The Corporate Practice of Medicine (CPOM) doctrine keeps medical decisions in the hands of licensed professionals—not corporations. Designed to protect patients from profit-driven influence, CPOM laws prevent non-physicians from controlling how care is delivered. While enforcement varies—strict in states like California, New York, and Texas, more flexible in Florida—the principle remains the same: medical judgment must stay independent.
To stay compliant, many clinics use a PC/MSO model, where the physician-owned Professional Corporation oversees clinical care, and the Management Services Organization handles operations. Structuring fees correctly and maintaining real physician oversight are key to avoiding “strawman” setups. Even in permissive states, CPOM-compliant models support scalability, investor readiness, and long-term stability.