Idaho Corporate Practice of Medicine (CPOM) Overview
- Does Idaho have a Corporate Practice of Medicine (CPOM) Doctrine?: No.
- Summary of Current Law: Corporate Practice of Medicine (CPM) in Idaho: The state's CPM framework lacks a dedicated statute but relies on legal precedents. The Idaho Supreme Court's decision in Worton v. Davis firmly establishes that unlicensed entities cannot engage in medical practice through licensed employees, while licensed physicians are prohibited from working as employees of unlicensed entities, all in the interest of public welfare. Moreover, an inaccessible 1954 Idaho Attorney General opinion reportedly disallowed hospitals from employing or compensating physicians under the Idaho Medical Practices Act. Significantly, the enforcement of the corporate practice doctrine appears limited in Idaho, as suggested by counsel from Idaho health law experts. This implies a relatively permissive approach, particularly when corporate entities refrain from interfering with the medical judgment of licensed practitioners. Nonetheless, for precise guidance on CPM matters in Idaho, consulting legal professionals is advisable.
- Sources: Notes of Idaho State Board. Of Medicine Telephone Conference (Mar. 28, 2016).
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 Idaho CPOM laws
If you're looking to start a healthcare business in Idaho and need to comply with Idaho CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
