In New Jersey, 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 — they establish only that an outside corporation may hold a limited partner interest supplying non-professional services, with the licensee keeping sole discretion over patient fees; they set no rule on revenue-share pay.
⚠️ 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
Related New Jersey rules
⚠️ 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
How other states answer this
- Alaska
- Arizona
- California
- Colorado
- Delaware
- District of Columbia
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- 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
Related New Jersey questions
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- Can private equity invest in a med spa in New Jersey?
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← All New Jersey 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).