NC S570

Prohibits stakeholders (incorporators, officers, directors, shareholders, employees) of medical professional corporations from also being stakeholders in management services organizations that provide non-clinical services to those corporations, unless the management services organization is entirely owned by NC-licensed medical professionals

Requires employment agreements and contracts for physicians to ensure the licensee has control over all medical decisions without clinical interference from unlicensed individuals, management services organization stakeholders, or out-of-state physicians affiliated with the professional corporation

Limits where licensed physicians may practice as employees or independent contractors to specific approved entities: professional corporations owned by licensees, hospitals and facilities registered with DHHS, non-profit/free clinics serving indigent populations, HMOs, federal/state health agencies, and other Board-approved employers

Empowers the NC Medical Board to investigate violations, request employer documentation on ownership structure and compliance affirmations, suspend or revoke certificates of registration, and consult with the Attorney General for prosecution of violations

Takes effect upon becoming law and applies to contracts entered into, modified, or renewed after that date, with Medical Board rules required by October 1, 2026