District of Columbia (D.C.) Practice of Medicine (CPOM) Overview
- Does District of Columbia (D.C.) have a Corporate Practice of Medicine (CPOM) Doctrine?: Yes.
- Summary of Current Law: In the District of Columbia, a CPOM doctrine exists even though there is no explicit legal prohibition against corporations employing physicians. The determination of whether a corporation has engaged in the unlawful practice of medicine is based on specific criteria evaluated by the courts. These criteria include whether the corporation interferes with physicians' clinical decisions, derives profits from medical services, or commercializes the practice of medicine. For example, in the Group Health Ass'n case, it was ruled that the Healing Arts Practice Act of D.C. was not violated when a nonprofit corporation provided medical care through salaried physicians to its members without exerting control over their clinical decisions. This precedent was upheld in United States v. AMA. Additionally, in Silver v. Lansburgh, it was established that a corporation employing licensed optometrists did not unlawfully practice medicine because optometry was considered to have a different nature of professional-patient relationship compared to traditional medicine. Consequently, corporate employment of optometrists was not prohibited.
- Sources: District of Columbia (D.C.) Code §§ 3-1201.02(7)(A), 29-502, 29-503.
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 District of Columbia (D.C.) CPOM laws
If you're looking to start a healthcare business in District of Columbia (D.C.) and need to comply with District of Columbia (D.C.) CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
