Utah Corporate Practice of Medicine (CPOM) Overview
- Does Utah have a Corporate Practice of Medicine (CPOM) Doctrine?: No.
- Summary of Current Law: Utah neither explicitly permits nor prohibits the corporate practice of medicine. However, state statutes enable licensed physicians, dentists, osteopathic physicians, and chiropractors to establish professional corporations under the Professional Corporation Act. These entities can deliver specific professional services through officers, employees, and agents holding appropriate licenses, including physicians, surgeons, dentists, osteopathic physicians, or chiropractors. Similarly, the Utah Revised Limited Liability Company (LLC) Act allows the creation of professional service LLCs, with members, managers, and employees required to possess the necessary professional licenses. While Utah allows physicians and osteopathic physicians to be employed by other entities, it is illegal for anyone with a financial interest in their practice to significantly interfere with their professional work. Physicians are also barred from entering into contracts that restrict their ability to fully advise patients on treatment options. Regarding health maintenance organizations, Utah's regulations prioritize delivering comprehensive healthcare to enrollees, permitting these organizations to contract with healthcare providers. However, they are generally prohibited from engaging in unrelated businesses. Utah's approach maintains professional healthcare quality and accountability while offering flexibility in practice structures.
- Sources: Corporate Practice of Medicine: A Fifty State Survey, Vol. 1, Rel. 2E.
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 Utah CPOM laws
If you're looking to start a healthcare business in Utah and need to comply with Utah CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
