can a corporation practice medicine

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Can A Hospital Hire Doctors As Employees

Student No#: 2013-100149

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Practice of Medicine

Doctors or Physicians are qualified individuals and has the necessary specialization to practice

the applied science of medicine to diagnose, treat, heal and prevent diseases of a person. The role

physiciansplay within the society is vital for they restore and maintain the health and well being

of the public against illness and diseases that would affect their daily routines and life. The

importance of such individual within the community is crucial for they serve as an agent that

bridges the gap between science and society and they do help us understand things that are

unknown and might baffle and ordinary man. They can bestow upon fate of a man for their

success or failure would have a changing impact in the society.

It would only be just and understandable that having such power entails a great amount of

responsibility that would greatly affect the general welfare of the public. From which the state

through its inherent police power has enactedRepublic Act No. 2382 or the Medical Act of 19591

to regulate the practice of medicine by setting qualifications, standards, terms and agencies that

would administer the practice of medicine within the country. For a person to practice medicine

there are several prerequisite that was set through Section 8 Article III of R.A. No. 2382

(Medical Act):

Prerequisite to the practice of medicine. No person shall engage in the practice of medicine in

the Philippines unless he is at least twenty-one years of age, has satisfactorily passed the

corresponding Board Examination, and is a holder of a valid Certificate of Registration duly

issued to him by the Board of Medical Examiners.2

As per the Medical Act a person could only practice medicine after meeting the three

requirements mentioned. If an individual does not possess all the requirements and qualifications

then he should not be considered as qualified to practice medicine in the Philippines. A qualified

person to practice medicine has met all the necessary educational, experience, certification,

moral, mental and civil requirements as prescribed by law. In the case of Reyes vs Sisters Of

Mercy Hospital, it has elaborated the right to practice medicine

1Republic Act No. 2382, The Medical Act of 1959

2Republic Act No. 2382 The Medical Act of 1959 , Section 8


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The practice of medicine is a profession engaged in only by qualified individuals. It is a right

earned through years of education, training, and by first obtaining a license from the state

through professional board examinations.3

Once qualified a person may then be involve on acts constituting the practice of medicine. As

governed by The Medical Act of 1959 under Section 10 Article III, the following acts constitute

the practice of medicine:

A person shall be considered as engaged in the practice of medicine (a) who shall, for

compensation, fee, salary or reward in any form, paid to him directly or through another, or

even without the same, physical examine any person, and diagnose, treat, operate or prescribe

any remedy for any human disease, injury, deformity, physical, mental or physical condition or

any ailment, real or imaginary, regardless of the nature of the remedy or treatment

administered, prescribed or recommended; or (b) who shall, by means of signs, cards,

advertisements, written or printed matter, or through the radio, television or any other means of

communication, either offer or undertake by any means or method to diagnose, treat, operate or

prescribe any remedy for any human disease, injury, deformity, physical, mental or physical

condition; or (c) who shall use the title M.D. after his name.4

Only qualified individuals are entitled to perform acts that would constitute the practice of

medicine, violation from which would constitute illegal practice of medicine with the exception

to those defined by law.

Hospitals

Generally speaking hospitals are places where people seek and resort for medical attention.

Hospitals may either be public or private depending on who owned and operate them. They are

juridical \persons

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generally incorporated bodies created by a special law or charter orincorporation under a general law. For private hospitals as a traditional view, physicians are not

considered as an employee or agent of a hospital. For whenever a physician act upon his

3Reyes vs, Sisters Of Mercy Hospital G.R. No. 130547, October 3, 2000

4Republic Act No. 2382, The Medical Act of 1959, Section 10

5Civil Code, Article 44


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professional capacity, the hospital cannot be held liable for their fault or negligence under the

Schloendorff doctrine6. However, the traditional view has given way to the modern practice

wherein hospitals has become more than just a place that would furnish room, food, facilities and

treatment, instead has become centers for treatment with sufficient and modern facilities aiming

to the full care of their patients. Given this modern practice, hospitals could be held liable for

negligence of its employee under quasi-delict for Employers shall be liable for the damages

caused by their employees7. As provided by the Supreme Court on the Ramos vs CA case that

hospitals exercise real control over their attending and visiting consultants. While consultants are

not technically employees, the control exercised, the hiring and the right to terminate all fulfill

the important hallmarks of an employee-employer relationship8.

The doctrine of corporate negligence was introduced on the landmark case of Professional

Services Inc vs. Natividad9, wherein the petitioner was held solidarily liable with the physician

for the hospital and doctor are bound by the employer-employee relation. Under the said doctrine

the hospital owes a direct duty to its patients to ensure their safety and well-being.

Employment of Physician to a Hospital

In a scenario wherein a hospital would hire the doctors directly as employees making them in-

house doctors for institutional clients and walk-in patients, is permissible for there is no express

prohibition under the law that prohibits a hospital maintained by a corporation for the purpose of

furnishing medical treatment10

. What is prohibited under the law is the illegal and negligent

practice of medicine. Illegal practice of medicine are those in violation of Section 8 and 10 under

Article III of the Medical Act of 195911

wherein penalties are defined under Section 28 under

Article IV12

of the same act which includes fines and imprisonment. What would be considered

to be an illegal practice of law under such circumstance would be when the physician on the

practice of medicine would not act upon his personal capacity but instead act as an agent or

6Professional Services Inc. vs. Natividad 513 SCRA 478, G.R. No. 126297, January 31, 2007

7Civil Code, Article 2180

8Ramos vs Court of Appeals, G.R. No. 124354, December 29, 1999, 321 SCRA 584

9Professional Services Inc. vs. Natividad 513 SCRA 478, G.R. No. 126297, January 31, 2007

10ACEBEDO Optical Company vs. CA, G.R. No. 100152, 314 SCRA 315,March 31, 2000

11Republic Act No. 2382, Medical Act of 1959, Section 8 and Section 10

12Republic Act No. 2382, Medical Act of 1959, Section 28


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can a corporation practice medicine

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