In Illinois, may a non-clinical owner or manager be paid a share of revenue?
Ownership · part of The Practice Perimeter
⚠️ Illinois has a dedicated fee-splitting section and its ban is not limited to referrals. “a licensee under this Act may not directly or indirectly divide, share or split any professional fee or other form of compensation for professional services with anyone in exchange for a referral or otherwise, other than as provided in this Section 22.2.” The words “or otherwise” do the work — an arrangement with no referral in it is still inside the section unless an exception applies.
225 ILCS 60/22.2(a) · verified Sep 2, 2026 · regulatory monitoring, not legal advice
Related Illinois rules
The first exception is for genuine shared work, on three conditions. Two or more licensed health care workers may “each receive adequate compensation for concurrently rendering services to a patient and … divide the fee” — provided “the patient has full knowledge of the division” and the division “is made in proportion to the actual services personally performed and responsibility assumed by each licensee consistent with his or her license”. Concurrent work, proportionate split, patient knowledge.
225 ILCS 60/22.2(b) · verified Sep 2, 2026
⚠️ the second exception is the entity route, and its first condition is the corporate-practice rule. Nothing prohibits practicing “through or within any form of legal entity authorized to conduct business in this State” or “pooling, sharing, dividing, or apportioning the professional fees and other revenues in accordance with the agreements and policies of the entity” — PROVIDED “(1) each owner of the entity is licensed under this act”, (2) it is organized under the Medical Corporation Act, Professional Services Corporation Act, Professional Association Act or Limited Liability Company Act, and (3) it is allowed by Illinois law to provide physician services. Revenue sharing inside a wholly licensee-owned entity is fine; outside one it is not.
225 ILCS 60/22.2(c) · verified Sep 2, 2026
How other states answer this
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← All Illinois rules and changes · MedSpaRadar is regulatory monitoring and reference: it summarizes public laws, regulations and agency actions and links each to its source. It is not legal, medical, or compliance advice, and using it creates no attorney-client relationship. A summary can lag its source or leave out detail, and monitoring itself can be interrupted — so an absence of alerts means nothing reached you, not that nothing happened. Read the cited source, check its effective date, and confirm any change to your operations or clinical practice with qualified health-law counsel and your medical director. Legislative data via LegiScan (CC BY 4.0).