Maine Corporate Practice of Medicine (CPOM) Overview
- Does Maine have a Corporate Practice of Medicine (CPOM) Doctrine?: No.
- Summary of Current Law: In Maine, there is no specific statute directly addressing the corporate practice of medicine (CPM). Any potential prohibition might be implied within the state's corporations statutes. However, the Board of Licensure in Medicine has clarified its position through an advisory opinion. The Board emphasizes that it holds each physician accountable for their conduct, irrespective of their employment status. This means that physicians in Maine, whether they are salaried employees of a corporate entity, principals in a Professional Association, partners, or self-employed solo practitioners, are individually responsible for their clinical judgment, ethics, and competency. The Board asserts that physicians cannot use the defense of 'company policy' to absolve themselves of responsibility in cases of complaints. Furthermore, other state agencies in Maine have consistently allowed the employment of physicians by various organizations, including both for-profit and non-profit entities, that are not exclusively comprised of physicians. This suggests a more flexible approach towards the corporate employment of medical professionals in the state.
- Sources: Maine Bd. of Licensure Opinion (Nov. 2, 1992); 13-B Code Me. R. § 1307.
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 Maine CPOM laws
If you're looking to start a healthcare business in Maine and need to comply with Maine CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
