Kansas CPOM Laws

Kansas CPOM Laws

Kansas law mandates that any entity formed for the purpose of practicing medicine must be wholly owned by licensed physicians or other specified licensed professionals. This requirement is intended to prevent non-medical interests from influencing clinical decisions, thereby safeguarding the quality of patient care.

However, there are exceptions to this general rule. For instance, licensed hospitals in Kansas are permitted to employ physicians directly, as established in the case of St. Francis Regional Medical Center, Inc. v. Weiss. In this 1994 decision, the Kansas Supreme Court clarified that hospitals, regardless of their nonprofit, governmental, or proprietary status, could employ physicians without violating the CPOM doctrine.

Despite such exceptions, the CPOM doctrine remains a critical consideration for healthcare professionals and entities in Kansas. Non-compliance with these regulations can result in significant legal repercussions, including the invalidation of employment contracts and potential disciplinary actions. For example, in Central Kansas Medical Center v. Hatesohl, a physician’s employment contract with a licensed ambulatory surgical center was deemed void for violating the CPOM doctrine, as the physician’s family medicine practice fell outside the authorized primary purpose of the license to perform surgical procedures.

Given the complexities of Kansas’s CPOM laws, it’s imperative for medical practitioners and healthcare entities to structure their practices in compliance with state regulations. This often involves forming professional corporations or limited liability companies that are entirely owned by licensed professionals.

Navigating these legal intricacies can be challenging. Old Mission Medicine offers expert guidance to healthcare providers in Kansas, assisting them in establishing compliant practice structures and maintaining adherence to CPOM regulations. By partnering with Old Mission Medicine, medical professionals can focus on delivering quality patient care, confident that their practice operations align with Kansas law.