In Michigan, may a non-clinical owner or manager be paid a share of revenue?
Ownership · part of The Practice Perimeter
Short answer
The cited rules do not settle this — Michigan only bars dividing fees for patient referrals and accepting kickbacks on services, appliances or medications, as a licensee disciplinary ground; nothing here addresses revenue-share pay untied to referrals.
⚠️ Michigan files fee-splitting under “unethical business practices”, and names the drug mark-up. The department shall investigate and the board may sanction “unethical business practices, consisting of 1 or more of the following: (i) false or misleading advertising. (ii) dividing fees for referral of patients or accepting kickbacks on medical or surgical services, appliances, or medications purchased by or in behalf of patients.” a rebate on medications bought for patients sits in the same clause as paying for referrals.
Mich. Comp. Laws § 333.16221(d)(i)–(ii) · verified Sep 2, 2026 · regulatory monitoring, not legal advice
The rest of what Michigan says on this
One or more licensed persons may form a professional corporation, and each shareholder must be either a licensed person in one or more of the professional services the corporation provides, or an entity that is directly or beneficially owned only by such licensed persons. The rule follows ownership through an intermediate entity rather than stopping at it.
Mich. Comp. Laws § 450.1283(1) and (2) · verified Sep 2, 2026 · read at Internet Archive snapshot — evidence of a page, not the current rule
The articles of incorporation must state that the corporation is formed to provide professional services AND state the specific service or services, and the name must contain “professional corporation” or “P.C.”. The permitted purpose is declared on the public record rather than assumed.
Mich. Comp. Laws § 450.1283(3) and (4) · verified Sep 2, 2026 · read at Internet Archive snapshot — evidence of a page, not the current rule
How other states answer this
- Alaska
- Arizona
- California
- Colorado
- Delaware
- District of Columbia
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- Minnesota
- Nebraska
- Nevada
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
Related Michigan questions
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- What limits does Michigan place on a med spa's business structure?
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← All Michigan 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).