Oklahoma Corporate Practice of Medicine (CPOM) Overview
- Does Oklahoma have a Corporate Practice of Medicine (CPOM) Doctrine?: No.
- Summary of Current Law: Oklahoma operates without a formal Corporate Practice of Medicine (CPOM) Doctrine. The state does not have specific statutes or case law in place that would impose CPOM restrictions. This means that in Oklahoma, one is not required to hold a medical license or be a licensed healthcare professional to establish or operate a medical or healthcare clinic. Oklahoma's healthcare environment allows for a degree of flexibility, permitting non-medical professionals to be involved in the ownership and management of medical facilities, clinics, or healthcare organizations. This lack of CPOM regulations can provide opportunities for diverse business models and collaborations within the healthcare industry in Oklahoma. However, it is important for individuals and organizations in this field to operate within the broader legal framework and regulatory requirements applicable to healthcare and business practices to ensure the delivery of safe and quality medical services to patients.
- Sources: Oklahoma Stat. Ann. tit. 18 § 844; Okla. Att’y Gen. Op. No. 77-168 (Aug. 29, 1977).
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 Oklahoma CPOM laws
If you're looking to start a healthcare business in Oklahoma and need to comply with Oklahoma CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
