Alaska Corporate Practice of Medicine (CPOM) Overview
- Does Alaska have a Corporate Practice of Medicine (CPOM) Doctrine?: No.
- Summary of Current Law: In Alaska, there is no specific law that prohibits the corporate practice of medicine or dictates the structure of medical practices. The primary relevant regulation is the Alaska Professional Corporation Act, established in 1968. This act permits the formation of corporations to provide professional services, including medical services. However, a professional corporation can only offer one type of professional service, and all individuals involved in the corporation, such as incorporators, directors, and shareholders, must hold the necessary professional licenses. The corporation is allowed to deliver its professional services through its shareholders, directors, officers, employees, or agents. No exceptions or exemptions apply in this context. In summary, Alaska law does not explicitly restrict corporate medical practice but requires compliance with the Alaska Professional Corporation Act, ensuring that all individuals involved are licensed professionals offering a single type of professional service within the corporation.
- Sources: Alaska Stat. § 08.64.170.
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 Alaska CPOM laws
If you're looking to start a healthcare business in Alaska and need to comply with Alaska CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
