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Senate committee advances bill to allow nonphysician ownership of clinics, drawing strong opposition from medical society
Summary
The Senate Public Health, Welfare and Labor Committee voted to advance Senate Bill 572 to the floor after debate over whether allowing nonphysician ownership of medical practices would improve rural access or shift patient care toward business interests. Supporters argued it reflects current practice and could expand rural clinics; the Arkansas Medical Society urged rejection.
Senate Bill 572, which would clarify that a medical practice may have nonlicensed individuals in leadership roles so long as medical care remains directed by licensed physicians, passed out of the Senate Public Health, Welfare and Labor Committee by voice vote.
Senator Dan Sullivan introduced the measure and said it aims to align statute with current practice so clinics with business managers or chief executive officers can operate without risking a technical violation of state law. "This amendment simply brings clarity to the fact that a medical practice may have a non licensed individual in leadership so long as the medical care is directed by a licensed physician," Sullivan said.
Gabriel Mallard, a Little Rock health‑care attorney, told the committee that Arkansas Code Annotated "4 29 3 0 7" is drafted in a way that appears to require physicians to control all clinic operations, but that the reality in Arkansas reflects hospitals and corporations operating clinics and employing physicians. Mallard said codifying the practice would preserve physician control over medical decision‑making while allowing business officers to run operations.
Mike Mitchell, general counsel for the Arkansas Medical Society, urged the committee to oppose the bill. "This bill would remove patient care from the hands of physicians and place it in the hands of business entrepreneurs," Mitchell said, arguing that entrepreneurial ownership could prioritize a balance sheet over patients and that few other states allow such a model outside specific hospital exceptions.
Committee members questioned whether entrepreneurs already operate clinics in Arkansas, how hospitals differ from for‑profit owners, and whether entrepreneurs would decline lower‑paying Medicaid patients. Mitchell responded that, based on his research and 40 years of experience, Arkansas does not currently have entrepreneurial entities practicing medicine through employed physicians and that hospitals are a distinct category with different oversight.
Proponents countered that allowing nonphysician owners could make it feasible for investors or community businesspeople to open clinics in underserved rural towns that otherwise might lack a provider. Mallard noted examples such as urgent‑care chains, federally qualified health centers and hospital‑run clinics as existing models in which nonphysicians make business decisions while clinical care is overseen by licensed providers.
Senator Sullivan closed by asking for a favorable report; the committee approved the motion to pass by voice vote and the bill will move to the floor.
The committee did not record a roll‑call tally in the transcript; the chair announced the bill passed on a voice vote. Next steps: floor consideration by the Senate.
