For many Michigan physicians, the Interstate Medical Licensure Compact (“IMLC”) has been a vital tool for expanding their practice reach. By streamlining the licensing process across state lines, the compact allows doctors to treat patients in over 40 participating jurisdictions, which is particularly beneficial for telehealth providers and those serving rural or border communities. However, as we move through early 2026, Michigan’s continued participation in this program is facing a looming legislative deadline.

The March 2026 Deadline

Due to a sunset provision in previous legislation, Michigan is currently on a path toward an automatic withdrawal from the IMLC. While the formal withdrawal process began in 2025, the effective date for Michigan to officially leave the compact is March 28, 2026. Without intervention, Michigan physicians would lose their ability to use the expedited multi-state licensure pathway, and out-of-state doctors would find it much harder to practice in Michigan.

Fortunately, there is significant movement in Lansing to prevent this “licensure cliff.” House Bill 5455, which was recently reported from the House Health Policy Committee in February 2026, aims to reinstate Michigan’s participation and remove the sunset clause entirely. This bill follows earlier efforts, such as Senate Bill 303, to ensure that Michigan remains a permanent member of the compact. The bill has broad bipartisan support and backing from major healthcare groups, and its final passage is essential to preserving the current licensing framework.

The “Sister State” Catch and Reciprocal Discipline

If the IMLC is eventually renewed, it is crucial that providers understand the intricacies of holding a multi-state license. While the IMLC offers a faster way to obtain multiple licenses, it also creates a high-stakes environment for professional discipline. This is often referred to as “sister state” or reciprocal disciplinary action. Under the compact’s rules, member states are required to share investigative information and complaints with one another. This means a local dispute in Michigan can quickly become a national problem.

The most significant risk involves your State of Principal Licensure (“SPL”). If your license in your home state is suspended or revoked, every other license you hold through the compact is automatically placed on that same status. You do not get a separate hearing in each state to argue your case; the disciplinary action effectively “cascades” through your entire license portfolio.

Even if the disciplinary action occurs in a state that is not your home state, the consequences remain severe. Other member boards will be notified of the infraction and are authorized to take their own “mirror” actions. In many cases, these boards will simply adopt the findings of the first state, leading to a domino effect of sanctions, fines, and practice restrictions across the country.

Protecting Your Multistate Practice

As Michigan nears the March 2026 deadline, it is more important than ever for providers to understand that a “compact license” is not a separate, shielded license. It is an interconnected network. Any investigation by Michigan’s Bureau of Professional Licensing (“LARA”) must be handled with extreme care, as a consent order or a public reprimand here could trigger a multi-state investigation that threatens your ability to practice in every other compact state.

If you are a physician utilizing the IMLC, we recommend a proactive approach. This includes maintaining meticulous records of your continuing education in every state where you are licensed and ensuring that you are fully compliant with the specific telehealth regulations of each jurisdiction.

We are closely monitoring the progress of House Bill 5455 as it moves through the Michigan legislature. If you have questions about your status within the Interstate Medical Licensure Compact, or if you are facing a disciplinary inquiry that could impact your multi-state practice or licensure, please feel free to contact us at 212-668-0200, or via email at info@mdrxlaw.com.