New Jersey physicians can currently be employees of nonprofit hospitals and physician-owned clinics, but not private corporations. Physicians can be employees of a “general business corporation” only in the following settings:
• the corporation is licensed by the New Jersey Department of Health as an HMO, hospital, long or short-term care facility, ambulatory care facility or other type of health care facility or health care provider;
• the corporation is not in the business of offering treatment services but maintains a medical clinic for the purpose of providing first aid;
• the corporation is a non-profit corporation sponsored by a union, social or religious or
• fraternal organization providing health care services to members only;
• the corporation is an accredited educational institution that maintains a medical clinic for services for students and faculty; or
• the corporation is licensed by the State Department of Insurance as an insurance carrier.
The New Jersey Hospital Association petitioned for a change to this rule that would allow physicians to be employed by private corporations, creating more flexibility for leadership transitions in practices that are now currently owned by private or for-profit hospitals. For instance, if a physician who leads a hospital-owned practice retires, the changed rule would allow someone who is not a physician to replace him or her, according to the report. The association argued that the change is necessary to further physician-hospital integration.
On Wednesday, the board voted 14-1 against the proposal. Board member Sindy Paul, MD, said she was concerned that allowing physicians to work for corporations that aren’t subject to board oversight could hurt quality of care, according to the report.
A lawyer for the NJHA said the association is disappointed in the board’s decision. The NJHA modeled its request after the employment structure used by Rochester, Minn.-based Mayo Clinic.
“The existing regulation does create some hurdles for the continued integration of physicians and hospitals and their efforts to improve healthcare value through better coordination,” NHJA spokesperson McKean Kelly said in the report. “But I’m sure those integration efforts will continue regardless — it clearly is the new model of providing healthcare services.”
More Articles on Physician Employment in New Jersey:
Survey: 45% of New Jersey Physicians Considering Changing How They Practice Medicine
New Jersey Senate Ponders Physician Student Loan Forgiveness Bill
Aetna Sues Six New Jersey Physicians for Out-of-Network Claims
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
