Does Kansas prohibit the corporate practice of medicine?
The common law rule does prohibit the corporate practice of medicine. The core of that doctrine is that a general business entity may not engage in a learned profession, such as that of physicians, chiropractors, attorneys and dentists, either through employment of or by contract with one of those licensed professionals. An exception to that doctrine is when the entity is otherwise permitted by state statute to engage in the profession. For example, a hospital is licensed to provide medical services, and thus may employ physicians. Another exception applies to professional corporations or professional L.L.C.s owned by qualified persons. Additionally, the statute K.S.A. 65-2867 (http://www.kslegislature.org/legsrv-statutes), prohibits a person other than one who is licensed under the healing arts act to open and maintain a location for the practice of the healing arts. Some business relationships among physicians and corporations are proper. Physicians often engage management organizati
