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Fee-Splitting Prohibition and Physician Practice Management Arrangements
Wednesday, July 24, 2013

In previous columns, we have reviewed New York’s prohibition on splitting fees for professional services by physicians and other licensed medical professionals who are not in a common medical practice such as a partnership or professional corporation. Most states have some form of this prohibition, but New York’s is unusual in that it is found in both statute and regulation. Education Law §6530 includes among the definitions of professional misconduct:

18. Directly or indirectly offering, giving, soliciting, or receiving or agreeing to receive, any fee or other consideration to or from a third party for the referral of a patient or in connection with the performance of professional services;

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