Louisiana Corporate Practice of Medicine (CPOM) Overview
- Does Louisiana have a Corporate Practice of Medicine (CPOM) Doctrine?: Yes.
- Summary of Current Law: The state of the corporate practice of medicine is less defined in Louisiana. The Louisiana State Board of Medical Examiners published a Statement of Position in 1992 (reviewed in 2001), proposing specific guidelines for the employment of physicians by corporations other than professional medical corporations, even though there is no clear legal prohibition against corporations practicing medicine. This phrase suggests that although there isn't a clear ban, there are standards and conventions that must be followed in these types of work settings. It appears that the fundamental goal is to make sure that corporate involvement does not compromise the standard or integrity of medical care, and that the practice of medicine stays within the jurisdiction of appropriately qualified and licensed experts. However, the lack of explicit statutory guidance or prohibition leaves some ambiguity in the application and enforcement of these norms.
- Sources: Louisiana State Bd. Of Med. Exm’rs Statement of Position Employment of Physician by Corporation Other Than a Professional Medical Corporation (Sept. 24, 1992, reviewed Mar. 21, 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 Louisiana CPOM laws
If you're looking to start a healthcare business in Louisiana and need to comply with Louisiana CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
