Bill > S08442

This bill prohibits non-physician organizations or their representatives from holding majority shares or serving as directors in professional medical corporations in New York. Specifically, the legislation mandates that physicians licensed in New York must hold a majority of voting shares, constitute a majority of directors, and serve as most corporate officers (except secretary and treasurer) in medical professional corporations. The bill establishes detailed provisions preventing non-physician entities from controlling medical practices, including restrictions on removing physician directors and officers, and protections against external interference with medical professional judgment. The law includes some exceptions for specific types of healthcare organizations like nonprofit medical service providers for underserved populations, federally-qualified health centers, and rural health clinics. Additionally, the bill includes whistleblower protections, preventing professional corporations from retaliating against medical licensees who report potential legal violations in good faith. The legislation aims to ensure that medical practices remain primarily controlled by licensed medical professionals and protect the independence of medical decision-making from non-medical business interests.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S8442