North Carolina CPOM Laws
Is North Carolina A Corporate Practice of Medicine (CPOM) State?: Yes
In North Carolina, the Corporate Practice of Medicine (CPOM) doctrine is actively enforced, prohibiting private corporations from practicing medicine or employing physicians to provide medical services. This legal framework ensures that medical decisions remain under the exclusive control of licensed professionals, thereby safeguarding patient care from commercial influences.
North Carolina CPOM Laws
According to the North Carolina Medical Board, businesses engaged in the practice of medicine must be entirely owned by individuals holding active North Carolina medical licenses. Acceptable ownership structures include professional corporations (PCs) and professional limited liability companies (PLLCs), provided that all owners are licensed to practice medicine in the state. This structure prevents unqualified individuals from influencing medical judgments and maintains the integrity of patient care.
The state does recognize certain exceptions to the CPOM prohibition, including hospitals and health maintenance organizations (HMOs). These entities are considered statutory creations intended for public welfare and are regulated by the government, which mitigates potential conflicts between profit motives and quality medical care. Additionally, public health clinics and charitable nonprofits are also considered exceptions to the CPOM prohibition.
To navigate these restrictions, many healthcare providers in North Carolina 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 North Carolina, understanding and complying with CPOM regulations is essential. Old Mission Medicine offers expert guidance to help practices navigate North Carolina’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 North Carolina’s regulatory framework.
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