New York is the state where the usual management fee is not merely risky. It is unlawful.
Education Law § 6530(18) and (19) and 8 NYCRR § 29.1(b)(4) prohibit fee splitting between a professional entity and a non-licensee. A management fee calculated as a percentage of clinical revenue falls inside that prohibition. Fees must be fixed, at fair market value, and agreed in writing before services are rendered.
What New York actually requires
- Ownership of the entity practicing medicine by a physician licensed under Education Law Article 131. Not an RN, not an NP, not an esthetician, not an investor.
- A management fee that is fixed and fair market value, documented in writing before the services are provided.
- No compensation tied to referrals or to a share of clinical collections.
- Recognition that physician conduct oversight runs through the Office of Professional Medical Conduct and attaches to the individual physician personally.
- Protocols and supervision arrangements appropriate to each license delivering care.
Who may do what in New York
| License | What they may do |
|---|---|
| MD or DO | Independent; the only permitted owner of the treating entity |
| Nurse practitioner | Under the applicable collaborative or practice arrangement |
| Physician assistant | Under physician supervision |
| Registered nurse | Within RN scope, on a physician order |
| Non-licensee | May own management, premises and marketing — never the practice |
New York is the clearest example of why a national template fails. A management agreement drafted for Florida and used in New York is not slightly non-compliant; its central economic term is prohibited.
What MDside provides in New York
- A New York-licensed physician owning the professional entity and exercising real clinical authority.
- A management agreement built on a fixed, fair-market fee — the way we structure fees in every state, precisely because of this one.
- Documentation executed before services begin, not reconstructed afterwards.
- Protocols, supervision arrangements and chart review that hold up to OPMC scrutiny.
- Licensed providers, pharmacy sourcing and lab draws under the same structure.
See everything that is included, or book a call and tell us which states you operate in.
Read the detail on New York
Frequently asked questions
Is a percentage-based management fee legal in New York?
No. New York prohibits fee splitting between a professional entity and a non-licensee. Fees must be fixed, at fair market value, and agreed in writing before services are rendered.
Who may own a medical practice in New York?
Only a physician licensed under Education Law Article 131 may own the entity that practices medicine. A non-licensee may own a separate management company.
Who investigates a New York medical director?
Physician conduct oversight runs through the Office of Professional Medical Conduct, and it attaches to the physician personally rather than to the business.
General information about New York practice structure and med spa regulation, not legal advice. Statutes, board rules and scope-of-practice requirements change. Confirm your obligations with healthcare counsel licensed in New York.