HOUSE Amended 2nd Reading January 28, 2005First Regular Session Sixty-fifth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 05-0342.01 Christy Chase HOUSE BILL 05-1016 HOUSE SPONSORSHIP White, SENATE SPONSORSHIP (None), House Committees Senate Committees Health and Human Services A BILL FOR AN ACT Concerning an exemption from the prohibition against the corporate practice of physical therapy for physical therapists engaged in the practice of physical therapy in a health care agency. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Specifies that employment of physical therapists in hospitals or other health care agencies or practice by a physical therapist in a clinic with other health care providers is not the corporate practice of physical therapy if:  The employment is evidenced by a written agreement indicating that the employment relationship cannot affect the physical therapist's independent judgment;  The physical therapist's independent judgment is not affected by the relationship; and  The physical therapist is not required to exclusively refer patients to a specific provider or supplier or take action not in the patient's best interest. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 12-41-124 (5), Colorado Revised Statutes, is amended to read: 12-41-124. Professional service corporations, limited liability companies, and registered limited liability partnerships for the practice of physical therapy - definitions. (5) (a) Except as provided in this section, corporations shall not practice physical therapy. (b) Employment of physical therapists by a certified or licensed hospital, licensed skilled nursing facility, certified home health agency, certified comprehensive outpatient rehabilitation facility, certified rehabilitation agency, authorized health maintenance organization, accredited educational entity, or other entity wholly owned and operated by any governmental unit or agency shall not be considered the corporate practice of physical therapy if: (I) The relationship created by the employment does not affect the ability of the physical therapist to exercise his or her independent judgment in the practice of the profession; (II) The physical therapist's independent judgment in the practice of the profession is in fact unaffected by the relationship; (III) The policies of the entity employing the physical therapist contain a procedure by which complaints by a physical therapist alleging a violation of this paragraph (b) may be heard and resolved. (IV) The physical therapist is not required to exclusively refer any patient to a particular provider or supplier; except that nothing in this subparagraph (IV) shall be construed to invalidate the policy provisions of a health benefit plan between either a carrier and the physical therapist or a carrier and a covered person; and (V) The physical therapist is not required to take any other action he or she determines not to be in the patient's best interest. (c) The provisions of paragraph (b) of this subsection (5) shall apply to professional service corporations, limited liability companies, and registered limited liability partnerships formed for the practice of physical therapy in accordance with this section regardless of the date of formation of the entity. SECTION 2. 12-41-124 (6), Colorado Revised Statutes, is amended BY THE ADDITION OF THE FOLLOWING NEW PARAGRAPHS to read: 12-41-124. Professional service corporations, limited liability companies, and registered limited liability partnerships for the practice of physical therapy - definitions. (6) As used in this section, unless the context otherwise requires: (a.5) "Carrier" shall have the same meaning as set forth in section 10-16-102 (8), C.R.S. (d.3) "Health benefit plan" shall have the same meaning as set forth in section 10-16-102 (21), C.R.S. SECTION 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.