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Nebraska CPOM Laws

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


Nebraska enforces the Corporate Practice of Medicine (CPOM) doctrine, which prohibits unlicensed individuals or entities from owning or controlling medical practices. This legal framework ensures that medical decisions are made solely by licensed professionals, thereby safeguarding patient care from commercial influences.

Nebraska CPOM Laws

Under Nebraska’s CPOM regulations, medical practices must be owned exclusively by licensed healthcare professionals. This requirement prevents unqualified individuals from influencing medical judgments and maintains the integrity of patient care. While non-licensed individuals can participate in administrative roles within a medical practice, they are strictly prohibited from holding any ownership interest.

The state’s Medicine and Surgery Practice Act defines the practice of medicine and surgery and mandates that only those licensed by law may perform such practices in Nebraska. This act ensures that all medical services are provided by qualified professionals, maintaining high standards of patient care.

Nebraska’s CPOM doctrine also prohibits fee-splitting arrangements between licensed medical professionals and non-licensed individuals or entities. This means that profits from medical services cannot be shared with unlicensed parties, including investors or employees. To ensure compliance, compensation for unlicensed individuals and entities, such as management companies, should reflect fair market value for the services provided.

To navigate these restrictions, many healthcare providers in Nebraska utilize Management Services Organizations (MSOs). An MSO is a separate entity that handles non-clinical administrative functions—such as billing, accounting, and human resources—allowing physicians to focus on patient care. While the MSO manages business operations, the medical practice remains wholly owned by licensed professionals, maintaining compliance with CPOM laws.

For healthcare providers and organizations operating in Nebraska, understanding and complying with CPOM regulations is essential. Old Mission Medicine offers expert guidance to help practices navigate Nebraska’s 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 Nebraska’s regulatory framework.