California’s corporate practice of medicine (CPOM) doctrine is one of the most critical regulatory frameworks for medical professionals and organizations to understand. Designed to ensure that clinical decisions remain in the hands of licensed medical practitioners, CPOM imposes strict limitations on who can own and control medical practices.
What Is the Corporate Practice of Medicine Doctrine?
The CPOM doctrine prohibits corporations or non-licensed individuals from practicing medicine or influencing clinical decisions. This ensures that medical professionals maintain autonomy over patient care without undue influence from business interests.
Why Does CPOM Matter?
For medical professionals in California, non-compliance with CPOM can result in severe penalties, including:
- Loss of medical licenses
- Fines and legal actions
- Dissolution of improperly structured practices
Who Can Own a Medical Practice in California?
Under CPOM, only licensed physicians and other medical professionals can own a medical practice. However, certain exceptions apply, such as:
- Non-profit organizations meeting specific criteria
- Professional corporations owned by licensed professionals
Key Compliance Considerations
- Ownership Structure: Ensure that your practice’s ownership complies with CPOM by limiting equity to licensed professionals.
- Management Services Agreements: If working with an MSO, establish clear boundaries in the MSA to separate clinical and administrative functions.
- Employment Agreements: Avoid arrangements where non-licensed entities employ or supervise medical professionals directly.
Common Pitfalls to Avoid
- Fee-Splitting Violations: Sharing revenue with non-licensed entities can breach CPOM rules and invite legal scrutiny.
- Improper Delegation: Allowing non-medical personnel to influence clinical decisions is a direct violation of CPOM.
- Misstructured Partnerships: Joint ventures or partnerships involving non-medical entities must be carefully structured to avoid conflicts with CPOM.
How the Law Office of Kris Mukherji Can Help
At the Law Office of Kris Mukherji, we help medical professionals navigate CPOM regulations with confidence. Our services include:
- Structuring compliant ownership and operational models
- Drafting and reviewing MSAs
- Advising on employment and partnership agreements
Final Thoughts
Navigating California’s CPOM doctrine is essential for any medical professional or organization operating in the state. By understanding the rules and securing expert legal support, you can build a compliant and successful practice.
Contact the Law Office of Kris Mukherji at www.kmsdlawoffice.com to learn how we can assist with your legal needs.