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New Jersey CPOM Laws

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


In New Jersey, the Corporate Practice of Medicine (CPOM) doctrine is strictly enforced, prohibiting unlicensed individuals or entities from owning or controlling medical practices. This legal framework ensures that medical decisions remain the sole responsibility of licensed professionals, thereby safeguarding patient care from commercial influences.

New Jersey CPOM Laws

According to New Jersey regulations, medical practices must be structured in specific ways to comply with CPOM laws. Acceptable forms include sole proprietorships, partnerships, professional associations, or limited liability companies (LLCs), provided that all owners are licensed healthcare professionals authorized to render the same or closely allied services within the state. This structure prevents unqualified individuals from influencing medical judgments and maintains the integrity of patient care.

The state’s Board of Medical Examiners enforces these regulations, emphasizing that general business corporations cannot employ physicians to provide healthcare services. This prohibition aims to eliminate conflicts of interest where corporate motives might compromise patient care.

New Jersey’s CPOM doctrine also prohibits fee-splitting arrangements between licensed medical professionals and unlicensed 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 New Jersey 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 New Jersey, understanding and complying with CPOM regulations is essential. Old Mission Medicine offers expert guidance to help practices navigate New Jersey’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 New Jersey’s regulatory framework.