Healthcare lawyers serving the entire state of Illinois.
A physician, nurse practitioner, or clinician in Illinois has spent years caring for patients within a hospital system, building clinical expertise and rapport with patients. Over time, they find themselves ready to venture into independent practice, only to realize the path isn’t straightforward. Questions about state regulations, practice authority, collaborative agreements, business formation, intake forms, and HIPAA compliance start piling up. Without clear guidance, that uncertainty has real consequences.
If this sounds familiar, we can help you turn your vision into a compliant, thriving practice. With offices in Chicago and Evanston, we serve clients throughout the state of Illinois.
Healthcare Law in Illinois: What Private Practice Owners Need to Know
The Illinois Department of Financial and Professional Regulation (“IDFPR”) licenses and oversees both individuals and professional entities in Illinois. Additionally, professional services in Illinois must be rendered through a professional limited liability company (“PLLC”) or a professional corporation (“PC”), not a standard limited liability company (“LLC”) or corporation.
Illinois recognizes the corporate practice of medicine (“CPOM”) doctrine. Under CPOM, rules govern who may own a healthcare practice and how business arrangements must be structured to preserve independent clinical judgment.
Illinois also enacted specific rules on non-compete agreements in 2022 that differ from the federal baseline. Given the number of Illinois-specific laws governing healthcare practices, experienced local counsel is essential.
Practice Formation and Corporate Structure in Illinois
A PLLC offers a flexible structure with members and pass-through taxation, whereas a PC follows a more formal corporate model with shareholders, directors, and officers. The choice between a PLLC and PC turns on structure and tax considerations.
Many healthcare practices in Illinois are mistakenly formed as standard LLCs or corporations. Jackson LLP frequently helps correct this error, bringing existing entities into compliance.
Both PLLCs and PCs must register with IDFPR, comply with its ownership and licensing rules, maintain good standing through renewal, and meet any profession-specific requirements.
Additionally, establishing a management services organization (“MSO”) structure requires careful drafting under Illinois’ corporate practice of medicine and fee-splitting rules. As Illinois healthcare lawyers, Jackson LLP regularly helps establish MSO arrangements that navigate these state-specific laws.
APRN and Advanced Practice Provider Requirements in Illinois
Illinois allows advanced practice registered nurses (“APRNs”) to obtain full practice authority (“FPA”), permitting independent practice without a written collaborative agreement. To qualify, an individual must: (1) hold an Illinois license as an APRN; (2) obtain national certification as a nurse midwife, clinical nurse specialist, or nurse practitioner; (3) complete at least 250 hours of continuing education or training; and (4) complete at least 4,000 hours of clinical experience after becoming nationally certified.
Once granted FPA status, an APRN may generally treat patients independently and prescribe medications, including various controlled substances, without a collaborative agreement. However, APRNs without FPA must continue practicing under a written collaborative agreement that defines their scope and prescriptive authority.
Jackson LLP helps Illinois APRNs qualify for FPA, enter into or exit collaborative agreements, and establish their own practices.
Non-Compete Agreements for Illinois Healthcare Professionals
Since 2022, Illinois has imposed stricter limits on non-compete agreements for physicians and other healthcare practitioners. A non-compete is generally unenforceable in Illinois unless the employee earns more than $75,000 per year (with increases scheduled beginning in 2027). Non-solicitation agreements require an annual salary above $45,000, subject to the same schedule. The law also requires “adequate consideration” to enforce these agreements. Adequate consideration typically means the employee worked for the employer for at least two years after signing, or received meaningful financial or professional benefits beyond employment itself. Employers must give employees at least 14 days to review these agreements and must advise them in writing to consult with counsel.
Even when these thresholds are met, non-competes must be reasonable in scope to protect the employer’s legitimate business interest and must not unduly burden the employee or harm the public.
Even enforceable non-competes can be negotiated before the employment contract is signed. Jackson LLP reviews employment agreements before signing and assesses enforceability for physicians and other healthcare practitioners considering a transition.
Illinois Employment Law for Healthcare Practices
Private practices that hire employees must comply with both state and local employment laws. At the state level, the Paid Leave for All Workers Act allows workers to earn up to 40 hours of paid leave annually and use it for any reason. Local ordinances, including the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance and the Cook County Paid Leave Ordinance, may impose additional or overlapping paid leave obligations. The Illinois Equal Pay Act also prohibits employers from requesting or relying on an applicant’s prior compensation when making hiring or compensation decisions.
Additionally, under the Illinois Unemployment Insurance Act, workers are presumed to be employees unless the employer satisfies a strict independent contractor test. Misclassification can trigger audits by the Illinois Department of Employment Security.
We help healthcare practices across Illinois navigate state and local employment law, from paid leave compliance to independent contractor classification.
Who We Help in Illinois
If you’re building, growing, or restructuring a private healthcare practice in Illinois, Jackson LLP can help. You may be a physician or surgeon in private practice navigating contracts, compliance, or expansion; an APRN transitioning toward independent practice; a therapist or mental health professional forming a new practice; or a physical therapist exploring a cash-based practice model. You may also be a medspa owner or medical director seeking to structure compliant ownership and management arrangements, or a healthcare practice owner seeking to operate within an MSO model.
How Jackson LLP Serves Illinois Healthcare Practices
We serve healthcare practices at various stages of their operations. We handle Illinois PLLC and PC formation and guide you through IDFPR registration, ensuring your entity and ownership structure comply with Illinois law. We draft your Illinois APRN collaborative agreement and prepare your FPA application. We also prepare, review, and negotiate employment agreements and independent contractor agreements with a focus on compensation, restrictive covenants, and exit terms.
We establish MSO arrangements and draft management services agreements under Illinois corporate practice of medicine rules, develop HIPAA policies and procedures tailored to your practice, and advise on day-to-day compliance issues as they arise.
We serve as ongoing legal counsel for the compliance and transactional questions Illinois healthcare practices face.
Jackson LLP offers flat-fee pricing for most projects, so you know the cost before work begins. After an initial consultation, we provide a quote tailored to the scope and complexity of your matter.
Book a free 15-minute consultation with us today. We’ll discuss your practice, identify the Illinois-specific legal work your situation requires, and follow up with a written quote outlining the cost and scope of each project.