Session of 2025
HOUSE BILL No. 2367
By Committee on Health and Human Services
Requested by Kevin Barone on behalf of the Kansas Naturopathic Doctors
Association
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AN ACT concerning health and healthcare; relating to naturopathic
doctors; providing naturopathic doctors a certificate of authorization for
a business entity to practice medicine; amending K.S.A. 17-2710 and
K.S.A. 2024 Supp. 65-28,134 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 17-2710 is hereby amended to read as follows: 17-
2710. A professional corporation may be organized only for the purpose of
rendering one type of professional service and service ancillary thereto and
shall not engage in any other business, except that a single professional
corporation may be organized to and render professional services under
any two or more of the types set forth in items (2), (6), (13) and (17) of
subsection (b) of K.S.A. 17-2707(b)(2), (6), (13) and (17), and
amendments thereto;, under any two or more of the types set forth in items
(4), (5), (7), (8), (9), (11), (12), (14), (15), (16), (18), (20), (22), (23), (26)
or (27) of subsection (b) of K.S.A. 17-2707(b)(4), (5), (7), (8), (9), (11),
(12), (14), (15), (16), (18), (20), (22), (23), (26), (27) and (28), and
amendments thereto;, under any two or more of the types set forth in items
(8), (9), (18), (24), (25), (26) and (27) of subsection (b) of K.S.A. 17-
2707(b)(8), (9), (18), (24), (25), (26), (27) and (28), and amendments
thereto;, or under the types set forth in items (16) and (25) of subsection
(b) of K.S.A. 17-2707(b)(16) and (25), and amendments thereto, but shall
be deemed to have the following purposes, whether or not authorized by
its article of incorporation:
(a) To purchase, receive, lease, or otherwise acquire, own, hold,
improve, use and otherwise deal in and with, real or personal property, or
any interest therein, wherever situated;
(b) to purchase, receive, or otherwise acquire, own, hold, vote, use,
employ, sell, mortgage, lend, pledge, or otherwise dispose of, and
otherwise use and deal in and with, shares of other interests in, or
obligations of, other domestic or foreign corporations, associations,
partnerships or individuals, insurance or annuities in any form, or direct or
indirect obligations of the United States or of any other government, state,
territory, governmental district or municipality or of any instrumentality
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thereof;
(c) to pay pensions and establish pension plans, profit-sharing plans,
stock bonus plans, stock option plans and other incentive plans for any or
all of its directors, officers and employees;
(d) to do all things necessary or incidental to the practice of the
profession which that the professional corporation is authorized to
practice.
Sec. 2. K.S.A. 2024 Supp. 65-28,134 is hereby amended to read as
follows: 65-28,134. (a) Notwithstanding any other provision of law, a
business entity issued a certificate of authorization by the board may
employ or contract with one or more licensees of the board for the purpose
of providing professional services for which such licensees hold a valid
license issued by the board. Nothing in the Kansas healing arts act shall be
construed to prohibit a licensee from being employed by or under contract
to provide professional services for a business entity granted a certificate
of authorization pursuant to this section. Medical care facilities, as defined
by K.S.A. 65-425, and amendments thereto, that are in compliance with
department of health and environment licensure requirements are exempt
from the provisions of this section. Nothing contained herein shall be
construed to allow a corporation to practice optometry or dentistry, except
as otherwise provided in K.S.A. 17-2706, and amendments thereto.
(b) (1) A business entity may apply to the state board of healing arts
for a certificate of authorization, on a form and in a manner prescribed by
the state board of healing arts, and shall include the following information:
(A) The name of the business entity;
(B) a list of the names of the owners and officers of the business
entity;
(C) a description of the apportionment of liability of all partners or
owners, if the business entity is organized as a limited partnership or a
limited liability company;
(D) a list of each responsible official if the business entity is
organized as a governmental unit; and
(E) a list of all licensed physicians and, chiropractors and
naturopathic doctors to be hired by the business entity.
(2) As a condition of certification, a business entity shall be required
to provide the state board of healing arts evidence of the following:
(A) The address of the business entity;
(B) a city or county occupational license; and
(C) licensure of all physicians and, chiropractors and naturopathic
doctors to be employed by the business entity.
(3) A business entity applying for certification shall remit a fee set by
the state board of healing arts through rules and regulations, not to exceed
$1,000.
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(c) (1) If the state board of healing arts finds that such business entity
is in compliance with all of the requirements of this section, the state board
of healing arts shall issue a certificate of authorization to such business
entity designating the business entity as authorized to employ individuals
licensed to practice medicine and surgery or, chiropractic or naturopathy,
as applicable.
(2) A certificate of authorization shall be renewed annually and
accompanied by a fee to be fixed by the state board of healing arts. The
renewal fee shall be accompanied by a form prescribed by the state board
of healing arts.
(d) Except as provided in K.S.A. 40-3403, and amendments thereto,
no business entity issued a certificate of authorization under this section
shall be relieved of responsibility for the conduct or acts of its agents or
employees by reason of its compliance with the provisions of this section,
nor shall any individual licensed to practice the healing arts be relieved of
responsibility and liability for services performed by reason of
employment or relationship with such business entity. Nothing in this
section shall exempt any business entity from the provisions of any other
law applicable to the business entity.
(e) A business entity issued a certificate of authorization under this
section shall not:
(1) In any manner, directly or indirectly, interfere with, diminish,
restrict, substitute its judgment for or otherwise exercise control over the
independent professional judgment and decisions of its employed licensees
as it relates to the care of patients; or
(2) prohibit or restrict any employed licensee from discussing with or
disclosing to any patient or other individual any medically appropriate
healthcare information that such licensee deems appropriate regarding the
nature of treatment options, the risks or alternatives thereto, the process
used or the decision made by the business entity to approve or deny
healthcare services, the availability of alternate therapies, consultations or
tests, or from advocating on behalf of the patient.
(f) As used in this section:
(1) (A) "Business entity" means an employer located in Kansas that
utilizes electronic medical records and offers medicine and surgery or,
chiropractic or naturopathy services solely for its employees and the
dependents of such employees at the employer's work site;, an
organization that is licensed to sell accident and sickness insurance in the
state that and is also a mutual or non-profit health carrier that utilizes
electronic medical records, or a wholly owned subsidiary of such
organization that provides medical services solely for the organization's
enrollees and dependents of such enrollees;, or an information technology
company that designs, utilizes and provides electronic medical records for
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businesses and worksite medical clinics for employers located in Kansas
and offers medicine and surgery or, chiropractic or naturopathy services
solely to its employees and the dependents of such employees at the
employer's work sites in Kansas.
(B) "Business entity" does not include medical care facilities under
K.S.A. 65-425, and amendments thereto, corporations licensed under
K.S.A. 40-3214, and amendments thereto, and professional corporations
organized pursuant to the professional corporation law of Kansas.
(2) "Physician" means a person licensed by the state board of healing
arts to practice medicine and surgery.
(3) "Licensee" means a person licensed by the state board of healing
arts to practice medicine and surgery or, chiropractic or naturopathy and
whose license is in a full active status and has not been revoked,
suspended, limited or placed under probationary conditions.
(g) A business entity's certificate of authorization may be revoked,
suspended or limited, may be or publicly censured or placed under
probationary conditions, or an application for a certificate or for
reinstatement of a certificate may be denied upon a finding of the
existence of any of the following grounds:
(1) The business entity has committed fraud or misrepresentation in
applying for or securing an original, renewal or reinstated certificate.
(2) The business entity has willfully or repeatedly violated this act,
the pharmacy act of the state of Kansas or the uniform controlled
substances act or any rules and regulations adopted pursuant thereto, or
any rules and regulations of the secretary of health and environment that
are relevant to the practice of the healing arts.
(3) The business entity has had a certificate, or equivalent
authorization, to employ licensees to practice the healing arts revoked,
suspended or limited, has been censured or has had other disciplinary
action taken or has had an application for a certificate or license denied, by
the proper licensing authority of another state.
(4) The business entity has violated any lawful rule and regulation
promulgated by the board.
(5) The business entity has failed to report or reveal the knowledge
required to be reported or revealed under K.S.A. 65-28,122, and
amendments thereto.
(6) The business entity has failed to report to the board any adverse
action taken against the business entity by another state or licensing
jurisdiction, a governmental agency, by a law enforcement agency or a
court for acts or conduct similar to acts or conduct that would constitute
grounds for disciplinary action under this section.
(7) The business entity has engaged in conduct likely to deceive,
defraud or harm the public.
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(8) The business entity has engaged in conduct that violates patient
trust and exploits the licensee-patient relationship for corporate gain.
(9) The business entity has used any false, fraudulent or deceptive
statement in any document connected with the practice of the healing arts,
including the intentional falsifying or fraudulent altering of a patient
healthcare record.
(10) The business entity has failed to furnish to the board, or its
investigators or representatives, any information legally requested by the
board.
(11) The business entity has had, or failed to report to the board, any
adverse judgment, award or settlement against the business entity resulting
from a medical liability claim related to acts or conduct similar to acts or
conduct that would constitute grounds for disciplinary action under this
section.
(12) The business entity has been convicted of a felony or class A
misdemeanor, or substantially similar offense in another jurisdiction,
related to the practice of the healing arts.
(h) The state board of healing arts shall adopt all rules and regulations
as necessary to implement and administer the provisions of this section.
(i) For the purposes of determining the impact on the healthcare
stabilization fund of requiring business entities to comply with the
provisions of the healthcare provider insurance availability act, the
healthcare stabilization fund is hereby directed to conduct such acturarial
actuarial and operational studies as are necessary to determine such
impact, and to report the findings to the legislature on or before January 1,
2020.
(j) This section shall be a part of and supplemental to the Kansas
healing arts act.
(k) The provisions of this section shall take effect on and after March
1, 2020.
Sec. 3. K.S.A. 17-2710 and K.S.A. 2024 Supp. 65-28,134 are hereby
repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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