An organization of physicians without work permits was established and became the largest HMA organization. The problem arose due to the strict limitations enforced by the government in the Land of Israel with respect to issuance of work permits to physicians who arrived in Israel after the fall of 1935 following the "White Paper" policy and pressure applied by the Arabs. Many physicians were forced to seek employment in other professions in order to make a living and some found themselves destitute.
The HMA legal court was founded in this year and a legal committee was established in each HMA branch to investigate disputes between physicians and complaints lodged by patients against physicians.