In New Jersey, may a non-clinical owner or manager be paid a share of revenue?
Ownership · part of The Practice Perimeter
⚠️ NEW JERSEY’S RULE IS A SELF-REFERRAL BAN WITH A 1991 CUT-OFF. “A PRACTITIONER SHALL NOT REFER A PATIENT OR DIRECT AN EMPLOYEE OF THE PRACTITIONER TO REFER A PATIENT TO A HEALTH CARE SERVICE IN WHICH THE PRACTITIONER OR THE PRACTITIONER’S IMMEDIATE FAMILY, OR THE PRACTITIONER IN COMBINATION WITH THE PRACTITIONER’S IMMEDIATE FAMILY, HAS A SIGNIFICANT BENEFICIAL INTEREST, UNLESS THE PRACTITIONER HELD THE INTEREST PRIOR TO JULY 31, 1991” and discloses it. Interests taken after that date are not curable by disclosure — they bar the referral.
N.J.A.C. 13:35-6.17 · verified Sep 2, 2026 · regulatory monitoring, not legal advice
The rest of what New Jersey says on this
Every other rule we have verified under ownership & corporate practice of medicine, each linked to its primary source.
⚠️ AND “HEALTH CARE SERVICE” IS DEFINED TO INCLUDE DISPENSING DRUGS AND DEVICES. It means “A BUSINESS ENTITY WHICH PROVIDES on an in-patient or out-patient basis: TESTING FOR OR DIAGNOSIS OR TREATMENT OF HUMAN DISEASE OR DYSFUNCTION OR DISPENSING OF DRUGS OR MEDICAL DEVICES FOR THE TREATMENT OF HUMAN DISEASE OR DYSFUNCTION”, including but not limited to a bioanalytical laboratory, pharmacy, home health care agency or home infusion therapy company. An entity that dispenses drugs or devices is inside the referral rule.
N.J.A.C. 13:35-6.17 (“health care service”) · verified Sep 2, 2026 · read at Cornell Legal Information Institute
THE LEASE CARVE-OUT IS PRECISE, AND IT IS THE ANSWER TO A RENT ARRANGEMENT. Excluded from a “significant beneficial interest” is “OWNERSHIP OF A BUILDING OR COMPONENT THEREOF WHEREIN THE SPACE IS LEASED, IN WRITING, TO A PERSON OR ENTITY AT THE PREVAILING RATE UNDER A STRAIGHT LEASE AGREEMENT (THAT IS, A FIXED FEE FOR A FIXED TERM), OR ANY INTEREST HELD IN PUBLICLY TRADED SECURITIES.” In writing, at the prevailing rate, fixed fee for a fixed term — a percentage-of-revenue lease is outside the carve-out.
N.J.A.C. 13:35-6.17 (“significant beneficial interest”) · verified Sep 2, 2026 · read at Cornell Legal Information Institute
A practitioner may practice in a partnership, professional association or limited liability company only where that entity is composed solely of health care professionals, each duly licensed or otherwise authorized to render the same or a closely allied professional service in New Jersey. Closely allied fields include chiropractic, dentistry, nursing, midwifery, optometry, physical therapy, podiatry, psychology and social work.
N.J.A.C. 13:35-6.16(f)2 · verified Aug 17, 2026 · read at Cornell Legal Information Institute
A general business corporation may hold a limited partner interest in a professional practice only where the corporation supplies non-professional services alone — office management, non-professional hiring, space, equipment and billing. The licensee must retain sole discretion over patient fees, licensed professionals must make every care determination, and the corporation may not represent itself as offering licensed health care services. This is how an outside investor may participate at all.
N.J.A.C. 13:35-6.16(f)5 · verified Aug 17, 2026 · read at Cornell Legal Information Institute
A licensee may be employed to offer health care services by a general business corporation only in five settings: a State-licensed facility such as an HMO, hospital or ambulatory care center; a corporate clinic providing employee first aid and health monitoring rather than treatment; a non-profit sponsored by a union or a religious or fraternal organization; an accredited educational institution running a student or faculty clinic; or a State-licensed insurance carrier where the licensee performs quality assurance.
N.J.A.C. 13:35-6.16(f)4 · verified Aug 17, 2026 · read at Cornell Legal Information Institute
A practitioner holding a plenary license may not work for a practitioner holding a narrower one: a physician may not be employed by a podiatrist, a chiropractor or a midwife. Licensees may, however, employ nurses, x-ray technologists, physical therapists and comparable professionals.
N.J.A.C. 13:35-6.16(f)3 · verified Aug 17, 2026 · read at Cornell Legal Information Institute
How other states answer this
- Alaska
- Arizona
- California
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- Delaware
- District of Columbia
- Florida
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- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
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- Michigan
- Minnesota
- Nebraska
- Nevada
- 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
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← All New Jersey rules and changes · MedSpaRadar is regulatory monitoring and reference, not legal, medical, or compliance advice. Verify against the linked primary source and consult qualified counsel before acting — rules change and turn on your specific facts. Legislative data via LegiScan (CC BY 4.0).