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Compliance

Corporate practice of medicine (CPOM)

Also called CPOM

Definition

The legal doctrine, applied differently by each state, that restricts non-physicians and corporations from owning medical practices or influencing clinical decisions.

CPOM exists to keep clinical judgment insulated from commercial pressure. Its strength varies considerably by state, from strict prohibition to relatively permissive.

For a telehealth brand operating nationally, the practical effect is that ownership and clinical control must be structured to satisfy the strictest states you operate in, not the most permissive.

The usual resolution is an MSO structure, paired with services agreements that keep clinical authority with the professional entity in substance as well as on paper.

Why it matters

CPOM determines whether a non-clinician founder can lawfully own the business at all in a given state. It shapes the corporate structure before it shapes anything else.

FAQ

Corporate practice of medicine (CPOM), in practice

Enforcement and interpretation vary and change, so this is a question for healthcare counsel rather than a static list. The safe operating assumption for a national brand is to structure for the strictest states you intend to serve.