N.J. Admin. Code § 13:38-1.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:38-1.3 - Permissible business structures; referral fees

(a) As used in this section, the following words and terms shall have the following meanings unless the context clearly indicates otherwise.

"Associate" means a closely allied health care professional in the permissible business structure who is the licensee's partner, employee, fellow shareholder or fellow member in that business structure.

"Board" means the New Jersey State Board of Optometrists.

"Closely allied health care professional" means an individual who provides professional services and is licensed in New Jersey by a professional or occupational licensing board or other State agency, in any of the following fields pursuant to 14A:17-3(b): optometry, ophthalmic dispensers, dentistry, registered professional nursing, physical therapy or any branch of medicine or surgery.

"Limited liability company" (LLC) means a business corporation organized in compliance with the Limited Liability Company Act, 42:2B-1 et seq., to engage in and carry on any lawful business, purpose, or activity, which combines the attributes of both corporation and partnership, and provides the limited liability generally associated with a corporation and the Federal tax treatment of a partnership.

"Limited liability partnership" (LLP) means an association of two or more persons to carry on as owners of a business for profit, which partnership is formed pursuant to an agreement governed by the laws of New Jersey, registered pursuant to N.J.S.A. 42:1-44 and in compliance with N.J.S.A. 42:1-45.

"Permissible business structure" means a sole proprietorship, partnership, including limited liability partnership, or corporation, including limited liability company, all of which are subject to the limitations of (b) below.

"Professional service corporation" means a business entity established pursuant to 14A:17-1 et seq., in which all shareholders are licensed by the State of New Jersey to render the same or a closely allied professional service.

"Referral" means the sending or directing of a person to any health care provider other than an associate for diagnosis, evaluation, treatment, or the furnishing of optometric or other health goods or services.

"Remuneration" means any salary, payment, distribution of income, dividend, interest income, loan, bonus, commission, kickback, bribe, rebate, gift, free goods or services of more than nominal value, discount, the furnishing of supplies, facilities or equipment, credit arrangement, and/or waiver of financial obligations.

(b) The following are permissible business structures which may offer optometric services in the State of New Jersey:

1. A sole proprietorship consisting of one licensed optometrist;

2. A partnership, including a limited liability partnership pursuant to N.J.S.A. 42:1-44 et seq., in which all partners are licensed optometrists or closely allied health care professionals;

3. A corporation established consistent with the provisions of the Professional Service Corporation Act (14A:17-1 et seq.) in which all shareholders are licensed optometrists or a combination of licensed optometrists and closely allied health care professionals; and

4. A limited liability company established consistent with the provisions of the Limited Liability Company Act (42:2B-1 et seq.), in which all members are licensed optometrists or a combination of licensed optometrists and closely allied health care professionals.

(c) Optometrists may be employed by a permissible business structure which includes one or more closely allied health care professionals, including at least one licensed optometrist provided that their professional practice is supervised and evaluated by a professional who is an optometrist or physician licensed by the State of New Jersey.

(d) Optometrists may engage in the practice of optometry, as a sole proprietor, partner, shareholder or member, in any permissible business structure in which they are not shielded from liability for their own breaches of professional duties, retain responsibility for the quality of care and appropriateness of their professional judgments, and are assured access to information and involvement in issues pertaining to quality of care, professional judgment, recordkeeping, advertising practices, and the finances of the permissible business structure.

(e) Optometrists shall not receive, solicit, offer, or pay any remuneration as an inducement to make a referral or as compensation for a referral of a patient for a service, product, drug or device or to purchase, prescribe or recommend a service, product, drug, or device.

(f) Violations of (b) through (e) above shall be deemed professional misconduct pursuant to 45:1-21(e).

N.J. Admin. Code § 13:38-1.3

New Rule, R.2000 d.178, effective 5/1/2000.
See: 31 N.J.R. 3041(a), 32 N.J.R. 1620(a).
Former N.J.A.C. 13:38-1.3, Optometric practice under assumed names and disclosure of practitioner names, recodified to N.J.A.C. 13:38-1.4.
Amended by R.2004 d.336, effective 9/7/2004.
See: 36 N.J.R. 10(a), 36 N.J.R. 4152(a).
Deleted former (f) and recodified former (g) as (f).
Amended by R.2012 d.077, effective 4/16/2012.
See: 43 N.J.R. 822(a), 44 N.J.R. 1272(a).
In (a), in definition "Closely allied health care professional", inserted "ophthalmic dispensers," and deleted a comma following "therapy".