New Hampshire Corporate Practice of Medicine (CPOM) Overview
- Does New Hampshire have a Corporate Practice of Medicine (CPOM) Doctrine?: No.
- Summary: New Hampshire does not have a formal, codified Corporate Practice of Medicine (CPOM) Doctrine in place. The prevailing practice convention dictates that physicians are permitted to engage in medical practice either by forming a professional corporation or by working as an employee, member, consultant, or independent contractor for a healthcare organization. While there is no specific statutory reference to a CPOM Doctrine, the state does provide a framework for professional corporations through NH Revised Statutes Annotated Chapter 294-A (NH RSA 294-A). Professional corporations in New Hampshire are organized with the primary purpose of delivering professional services. These organizations may take various forms, including non-profit corporations (voluntary corporations) with physicians as members, taxable or tax-exempt, often collecting dues or membership fees. Additionally, physician organizations can collaborate with hospitals or health systems, typically establishing themselves as non-profit tax-exempt entities in alignment with the prevailing healthcare landscape in the state.
- Sources: New Hampshire Rev. Stat. § 293-A:1
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 New Hampshire CPOM laws
If you're looking to start a healthcare business in New Hampshire and need to comply with New Hampshire CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
