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Section 36-4-8.1 - Corporation prohibited from practice of medicine or osteopathy.

36-4-8.1. Corporation prohibited from practice of medicine or osteopathy. Except as provided in chapter 47-11, it is the public policy of this state that a corporation may not practice medicine or osteopathy. A corporation is not engaged in the practice of medicine or osteopathy and is not in violation of § 36-4-8 by entering into an employment agreement with a physician licensed pursuant to this chapter if the agreement or the relationship it creates does not:
(1) In any manner, directly or indirectly, supplant, diminish or regulate the physician's independent judgment concerning the practice of medicine or the diagnosis and treatment of any patient;
(2) Result in profit to the corporation from the practice of medicine itself, such as by the corporation charging a greater fee for the physician's services than that which he would otherwise reasonably charge as an independent practitioner, except that the corporation may make additional charges reasonably associated with the services rendered, such as facility, equipment or administrative charges; and
(3) Remain effective for a period of more than three years, after which it may be renewed by both parties annually.

Source: SL 1993, ch 271, § 1.

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