Section 6. Every registered physician who complies with the qualifications, rules and regulations of a medical organization doing business in the community where such physician resides or practices, approved by the department of public health, shall have the right to become an associated physician of said medical organization. A medical organization may terminate its agreement with any associated physician for rendering any fraudulent or improper claim for payment or for failure reasonably to observe the approved rules and regulations of such medical organization including those governing the reports of services and the keeping of accounts and records or for failure to comply with the professional code of ethics as accepted by organized medicine.