Maryland’s Corporate Practice of Medicine (CPOM) regulations play a critical role in maintaining the independence of clinical decision-making, ensuring that patient care is dictated solely by licensed physicians without interference from corporate entities. As the healthcare industry adapts to advancements in telehealth, artificial intelligence, and new care models in 2025, understanding these rules is essential for healthcare providers and organizations operating in Maryland.

Understanding Maryland’s CPOM rules is essential for healthcare providers to avoid legal risks and maintain smooth operations in 2025. Access Plus Health breaks down these regulations, offering actionable insights on ownership restrictions, physician involvement, and compliance strategies. Let us help you navigate Maryland’s CPOM framework and protect your practice.

What Are Maryland’s CPOM Rules?

The CPOM doctrine prohibits non-physician entities from owning, controlling, or influencing medical practices. The primary objectives of these rules are to:

• Preserve Physician Autonomy: Ensure that all clinical decisions are made exclusively by licensed physicians.
• Maintain Ethical Standards: Prevent corporate interests from compromising patient care.
• Ensure Accountability: Hold physicians directly responsible for the quality and safety of care delivered.

Key Elements of Maryland’s CPOM Regulations

1. Physician Ownership:
   Medical practices in Maryland must be owned and operated by licensed physicians or physician-led entities. Corporate entities are restricted to non-clinical administrative functions.
2. Clinical Decision-Making Authority:
   Physicians must retain sole responsibility for diagnoses, treatment plans, and patient management. Non-physician entities cannot influence these decisions.
3. Applicability Across Models:
   Maryland’s CPOM rules apply to all healthcare delivery models, including traditional in-person practices, telehealth platforms, and hybrid care models.

Compliance Challenges in 2025

1. Telehealth Expansion:
   The widespread adoption of telehealth presents unique challenges in maintaining physician oversight and ensuring compliance with CPOM rules.
2. Technological Integration:
   The increasing use of AI-driven tools and wearable health devices requires careful oversight to align with CPOM regulations, ensuring they support rather than replace physician decision-making.
3. Ambiguities in Contracts:
   Poorly defined agreements between physicians and corporate partners can lead to non-compliance with CPOM rules.
4. Multi-State Operations:
   Healthcare organizations operating in multiple states must reconcile Maryland’s CPOM requirements with those of other jurisdictions.

Key Compliance Requirements for Healthcare Providers

1. Establish Clear Ownership Structures:
   
   • Ensure that practices are owned or controlled by licensed physicians or physician-led entities.
   • Non-physician entities should only manage administrative tasks, such as billing and HR.
2. Develop Detailed Management Services Agreements (MSAs):
   
   • Clearly define roles and responsibilities, ensuring a strict separation of clinical and administrative functions.
   • Include language that explicitly prohibits non-physician entities from influencing clinical decisions.
3. Implement Oversight for Technology Use:
   
   • Ensure that AI tools, telehealth platforms, and other digital health technologies operate under the supervision of licensed physicians.
4. Regular Compliance Audits:
   
   • Conduct periodic reviews of contracts, workflows, and operations to identify and address potential compliance risks.

Special Considerations for Telehealth Providers

1. Licensing Requirements:
   Physicians providing telehealth services in Maryland must hold a valid Maryland medical license.
2. Virtual Oversight:
   Telehealth operations must ensure that physicians oversee all clinical aspects of patient care, including the use of remote diagnostic tools and AI-driven platforms.
3. Data Privacy and Security:
   Adherence to HIPAA and Maryland-specific privacy laws is critical for telehealth compliance alongside CPOM requirements.

Strategies for Ensuring Compliance

1. Engage Legal Counsel:
   Consult healthcare attorneys to review contracts, ownership structures, and MSAs for compliance with Maryland CPOM laws.
2. Educate Staff and Stakeholders:
   Train physicians, administrators, and corporate partners on CPOM regulations to ensure understanding and adherence.
3. Monitor Technology Integration:
   Implement emerging tools in a way that enhances physician-led care without violating CPOM principles.
4. Conduct Routine Audits:
   Periodically assess workflows, agreements, and operations to ensure ongoing compliance with CPOM laws.

Consequences of Non-Compliance

Failing to adhere to Maryland’s CPOM regulations can result in:

• Financial Penalties: Fines and sanctions imposed by state regulatory authorities.
• Licensure Risks: Physicians may face suspension or revocation of their medical licenses.
• Reputational Damage: Non-compliance can erode patient trust and harm organizational credibility.

Future Trends in Maryland CPOM Compliance

1. Telehealth-Specific Guidelines:
   As telemedicine continues to expand, Maryland may introduce additional regulations to address compliance challenges specific to virtual care.
2. AI and Automation:
   Expect clearer rules governing the use of AI and machine learning in clinical settings to ensure these tools comply with CPOM principles.
3. Multi-State Practice Management:
   With more healthcare organizations operating across state lines, there will likely be an increased focus on developing compliance frameworks that align with Maryland’s CPOM regulations.

Maryland’s CPOM regulations are foundational to maintaining ethical healthcare delivery and protecting physician autonomy in 2025. By understanding these rules and implementing proactive compliance strategies, healthcare providers can ensure they operate within legal boundaries while delivering high-quality, patient-centered care. Whether managing a traditional practice or embracing telehealth innovations, compliance with Maryland’s CPOM laws is essential for long-term success and sustainability in the healthcare industry.