In South Dakota, may a non-clinical owner or manager be paid a share of revenue?
Ownership · part of The Practice Perimeter
Short answer
No — splitting fees, or giving any portion of the patient's fees to a person who furnished the patient, is unprofessional conduct that can cost the physician's license; the rule reaches revenue shares but is silent on flat, non-revenue-based pay.
The term, unprofessional or dishonorable conduct, as used in this chapter includes: Splitting fees or giving to any person furnishing a patient any portion of the fees received from the patient or paying or giving to any person consideration of any kind for furnishing a patient.
S.D. Codified Laws §36-4-30(10) (Acts considered unprofessional conduct — splitting fees) · verified Sep 7, 2026 · regulatory monitoring, not legal advice
Related South Dakota rules
All of the officers, directors, and shareholders of a corporation subject to this chapter shall at all times be persons licensed pursuant to the Medical Practice Act. No person who is not so licensed shall have any part in the ownership or control of such corporation, nor may any proxy to vote any shares of such corporation be given to a person who is not so licensed.
S.D. Codified Laws §47-11-3 · verified Sep 3, 2026
In any corporation formed under this chapter one or more persons may act as the sole stockholders, directors, or officers of such corporation. Persons licensed pursuant to the Medical Practice Act and corporations formed under chapter 47-11, or any combination thereof, may form a limited liability company to own, operate, and maintain an establishment for the study, diagnosis, and treatment of human ailments and injuries, whether physical or mental.
S.D. Codified Laws §47-11-1 · verified Sep 3, 2026
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Related South Dakota questions
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- What limits does South Dakota place on a med spa's business structure?
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← All South Dakota 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).