North Carolina SB 570: Dental Services/Medicaid Transformation.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 570

Short Title: Prohibit the Corporate Practice of Medicine. (Public)
Sponsors: Senator Mayfield (Primary Sponsor).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S570-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO RESTORE THE SUPREMACY OF MEDICAL PROVIDERS' PROFESSIONAL 2
JUDGEMENT AND TO PROHIBIT THE "CORPORATE PRACTICE OF MEDICINE". 3
The General Assembly of North Carolina enacts: 4
5
PART I. PROHIBIT A COMMON STAKEHOLDER BETWEEN MEDICAL 6
PRACTICES AND MANAGEMENT SERVICES ORGANIZATIONS 7
SECTION 1.(a) G.S. 55B-2 reads as rewritten: 8
"§ 55B-2. Definitions. 9
As used in this Chapter, the following words shall, unless the context requires otherwise, 10
have the following meanings: 11
(1) "Disqualified person" means a Disqualified person. – A licensed person who 12
for any reason becomes legally disqualified to render the same professional 13
services which that are or were being rendered by the professional corporation 14
of which such the person is an officer, director, shareholder or employee. 15
(2) "Licensee" means any Licensee. – Any natural person who is duly licensed by 16
the appropriate licensing board to render the same professional services which 17
that will be rendered by the professional corporation of which he the licensee 18
is, or intends to become, an officer, director, shareholder shareholder, or 19
employee. 20
(3) "Licensing board" means a Licensing board. – A board which is charged with 21
the licensing and regulating of the profession or practice in this State in which 22
the professional corporation is organized to engage. 23
(4) The term "licensing board," Licensing board, as the same it applies to 24
attorneys at law, shall mean the law. – The Council of the North Carolina State 25
Bar, and it shall include including the North Carolina State Board of Law 26
Examiners only to the extent that the North Carolina Board of Law Examiners 27
is authorized to issue licenses for the practice of law under the supervision of 28
the Council of the North Carolina State Bar. 29
(4a) Management services organization. – A domestic or foreign entity that 30
provides non-clinical services to a professional corporation rendering 31
professional service under Article 1 of Chapter 90 of the General Statutes. 32
(5) "Professional corporation" means a Professional corporation. – A corporation 33
which is engaged in rendering the professional services as herein specified 34
and defined, service pursuant to a certificate of registration issued by the 35
Licensing Board regulating the profession or practice, and which that (i) has 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 570-First Edition
as its shareholders only those individuals permitted by G.S. 55B-6 of this 1
Chapter to be shareholders and which Chapter, (ii) designates itself as may be 2
required by this statute, Chapter, and which (ii) is organized under the 3
provisions of this Chapter and of Chapter 55, the North 55 of the General 4
Statutes, "North Carolina Business Corporation Act. Act." 5
(6) The term "professional service" means any Professional service. – Any type 6
of personal or professional service of the public which that requires as a 7
condition precedent to the rendering of such the service the obtaining of a 8
license from a licensing board as herein defined, and pursuant to the following 9
provisions of the General Statutes: Chapter 83A, "Architects"; Chapter 84, 10
"Attorneys-at-Law"; Chapter 93, "Public Accountants"; and the following 11
Articles in Chapter 90: Article 1, "Practice of Medicine," Article 2, 12
"Dentistry," Article 6, "Optometry," Article 7, "Osteopathy," Article 8, 13
"Chiropractic," Article 9A, "Nursing Practice Act," with regard to registered 14
nurses, Article 11, "Veterinarians," Article 12A, "Podiatrists," Article 18A, 15
"Practicing Psychologists," Article 18C, "Marriage and Family Therapy 16
Licensure," Article 18D, "Occupational Therapy," Article 22, "Licensure Act 17
for Speech and Language Pathologists and Audiologists," and Article 24, 18
"Licensed Clinical Mental Health Counselors"; Chapter 89C, "Engineering 19
and Land Surveying"; Chapter 89A, "Landscape Architects"; Chapter 90B, 20
"Social Worker Certification and Licensure Act" with regard to Licensed 21
Clinical Social Workers as defined by G.S. 90B-3; Chapter 89E, "Geologists"; 22
Chapter 89B, "Foresters"; and Chapter 89F, "North Carolina Soil Scientist 23
Licensing Act." 24
(9) Stakeholder. – An incorporator, officer, director, shareholder, or employee of 25
a professional corporation or management services organization." 26
SECTION 1.(b) G.S. 55B-4 reads as rewritten: 27
"§ 55B-4. Formation of corporation. 28
A professional corporation under this Chapter may be formed pursuant to the provisions of 29
Chapter 55, the North Carolina Business Corporation Act, with the following limitations: 30
(1) At least one incorporator shall be a "licensee" a