Bill > A09012

This bill prohibits non-physician organizations or their representatives from holding majority shares or serving as directors in professional medical corporations in New York State. Specifically, the legislation requires that physicians licensed in New York must hold the majority of voting shares, constitute a majority of the board of directors, and serve as most corporate officers (except secretary and treasurer) in medical professional corporations. The bill also establishes protections for medical licensees, preventing professional corporations from retaliatory actions against physicians who report potential legal violations in good faith. Additionally, the legislation includes exceptions for certain types of medical organizations, such as nonprofit corporations serving migrant or underserved populations, federally-qualified health centers, and rural health clinics. The bill aims to ensure that medical professional corporations remain primarily controlled by licensed medical professionals, preventing excessive corporate influence over medical practice and decision-making. The new regulations will apply to professional corporations organized to practice medicine, with provisions for how directors can be removed and how corporate control can be transferred, always maintaining physician majority control.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A9012