West Virginia Corporate Practice of Medicine (CPOM) Overview
- Does West Virginia have a Corporate Practice of Medicine (CPOM) Doctrine?: Yes.
- Summary of Current Law: West Virginia does enforce the Corporate Practice of Medicine (CPOM) Doctrine. West Virginia Board of Medicine's Position Statement on the Corporate Practice of Medicine, released on March 19, 2018, further affirmed Code Section 30-3-15. This doctrine makes it clear that corporations and other business entities cannot practice medicine within the state. To ensure that medical choices are made with the best interests of patients in mind and are not influenced by non-medical corporate interests, this prohibition attempts to protect the independence and professional judgment of doctors and other healthcare workers. The CPOM Doctrine in West Virginia underscores the significance of maintaining the integrity of medical practice, emphasizing that the primary focus of healthcare should be patient well-being. It places paramount importance on preserving the core principles of medical ethics and professionalism, making it clear that the corporate practice of medicine is subject to strict regulation and oversight to protect the public's health and safety.
- Sources: West Virginia Code § 30-3-14.
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 West Virginia CPOM laws
If you're looking to start a healthcare business in West Virginia and need to comply with West Virginia CPOM laws by setting up a MSO-friendly PC structure, Permit can help—affordably and fast. Feel free to reach out.
