HB 4130

Abstract

Digest: Stops people in charge of companies that do medical work from running both the company and other business that does work that is not medical work. Stops the people in charge from hiring, firing or telling medical workers when and how to do their jobs. Stops companies from giving control of the company to other businesses that do work that is not medical work. Lets the Secretary of State punish bad actors. Stops companies that give medical care from telling their workers that they cannot work for someone else, say that the company is bad or speak out about the company's bad acts. Stops companies from punishing those who speak out. (Flesch Readability Score: 60.7). Prohibits a shareholder, director or officer of a domestic or foreign professional corporation organized for the purpose of practicing medicine or naturopathic medicine, or for the purpose of allowing physicians, physician assistants and nurse practitioners to jointly render professional health care services, from owning or controlling shares in, serving as a director or officer of, being an employee or contractor of or otherwise participating in managing both the professional corporation and a management services organization with which the professional corporation has a contract. Prohibits shareholders, directors or officers from participating in hiring, terminating or specifying the terms of employment for medical professionals that the professional corporation employs or with which the professional corporation has a contract for services while owning or controlling shares in, serving as a director of or being an employee or contractor of a management services organization with which the professional corporation has a contract. Specifies exceptions. Prohibits a professional corporation from relinquishing or transferring control over the professional corporation's assets, business operations, clinical practices or decisions or the clinical practices or decisions of medical professionals the professional corporation employs or with which the professional corporation has a contract. Specifies examples of prohibited methods of transferring control and exceptions to the prohibition. Provides that requirements that apply to domestic and foreign professional corporations organized for the purpose of practicing medicine or naturopathic medicine, or for the purpose of allowing physicians, physician assistants and nurse practitioners to jointly render professional health care services, also apply to domestic and foreign limited liability companies, partnerships, limited partnerships and limited liability partnerships organized for a medical purpose. Provides the Secretary of State with authority to enforce violations of the requirements by administratively dissolving or revoking or inactivating the registration of entities that engage in violations. Voids noncompetition agreements, nondisclosure agreements and nondisparagement agreements between certain business entities and medical professionals, with specified exceptions, and prohibits the business entities from retaliating against the medical professional for violating the void agreements. Punishes retaliations as an unlawful employment practice. Takes effect on the 91st day following adjournment sine die.