Illinois: No corporate certificate, no pay

In the Courts. By Tanya Albert, AMNews staff. Sept. 13, 2004.

Every physician understands the need to keep his or her medical license up to date. But physicians who are incorporated may want to double-check with their states to make sure any required corporate certificates are also up to snuff.

The certificate, at least in Illinois, may end up carrying more weight than some might think.

A group of Illinois podiatrists are potentially finding themselves in the unfortunate situation of not getting paid after they let their corporate certificate lapse. And depending on how a court case is ultimately resolved, there could be significant implications for MDs and DOs, too.

Illinois law -- similar to laws in other states -- requires that medical professionals who form corporations register with the state's Dept. of Professional Regulation once a year. Doctors fill out a form, pay $50 and receive a certificate.

It's pretty cut and dried.

The rule doesn't carry civil or criminal penalties for noncompliers.

But a state appellate court has given the certificate new importance by ruling that an insurance company doesn't have to pay a group of incorporated podiatrists because the group didn't have the certificate.

Without it, the Appellate Court of Illinois 1st Judicial District Court on June 30 ruled the Chatham Foot Specialists' contract with Blue Cross Blue Shield of Illinois is void.

The eight doctors say they're left with more than $1 million in unpaid bills for care they provided to Blue Cross Blue Shield subscribers.