach, Peter" class=3D"gmail-gD" style=3D"co=
lor:rgb(34,34,34);font-size:12.8px;font-weight:bold;white-space:nowrap;disp=
lay:inline;vertical-align:top">Kovach, Peter</span></h3></td></tr></tbody><=
/table></td><td class=3D"gmail-gH gmail-bAk" style=3D"font-family:arial,san=
s-serif;margin:0px;text-align:right;white-space:nowrap;vertical-align:top;c=
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g-right:2px"><span></span><span id=3D"gmail-:285" class=3D"gmail-g3" title=
=3D"Mon, May 14, 2018 at 12:57 PM" alt=3D"Mon, May 14, 2018 at 12:57 PM" st=
yle=3D"vertical-align:top;margin-right:3px">12:57 PM (27 minutes ago)</span=
><div class=3D"gmail-zd gmail-bi4" title=3D"Not starred" tabindex=3D"0" sty=
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"overflow:hidden"><div class=3D"gmail-adM"></div><div lang=3D"EN-US"><div c=
lass=3D"gmail-adM"></div><div class=3D"gmail-m_3505121679395752931WordSecti=
on1"><div class=3D"gmail-adM"></div><p class=3D"MsoNormal" style=3D"margin:=
0px"><a name=3D"m_3505121679395752931__Hlk487438502" style=3D"color:rgb(34,=
34,34)">Ms. Cantelmi:<u></u><u></u></a></p><p class=3D"MsoNormal" style=3D"=
margin:0px"><span>=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=
=A0=C2=A0=C2=A0=C2=A0 As a governmental agency, the State Board of Medicine=
&#39;s activities are limited to only those activities authorized by the Me=
dical Practice Act of 1985 (MPA), Act of December 20, 1985, P.L. 457, No. 1=
12, as amended, 63 P.S. =C2=A7=C2=A7 422.1-522.53.=C2=A0 While some state a=
gencies (e.g. State Ethics Commission) are granted specific statutory autho=
rity to provide advisory opinions concerning the interpretation of the acts=
 and regulations they enforce, no such authority has been granted to the va=
rious licensing boards within the Bureau of Professional and Occupational A=
ffairs, including the State Board of Medicine.=C2=A0 Pennsylvania&#39;s Com=
monwealth Court has held that where the legislature has not provided author=
ity for a licensing board to preapprove conduct or interpret its act outsid=
e of enacting a binding regulation or adjudicating an actual disciplinary/a=
pplication action, such pre-approval decisions are in the nature of an impe=
rmissible advisory opinion and are thus a nullity.=C2=A0 See e.g.<span>=C2=
=A0</span><i><u>Morrison v. Com. State Bd. of Medicine</u></i>, 618 A2d 109=
8 (Pa. Cmwlth 1992).=C2=A0 See also<span>=C2=A0</span><i><u>Avis Rent-A-Car=
 Systems v. Department of State</u></i>, 548 A.2d 402 (Pa. Cmwlth. 1998).=
=C2=A0 Because the MPA does not confer authority on the Board to issue advi=
sory opinions, provide legal advice to outside persons or entities, pre-det=
ermine whether or what type of authorization to practice is required in ord=
er to be able to lawfully engage in an activity, or otherwise pre-approve/d=
isapprove specific conduct, this office cannot provide you with a specific =
response to your inquiry and you should consult with your own legal counsel=
 for an opinion regarding this matter.</span><span><span style=3D"font-fami=
ly:&quot;Times New Roman&quot;,serif"><u></u><u></u></span></span></p><p cl=
ass=3D"MsoNormal" style=3D"margin:0px"><span>=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=
=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0 =C2=A0While this office ca=
nnot provide you with an advisory opinion or pre-approve/disapprove any con=
duct, you and your legal counsel may wish to start your review with the Sta=
te Board of Medicine=E2=80=99s regulation at 49 Pa. Code =C2=A7 16.21, whic=
h provides that =E2=80=9CA medical doctor may form a professional corporati=
on with other medical doctors or other health care practitioners who treat =
human ailments and conditions and who are licensed in this Commonwealth to =
provide health care services without receiving a referral or supervision fr=
om another health care practitioner, if the boards which regulate those pra=
ctitioners also permit the formation.=E2=80=9D=C2=A0 You and your legal cou=
nsel may also wish to review the recent changes to the Pennsylvania Partner=
ship Code regarding ownership of certain professional partnerships and limi=
ted liability companies which became effective in February 2017 (15 Pa.C.S.=
A. =C2=A7 8105), as well as similar legislation in Title 15 related to othe=
r business forms to ensure that ownership is not otherwise prohibited based=
 on the type(s) of services provided.</span><span><span style=3D"font-famil=
y:&quot;Times New Roman&quot;,serif"><u></u><u></u></span></span></p><p cla=
ss=3D"MsoNormal" style=3D"margin:0px"><span>=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=
=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0 The MPA and the Board&#39;=
s regulations may be found on the Department of State&#39;s website at<span=
>=C2=A0</span></span><a href=3D"http://www.dos.pa.gov/ProfessionalLicensing=
/BoardsCommissions/Medicine/Pages/default.aspx" target=3D"_blank" style=3D"=
color:rgb(17,85,204)"><span><span style=3D"color:windowtext">http://www.dos=
.pa.gov/<wbr>ProfessionalLicensing/<wbr>BoardsCommissions/Medicine/<wbr>Pag=
es/default.aspx</span></span><span></span></a><span><u>.</u>=C2=A0 Links to=
 the MPA and regulations are located in the Board Resources box on the righ=
t hand side of the page.<u></u><u></u></span></p><p class=3D"MsoNormal" sty=
le=3D"margin:0px"><span>=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=
=A0=C2=A0=C2=A0=C2=A0=C2=A0 Please note that the sections referenced above =
are only intended to assist you and your legal counsel in starting your res=
earch on this matter.=C2=A0 You and your legal counsel should also review t=
he remainder of the MPA and the Board&#39;s regulations to ensure that ther=
e are no other provisions which might also impact your inquiry.=C2=A0 Final=
ly, you and your legal counsel should consider and review other applicable =
federal and state laws/regulations, including those which may have been pro=
mulgated and are enforced by other licensing boards or other agencies (e.g.=
 Department of Health, Medicaid/Medicare regulations), as well as private c=
ontractual agreements (e.g. insurance participation agreements, facility by=
-laws, etc. to the extent that they are more restrictive than the MPA and t=
he Board=E2=80=99s regulations or other applicable law/regulation) which ma=
y also affect your inquiry.</span><u></u><u></u></p><p class=3D"MsoNormal" =
style=3D"margin:0px"><u></u>=C2=A0<u></u></p><p class=3D"MsoNormal" style=
=3D"margin:0px"><u></u>=C2=A0<u></u></p><p class=3D"MsoNormal" style=3D"mar=
gin:0px"><b><span style=3D"font-size:10pt;font-family:Arial,sans-serif;colo=
r:rgb(0,62,126)">Peter D. Kovach</span></b><span style=3D"font-size:10pt;fo=
nt-family:Arial,sans-serif;color:rgb(0,62,126)"><span>=C2=A0</span>| Senior=
 Counsel in Charge</span><u></u><u></u></p><p class=3D"MsoNormal" style=3D"=
margin:0px"><span style=3D"font-size:10pt;font-family:Arial,sans-serif;colo=
r:rgb(0,62,126)">Office of General Counsel | Department of State | Counsel =
Division</span><u></u><u></u></p><p class=3D"MsoNormal" style=3D"margin:0px=
"><span style=3D"font-size:10pt;font-family:Arial,sans-serif;color:rgb(0,62=
,126)"><a href=3D"https://maps.google.com/?q=3D2601+North+3rd+St&amp;entry=
=3Dgmail&amp;source=3Dg" style=3D"color:rgb(17,85,204)">2601 North 3rd St</=
a>.</span><u></u><u></u></p><p class=3D"MsoNormal" style=3D"margin:0px"><sp=
an style=3D"font-size:10pt;font-family:Arial,sans-serif;color:rgb(0,62,126)=
">P.O. Box 69523</span><u></u><u></u></p><p class=3D"MsoNormal" style=3D"ma=
rgin:0px"><span style=3D"font-size:10pt;font-family:Arial,sans-serif;color:=
rgb(0,62,126)">Harrisburg, PA 17106-9523</span><u></u><u></u></p><p class=
=3D"MsoNormal" style=3D"margin:0px"><span style=3D"font-size:10pt;font-fami=
ly:Arial,sans-serif;color:rgb(0,62,126)">Phone: 717.783.7200 | Fax: 717.787=
.0251</span><u></u><u></u></p><p class=3D"MsoNormal" style=3D"margin:0px"><=
a href=3D"http://www.dos.state.pa.us/" target=3D"_blank" style=3D"color:rgb=
(17,85,204)"><span style=3D"font-size:10pt;font-family:Arial,sans-serif;col=
or:blue">www.dos.pa.gov</span></a><u></u><u></u></p><p class=3D"MsoNormal" =
style=3D"margin:0px"><span style=3D"font-size:10pt;font-family:Arial,sans-s=
erif;color:blue">=C2=A0</span><u></u><u></u></p><p class=3D"MsoNormal" styl=
e=3D"margin:0px 0in 5pt"><b><span style=3D"font-size:10pt;font-family:Arial=
,sans-serif;color:red">PRIVILEGED AND CONFIDENTIAL ATTORNEY-CLIENT COMMUNIC=
ATION ATTORNEY WORK PRODUCT</span></b><u></u><u></u></p><p class=3D"MsoNorm=
al" style=3D"margin:0px 0in 5pt"><i><span style=3D"font-size:10pt;font-fami=
ly:Arial,sans-serif;color:rgb(31,73,125)">The information transmitted is in=
tended only for the person or entity to whom it is addressed and may contai=
n confidential and/or privileged material. Any use of this information othe=
r than by the intended recipient is prohibited. If you receive this message=
 in error, please send a reply e-mail to the sender and delete the material=
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waiver of the attorney-client or any other privilege.</span></i></p></div><=
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