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Statutes of Newfoundland and Labrador 2001


Statutes of Newfoundland and Labrador 2001 Chapter 9

CHAPTER 9

AN ACT TO AMEND THE MEDICAL ACT AND THE MEDICAL CARE INSURANCE ACT, 1999

(Assented to May 24, 2001)

Analysis

MEDICAL ACT

1. S.2 Amdt.
Definitions

2. PART I Heading Added

3. PART II Heading Added

4. S.13 Amdt.
Regulations

5. PART III Added

PART III
PROFESSIONAL
MEDICAL
CORPORATION

23.1 Definitions
23.2 Professional
corporation
23.3 Corporate register
23.4 Annual licence
23.5 Revocation of licence
23.6 Refusal to register or
issue licence
23.7 Effect of incorporation
23.8 Liability of medical
practitioner
23.9 Misconduct of a
professional medical
corporation

6. PART IV Heading Added

7. S.24.15 Rep.
Liability

8. PART V Heading added

9. S.24.16 Amdt.
Prescription drug monitoring program

10. S.26 Amdt.
Appeal

11. S.28 R&S
Protection from liability

MEDICAL CARE INSURANCE ACT, 1999

12. S.2 Amdt.
Definitions

13. S.3 Amdt.
Confidentiality of information

14. S.6 Amdt.
Actions barred

15. S.8.1 Added
Professional medical corporation

16. S.10 Amdt.
Payment for services

17. S.12 Amdt.
Non-application of Act

18. S.13 Amdt.
Non-liability of minister

19. S.14 Amdt.
Penalties for false statements

20. S.15 Amdt.
Notification of default

21. Ss.15.1 & 15.2 Added
15.1 Joint and individual
liability
15.2 Debt due the Crown

22. S.16 Amdt.
Withholding of payments

23. S.17 Amdt.
Appeal

24. S.19 Amdt.
Recovery of costs for services

25. S.21 Amdt.
Regulations by minister

26. S.26.1 Added
Physician liability

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

MEDICAL ACT


RSN1990 cM-4
as amended

1. The Medical Act is amended by adding immediately after paragraph 2(i) the following:

(i.1) "professional medical corporation" means a corporation that is permitted under Part III of this Act to provide the services of a medical practitioner;

 

2. The Act is amended by adding immediately after section 2 the following:

PART I
ASSOCIATION

 

3. The Act is amended by adding immediately after section 9 the following:

PART II
MEDICAL BOARD

 

4. Section 13 of the Act is amended by adding immediately after paragraph (g) the following:

(g.1) the registration and annual licensing of professional medical corporations;

 

5. The Act is amended by adding immediately after section 23 the following:

PART III
PROFESSIONAL MEDICAL CORPORATION

Definitions

23.1 In this Part

(a) "non-voting share" means an issued share of a professional medical corporation that is not a voting share; and

(b) "voting share" means an issued share of a professional medical corporation with the right to vote at a meeting of shareholders attached to it.

Professional corporation

23.2 (1) One or more medical practitioners may incorporate a corporation to provide the services of a medical practitioner.

(2) The corporation shall be incorporated under the Corporations Act.

(3) The name of the corporation shall meet the requirements of subsection 17(1) of the Corporations Act.

(4) A corporation shall not provide the services of a medical practitioner unless it is registered and licensed under this Act.

Corporate register

23.3 (1) The registrar shall maintain a register of professional medical corporations known as the Corporate Register of the Newfoundland Medical Board.

(2) The registrar shall register a professional medical corporation that establishes that

(a) all the voting shares of the corporation are beneficially owned by and registered in the name of one or more medical practitioners registered and licensed under this Act and there is no restriction on the right of each medical practitioner to exercise his or her vote as he or she wishes to;

(b) the non-voting shares are owned by a natural person;

(c) all the directors of the corporation are medical practitioners registered and licensed under this Act, and there is no agreement restricting the powers of the directors to manage the business and affairs of the corporation in relation to the practice of medicine;

(d) all of the persons who will be practising medicine as employees of or on behalf of the corporation are medical practitioners registered and licensed under this Act;

(e) the articles of the corporation restrict it to providing the services of a medical practitioner and related matters;

(f) the corporation is in good standing under the Corporations Act; and

(g) the corporation has complied with other requirements for registration in the regulations made under section 13.

(3) The corporate register shall be published in accordance with subsection 18(1) and a copy of the register may be certified in the manner set out in subsection 18(2).

(4) The board may enter into a reciprocal agreement with a medical board, association or other body having responsibility for the registration and licensing of professional medical corporations in another jurisdiction for the registration of corporations from that jurisdiction in the Corporate Register of the Newfoundland Medical Board.

(5) Notwithstanding subsection (2), the voting shares of a professional medical corporation may be held by

(a) an executor or administrator of the estate of a deceased medical practitioner to discharge the duties of that position; or

(b) a trustee in bankruptcy to discharge his or her duties as trustee in respect of the corporation or a medical practitioner,

for no longer than 180 days, or a longer period where the registrar permits.

Annual licence

23.4 (1) A professional medical corporation may apply for a licence to provide the services of a medical practitioner in the province and the registrar shall issue the licence provided that

(a) the professional medical corporation is registered under this Act;

(b) the application is accompanied by a licence fee which may be established by the board; and

(c) the professional medical corporation continues to meet the requirements for registration set out in section 23.3 and other requirements for being licensed which may be set out in this Act and the regulations made under paragraph 13(g.1).

(2) The holder of a licence issued under this section is entitled to recover from a person, in a court of the province having jurisdiction to order payment from that person, reasonable charges for the provision of professional services by that licence holder.

(3) A licence issued under this section expires on January 15 following the day upon which it comes into force.

Revocation of licence

23.5 A licence issued under section 23.4 may be revoked by the registrar where

(a) the professional medical corporation ceases to meet a requirement for registration or licensing under this Act;

(b) the professional medical corporation contravenes this Act or the regulations; or

(c) a medical practitioner is disciplined under section 24 in respect of professional services performed by him or her as an employee of or on behalf of the professional medical corporation.

Refusal to register or issue licence

23.6 (1) Where the registrar refuses to register a professional medical corporation, refuses to issue a licence to the corporation or revokes a licence under section 23.5, the professional medical corporation may within 30 days after receiving notice of the decision of the registrar appeal the decision to the Trial Division by filing a notice of appeal with the Registrar of the Supreme Court.

(2) An appeal under this section does not stay the decision of the registrar being appealed unless the Trial Division orders otherwise.

Effect of incorporation

23.7 (1) A medical practitioner who provides professional services to or through a professional medical corporation is, notwithstanding his or her relationship to the professional medical corporation or the relationship between the patient and the professional medical corporation, subject to

(a) the application of this Act as if he or she were providing services as an individual medical practitioner; and

(b) the same duties and responsibilities in connection with his or her dealings with patients of the professional medical corporation as if he or she were providing services directly to those patients.

(2) The relationship between a professional medical corporation and a patient receiving services from or through that corporation is subject to the laws relating to the confidential and ethical relationship between a medical practitioner and his or her patient.

(3) All rights and obligations pertaining to communications made to, or information received by, medical practitioners apply to the shareholders, directors, officers and employees of a professional medical corporation.

Liability of medical practitioner

23.8 (1) Notwithstanding a provision to the contrary in the Corporations Act, a medical practitioner who provides services or practises medicine through or on behalf of a professional medical corporation is liable to a person in relation to those services and the practice of medicine to the same extent and in the same manner as if the medical practitioner provided those services as an individual and that liability is not affected because of the medical practitioner’s relationship to the professional medical corporation as a shareholder, director, officer, employee or in another capacity.

(2) A medical practitioner is jointly and individually liable with a professional medical corporation for all claims made against the corporation in connection with the provision of services or the practice of medicine by the medical practitioner.

Misconduct of a professional medical corporation

23.9 (1) A medical practitioner is liable to be disciplined under section 24 for the actions or conduct of a professional medical corporation while the medical practitioner was a shareholder, director, officer or employee of the professional medical corporation and section 24.01 applies to the process, with the necessary changes.

(2) A medical practitioner shall not be liable to discipline under subsection (1) where the medical practitioner proves that he or she did not know and could not reasonably have known about the relevant actions or conduct of the professional medical corporation.

(3) Any powers of inspection, investigation or inquiry that may be exercised in respect of a medical practitioner under section 24 or 24.01 may be exercised in respect of a professional medical corporation or its records in connection with an inquiry under subsection (1).

(4) A professional medical corporation is jointly and individually liable with the medical practitioner for all fines and costs the medical practitioner is ordered to pay in connection with an inquiry under subsection (1).

 

6. The Act is amended by adding immediately before section 24 the following:

PART IV
DISCIPLINE AND PEER ASSESSMENT

 

7. Section 24.15 of the Act is repealed.

 

8. The Act is amended by adding immediately before section 24.16 the following:

PART V
GENERAL

 

9. Subsection 24.16(5) of the Act is repealed.

 

10. Section 26 of the Act is amended by deleting the word and number "section 24" wherever it occurs, and substituting the words and numbers "section 23.6 or 24".

 

11. Section 28 of the Act is repealed and the following substituted:

Protection from liability

28. (1) An action for damages does not lie against

(a) the registrar, a member, officer or employee of the board, a person designated by the board, a member of a committee authorized under this Act, an agent of the board or the board as a corporation; or

(b) licensing authorities, medical societies, the peer assessment committee, the registrar, an officer or employee of the licensing authorities or medical societies, a member of a committee or subcommittee of the licensing authorities or medical societies or an assessor appointed under section 24.4

for an act or failure to act or a proceeding initiated or carried out in good faith under this Act, or for carrying out duties or obligations as the registrar, a member, officer, employee, designate, agent, or committee member authorized under this Act or for a decision or order made or enforced in good faith under this Act.

(2) An action for damages does not lie against a medical practitioner solely because the practitioner provides information requested of him or her under subsection 24.16(2).

MEDICAL CARE INSURANCE ACT, 1999

SN1999 cM-5.1

12. Section 2 of the Medical Care Insurance Act, 1999 is amended by adding immediately after paragraph (g) the following:

(g.1) "professional medical corporation" means a corporation that is permitted under Part III of the Medical Act to provide the services of a medical practitioner;

 

13. Subsection 3(1) of the Act is amended by adding immediately after paragraph (a) the following:

(a.1) to a professional medical corporation and its directors, officers and employees for a purpose relating to insured services that the corporation has provided;

 

14. Section 6 of the Act is amended by adding immediately after the word "physician" the words "or a professional medical corporation".

 

15. The Act is amended by adding immediately after section 8 the following:

Professional medical corporation

8.1 (1) Notwithstanding a provision of this Act or the regulations, a professional medical corporation may submit accounts and be paid by the minister in respect of insured services rendered by a participating physician through the professional medical corporation to a beneficiary.

(2) A professional medical corporation submitting accounts shall comply with sections 7 and 8 of this Act as if it were a participating physician.

(3) Where a professional medical corporation submits an account for insured services, every participating physician whose services are included in that account is considered to have certified that the information provided about his or her services is accurate and true.

 

16. (1) Subsection 10(2) of the Act is amended by striking out the words "Where a participating physician provides insured services to beneficiaries, the minister shall make payment to him or her" and substituting the words "Where a participating physician as an individual or through a professional medical corporation provides insured services to a beneficiary, the minister shall make payment to the physician or professional medical corporation".

(2) Subsection 10(3) of the Act is amended by adding immediately after the words "participating physician" the words "as an individual or through a professional medical corporation".

(3) Subsection 10(4) of the Act is amended by adding immediately after the words "participating physician" the words "as an individual or through a professional medical corporation".

(4) Subsection 10(5) of the Act is amended by adding immediately after the words "participating physician" where they first occur a comma and the words and comma "as an individual or through a professional medical corporation,".

 

17. Section 12 of the Act is amended by renumbering it as subsection 12(1) and by adding immediately after that subsection the following:

(2) Where a physician who is not a participating physician provides insured services through a professional medical corporation, the professional medical corporation is not, in relation to those services, subject to this Act or the regulations relating to the provision of insured services to beneficiaries or the payment to be made for the services and the professional medical corporation and the physician providing the insured services shall comply with subsection (1).

 

18. Subsection 13(1) of the Act is amended by adding immediately after the word "physician" wherever it occurs, a comma and the words "professional medical corporation".

 

19. Section 14 of the Act is amended by adding immediately after subsection (2) the following:

(3) A professional medical corporation that makes a false statement in a report, form or return required to enable a payment to be made under this Act or the regulations is guilty of an offence and liable on summary conviction to a fine of not less than $2,000 and not more than $10,000.

(4) The liability of a physician under subsection (1) is not affected because the physician provides services through a professional medical corporation.

 

20. (1) Subsection 15(1) of the Act is repealed and the following substituted:

Notification of default

15. (1) Where, after an inquiry, the minister finds or has reasonable cause to believe that

(a) a participating physician or professional medical corporation has been convicted of an offence under this Act;

(b) a participating physician or professional medical corporation has submitted false statements in a report, form or return required to enable a payment to be made under this Act;

(c) the pattern of practice of a participating physician of a certain class or specialty or of a professional medical corporation in the whole or an area of the province deviates significantly from the average pattern of practice of physicians of a similar class or specialty or of a professional medical corporation in the whole or an area of the province as defined in the regulations made under section 21; or

(d) a claim for payment is made by a participating physician or professional medical corporation for services which are not insured services,

the minister shall notify the physician or professional medical corporation of his or her finding or belief in writing by registered mail and shall state the reasons for that finding or belief in the notification.

(2) Subsections 15(2) to (5) of the Act are amended by adding immediately after the word "physician" wherever it occurs the words "or professional medical corporation".

(3) Subsection 15(6) of the Act is amended by adding immediately after the word "physician" a comma and the words "professional medical corporation".

(4) Paragraph 15(10)(c) of the Act is amended by adding immediately after the words and comma "participating physician," the words "or a professional medical corporation".

(5) Paragraph 15(10)(d) of the Act is repealed and the following substituted:

(d) estimating and imposing on the physician or professional medical corporation a penalty of an amount not exceeding the amount of a loss sustained by the Crown because of a payment to the physician, professional medical corporation or the beneficiary for services which are, or are related to, the subject of the notification under subsection (1), together with 10% of the amount of the loss, and, for the purpose of this paragraph, the estimate shall, subject to proof to the contrary or appeal in accordance with section 17, be considered to be the actual loss sustained;

(6) Paragraph 15(10)(f) of the Act is amended by adding immediately after the words "participating physician" the words "or professional medical corporation".

(7) Subsection 15(12) of the Act is amended by adding immediately after the word "physician" the words "or professional medical corporation".

 

21. The Act is amended by adding immediately after section 15 the following:

Joint and individual liability

15.1 Where an order is made under section 15 against a professional medical corporation, a physician who provided services which are, or are related to, the subject of the notification in respect of which the order was made, is jointly and individually liable with the professional medical corporation for the penalty imposed on the corporation.

Debt due the Crown

15.2 A penalty imposed on a physician or professional medical corporation under section 15 or 15.1 is recoverable by action in a court as a debt due to the Crown.

 

22. Section 16 of the Act is amended by adding immediately after the words "participating physician" the words "or professional medical corporation".

 

23. Subsection 17(1) of the Act is amended by adding immediately after the word "physician" the words "or professional medical corporation".

 

24. Subsection 19(4) of the Act is amended by striking out the words "person or physician" and substituting the words and comma "person, physician or professional medical corporation".

 

25. (1) Paragraph 21(1)(j) of the Act is amended by adding immediately after the word "physicians" a comma and the words "professional medical corporations".

(2) Paragraph 21(1)(m) of the Act is amended by adding immediately after the word "physicians" a comma and the words "professional medical corporations".

(3) Subsection 21(1) of the Act is amended by adding immediately after paragraph (m) the following;

(m.1) respecting the application of this Act to a professional medical corporation;

 

26. The Act is amended by adding immediately after section 26 the following:

Physician liability

26.1 It is not a defence to a prosecution of a physician for an offence under section 26 that insured services were provided through a professional medical corporation or that a claim for payment in respect of service provided by that physician were submitted by a professional medical corporation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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