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An Iowa district court has held that it is illegal for hospitals to employ pathologists and radiologists and charge patients for their services. The court action, instituted by the Iowa Hospital Association and 34 member hospitals, challenged a 1954 Iowa attorney general's opinion that it is illegal for hospitals to sell the professional services of physician specialists.
Judge C. Edwin Moore decided that Iowa hospitals are "engaged in the unauthorized, unlicensed and illegal practice of medicine." The evidence and testimony heard by the court established that Iowa hospitals employ radiologists and pathologists on a salary basis, or pay them a percentage of income or a fixed fee for each item of service performed. In turn, the hospitals charge patients a fee, which they bill as a "hospital service." The court upheld the contention of the defendants, the Iowa State Board of Medical Examiners; the attorney general; the Iowa Association of
PRACTICE OF PATHOLOGY AND RADIOLOGY BY IOWA HOSPITALS HELD ILLEGAL. JAMA. 1956;160(1):53. doi:10.1001/jama.1956.02960360055014
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