Vermont Corporate Practice of Medicine (CPOM) Overview
- Does Vermont have a Corporate Practice of Medicine (CPOM) Doctrine?: No.
- Summary of Current Law: Vermont does not have an established Corporate Practice of Medicine (CPOM) Doctrine, as there are no specific statutes, regulations, or case law addressing the corporate practice of medicine in the state. Vermont's legal landscape lacks any formal provisions or interpretations that directly regulate the practice of medicine by corporate entities. However, Vermont does maintain a Certificate of Need (CON) law, found in 18 V.S.A. §§9431--9445, which requires certificates of need for various healthcare-related activities, including the establishment of new healthcare facilities, capital expenditures exceeding $300,000, purchases of equipment exceeding $250,000, and the offering of new health services with annual operating expenses surpassing $150,000. Although physicians' offices are typically excluded from CON review, certain circumstances may necessitate a CON, such as if a physician's office intends to acquire diagnostic or therapeutic equipment exceeding specified thresholds or if a physician-owned or operated facility plans to offer particular outpatient diagnostic or therapy programs.
- Sources: Vermont Stat. Ann. tit. 26, § 1343.
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 Vermont CPOM laws
If you're looking to start a healthcare business in Vermont and need to comply with Vermont CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
