How do physician private practices differ from Article 28 facilities?
Article 28 facilities may be owned by various business or not-for-profit entities, although there are restrictions as to the type of these entities. Article 28 facilities are the only entities exempt from the “corporate practice of medicine” prohibition and, therefore, may employ, or contract with, physicians, as well as other health care professionals. DOH has full authority over Article 28 facilities. Physician practices must be wholly-owned and operated by physicians. The physicians must be the ultimate managers of the practices and cannot allow non-physicians to completely direct the operations of the practice. Neither DOH nor SED has regulatory authority over physician private practices. Once a physician is licensed under SED Article 131 and creates a professional practice entity under applicable law, the only statutory authority over physician practices, besides the new OBS law, is through professional misconduct proceedings. For the most part, investigatory proceedings begin whe
