Health Law Alert by Lamb McErlane attorneys Vasilios J. Kalogredis, Esq. and Sonal Parekh, Esq.

Effective July 7, 2025, Pennsylvania will officially become a full participant in three interstate health care licensure compacts—an important development aimed at expanding access to health care and reducing administrative hurdles for licensed professionals. This move positions Pennsylvania alongside dozens of other states that have adopted similar compacts, allowing qualified medical providers to more easily practice across state lines.

Governor Josh Shapiro and Secretary of the Commonwealth Al Schmidt recently announced the culmination of years of bipartisan legislative work and administrative coordination. These compacts cover physicians (MD/DO), nurses (RN/LPN), and physical therapists (PT), three critically needed provider categories in the state.

The General Assembly initially authorized Pennsylvania’s participation in the Interstate Medical Licensure Compact (IMLC) for physicians back in 2016. Since then, the state has also taken steps to join the Nurse Licensure Compact (NLC) and the Physical Therapy Compact (PTC). Although prior administrations initiated the process, it wasn’t until the Shapiro administration worked closely with the U.S. Department of Justice and the Pennsylvania State Police that full implementation was finally achieved.

By way of background, interstate compacts are agreements among states that allow licensed health care professionals to practice in multiple jurisdictions without having to obtain a separate license in each state. This streamlines the application and vetting process, allowing for quicker deployment of qualified professionals—especially important in times of public health crises or workforce shortages. For Pennsylvania, the compacts will:

• Allow Pennsylvania-licensed physicians, nurses, and physical therapists to practice in other compact-member states.
• Enable out-of-state professionals who are licensed in compact states to more easily provide care within Pennsylvania.
• Alleviate staffing shortages by facilitating workforce mobility across state lines.

The compacts are expected to benefit each of these groups significantly, both by expanding their professional reach and by welcoming skilled practitioners from other states.

To further enhance workforce efficiency, the Shapiro administration introduced the PAyback guarantee, a performance-focused initiative to increase transparency and accountability in licensing. The results have been striking. Specifically, licensing turnaround times have dropped dramatically—from 25 to 5 business days for nurses, from 43 to 10 days for physicians, and from 31 to just 3 days for physical therapists.

This article serves as a critical update to our previous article, Pennsylvania Makes Major Moves Toward Multistate Licensure Compacts – Especially in Nursing. The Nurse Licensure Compact (NLC) will allow RNs and LPNs to provide care in more than 43 additional states and territories. The IMLC will permit MDs and DOs to provide care in more than 40 additional states and territories. Similarly, the Physical Therapy Compact (PT Compact) will enable PTs and physical therapist assistants to provide care in more than 30 states and territories. Additional information on the NLC, IMLC, and PT Compact are hyperlinked herein respectively.

Despite the accelerated processes, state officials affirm that public health and patient safety remain the top priorities. Each applicant must still meet all of Pennsylvania’s rigorous licensing and vetting requirements, ensuring that only qualified professionals are permitted to practice. Doctors, nurses, and physical therapists can apply for the health care compact license, starting July 7, 2025, at the Department of State’s Pennsylvania Licensing System (PALS).

From a regulatory standpoint, the full implementation of these compacts represents a significant shift in how Pennsylvania approaches professional licensure. Health care providers, hospital systems, and compliance professionals should review their internal procedures to align with the new compact frameworks. This includes updating credentialing processes, compliance protocols, and interstate practice agreements.

Our firm is closely monitoring how these developments will affect employers, health systems, and individual providers. We advise clients to consult with legal counsel to ensure they are fully prepared to navigate the new regulatory landscape.

If you have any questions or if we may be of further assistance relative to licensure, compliance or other health law matters, please feel free to contact Bill Kalogredis, Esq. or Sonal Parekh, Esq.

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*This alert is for educational purposes only and is not intended to be legal advice. Should you require legal advice on this topic, any health care matter, or have any questions or concerns, please contact Vasilios J. (Bill) Kalogredis, Esq. or Sonal Parekh, Esq.

Vasilios J. (Bill) Kalogredis, Esq. has been advising physicians, dentists, and other healthcare professionals and their businesses as to contractual, regulatory and transactional matters for 50 years. He is Chairman of Lamb McErlane PC’s Health Law Department. Bill can be reached by email at bkalogredis@lambmcerlane.com or by phone at 610-701-4402.

 Sonal Parekh, Esq., is an associate at Lamb McErlane PC who focuses on healthcare transactional matters and a broad range of healthcare regulatory-related issues on behalf of healthcare systems, physicians, dentists, and other healthcare providers, and is a pharmacist by education and training. Sonal can be reached by email at sparekh@lambmcerlane.com or by phone at 610-701-4416.