SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
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This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
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S. 0046
Fiscal Impact Summary
This bill adds Chapter 9 to Title 41, which relates to the corporate practice of medicine and
physician employment contracts. This bill declares certain provisions in physician employment
impermissible, unenforceable, and void. This bill also creates a legal cause of action for a
physician seeking remedy from an employer’s violation of the provisions of the bill.
Judicial anticipates this bill may increase the number of cases related to employment contracts
filed by physicians. However, Judicial expects any change in caseload to be minimal and
managed within current appropriations.
This bill will have no expenditure impact on the Department of Labor, Licensing and Regulation
(LLR) or the Board of Medical Examiners as LLR anticipates any additional responsibilities will
be managed within existing appropriations.
Explanation of Fiscal Impact
Introduced on January 14, 2025
State Expenditure
This bill adds Chapter 9 to Title 41, which relates to the corporate practice of medicine and
physician employment contracts. This bill declares certain provisions in physician employment
impermissible, unenforceable, and void. The impermissible contract provisions identified by this
bill include restrictions on a physician’s ability to resume the practice of medicine following a
separation from employment, restrictions on the independent judgment of physicians, provisions
allowing business entities to practice medicine, and restrictions on a physician’s ability to notify
patients of their departure from employment. This bill also creates a legal cause of action for a
physician seeking remedy from an employer’s violation of the provisions of the bill.
Judicial anticipates this bill may increase the number of cases related to employment contracts
filed by physicians. Cases related to employment contracts filed in the Court of Common Pleas
during Fiscal Year 2023-2024 constituted 4.2% of all filings. Judicial expects additional filings
from this bill would represent a small percentage of total filings. Therefore, Judicial expects any
change in caseload to be minimal and managed within current appropriations.
This bill will have no expenditure impact on LLR or the Board of Medical Examiners as LLR
Bill Number: S. 0046 Introduced on Januar
y 14, 2025
Subject: Healthcare Contracts
Requestor: Senate Labor, Commerce, and Industry
RFA Analyst(s): Welsh
Impact Date: February 13, 2025
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
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S. 0046
anticipates any additional responsibilities will be managed within existing appropriations.
State Revenue
N/A
Local Expenditure
N/A
Local Revenue
N/A