1 of 1 SENATE DOCKET, NO. 2274 FILED ON: 1/17/2025 SENATE . . . . . . . . . . . . . . No. 1534 The Commonwealth of Massachusetts _________________ PRESENTED BY: Paul R. Feeney _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act to protect the independence of clinical decision making. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :Paul R. FeeneyBristol and Norfolk 1 of 8 SENATE DOCKET, NO. 2274 FILED ON: 1/17/2025 SENATE . . . . . . . . . . . . . . No. 1534 By Mr. Feeney, a petition (accompanied by bill, Senate, No. 1534) of Paul R. Feeney for legislation to protect the independence of clinical decision making. Public Health. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act to protect the independence of clinical decision making. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Chapter 112 of the General Laws is hereby amended by inserting after 2section 4 the following sections:- 3 Section 4A. (a) For the purposes of sections 4A and 4B, the following words shall have 4the following meanings:- 5 “Board of Registration in Medicine”, the board of registration in medicine established 6pursuant to section 10 of chapter 13. 7 “Board of Registration in Nursing”, the board of registration in nursing established 8pursuant to section 13 of chapter 13. 9 “Clinician”, a physician, nurse, physician assistant, psychologist, or independent clinical 10social worker, who is licensed to provide health services and registered in the commonwealth 11pursuant to chapter 112 to provide such services, and any other individual who is licensed to 2 of 8 12provide health services and registered in the commonwealth pursuant to chapter 112 to provide 13such services. 14 “Clinician with independent practice authority”, a physician registered to practice 15medicine in the commonwealth or a nurse practitioner, psychiatric nurse mental health clinical 16specialist, or nurse anesthetist who is registered to practice medicine in the commonwealth and 17who has independent practice authority pursuant to sections 80E and 80J of said chapter 112. 18 “Management services organization,” a business that provides management or 19administrative services to a health care provider or provider organization for compensation. 20 “Health care practice”, a business, regardless of form, through which a clinician with 21independent practice authority licensed by the Board of Registration in Medicine or the Board of 22Registration in Nursing offers health services; provided, however, that health care practice shall 23not include any entity that holds a license issued by the department of public health pursuant to 24sections 51, 51M, 51N or 52 of chapter 111. 25 “Physician”, a doctor of medicine or doctor of osteopathy who is registered to practice 26medicine in the commonwealth pursuant to section 2 of chapter 112. 27 (b) A clinician with independent practice authority may practice at a health care practice 28that meets the following requirements: (1) the health care practice is wholly owned and 29controlled by one or more clinicians with independent practice authority who hold a certificate of 30registration that (i) is issued by the board of registration in medicine or the board of registration 31in nursing pursuant to the requirements of sections 2 and 80B of this chapter, and (ii) has not 32been suspended or revoked; or (2) the health care practice is conducted through a business 33organization formed as: (i) a professional corporation pursuant to chapter 156A; (ii) a nonprofit 3 of 8 34organization, a nonprofit hospital services corporation organized under chapter 176A, a nonprofit 35medical services corporation organized under chapter 176B; (iii) a limited liability company 36organized under chapter 156C; provided, however, that there are no LLC provisions limiting or 37eliminating the licensee's liability for intentional tort or negligence; (iv) a partnership organized 38under chapter 108A, including, but not limited to, a registered limited liability partnership; 39provided, however, that the partnership has no provisions limiting or eliminating the licensee's 40liability for intentional torts or negligence; or (v) an organization similar to those organizations 41described in clauses (i) through (iv) of this subsection and organized under a comparable law of 42any other United States jurisdiction; organized under a comparable law of any other jurisdiction 43within the United States; provided, however, that all shares of the organization shall be owned by 44clinicians with independent practice authority. 45 (c) It shall constitute the unauthorized practice of medicine in violation of section 6 of 46this chapter for any person or entity to own a health care practice other than a clinician with 47independent practice authority who holds a certificate of registration that is issued by the board 48of registration in medicine or the board of registration in nursing pursuant to the requirements of 49sections 2 or 80B and has not been suspended or revoked. This section shall not apply to a health 50care facility or entity that holds a license issued by the department of public health pursuant to 51sections 51, 51M, 51N or 52 of chapter 111. 52 (d)(1) Nothing in this section shall prohibit a clinician with independent practice 53authority from practicing medicine as an employee of a health care facility or entity that holds a 54license issued by the department of public health pursuant to sections 51, 51M, 51N or 52 of 55chapter 111. 4 of 8 56 (2) An entity that provides compensation to one or more clinicians with independent 57practice authority, including, but not limited to a health care facility licensed pursuant to sections 5851, 51M, 51N or 51, shall not directly or indirectly interfere with, control, or otherwise direct the 59professional judgment or clinical decisions of such clinicians with independent practice 60authority. Conduct prohibited under this paragraph shall include, but not be limited to, 61controlling, either directly or indirectly through discipline, punishment, threats, adverse 62employment actions, coercion, retaliation or excessive pressure, regarding: (i) the amount of time 63spent with patients, including the time permitted to triage patients in the emergency department 64or evaluate admitted patients; (ii) the time period within which a patient must be discharged; (iii) 65decisions involving the patient’s clinical status, including, but not limited to, whether the patient 66should be kept in observation status, whether the patient should receive palliative care and where 67the patient should be placed upon discharge; (iv) the diagnosis, diagnostic terminology or codes 68that are entered into the medical record; or (v) any other conduct the department of public health 69determines by regulation would interfere with, control or otherwise direct the professional 70judgement or clinical decisions of clinicians with independent practice authority. Such entities 71shall not limit the range of clinical orders available to clinicians either directly or by configuring 72the medical record to prohibit or significantly limit the clinical order options available. 73Nondisclosure or non-disparagement agreements regarding subsections (i) through (v), inclusive, 74between a clinician with independent practice authority and any person or entity shall be 75considered void and unenforceable. If a court of competent jurisdiction finds a policy, contract or 76contract provision void and unenforceable pursuant to this section, the court shall award the 77plaintiff reasonable attorney’s fees and costs. Nothing in this section shall limit the ability of any 5 of 8 78person to bring any action relating to defamation, disclosure of confidential or proprietary 79information or trade secrets or similar torts. 80 (e) All health care practices shall provide written certification that the health care practice 81meets the requirements in this section to the board of registration in medicine or the board of 82registration in nursing at the time of formation and on a biennial basis thereafter. If a practice’s 83owners consist of individuals registered solely with the board of registration in medicine or the 84board of registration in nursing, the practice shall provide the certification to the applicable 85board. If the practice’s owners consist of individuals registered with both boards, the practice 86shall provide the certification to the board of registration in medicine, which shall transmit a 87copy to the board of registration in nursing. Health care practices shall, at the time that such 88clinicians with independent practice authority are hired or affiliated with the practice and within 8930 days of providing certification to the applicable board pursuant to this section, provide a copy 90of the most recent certification to all clinicians with independent practice authority who: (i) 91engage in providing health services at the practice; and (ii) do not hold any ownership interest in 92the practice. 93 (f) All health care practices shall file with the applicable board a registration application 94containing such information as the board may reasonably require, including, but not limited to: 95(i) the identity of the applicant and of the clinicians with independent practice authority which 96constitute the practice; (ii) any management services organization under contract with the health 97care practice; (iii) a certified copy of the health care practice’s certificate of organization, if any, 98as filed with the secretary of the commonwealth, or any applicable partnership agreement; (iv) 99the address of the health care practice; (v) the services provided by the health care practice; and 100(vi) any information the board, in consultation with the health policy commission and the center 6 of 8 101for health information and analysis, deems relevant for the state health plan and focused 102assessments pursuant to section 22 of chapter 6D and the health care resources inventory 103pursuant to section 9 of chapter 12C. The application shall be accompanied by a fee in an amount 104to be determined pursuant to section 3B of chapter 7. All health care practices registered in the 105commonwealth shall renew their certificates of registration with the board every 2 years. The 106board shall share information relevant to the state health plan and focused assessments pursuant 107to section 22 of chapter 6D with the commission and information relevant to the health care 108resources inventory pursuant to section 9 of section 12C with the center. 109 (g) All health care practices with more than 1 clinician with independent practice 110authority that constitutes the practice shall designate a clinician with independent practice 111authority at the practice to serve as medical director; provided, however, that the designated 112clinician shall hold a certificate of registration that (i) is issued by the Board of Registration in 113Medicine or the Board of Registration in Nursing pursuant to the requirements of sections 2 or 11480B of this chapter that is not suspended or revoked; and (2) is present in the state and is 115substantially engaged in delivering care or managing the practice. The director shall be 116responsible for implementing policies and procedures to ensure compliance with local 117ordinances and state and federal statutes and regulations governing the practice of medicine or 118the practice of nursing, including regulations promulgated and policies established by the 119applicable board. The board may impose discipline against the licenses of the medical director 120and the clinicians with independent practice authority who own and control the health care 121practice for failure of the practice to comply with local ordinances and state and federal statutes 122and regulations governing the practice of medicine or the practice of nursing, including 123regulations promulgated and policies established by the applicable board. 7 of 8 124 (h) The board of registration in medicine and board of registration in nursing may 125promulgate regulations to establish minimum requirements for the conduct of a health care 126practice, including, but not limited to: (i) compliance with section 4A of chapter 112; (ii) 127maintenance and access to medical records; and (iii) in the event of a planned closure of the 128health care practice or an unplanned event that prevents the health care practice from continuing 129operations, the development of a continuity plan to: (1) ensure access to medical records, (2) 130provide notice to patients; and (3) assist patients with transitioning to a new provider. If a 131practice’s owners consist of individuals registered solely with the board of registration in 132medicine or the board of registration in nursing, the practice shall comply with the applicable 133board’s regulations. If the practice’s owners consist of individuals registered with both boards, 134the practice shall comply with the regulations issued by the board of registration in medicine. 135Each board shall consult with the other when promulgating regulations. 136 Section 4B. (a) A health care practice shall maintain ultimate control over clinical 137decisions. 138 (b) A management services organization shall not exercise control over, or be delegated 139the power to do, any of the following: (i) owning or otherwise determining the content of patient 140medical records; (ii) selecting, hiring or firing any owner of or clinician associated with the 141health care practice based, in whole or in part, on clinical competency or proficiency; (iii) setting 142the parameters under which a practice shall enter into contractual relationships with third-party 143payers; (iiiv) setting the parameters under which a practice shall enter into contractual 144relationships with clinicians for the delivery of care; (iv) making final decisions regarding coding 145and billing procedures for patient care services; or (vi) approving the selection of medical 146equipment and medical supplies for the practice. 8 of 8 147 (c) A health care practice shall maintain ultimate decision-making authority over: (i) 148personnel decisions involving clinicians, including, but not limited to, employment status, 149compensation, hours or working conditions; (ii) coding or billing decisions; (iii) the selection and 150use of property, including, but not limited to, real property, medical equipment or medical 151supplies for the delivery of patient care services; (iv) the number of patients seen in a given 152period of time or the amount of time spent with each patient; (v) the appropriate diagnostic test 153for medical conditions; (vi) the use of patient medical records; and (vii) referral decisions. 154 (d) A violation of this section shall constitute the unauthorized practice of medicine in 155violation of section 6 or the unauthorized practice of nursing in violation of section 80E, 80H or 15680J. Any provision of a contract or agreement that has the effect of violating this section shall be 157void and unenforceable. If a court of competent jurisdiction finds a policy, contract or contract 158provision void and unenforceable pursuant to this section, the court shall award the plaintiff 159reasonable attorney’s fees and costs. 160 (e) The department of public health shall promulgate regulations to effectuate the 161purposes of this section.