Washington State legislators have introduced Senate Bill 5387, a significant measure aimed at regulating ownership and management structures within health care practices. Introduced on February 26, 2025, the bill seeks to ensure that licensed health care providers maintain control over their practices, thereby safeguarding the integrity of patient care and professional standards.

The bill establishes strict guidelines for health care practices organized as professional service corporations. Key provisions mandate that licensed health care providers must hold a majority of voting shares, serve as a majority of the board of directors, and occupy all officer positions, with the exception of secretary and treasurer. This requirement is designed to prevent non-licensed individuals or entities from exerting undue influence over health care operations.

Additionally, the legislation prohibits shareholders, directors, or officers from simultaneously managing a health care practice and a management services organization that contracts with it. This aims to eliminate potential conflicts of interest and ensure that patient care remains the primary focus of health care providers.

The introduction of Senate Bill 5387 has sparked notable discussions among stakeholders. Proponents argue that the bill is essential for maintaining high standards in health care delivery and protecting patients from corporate interests that may prioritize profit over care. Critics, however, express concerns about the potential for increased regulatory burdens on health care practices, which could hinder operational flexibility and innovation.

The implications of this bill are significant, as it addresses ongoing debates about the commercialization of health care and the need for ethical governance in the industry. Experts suggest that if passed, the bill could reshape the landscape of health care ownership in Washington, potentially influencing similar legislative efforts in other states.

As the bill moves through the legislative process, its future remains uncertain. Stakeholders are closely monitoring developments, as the outcome could have lasting effects on the structure and management of health care practices across the state. The next steps will involve committee reviews and potential amendments, with advocates urging lawmakers to prioritize patient care in their deliberations.