Montana Corporate Practice of Medicine (CPOM) Overview
- Does Montana have a Corporate Practice of Medicine (CPOM) Doctrine?: Yes.
- Summary of Current Law: In 1995, the Montana legislature made a pivotal change by repealing a crucial section of the Montana Code, a statute which had defined the Corporate Practice of Medicine prohibition in the state. That said, the Montana Board of Medical Examiners regulations still define "unprofessional conduct" as engaging in the practice of medicine while partnered, employed, or in a joint venture with someone lacking a valid medical license, so a CPOM prohibition remains. However, this prohibition had certain exceptions, permitting such arrangements only under the professional services corporation statute and when physicians partnered with hospitals, medical assistance facilities, or licensed healthcare providers, provided specific criteria were met. This alteration ushered in the Corporate Practice of Medicine (CPOM) Doctrine in Montana. The CPOM Doctrine now allows medical professionals to collaborate with non-physician entities, opening doors to various business models within the healthcare industry. Physicians are no longer constrained by the previous restrictions and can explore innovative partnerships and joint ventures, as long as they abide by the regulations outlined in the CPOM Doctrine. This legal shift has fostered a more flexible healthcare environment, encouraging the growth of healthcare businesses while maintaining necessary safeguards to protect the interests of patients and the integrity of medical practice.
- Sources: Montana Admin. R. 24.156.625(1)(t).
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 Montana CPOM laws
If you're looking to start a healthcare business in Montana and need to comply with Montana CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
