2023 Illinois Compiled Statutes › Chapter 805 - BUSINESS ORGANIZATIONS › 805 ILCS 15/ - Medical Corporation Act.

(805 ILCS 15/1) (from Ch. 32, par. 631)
Sec. 1. 
		
		This Act may be cited as the  Medical Corporation Act.
(Source: P.A. 86-1475.)
(805 ILCS 15/2) (from Ch. 32, par. 632)
Sec. 2. 
One or more persons licensed pursuant to the Medical Practice Act
of 1987, as heretofore or hereafter amended, may form a corporation
pursuant to the "Business Corporation Act of 1983", as amended, to own,
operate and maintain an establishment for the study, diagnosis and
treatment of human ailments and injuries, whether physical or mental, and
to promote medical, surgical and scientific research and knowledge;
provided that medical or surgical treatment, consultation or advice may be
given by shareholders, directors, officers, agents, and employees of the corporation only if they are licensed pursuant to
the Medical Practice Act of 1987; and provided further, however, that
nothing herein shall prohibit an attorney licensed to practice law in
Illinois from signing and acting as initial incorporator on behalf of
such corporation.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/3) (from Ch. 32, par. 633)
Sec. 3. 
The "Business Corporation Act of 1983", as heretofore or hereafter amended, and the Entity Omnibus Act
shall be applicable to such corporations, including their organization, and
they shall enjoy the powers and privileges and be subject to the duties,
restrictions and liabilities of other corporations, except so far as the
same may be limited or enlarged by this Act. If any provision of this Act
conflicts with the "Business Corporation Act of 1983" or the Entity Omnibus Act,  this Act shall
take precedence.
(Source: P.A. 100-561, eff. 7-1-18.)
(805 ILCS 15/4) (from Ch. 32, par. 634)
Sec. 4. 
		
		The corporation may bear the last name of one or more persons
formerly or currently associated with it. A corporation organized under
this Act may also adopt a name which does not include the surname of any
present or former shareholder, provided, if it does so, it must record such
name and the name of its shareholders with the recorder of the
county in which it is located or has its principal office. The corporate
name shall end with the word "chartered" or "limited" or the abbreviation
"Ltd." or the words "Service Corporation" or the abbreviation "S.C.".
(Source: P.A. 83-358.)
(805 ILCS 15/5) (from Ch. 32, par. 635)
Sec. 5. 
No corporation shall open, operate or maintain an establishment for
any of the purposes set forth in Section 2 of this Act without a
certificate of registration from the Department of Financial and Professional
Regulation, hereinafter called the Department. Application for such
registration shall be made to the Department in writing and shall contain
the name and primary mailing address of the corporation, the name and address of the corporation's registered agent, the address of the practice location maintained by the corporation, each assumed name being used by the corporation, and such other information as may
be required by the Department. All official correspondence from the Department shall be mailed to the primary mailing address of the corporation except that the corporation may elect to have renewal and non-renewal notices sent to the registered agent of the corporation. A separate application shall be submitted for each business location in Illinois. If the corporation is using more than one fictitious or assumed name and has an address different from that of the parent company, a separate application shall be submitted for each fictitious or assumed name. Upon receipt of such application, the
Department shall make an investigation of the corporation. If the
Department finds that the incorporators, officers, directors and
shareholders are all licensed pursuant to the Medical Practice Act of
1987 and if no disciplinary action is pending before the Department
against any of them, and if it appears that the corporation will be
conducted in compliance with law and the regulations of the Department, the
Department shall issue, upon payment of a registration fee of $50, a
certificate of registration.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/5.1)
Sec. 5.1. Deposit of fees and fines. Beginning July 1, 2003,
all of the fees, civil penalties, and fines collected under this Act shall be deposited into the
General Professions Dedicated Fund.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/6) (from Ch. 32, par. 636)
Sec. 6. 
The certificate of registration shall expire on January 1, 2019 and on January 1 of every third year  thereafter. Upon written application of the holder, the Department shall renew
the certificate of registration if
the Department finds that the corporation has complied with its regulations
and the provisions of this Act.
The fee for renewal of a certificate of registration shall be $40.
(Source: P.A. 100-894, eff. 8-14-18.)
(805 ILCS 15/6.1) (from Ch. 32, par. 636.1)
Sec. 6.1. 
		
		Any person who on 2 occasions issues or delivers a check or
other order to the Department
which is not honored by the financial institution upon which it is drawn
because of insufficient funds on account, shall pay to the
Department, in addition to the amount owing upon such check or other order,
a fee of $50.  If such check or other order was issued or delivered in payment
of a renewal fee and the corporation whose certificate of registration has
lapsed continues to
practice as a corporation without paying the renewal fee and the $50 fee
required under this Section,
an additional fee of $100 shall be imposed for practicing without a
current license.  The Department shall notify the corporation whose
certificate of registration
has lapsed, within 30 days after the discovery by the Department that such
corporation is practicing without a current
certificate, that the corporation is operating without a certificate,
and of the amount due to the Department, which shall include the
lapsed renewal fee and all other fees required by this Section.  If after the expiration
of 30 days from the date of such notification, the licensee corporation whose certificate
has lapsed seeks a  current certificate, it shall thereafter apply to the Department
for reinstatement of the certificate and pay all fees and fees due to the Department.
The Department may establish a fee for the processing of an application
for reinstatement of a certificate which allows the Department to pay all costs
and expenses incident to the processing of this application.  The Director
may waive the fees due under this Section in individual cases where he finds
that in the particular case such fees would be unreasonable or unnecessarily
burdensome.
(Source: P.A. 84-266.)
(805 ILCS 15/7) (from Ch. 32, par. 637)
Sec. 7. 
		
		The certificate of registration shall be conspicuously posted upon
the premises to which it is applicable.
(Source: Laws 1963, p. 3513.)
(805 ILCS 15/8) (from Ch. 32, par. 638)
Sec. 8. 
In the event of a change of location of the registered
establishment, the corporation shall notify the Department, in accordance with its regulations, and the Department shall
amend the certificate of registration so that it shall apply to the new
location.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/9) (from Ch. 32, par. 639)
Sec. 9. 
		No certificate of registration shall be assignable.
(Source: Laws 1963, p. 3513.)
(805 ILCS 15/10) (from Ch. 32, par. 640)
Sec. 10. 
The Department may suspend or revoke any certificate of
registration or may otherwise discipline the certificate holder for any of the following reasons: (a) the revocation or
suspension of the license to practice medicine of any officer, director,
shareholder or employee not promptly removed or discharged by the
corporation; (b) unethical professional conduct on the part of any officer,
director, shareholder or employee not promptly removed or discharged by the
corporation; (c) the death of the last remaining shareholder; or (d) upon
finding that the holder of a certificate has failed to comply with the
provisions of this Act or the regulations prescribed by the Department.
The Department may refuse to issue or renew or may suspend the certificate of
any corporation which fails to file a return, or to pay the tax, penalty or
interest shown in a filed return, or to pay any final assessment of tax,
penalty or interest, as required by any tax Act administered by the
Illinois Department of Revenue, until such time as the requirements of any
such tax Act are satisfied.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/11) (from Ch. 32, par. 641)
Sec. 11. 
Before any certificate of registration is suspended or revoked,
the holder shall be given written notice of the proposed action and the
reasons therefor, and shall be given a public hearing by the Department
with the right to produce testimony concerning the charges made. The notice
shall also state the place and date of the hearing which shall be at least 10
 days after service of said notice.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/12) (from Ch. 32, par. 642)
Sec. 12. 
The provisions of the Administrative Review Law,
as heretofore
or hereafter amended, and all rules adopted pursuant thereto, shall apply
to and govern all proceedings for the judicial review of final
administrative decisions of the Department hereunder. The term
"administrative decision" is defined as in Section 3-101 of the Code of
Civil Procedure.
The proceedings for judicial review shall be commenced in the circuit court of the county in which the party applying for review is located. If the party is not currently located in Illinois, the venue shall be in Sangamon County. The Department shall not be required to certify any record to the court or file any answer in court or otherwise appear in any court in a judicial review proceeding, unless and until the Department has received from the plaintiff payment of the costs of furnishing and certifying the record, which costs shall be determined by the Department. Exhibits shall be certified without cost. Failure on the part of the plaintiff to file a receipt in court is grounds for dismissal of the action.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/13) (from Ch. 32, par. 643)
Sec. 13. 
(a) All of the officers, directors and shareholders of a corporation
subject to this Act shall at all times be persons licensed pursuant to the
Medical Practice Act of 1987. No person who is not so licensed shall
have any part in the ownership, management, 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. Notwithstanding any provisions to the
contrary in the "Business Corporation Act of 1983", as now or hereafter
amended, if all of the shares of a corporation subject to this Act are
owned by one shareholder, the office of president and secretary may be held
by the same person.
(b) No corporation may issue any of its capital stock to anyone other than an individual who is duly licensed under the Medical Practice Act of 1987. No shareholder shall enter into a voting trust agreement or any other type of agreement vesting another person with the authority to exercise the voting power of any of his or her stock.
(c) A corporation may, for purposes of dissolution, have as its shareholders, directors, officers, agents, and employees individuals who are not licensed under the Medical Practice Act of 1987, provided that the corporation does not render any medical services nor hold itself out as capable of or available to render medical services during the period of dissolution. The Department shall not issue or renew any certificate of authority to a corporation during the period of dissolution. A copy of the certificate of dissolution, as issued by the Secretary of State, shall be delivered to the Department within 30 days after its receipt by the incorporators.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/13.5)
Sec. 13.5. Notice of violation. Whenever the Department has reason to believe a corporation has opened, operated, or maintained an establishment for any of the purposes for which a corporation may be organized under this Act without a certificate of registration from the Department, the Department may issue a notice of violation to the corporation. The notice of violation shall provide a period of 30 days from the date of the notice to either file an answer to the satisfaction of the Department or submit an application for registration in compliance with this Act, including payment of the $50 application fee and a late fee of $100 for each year that the corporation opened, operated, or maintained an establishment for any of the purposes for which a corporation may be organized under this Act without having been issued a certification of registration, with a maximum late fee of $500. If the corporation that is the subject of the notice of violation fails to respond, fails to respond to the satisfaction of the Department, or fails to submit an application for registration, the Department may institute disciplinary proceedings against the corporation and may impose a civil penalty up to $1,000 for violation of this Act after affording the corporation a hearing in conformance with the requirements of this Act.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/14) (from Ch. 32, par. 644)
Sec. 14. 
		
		This Act does not alter any law applicable to the relationship
between a physician furnishing medical service and a person receiving such
service, including liability arising out of such service.
(Source: Laws 1963, p. 3513.)
(805 ILCS 15/15) (from Ch. 32, par. 645)
Sec. 15. 
Each individual shareholder, director, officer, agent, or employee licensed pursuant to the Medical
Practice Act of 1987 who is employed by a corporation subject to this
Act shall remain subject to discipline for his conduct under
the provisions of the Medical Practice Act of 1987.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/16) (from Ch. 32, par. 646)
Sec. 16. 
		
		If the articles of incorporation or by-laws of a corporation
subject to this Act fail to state a price or method of determining a fixed
price at which the corporation or its shareholders may purchase the shares
of a deceased shareholder or a shareholder no longer qualified to own
shares in the corporation, then the price for such shares shall be the book
value as of the end of the month immediately preceding the death or
disqualification of the shareholder. Book value shall be determined from
the books and records of the corporation in accordance with the regular
method of accounting used by the corporation.
(Source: Laws 1963, p. 3513.)
(805 ILCS 15/16.5)
Sec. 16.5. Confidentiality. All information collected by the Department in the course of an examination or investigation of a holder of a certificate of registration or an applicant, including, but not limited to, any complaint against a holder of a certificate of registration filed with the Department and information collected to investigate any such complaint, shall be maintained for the confidential use of the Department and shall not be disclosed. The Department may not disclose the information to anyone other than law enforcement officials, other regulatory agencies that have an appropriate regulatory interest as determined by the Secretary, or a party presenting a lawful subpoena to the Department. Information and documents disclosed to a federal, State, county, or local law enforcement agency shall not be disclosed by the agency for any purpose to any other agency or person. A formal complaint filed against a holder of a certificate of registration by the Department or any order issued by the Department against a holder of a certificate of registration or an applicant shall be a public record, except as otherwise prohibited by law.
(Source: P.A. 99-227, eff. 8-3-15.)
(805 ILCS 15/17) (from Ch. 32, par. 647)
Sec. 17. 
		
		If any provision of this Act or the application thereof to
any person or circumstances is invalid, such invalidity shall not affect
other provisions or applications of this Act which can be given effect
without the invalid provision or application, and to this end the
provisions of this Act are declared to be severable.
(Source: Laws 1963, p. 3513.)
(805 ILCS 15/18) (from Ch. 32, par. 648)
Sec. 18. Illinois Administrative Procedure Act. The Illinois Administrative Procedure
Act is expressly adopted and incorporated herein as if all of the provisions of
that Act were included in this Act, except that the provision of subsection (d)
of Section 10-65 of the Illinois Administrative Procedure Act, which provides
that at hearings the licensee has the right to show compliance with all lawful
requirements for retention, or continuation or renewal of the license, is
specifically excluded.  For the purposes of this Act the notice required under
Section 10-25 of the Illinois Administrative Procedure Act is deemed sufficient when
mailed to the last known address of a party.
(Source: P.A. 100-201, eff. 8-18-17.)