What policy underlies the corporate practice of medicine in some states?

The rationale underlying CPOM is that physicians, as the only persons licensed to practice medicine, should control clinical decisions; the concern is that, if business entities owned by non-physicians are permitted to control the rendering of care, they will subordinate clinical care to commercial considerations and …

Can a corporation practice medicine?

The corporate practice of medicine (CPM) is a legal doctrine that prohibits companies from profiting from the practice of medicine or directly employing a physician to provide professional medical services. These laws are intended to avoid corporate influence on physicians and the commercialization of medicine.

Who regulates the practice of medicine in each state?

The 10th Amendment of the United States Constitution authorizes the states to establish laws and regulations protecting the health, safety and general welfare of their citizens. Thus, it is the responsibility of the individual states to regulate the practice of medicine.

What is the corporate practice of medicine and fee splitting?

In California, the prohibition against corporate practice of medicine, imposes strict rules on contractual arrangements between physicians and non-physicians. One of the purposes of the CPM doctrine is to separate medical from business decision-making.

Does corporate practice of medicine apply to nurse practitioners?

In California, nurse practitioners may form professional corporations, but there are no restrictions on what type of entities can employ nurse practitioners. Some anticipated the bill would help to further erode California prohibition on the corporate practice of medicine.

Is North Carolina a corporate practice of medicine state?

The Board adopted a position statement, Corporate practice of medicine, in March 2016 to clarify its expectations. As a general rule, the North Carolina Professional Corporations Act (N.C. Gen. Stat. ¶55B, et.

How is medical practice regulated?

The laws governing the practice of medicine and other allied health care professionals regulated by the Medical Board of California (Board) are contained in the Business and Professions Code. A complete listing of the Board’s laws.

Is fee splitting illegal?

Payment by or to a physician or health care institution solely for referral of a patient is fee splitting and is unethical. Physicians may not accept: Payment for services relating to the care of a patient from any health care facility/organization to which the physician has referred the patient.

Can a non physician own a medical practice in Pennsylvania?

Similar to many jurisdictions, there is no single source of law in the Commonwealth of Pennsylvania which prohibits corporate entities from employing physicians or rendering professional medical services. The unauthorized practice of medicine is codified under the Medical Practice Act of 1985.

Can a non physician own a medical practice in North Carolina?

As a general rule, the North Carolina Professional Corporations Act (N.C. Gen. requires corporations that provide certain professional service to be owned entirely by licensees of that profession. Applying this general rule, medical practices must be owned by licensed physicians.

Does Georgia prohibit corporate practice of medicine?

All this suggests that Georgia has a strong prohibition against Corporate Practice of Medicine—at least for the moment, as these legal rules can be in flux. There are usually exceptions to the corporate practice of medicine prohibition—notably, for example, the case of hospitals.

What are the corporate practice of medicine laws?

The corporate practice of medicine laws require corporations created to employ physicians in an outpatient clinic to be incorporated under the state’s professional service corporate laws. The laws also require all providers of medical services to be licensed.

Can a professional corporation be exempt from practice of Medicine?

To accommodate charity, the Service has been willing to recognize exemption of Professional Corporations only in states with active corporate practice of medicine laws. Therefore, applicants seeking exemption that are formed in states without corporate practice of medicine laws should be formed under the state’s non-profit corporate laws.

Can a business entity employ a doctor?

Some states prohibit business entities from employing physicians to provide medical care. Certain states require entities that provide medical services be owned and operated by licensed medical doctors. Some states prohibit professional fee splitting between licensed medical professionals and non-licensed individuals or business entities.

Can a management company charge sub-FMV fees to physicians?

By charging sub-FMV fees for these services, the management company may be able to improperly influence the manner in which the physicians provide medical care, which is in clear violation of the premise behind the Doctrine and supporting regulations. First, determine if the applicable state is subject to corporate practice of medicine regulations.