Assigned to HHS                                                                                                           AS PASSED BY HOUSE

ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

AMENDED

FACT SHEET FOR S.B. 1637

health professionals; business entities; interference

Purpose

 Allows licensed health professionals to engage in the practice for which they are licensed in any form of business entity.

Background

Statute defines health professionals as podiatrists, chiropractors, dentists, medical physicians and surgeons, naturopathic physicians, nurses, dispensing opticians, optometrists, osteopathic physicians and surgeons, pharmacists, physical therapists, psychologists, veterinarians, physician assistants, radiologic technologists, homeopathic physicians, behavioral health professionals, occupational therapists, respiratory therapists, acupuncturists, athletic trainers, massage therapists, nursing care institution administrators, assisted living facilities managers, midwifes, audiologists and speech pathologists (A.R.S. § 32-3201).

An optometrist may practice the profession of optometry only as: 1) a sole practitioner;
2) a partner with other health professionals; 3) a professional limited liability company or professional corporation in which health professionals collectively possess at least 51 percent of the ownership interest; or 4) an employee or independent contractor of an authorized optometry business (A.R.S. § 32-1753).

               There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions:

1. Allows health professionals to engage in the practice for which they are licensed in any form of business entity or as an employee of any business entity in Arizona.

2. Specifies that the authority for health professionals to engage in the practice for which they are licensed in any form of business entity does not apply to licensed optometrists practicing outside statutorily designated practice settings.

3. Becomes effective on the general effective date.

Amendments Adopted by Committee

1. Expands the prohibition on business entity interference with lawful medical practice to include any person that manages, owns or operates a business that employs a licensed physician, nurse practitioner or physician assistant.

2. Clarifies that, for the prohibition to apply, a specified provider's medical practice must be interfered with substantially.

Amendments Adopted by Committee of the Whole

1. Withdrew the committee amendment.

2. Removes the prohibition on business entity owners, managers or operators that employ a licensed physician, nurse practitioner or physician assistant from substantially interfering with their lawful medical practice.

Amendments Adopted by the House of Representatives

· Expands the scope of the legislation from only licensed medical, osteopathic and naturopathic physicians, nurse practitioners and physician assistants to include all health professionals, except for optometrists practicing outside statutorily designated practice settings.

Senate Action House Action

HHS                2/16/22      DPA       6-0-2                HHS                3/31/22      DP    8-0-0-1
3^rd Read          3/1/22                       26-0-4              3^rd Read          4/20/22               56-0-4

Prepared by Senate Research

April 21, 2022

MM/CC/sr/slp