Liability for Illegal Medical Practice

Medical practice is an official activity that requires strict compliance with legal regulations. Therefore, any medical business, from a private family doctor’s office to a large clinic, must operate within the law. It must have a registered business entity, a license from the Ministry of Health, be listed in the Electronic Health System (EHS), and comply with sanitary and professional standards.

Doctors who open a private practice often focus on professional aspects and leave legal matters for later. This is one of the most common mistakes. You may have the best equipment and qualifications, but without proper documentation, it means nothing. This is where unlawful medical practice arises. In the best case, it may result in a fine, and in the worst case, in criminal prosecution.

In this article, we look at what constitutes unlawful medical practice, what liability applies to doctors and clinics, and how to minimize legal risks for your medical business.

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What Is Considered Unlawful Medical Practice

Unlawful medical practice refers to any medical activity conducted without fulfilling mandatory legal requirements. The most common situations include:

• An individual entrepreneur or legal entity is not properly registered or does not have the required business activity to provide medical services.

• The start of medical practice is not reported or registered where required by law.

• Providing medical services without a valid license from the Ministry of Health.

• Continuing or resuming activities after a license has been suspended or revoked without meeting legal conditions.

• Practicing medicine without the appropriate education or specialization.

• Violating standards for the quality of medical services, equipment, sanitary conditions, or staffing requirements.

• Failing to enter data into the Electronic Health System (EHS).

• Using methods, technologies, or treatments that are not permitted or officially recognized as appropriate.

• When such violations cause harm to patients, especially serious consequences.
• When the activity endangers the health or lives of people.

All of the above fall under the definition of unlawful medical activity or unlawful medical practice, for which Ukrainian law provides various forms of punishment.

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Types of Liability and Penalties for Unlawful Medical Practice

Ukrainian law clearly defines the consequences for those who engage in medical practice without meeting established legal requirements. Liability may be administrative, criminal, civil, or disciplinary, and it is often accompanied by serious reputational damage.

Administrative Liability

Administrative liability is most often the first consequence for conducting medical activities without proper state registration or without a license from the Ministry of Health. It is established under Parts 1 and 2 of Article 164 of the Code of Ukraine on Administrative Offenses.

Medical professionals are held liable if they carry out business activities without proper state registration as a business entity, without submitting a required notification of business commencement, without obtaining a license for activities subject to licensing, or without a required permit document when such is explicitly required by law.

This also applies to cases where medical activity continues despite a suspended license, if the law does not grant the right to operate during that period. The penalty is a fine ranging from 1,000 to 2,000 non-taxable minimum incomes of citizens.

Therefore, even a single instance of practicing without proper registration or a valid license can lead not only to significant financial losses but also to administrative liability for the doctor.

Criminal Liability

According to Article 138 of the Criminal Code of Ukraine, engaging in medical practice without proper medical education or a special permit, if it results in serious harm to a patient, is punishable by corrective labor, restriction of freedom, or imprisonment for up to three years. Additionally, the court may impose a ban on practicing medicine. In certain cases, related articles may also apply, including Article 139 (Failure to provide medical assistance to a patient), Article 140 (Improper performance of professional duties), Article 141 (Violation of patient rights) and Article 142 (Unlawful human experimentation).

A patient harmed by unlawful actions of a doctor or clinic has the right to claim compensation for material and moral damages, which may include:

• treatment expenses,
• compensation for loss of working capacity,
• moral damages.

Such legal proceedings are often long and costly, creating an additional financial burden for medical businesses. This represents direct criminal liability for the practitioner.

Reputational Risks

1. Loss of client trust. Patients may discover that services are being provided illegally. This raises doubts about the safety of procedures, service quality, and staff qualifications.
2. Negative media and social media coverage. If the situation becomes known to journalists, social media influencers, or competitors, it may lead to headlines such as “Clinic Operating Without a License.” Such exposure quickly damages reputation and deters potential clients.
3. Problems with business partners. Suppliers of equipment, cosmetics, or other partners may not want their brand associated with a company operating outside the law.
4. Loss of staff. Qualified professionals are unlikely to risk their names and careers by working in a noncompliant or unlicensed facility.
5. Difficulties with legalization. If the clinic’s reputation has already been damaged through negative reviews or media coverage, even obtaining a license later may not fully restore client trust.
6. Risk of legal action. In the event of patient harm, lawyers representing the client can use the lack of a license as a key argument in court, which further harms the company’s image.

Even a single instance of unlawful practice can call a doctor’s professionalism and integrity into question, and rebuilding reputation in the medical field is far more difficult than paying a fine or passing an inspection.

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How to Avoid Unlawful Medical Practice

To ensure that private medical practice operates smoothly and without fear of inspections, doctors and clinic managers should focus on several key steps:

1. Choose the right legal structure.

For individual practice, register as a sole proprietor (FOP) with the appropriate activity codes. For larger operations, establish a limited liability company (LLC), which allows for multiple founders and a broader range of medical services.

2.  Obtain a license from the Ministry of Health.

This is the key authorization without which any medical activity is considered illegal. The application to the Ministry of Health must specify the medical specialties, equipment, premises, and staff qualifications. The license is issued for an unlimited period, but it is essential to maintain full compliance with all legal requirements.

3. Ensure compliance of premises and equipment.

The office or clinic must meet sanitary standards, fire safety regulations, and technical requirements. All medical equipment must have certificates of conformity and undergo necessary inspections.

4. Formally employ medical staff.

Every doctor and nurse must be officially employed under a labor contract or service agreement. Their qualifications must be verified through diplomas, certificates, and proof of specialization.

5. Comply with medical documentation requirements.

Maintaining electronic medical records in the Electronic Health System (EHS) is mandatory. This helps avoid fines and simplifies cooperation with the National Health Service of Ukraine (NHSU).

6. Ensure legal protection from the start.

Use proper contracts with patients, informed consent forms, privacy policies, and personal data processing agreements. These documents protect both the doctor and the clinic from potential legal claims. Regular legal audits can also help identify risks before any inspection by regulatory authorities.

Legal Support for Your Medical Business

Our legal team has over 15 years of experience providing comprehensive support to doctors and medical institutions. We understand that your priority is treating patients, not dealing with bureaucracy. We handle all the administrative and legal work for you, including:

• Registration of a sole proprietorship (FOP) or limited liability company (LLC) with the proper activity codes (KVEDs) for medical services.
• Preparation and submission of documents to the Ministry of Health to obtain a medical practice license.
• Assessment of premises and equipment to ensure compliance with sanitary and technical standards.
• Development of internal documents such as patient contracts, informed consent forms, and privacy policies.
• Registration of your clinic or practice in the Electronic Health System (EHS) and setup of electronic medical records.
• Legal audits to identify and eliminate potential risks before inspections by regulatory authorities.
• Protection from administrative and criminal liability, including court representation in case of disputes.

Your practice can operate safely and lawfully when it has the right legal foundation.

Contact us or submit a request, and we will help make your medical business fully compliant with Ukrainian law.