1995 - 1996 LEGISLATURE
April 19, 1995 - Introduced by Representatives Albers, F. Lasee, Baldus and
Goetsch. Referred to Committee on Insurance, Securities and Corporate
Policy.
AB325,1,2 1An Act to amend 448.08 (4); and to create 180.1901 (1m) (am) of the statutes;
2relating to: health care professional service corporations.
Analysis by the Legislative Reference Bureau
Under current law, certain health care professionals may organize a "service
corporation" for the purpose of assisting those professionals in carrying on their
professions. The shareholders in a health care professional service corporation do
not need to be licensed, certified or registered in the same health care profession.
Current law permits any of the following health care professionals to be shareholders
in a health care professional service corporation: a registered nurse; licensed
practical nurse; nurse-midwife; physician; podiatrist; physician assistant;
occupational therapist; occupational therapy assistant; respiratory care
practitioner; pharmacist; optometrist; psychologist; private practice school
psychologist; social worker; marriage and family therapist; and professional
counselor.
Also, under current law the patients compensation fund (fund) covers certain
claims that arise from the acts or omissions of physicians, nurse anesthetists or their
employes. The fund does not cover an employe who is a health care professional if
the health care professional may practice without the direction and supervision of
a physician or nurse anesthetist and if, at the time of an act or omission giving rise
to a claim under the fund, the health care professional was not practicing under the
direction and supervision of a physician or nurse anesthetist.
This bill provides that chiropractors, physical therapists and dietitians may
also be shareholders in a health care professional service corporation. Because a
chiropractor, physical therapist or dietitian may practice without the direction and
supervision of a physician or nurse anesthetist, under the bill a chiropractor,
physical therapist or dietitian who is an employe of a health care professional service
corporation will not be covered by the fund if, at the time of an act or omission giving
rise to a claim under the fund, the chiropractor, physical therapist or dietitian was

not practicing under the direction and supervision of a physician or nurse
anesthetist.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB325, s. 1 1Section 1. 180.1901 (1m) (am) of the statutes is created to read:
AB325,2,22 180.1901 (1m) (am) Chiropractic examining board under ch. 446.
AB325, s. 2 3Section 2. 180.1901 (1m) (b) of the statutes is amended to read:
AB325,2,44 180.1901 (1m) (b) Medical examining board under subch. II of ch. 448.
AB325, s. 3 5Section 3. 180.1901 (1m) (bg) of the statutes is created to read:
AB325,2,76 180.1901 (1m) (bg) Physical therapists affiliated credentialing board under
7subch. III of ch. 448.
AB325, s. 4 8Section 4. 180.1901 (1m) (br) of the statutes is created to read:
AB325,2,109 180.1901 (1m) (br) Dietitians affiliated credentialing board under subch. IV of
10ch. 448. This paragraph does not apply after June 30, 1999.
AB325, s. 5 11Section 5. 448.08 (4) of the statutes is amended to read:
AB325,2,2112 448.08 (4) Professional partnerships and corporations permitted.
13Notwithstanding any other provision in this section, it is lawful for 2 or more
14physicians or 2 or more podiatrists, who have entered into a bona fide partnership
15for the practice of medicine or podiatry, to render a single bill for such services in the
16name of such partnership; and it also is lawful for a service corporation to render a
17single bill for services in the name of the corporation; provided that each individual
18physician or podiatrist that renders billed services and each individual licensed,
19registered or certified under subch. III of this chapter or ch. 446, 449, 450, 455 or 457
20that renders billed services is individually identified as having rendered such
21services.
AB325, s. 6
1Section 6. 448.08 (4) of the statutes, as affected by 1995 Wisconsin Act .... (this
2act), is repealed and recreated to read:
AB325,3,123 448.08 (4) Professional partnerships and corporations permitted.
4Notwithstanding any other provision in this section, it is lawful for 2 or more
5physicians or 2 or more podiatrists, who have entered into a bona fide partnership
6for the practice of medicine or podiatry, to render a single bill for such services in the
7name of such partnership; and it also is lawful for a service corporation to render a
8single bill for services in the name of the corporation; provided that each individual
9physician or podiatrist that renders billed services and each individual licensed,
10registered or certified under subch. III or IV of this chapter or ch. 446, 449, 450, 455
11or 457 that renders billed services is individually identified as having rendered such
12services.
AB325, s. 7 13Section 7. Effective dates. This act takes effect on the day after
14publication, except as follows:
AB325,3,17 15(1) The treatment of section 180.1901 (1m) (br) of the statutes and the repeal
16and recreation of section 448.08 (4) of the statutes take effect on July 1, 1995, or the
17day after publication, whichever is later.
AB325,3,1818 (End)
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