North Dakota is routinely reported as having a corporate practice prohibition at N.D.C.C. § 43-17-31. That section is titled “Grounds for disciplinary action”, and it is not a corporate practice ban.
Chapter 43-17 of the North Dakota Century Code contains no express corporate practice of medicine prohibition. What it does contain matters more to an operator: § 43-17-02.3 provides that the practice of medicine is deemed to occur in the state the patient is located, and that a practitioner providing care to a patient located in North Dakota is subject to North Dakota licensing and discipline and shall possess an active North Dakota licence.
What North Dakota actually requires
- An active North Dakota licence for anyone treating a patient located in North Dakota, whatever state the practitioner sits in. The statutory exceptions are narrow: organ harvest teams, air ambulance treatment teams, one-time diagnostic consultation to a North Dakota-licensed physician or teaching assistance of not more than seven days, board-approved charitable consultation, and anything the board provides by rule.
- A licensed physician as medical director for the medical services on the menu.
- A management fee structure that does not run into § 43-17-31, which makes it a disciplinary ground to pay or receive, directly or indirectly, any fee, commission, rebate or other compensation for medical services not actually or personally rendered, or for patient referrals.
- Recognition of the carve-out in that same provision: the prohibition does not affect the lawful distributions of professional partnerships, corporations, limited liability companies or associations.
- Written protocols, delegation and good faith examinations, since the entity question is doing no compliance work here.
Who may do what in North Dakota
| Licence | What they may do |
|---|---|
| MD or DO | Independent; medical director; must hold an active North Dakota licence to treat a North Dakota patient |
| Nurse practitioner | Within NP scope under the applicable nursing rules |
| Physician assistant | Within scope, under the applicable arrangement |
| Registered nurse | Within RN scope, under a valid order |
| Non-licensee | Through a management arrangement; watch the fee-splitting ground |
If you run a multi-state telehealth or med spa brand, § 43-17-02.3 is the North Dakota sentence to memorise. Where your practitioner sits is irrelevant. Where the patient sits decides which licence you need.
What MDside provides in North Dakota
- A North Dakota-licensed MD or DO as medical director, doing the work rather than lending a name.
- A North Dakota-licensed MD or DO, because a licence from anywhere else does not reach a patient located in North Dakota.
- The professional entity and management agreement built to North Dakota rather than to a national template.
- Licensed physicians for the good faith exams behind prescriptions and injectables.
- 503A and 503B pharmacy relationships and lab draws.
See what is included, or book a call and tell us which states you operate in.
Read the detail on North Dakota
Frequently asked questions
Does North Dakota prohibit the corporate practice of medicine?
Chapter 43-17 of the Century Code contains no express prohibition. Sources citing § 43-17-31 as a ban are misreading it; that section sets out grounds for disciplinary action.
Where is the practice of medicine deemed to occur?
In the state the patient is located, under N.D.C.C. § 43-17-02.3. A practitioner treating a North Dakota patient must hold an active North Dakota licence.
Is fee-splitting prohibited?
Paying or receiving compensation for services not actually or personally rendered, or for patient referrals, is a ground for discipline under § 43-17-31.
Does that stop an entity from distributing profit?
No. The provision expressly does not affect the lawful distributions of professional partnerships, corporations, limited liability companies or associations.
General information about North Dakota 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 North Dakota.