# S.D. Codified Laws § 36-4-8.1: Corporation prohibited from practice of medicine or osteopathy

> South Dakota · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-8.1

## Section

- **Citation:** S.D. Codified Laws § 36-4-8.1
- **Heading:** Corporation prohibited from practice of medicine or osteopathy
- **Jurisdiction:** South Dakota
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** SD Code / Title 36 / Chapter 4 / Section 36-4-8.1

## Text

Except as provided in chapter 47-11 , it is the public policy of this state that a corporation may not practice medicine or osteopathy. A corporation is not engaged in the practice of medicine or osteopathy and is not in violation of § 36-4-8 by entering into an employment agreement with a physician licensed pursuant to this chapter if the agreement or the relationship it creates does not:

(1) In any manner, directly or indirectly, supplant, diminish or regulate the physician's independent judgment concerning the practice of medicine or the diagnosis and treatment of any patient;

(2) Result in profit to the corporation from the practice of medicine itself, such as by the corporation charging a greater fee for the physician's services than that which he would otherwise reasonably charge as an independent practitioner, except that the corporation may make additional charges reasonably associated with the services rendered, such as facility, equipment or administrative charges; and

(3) Remain effective for a period of more than three years, after which it may be renewed by both parties annually.

Source: SL 1993, ch 271, § 1.

## Nearby sections

- [S.D. Codified Laws § 36-4-1 State Board of Medical Examiners--Appointment and terms of members--Vacancies](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-1.md)
- [S.D. Codified Laws § 36-4-1.1 Member presence and participation--Physician matters](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-1.1.md)
- [S.D. Codified Laws § 36-4-3 Officers of board--Executive secretary--Seal](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-3.md)
- [S.D. Codified Laws § 36-4-4 Meetings of board--Communication with appointed councils](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-4.md)
- [S.D. Codified Laws § 36-4-4.1 Board continued within Department of Health--Records and reports](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-4.1.md)
- [S.D. Codified Laws § 36-4-5 Compensation and expenses of board members--Fees held in special fund--Bond--Payments from fund](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-5.md)
- [S.D. Codified Laws § 36-4-6 Equipment, supplies, and services for board--Expenses restricted to revenue](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-6.md)
- [S.D. Codified Laws § 36-4-7 Annual report to Governor](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-7.md)
- [S.D. Codified Laws § 36-4-8 Practice of medicine or medical abortion--Severity of crimes](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-8.md)
- [S.D. Codified Laws § 36-4-8.1 Corporation prohibited from practice of medicine or osteopathy](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-8.1.md)
- [S.D. Codified Laws § 36-4-8.2 Surgery constituting practice of medicine](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-8.2.md)
- [S.D. Codified Laws § 36-4-9 Use of title and other acts constituting practice of medicine](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-9.md)
- [S.D. Codified Laws § 36-4-10 Practitioners and officers exempt from chapter--Application to previously licensed physicians](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-10.md)
- [S.D. Codified Laws § 36-4-11 Application for license--Qualifications of licensee--Examination--Educational requirements](https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-11.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SD_T36_C4_S36-4-8.1. Check the current official text before relying on it. Not legal advice.