New York 2025-2026 Regular Session

New York Assembly Bill A02588

Introduced
1/21/25  
Refer
1/21/25  

Caption

Authorizes certain licensed health service professionals to form limited liability companies.

Impact

The bill's passage would notably impact the existing regulatory framework overseeing health service providers in New York. By allowing multiple health service professionals to form LLCs, it potentially enhances the delivery of integrated health services, facilitating a more multidisciplinary approach to patient care. This change reflects a shift towards accommodating modern healthcare delivery models that emphasize cooperative practices among various health specialties, which can lead to improved health outcomes for patients.

Summary

Bill A02588 proposes amendments to various laws in New York, including the limited liability company law, business corporation law, partnership law, education law, and public health law. The primary aim is to authorize licensed health services professionals to form limited liability companies (LLCs) for the purpose of providing services within their professional scope. This legislative change is significant as it allows a wider range of health professionals to collaborate and operate their businesses under the LLC structure, promoting business flexibility and operational collaboration among professionals in health services.

Contention

However, there are points of contention regarding the bill. Critics may express concerns over the implications for professional accountability and standards of care, as they worry that enabling a range of practitioners to operate under one business entity might dilute individual accountability. There is also apprehension about potential conflicts of interest, particularly if financial incentives encourage unethical practices. Moreover, varying interpretations of professional practice scopes among different health disciplines could result in legal ambiguities as professionals navigate their roles within these new LLC structures.

Companion Bills

NY S03350

Same As Authorizes certain licensed health service professionals to form limited liability companies.

Previously Filed As

NY S03350

Authorizes certain licensed health service professionals to form limited liability companies.

NY H0403

Limited Liability Companies

NY SB164

Relating to limited liability companies.

NY S0316

Limited Liability Companies

NY S08387

Authorizes certain penalties to be assessed against members of a limited liability company and partners of a limited liability partnership or partnership.

NY AB2709

Health facilities: limited liability companies.

NY AB683

Business entities: limited liability companies.

NY SB1142

Modifies provisions relating to series limited liability companies

NY HB2117

Modifying certain business filing and fee requirements for business trusts, foreign corporations and limited partnerships; authorizing professional corporations or limited liability companies formed or organized to render a professional service to participate in transactions under the business entity transactions act; and making certain information provided by registered agents a public record.

NY A08662

Amends the definitions of the terms "beneficial owner", "reporting company" and "exempt company" to set the scope of certain provisions relating to beneficial owners of limited liability companies; authorizes the department of state to further clarify any such definitions.

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