CORPORATIONS - PHYSICIANS AND SURGEONS - INSURANCE - SALE OF PROFESSIONAL SERVICES BY A CORPORATION

The Group Health Association, a corporation for the mutual benefit of its members, employed licensed physicians to give medical care to its members. For a lump sum consideration of $40,000 the association agreed to extend similar medical and hospital services to such employees of the Home Owners' Loan Corporation office as paid the monthly fee. In fear of quo warranto proceedings by the district attorney for illegal practice of medicine and by the superintendent of insurance for selling insurance, the association sought a declaration of its right to provide medical services in this manner. Held, a non-profit corporation through its licensed physicians may lawfully provide medical services to those who stand substantially as its members; the insurance act does not apply to a corporation which provides services rather than money benefits to its contributing members.

Group Health Assn. v. Moor, (D. C. D. C. 1938) 24 F. Supp. 445.