Navigating California’s Corporate Practice of Medicine (CPOM) laws is an essential part of running a medical practice in the state, especially as healthcare regulations continue to evolve. As telemedicine becomes more prevalent and business structures become more complex, understanding CPOM regulations is crucial for healthcare providers looking to ensure compliance in 2025.

California’s CPOM regulations are undergoing changes in 2025, and healthcare providers need to stay informed to ensure compliance. Access Plus Health offers a detailed breakdown of these regulations, including essential information on ownership restrictions, supervision guidelines, and collaboration requirements. With our expert guidance, you can ensure your practice complies with these evolving laws, allowing you to focus on patient care without worrying about legal issues. Stay informed and compliant with Access Plus Health.

What Are Corporate Practice of Medicine (CPOM) Regulations?

CPOM laws are designed to preserve the integrity of patient care by ensuring that medical decisions are made by licensed healthcare providers, not non-medical business entities. In California, these laws prohibit non-physician ownership or control over medical practices. Physicians must retain control over clinical decision-making to avoid commercial interests from interfering with patient care.

Key Aspects of California’s CPOM Regulations in 2025

1. Ownership and Control:
   
   • In California, only licensed medical professionals, such as physicians, can have ownership or control over medical practices. Non-physician investors can participate financially, but they cannot influence the medical decisions within the practice.
   • What This Means for You: Physicians must maintain control over all clinical operations, including treatment decisions and patient care protocols.
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2. MSOs and Business Structures:
   
   • Non-physicians can manage administrative functions through Management Service Organizations (MSOs). An MSO can provide services like billing, marketing, and IT management while ensuring that physicians retain control over clinical decisions.
   • What This Means for You: MSOs can be an effective way for non-physicians to invest in and manage a medical practice without violating CPOM laws. Make sure your MSO agreement is legally sound to avoid issues with compliance.
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3. Telehealth Compliance:
   
   • As telemedicine becomes more mainstream, CPOM regulations must be adhered to in virtual healthcare settings as well. Physicians must retain control over the medical aspects of telemedicine, including diagnosis, treatment plans, and prescriptions.
   • What This Means for You: Ensure that your telemedicine platform or service allows physicians to retain full control over clinical decisions. Non-physicians may assist with operational aspects but cannot be involved in the medical decision-making process.
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4. Legal Risks of Non-Compliance:
   
   • Failing to comply with CPOM regulations can lead to serious consequences, including fines, loss of licensure, and other legal repercussions. Ensuring that your medical practice structure follows CPOM laws is crucial to avoid these risks.
   • What This Means for You: Conduct regular legal reviews of your practice’s structure and operations to ensure CPOM compliance. Always work with healthcare legal professionals to mitigate risks.

Breaking down California’s Corporate Practice of Medicine regulations helps clarify how healthcare providers can navigate the legal landscape in 2025. Understanding the limits on ownership and control, utilizing MSOs for administrative functions, and ensuring telehealth services remain compliant are key steps in running a successful and legal medical practice in California.