Arkansas Corporate Practice of Medicine (CPOM) Overview
- Does Arkansas have a Corporate Practice of Medicine (CPOM) Doctrine?: Yes.
- Summary of Current Law: In Arkansas, the corporate practice of medicine is acknowledged through a blend of statutory law and attorney general opinions. The key statutes, Arkansas Code Annotated §§ 17-95-202 and 4-29-309(a), in conjunction with Attorney General Opinion No. 2014-118, highlight the state’s position. These laws confirm that while corporations can engage in healthcare activities, they must not intrude on the independent medical judgment of physicians, emphasizing the autonomy of medical professionals in clinical decision-making. The term 'practice of medicine' encompasses various activities, including but not limited to, proposing or administering treatments, surgeries, or therapeutic interventions aimed at alleviating or curing physical or mental illnesses, injuries, conditions, or defects in individuals. These actions are undertaken with the explicit intent of receiving compensation, whether directly or indirectly, and often involve presenting oneself to the public as a qualified practitioner capable of performing such procedures. The Arkansas Medical Practices Act strictly dictates that individuals engaging in the aforementioned activities must hold a valid license to practice medicine in the state of Arkansas.
- Sources: Arkansas Code Ann. §§ 17-95-202; 4-29-309(a); Ark. Att’y Gen. Op. No. 2014-118 (Mar. 10, 2015); Corporate Practice of Medicine: A Fifty State Survey, Vol. 1, Rel. 2E.
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 Arkansas CPOM laws
If you're looking to start a healthcare business in Arkansas and need to comply with Arkansas CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
