First Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED 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 hospitals or other health care agencies or practice by a physical therapist in a clinic with other health care providers shall not be considered the corporate practice of physical therapy if: (I) The employment is evidenced by a written agreement specifying that the relationship created by the agreement shall 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; and (III) The physical therapist is not required to exclusively refer any patient to a particular provider or supplier or take any other action he or she determines not to be in the patient's best interest. SECTION 2. 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.