Full question:
I am the president of a P.C. in NJ. This P.C. has five physician members, all for the purpose of billing Medicare and other 3rd party healthcare insurance providers. All present members of the P.C. are NJ licensed physicians. I wish to have a Pennsylvania licensed physician, practicing in Pennsylvania, join this P.C. Will the P.C., which is a NJ corporation be able to bill Medicare and all other 3rd party insurance carriers for the Pennsylvania physician?
- Category: Corporations
- Subcategory: Professional Corporation
- Date:
- State: New Jersey
Answer:
No professional corporation in New Jersey can provide professional services unless its officers, employees, and agents are licensed or legally authorized to do so in New Jersey. Specifically, under New Jersey statutes:
14A:17-6: A professional corporation with only one shareholder must have that shareholder as the sole director and president. If there are two shareholders, they must fill all officer roles.
14A:17-10: Only individuals licensed to render the same professional service can own shares in a professional corporation. No voting trust agreements or proxies can grant non-shareholders voting power over shares.
14A:17-7: Professional services in New Jersey can only be rendered through licensed personnel. This excludes clerical or support staff who do not require a license.
Therefore, since the Pennsylvania physician is not licensed in New Jersey, the P.C. cannot bill Medicare or other third-party insurance carriers for services rendered by that physician.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.