About the conditions of practicing medical activity in short
The current article consists two parts. The first part of the article gives a brief outline about the conditions of practicing of family doctors (or general practitioners) and dental practitioners activities in the health care. The end of the first article comprises a short list about the most important rules which are applicable in the health care in connection with the activity of the general and dental practitioners.
The second part of the article will describes about the company formation of the family doctors (general practitioners) and the dental practitioners. The article does not discuss every single form of practicing family and dental doctors activities.
The article deals with those forms of the general practitioners activities which are emerging the most obviously in the health care. These forms are the limited partnership and limited-liable partnership.
About the forms of activity of the general and dental practice in short
To practice as a general practitioners or dental medicine doctor it is necessary to be eligible for two basic conditions. The first condition is to conclude an operating contract with the particular local (municipal) government and second condition is to have a right to practice for their activity.
In Hungary the general and dental practitioners activities can be perform in two ways:
- it can be based on public employment relationship (public servant relationship) and
- it can be performed based on the concluded operating contract with the local government, in the own enterprise as an entrepreneur private doctor. [Decree of Ministry for Health (MFH) 4/2000 (25 Febr) on the Activity of the General Practitioner, the Pediatrician and Dental Practitioner]
① If the doctor performs his/her activity in the public employment relationship, the Act I of 2012 on the Labor Code or Labor Code Act (LCA) and the Act XXXIII of 1992 on the Legal Status of the Public Employee’s will be applicable to his/her activity next to those laws and decrees which are related to the health care. In this legal relationship the particular doctor is an employee and he/she has an employer who employs him/her at a clinic or hospital. In the employment relationship doctor can performs easily his/her activity because he/she does not have to deals with the management and operation of the clinic or hospital and also he/she does not have to deals with the tax issues. It simply means that the doctor gets his/her after-tax wage.
② If the doctor would like to practice his/her activity as a private doctor, he/she has to conclude an operation contract with the local government and the doctor also must has the right to practice. If the above-mentioned conditions are met, the doctor has to formate and operate a business associate where he/she can performs his/her medical activity. In this legal relationship the Civil Code Act (CCA) will be applicable next to the health care related laws and decrees. If the doctor performs his/her medical activity as a private doctor, as it was mentioned, he/she operates a company (business association). He/she has no employer therefore he/she determines his/her working hours but also he/she is responsible for his/her company tax issues. Besides of this, he/she is also responsible for the management and the operation of his/her company.
The article only deals with the second option. In the primary care the general and dental practitioners can formate business associations according to the Act V of 2013 on the Civil Code (hereinafter: CCA). The most usually formatted business associations are the limited partnership (Lp.) or the limited-liable partnership (Ltd.). The second article will discuss the detailed rules of the formation of limited partnership. The rules of the formation the Ltd. will discuss in an another article.
As it was mentioned above, one of the most significant field of the Health, Medical and Pharmaceutical Law is formatting company. Without a well functioning health service provider firm, there is no any efficient health care. The family doctors and dental practitioners activities can be proceed in limited partnership and limited-liable partnership. Both type of company are popular among the doctors society.
One of the most common type of the formatted company in the health care is the limitied partnership (hereinafter: Lp.). The family doctors and the dental practitioners can operate efficiently and easily their enterprises in this type. Besides the aforementioned facts, the tax liabilities are the easiest to the doctors (e.g. tax submission, etc.) in this type of the business corporation.
This article also gives a list about the most relevant and applicable laws and decrees which shall be applied in the health care in connection with practicing medical activity.
The applicable laws and decrees
The general and dental practitioners activities are regulated by lots of laws and decrees. In the view of this article, it will listed some of them which are related to the formation of limitied partnership and the acquisition of the right to practice.
- Act V of 2013 on the Civil Code (CCA)
- Act V of 2006 on Public Company Information, Company Registration and Winding-up Proceedings (Public Company Information, Company Registration and Winding-up proceedings Act or Company Registration Act, CRA)
- Act I of 2012 on the Labor Code
- Act XXXIII of 1992 on the Legal Status of the Public Employee’s (LSPA)
- Act II of 2000 on the Individual Medical Activity (IMAA)
- Act CXXIII of 2015 on the Primary Health Care (PHCA)
- Decree No. 21/2006 (V.18.) IM on Company Registration Procedures and on the Register of Companies (Company Registration Decree)
- Act LXXXIII of 1997 on the Services of the Compulsory Health Insurance System (SCHISA)
- Government Decree 313/2011 (23 Dec) on the Enforcement of the Act II of 2000 on the Individual Medical Activity (Medical Enforcement Decree)
- Decree of Ministry for Health (MFH) 4/2000 (25 Febr) on the Activity of the General Practitioner, the Pediatrician and Dental Practitioner
- Government Decree 217/1997 (1 Dec) on the Enforcement of Services of the Compulsory Health Insurance System (Medical Insurance Enforcement Decree)
- Government Decree 385/2016 (2 Dec) on the Designation of the Performance of the Public Health Tasks of the Capital (County) and District Government Offices and the Designation of the Health Care Public Administration Body
The rules of the formation of the business associations can be found in the CCA. The rules of the business associations form an individual part in the CCA. The rules of the limited partnership (Lp.) are placed in the chapter of the business associations and their rules can be found in a particular title.
Basically the CCA based on the dispositive regulation but quite a few of its provisions are binding rules which shall be observed by everybody. Next to the CCA, there are some other laws and decrees which were listed above and they are also applicable regarding to the operation of the medical company.
The second part of the article will discuss the rules of the formation of the limited partnership.