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Massachusetts CPOM Laws

Is Massachusetts A Corporate Practice of Medicine (CPOM) State?: Yes


Massachusetts enforces the Corporate Practice of Medicine (CPOM) doctrine to ensure that medical decisions remain under the exclusive control of licensed physicians, free from corporate or non-professional influence. This approach safeguards the integrity of the physician-patient relationship and upholds the quality of medical care.

Massachusetts CPOM Laws

The state’s stance on CPOM is rooted in legal precedents, notably the case of McMurdo v. Getter (1937), where the Massachusetts Supreme Judicial Court held that a licensed practitioner may not lawfully practice their profession as the servant of an unlicensed person or a corporation. This decision underscores the concern that a licensee’s primary allegiance and obedience would be to the employer, not patients.

To navigate these regulations, physicians in Massachusetts often establish professional corporations or limited liability companies composed entirely of licensed medical professionals. This structure allows for the management of administrative functions while ensuring that all medical decisions are made by qualified physicians, maintaining compliance with CPOM principles.

Recent legislative developments in Massachusetts reflect a growing focus on transparency and oversight in healthcare ownership. In December 2024, Massachusetts lawmakers approved a bill aimed at closing regulatory loopholes in the state’s healthcare market. This legislation enhances financial transparency by requiring more detailed hospital finance information and expands the oversight of the Health Policy Commission, imposing stricter reporting requirements and penalties for non-compliance. The bill awaits the governor’s signature to be enacted into law.

For healthcare providers and organizations operating in Massachusetts, understanding and adhering to CPOM regulations is crucial. Old Mission Medicine offers expert guidance to help practices remain compliant with Massachusetts’ CPOM laws. From structuring appropriate corporate entities to ensuring adherence to state regulations, Old Mission Medicine provides solutions that prioritize both operational efficiency and patient care. Contact Old Mission Medicine today to learn how we can assist your practice in thriving within Massachusetts’ regulatory landscape.