The fabled MSO/PC - Corporate Practice of Medicine
Let’s be real—no one wants a suit from some corporate HQ telling a doctor how to treat their patients. That’s where the Corporate Practice of Medicine (CPOM) doctrine comes in, drawing a clear line between medicine and business. If you’re in the healthcare game, understanding CPOM isn’t just a good idea—it’s a must. Plus, it’s an acronym so it has to be a healthcare thing.
The Big No-No: Corporate Ownership
Prohibition on Corporate Practice: Here’s the deal: The CPOM doctrine says “no way” to non-physicians or corporate entities owning or controlling medical practices. It’s like a firewall, keeping business interests from crossing into the sacred space of patient care. Under CPOM, only licensed physicians can own or control a medical practice or employ other physicians to provide medical services. The goal? To make sure every medical decision is made with the patient’s best interests at heart—not the bottom line.
Why CPOM Matters: Protecting the Physician’s Independence
Purpose of CPOM: CPOM exists for one simple reason: to keep medical decisions free from corporate meddling. Imagine being a doctor and having your treatment choices influenced by someone whose main concern is the financials, not the patient. CPOM keeps physicians independent and focused on what truly matters—providing top-notch care to their patients. It’s all about preserving that doctor-patient relationship without the noise of corporate interests.
State-by-State: CPOM Laws Vary
State Variations: Now, here’s where it gets interesting, CPOM laws aren’t the same everywhere. Some states are super strict—corporate ownership of medical practices is a hard no. But in other states, there are loopholes, and certain exceptions allow for a bit more flexibility. Whether you’re practicing in Georgia, California, or somewhere in between, you need to know your state’s CPOM rules inside and out.
The Exceptions: When Business and Medicine Can Coexist
Professional Corporations (PCs) and Professional Associations (PAs): In some states, physicians have a workaround. They can form Professional Corporations (PCs) or Professional Associations (PAs) to provide medical services while still playing by CPOM rules. This allows doctors to have a bit more control over the business side of things while keeping their medical practice compliant.
Management Services Organizations (MSOs): Enter the MSO—a game-changer for physicians who want to focus on patient care without getting bogged down by the day-to-day business operations. MSOs handle the non-clinical side of running a practice, from administrative tasks to management, while the doctors stay in charge of all things medical. The key is making sure that the MSO doesn’t overstep its bounds—clinical decisions must remain firmly in the hands of the physicians.
Ownership and Control: First and foremost, make sure that your medical practice is owned and controlled by licensed practitioners, just like the law requires. If your state allows PCs or PAs, you’re in luck—but make sure you’re following the rules to the letter.
Employment Relationships: If you’re employing physicians, structure those employment relationships carefully. MSOs can take some of the business burdens off your plate, but be sure that the practitioners remain in charge of all clinical decisions.
Management Agreements: When working with an MSO, your management agreement needs to be airtight. The last thing you want is for an MSO to have too much influence over clinical matters. Grab an attorney to carefully draft these agreements to keep that the line between business and medicine.
Wrapping up
The CPOM doctrine might seem like a headache at first, but it’s there for a good reason. It’s about keeping the heart of healthcare, the doctor-patient relationship, free from outside pressures. By understanding and complying with CPOM, you’re not just protecting yourself legally—you’re helping your practice stays true to its mission: delivering the best possible care to your patients, without compromise.
So, keep the business folks where they belong, and let the doctors do what they do best. Stay compliant, stay independent, and keep your practice running smoothly.
Disclaimer: The content provided herein is intended for educational purposes only and does not constitute financial or legal advice. This content is not intended to create, and receipt of the launch guide does not constitute, an attorney-client relationship. While efforts have been made to ensure the accuracy of the information presented, it may not necessarily reflect the most current legal developments or regulations and does not provide a complete representation of all associated legal and compliance considerations for any given topic. Therefore, readers are encouraged to seek professional legal advice or consult with appropriate professionals regarding specific legal issues or concerns related to their individual circumstances.
