Yes. In Kansas, a general business entity may not engage in a learned profession, such as that of physicians, chiropractors, attorneys and dentists, either through employment of or by contract with one of those licensed professionals. There is an exception to the prohibition if the entity is otherwise permitted by state statute to engage in the profession. A professional corporation or limited liability company that is wholly owned by licensed professionals is an exception. However, there are limitations upon which professions are allowed to combine into a single entity. Additionally, a hospital is licensed to provide medical services, and thus may employ physicians and other health care professionals.

Some business relationships among physicians and corporations are proper. Physicians often engage management companies to handle their administrative functions. The Board urges its licensees to obtain the legal advice of an attorney knowledgeable in structuring health care businesses and understanding the limitations of professional licensure laws when forming a business entity or contracting with a general business entity. K.S.A. 65-2867; K.S.A. 17-2706, et seq.; Early Detection Center, Inc. v. Wilson, 248 Kan. 869 (1991).

No. Physician assistants can only practice under the delegation of an M.D. or D.O. It would be outside the scope of a chiropractic license and the chiropractic business entity to do so. Additionally, the chiropractic entity cannot contract with an M.D. or D.O. to delegate authority for a P.A. to perform medical services. However, a properly formed and structured business entity co-owned by M.D.s, D.O.s and D.C.s may be able to provide integrated practice, but licensees should obtain knowledgeable legal advice before formation of this business structure. See K.S.A. 65-2836(g); K.S.A. 17-2706, et seq.

The provision in the Professional Corporation Law, K.S.A. 17-2712(d), states that a foreign professional corporation with at least one Kansas-licensed shareholder is considered a “qualified person” to form a professional corporation in Kansas. See also K.S.A. 17-2707(d).

A business entity that is not entirely owned by physicians (or other “qualified persons” pursuant to K.S.A. 17-2707), cannot practice medicine in Kansas or employ a Kansas physician to do so.

Additionally, a Kansas-licensed physician or chiropractor may not allow another person or entity to use the licensee’s license to practice. See K.S.A. 65-2837(b)(15). The licensee also may not directly or indirectly give or receive any fee, commission, rebate or other compensation for professional services not actually and personally rendered, other than through the legal functioning of lawful professional partnerships, corporations or associations. See K.S.A. 65-2837(b)(19).