Bill > H7721

This bill establishes the Rhode Island Ban on the Corporate Practice of Medicine Act and the Rhode Island Transparency in Ownership and Control of Healthcare Entities Act, aiming to regulate how medical practices are owned and operated and to increase transparency in healthcare facility ownership. The Corporate Practice of Medicine Act generally prohibits unlicensed individuals or business entities from owning medical practices, employing healthcare professionals, or practicing medicine, with specific exceptions for entities where licensed physicians hold majority ownership and control, and for certain public or safety-net healthcare providers. It also regulates contracts between medical practices and management services organizations (MSOs), banning "straw ownership" where ownership is not meaningful, preventing conflicts of interest by prohibiting dual roles in practices and MSOs, and restricting agreements that limit a practice's control over its shares or assets. Furthermore, it voids most non-compete agreements for healthcare providers, with an exception for those with significant ownership stakes, and prohibits MSOs from advertising medical practices under their own names. The bill also includes provisions to protect employed healthcare providers by voiding non-disclosure and non-disparagement agreements and preventing employers from interfering with their professional judgment or clinical decisions. The Transparency in Ownership and Control of Healthcare Entities Act requires healthcare entities to report detailed information about their ownership, control, and business structure to the Department of Health annually, including names, addresses, identification numbers, and organizational charts, with specific exemptions for very small physician practices. Enforcement of these acts will be carried out by the Attorney General and the Department of Health, with penalties for violations including daily fines, rescinded approvals, and the possibility of private lawsuits for aggrieved individuals.

Business and Industry, Health and Social Services

https://status.rilegislature.gov/