Corporate Practice of Medicine
Who may own a practice.
Corporate Practice of Medicine (CPOM) refers to laws that regulate the relationship between licensed medical professionals and non-physician individuals or entities.
The Basics
What CPOM restricts
Depending on the state, CPOM laws restrict non-physicians from owning medical practices, employing physicians, or exercising control over clinical decision-making.
Not every state approaches it the same way
Explicit statutory prohibitions
Some states maintain corporate practice restrictions directly in statute.
Regulated by other means
Others regulate corporate practice through medical board rules, attorney general opinions, court decisions, or professional entity requirements.
Few or no restrictions
Other states impose few or no specific restrictions.
For organizations operating nationally, understanding these differences is an important component of maintaining a compliant virtual care model.
The Purpose
Why CPOM laws exist
Clinical Independence
Medical decisions are kept safe from profit goals.
Patient Trust
The patient-doctor relationship is protected.
Accountability
Only licensed physicians control patient care.
What's Next
Stay ahead of the curve
Corporate practice of medicine continues to evolve as states respond to changes in the growth of virtual healthcare.
CTeL provides our members with research, policy analysis, and expert consulting on the legal and regulatory developments affecting digital health organizations across the country.
Structure decides who controls care.
Interested in learning more about Corporate Practice of Medicine requirements?
Contact CTeL to learn more about our research and membership resources.