New York CPOM Laws
Is New York A Corporate Practice of Medicine (CPOM) State?: No
In New York, 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 exclusive responsibility of licensed professionals, thereby safeguarding patient care from commercial influences.
New York CPOM Laws
Under New York law, medical practices must be structured as professional entities, such as Professional Service Corporations (PCs), Professional Limited Liability Companies (PLLCs), or Registered Limited Liability Partnerships (RLLPs). All shareholders or members of these entities are required to be licensed in the same profession, ensuring that only qualified professionals have ownership and control.
The state’s prohibition on CPOM also extends to employment relationships, disallowing general business corporations from employing physicians to provide medical services. This measure prevents potential conflicts of interest where corporate motives might compromise patient care.
To navigate these restrictions, many healthcare providers in New York 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 York, understanding and complying with CPOM regulations is essential. Old Mission Medicine offers expert guidance to help practices navigate New York’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 York’s regulatory framework.
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