Because ABA is an ordinary LLC and psychology requires a licensee-owned entity, the two cannot share one entity. Flip, trending split: diagnosis sits in its own licensee-owned entity.
Who may give the diagnosis in Michigan
The medical-necessity diagnosis is made by a licensed physician or a licensed psychologist. A BCBA may not diagnose ASD, so the diagnostician you would bring in-house is a psychologist or a physician, and both are professions the state may treat differently from behavior analysis.
How Michigan treats psychology and medicine ownership
Michigan's learned-professions doctrine bars an ordinary corporation from employing a licensed professional, and a professional limited liability company that renders a service within the public health code must have every member and manager licensed to render that same service. Psychology is within the public health code, so a psychology entity must be psychologist-owned.
What bringing the diagnostician in-house does
Because ABA is an ordinary LLC and psychology requires a licensee-owned entity, the two cannot share one entity. Flip, trending split: diagnosis sits in its own licensee-owned entity.
How to structure it in Michigan
Keep the ABA entity ABA-only and non-licensee owned, and put the diagnosis in a separate licensee-owned entity connected through a management company on fair-market-value, not volume-based, terms so the referral survives the federal Anti-Kickback Statute; or rely on an outside referral with no remuneration flowing for the referral. If the diagnostician is a physician and the payer is Medicaid, the federal physician self-referral rules add a layer that a psychologist does not trigger. The full three-entity structure is set out in the diagnostician question hub.
The corporate-practice, professional-entity, and anti-kickback rules summarized here are amended and reinterpreted, and verbatim text is a starting point rather than a conclusion. The official Michigan code, the applicable federal safe harbor, and qualified healthcare-regulatory and tax counsel are the authoritative sources.