BILL NUMBER:S5208

TITLE OF BILL:  An act to amend the education law, in relation to
allowing physician assistants to partner with physicians

PURPOSE:

To clarify that physicians and physician assistants may partner and
form entities under the business corporation law.

SUMMARY OF PROVISIONS:

Section one amends section 6542 of the edudation law to clarify that
physicians and physician assistants may partner and form professional
entities. It does not alter the requirement that physician assistants
operate with physician supervision.

Section five provides for the effective date.

EXISTING LAW:

Current law does not specifically prevent physicians and physician
assistants from partnering to own a business such as a medical clinic,
however, the State Department of Health has not allowed such
arrangements. This bill would clarify that the law does not preclude
physicians and physician assistants from forming such professional
              

entities.

JUSTIFICATION:

While current law does not specifically preclude physicians and
physician assistants from forming professional entities, the NYS
Department of Health has not allowed such arrangements_ This hampers
the availability of medical care in rural areas of our state, and
especially in the North Country. Allowing such partnerships would make
it possible for a physician assistant to open a clinic in a rural
area, and be supervised by a physician in a neighboring area.

In no way does this bill increase in the scope of practice of
physician assistants or lessen the medical supervision requirements of
a physician over a physician assistant. It simply gives physician
assistants the ability to open a clinic in partnership with a
physician. Across the country, such practices are common and in fact
since 2003, the Medicare program has provided reimbursement to
practices in which PAs share ownership. In addition, PAs have been
authorized to own certified rural health clinics for over thirty
years.

Currently the Department of Health will only allow physician
assistants to establish professional entities with other physician
assistants, preventing them from co-owning a professional entity with
a physician. New York State should in fact be promoting this type of
practice, which will encourage new medical practices and the greater
availability of medical care in rural areas.

Often a physician assistant would like to assume ownership of a clinic
from a retiring physician, with a doctor from a neighboring town


agreeing to supervise the PA, but not wishing to take on sole
ownership responsibilities. Allowing PAs and doctors to partner in a
business entity will mean a practice that would otherwise close will
remain open and the patients of that clinic will not have to drive
great distances for needed health care.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

There are no fiscal implication to the state.

EFFECTIVE DATE:

This bill will take place immediately.