Mississippi Corporate Practice of Medicine (CPOM) Overview
- Does Mississippi have a Corporate Practice of Medicine (CPOM) Doctrine?: Yes and no (mixed).
- Summary of Current Law: In Mississippi, the approach towards the corporate practice of medicine has evolved over time, particularly evident in the field of optometry as reflected in historic case law such as Sears Roebuck & Co. v. State Bd. of Optometry (1952) and Busch Jewelry Co. v. State Bd. of Optometry (1953). Despite these rulings, recent policies and regulations by the Mississippi State Board of Medical Licensure (BOML) and the Mississippi State Board of Dental Examiners (BODE) indicate a shift. These Boards have stated they are less concerned with the specific business structures physicians and dentists engage in. Instead, they have established a set of conditions focusing on ensuring that licensed professionals retain control over their services and decision-making autonomy, free from external influences. This stance suggests that Mississippi likely does not broadly prohibit corporate practice in medicine. However, this applies variably across different healthcare professions. While many healthcare professionals are now exempt from the most stringent restrictions on corporate practice, optometry remains an exception, adhering to the traditional prohibitions. This indicates a nuanced approach to corporate involvement in various medical fields within the state.
- Sources: Mississippi Board of Medicine Licensure Policy 3.02 Corporate Practice of Medicine (revised Sept. 20, 2001).
What are Corporate Practice of Medicine (CPOM) Laws?
CPOM laws are regulations that prohibit standard corporations (or other non-physician entities) from practicing medicine or employing practicing physicians. The primary goal of these laws is to ensure that medical decisions are made solely based on patient care and not influenced by corporate interests. These laws vary by state, but they generally aim to protect the physician-patient relationship from commercial influence.
While the focus is often on physicians and medical care, the CPOM family of laws typically apply to a wide range of licensed healthcare providers, including psychologists, speech therapists, physical therapists, occupational therapists, mid-level providers (nurse practitioners and physician assistants), dentists, dietitians, podiatrists, chiropractors, pharmacists, optometrists, and many others. The goal of CPOM laws is shared across these professions: ensure clinical decisions aren’t influenced by corporate pressures.
Who Do These CPOM Laws Apply To?
A state’s CPOM restrictions typically apply to any standard corporate entity that seeks to provide medical or licensed healthcare services. This includes corporations, limited liability companies (LLCs), and other business entities. For an entity to comply with CPOM laws and practice medicine, it typically must be:
- 100% owned by a physician (or physicians) licensed to practice medicine in that state, and
- Formed as a special type of physician-owned legal entity: a Professional Corporation (“PC” for short). In some states, a Professional Limited Liability Company (“PLLC”) is also permitted.
Most states with CPOM laws only permit the corporate practice of medicine through these physician-owned PCs or PLLCs.
Complying with Mississippi CPOM laws
If you're looking to start a healthcare business in Mississippi and need to comply with Mississippi CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
