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In Kentucky, may a non-clinical owner or manager be paid a share of revenue?

Ownership · part of The Practice Perimeter

Short answer
No — paying anyone a fee, commission or rebate for referrals or for professional services not actually and personally rendered is a disciplinary ground for the physician; the carve-out allowing fees to be pooled and divided covers licensed practitioners only.

Kentucky bans the kickback and then names who may divide a fee, which is what answers a non-clinical owner. It is a ground for discipline to have Given or received, directly or indirectly, from any person, firm, or corporation, any fee, commission, rebate, or other form of compensation for sending, referring, or otherwise inducing a person to communicate with a person licensed under KRS 311.530 in his or her professional capacity or for any professional services not actually and personally rendered. The carve-out that follows reaches LICENSED practitioners only, permitting those who hold valid licenses and practice together under KRS Chapter 274 from pooling, sharing, dividing, or apportioning the fees and moneys received by them. A share of revenue is therefore something licensees may divide among themselves, not something a lay owner may be paid out of.

Ky. Rev. Stat. §311.595(19) (fee, commission or rebate for a referral — and the sharing carve-out is licensees only) · verified Sep 7, 2026 · regulatory monitoring, not legal advice

Related Kentucky rules

  • Kentucky names the permitted structure inside the kickback ban. The referral-fee ground carries a carve-out for people who hold current licenses under the medical practice act: it does not prohibit them from practicing “in partnership or association or in a professional service corporation authorized by KRS Chapter 274, as amended”, nor “from pooling, sharing, dividing, or apportioning the fees and moneys received by them or by the partnership, corporation, or association in accordance with the partnership agreement or the policies of the board of directors of the corporation or association”. The carve-out runs to licensees only, and names no route for an unlicensed shareholder.

    Ky. Rev. Stat. §311.595(19) (the partnership and professional-service-corporation carve-out) · verified Sep 8, 2026

  • No person shall engage or attempt to engage in the practice of medicine or osteopathy within this state, or open, maintain, or occupy an office or place of business within this state for engaging in practice, or in any manner announce or express a readiness to engage in practice within this state, unless the person holds a valid and effective license or permit issued by the board as hereinafter provided.

    Ky. Rev. Stat. §311.560(1) · verified Sep 3, 2026

All 5 cited Kentucky rules on ownership & corporate practice of medicine →

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← All Kentucky 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).