Michigan’s Corporate Practice of Medicine (CPOM) regulations are pivotal in ensuring that healthcare delivery remains patient-centered and free from undue corporate influence. As telehealth and digital healthcare models continue to grow in 2025, understanding and adhering to Michigan’s CPOM laws is essential for medical businesses and telehealth providers to maintain compliance while navigating an increasingly complex healthcare landscape.

Michigan’s CPOM regulations are crucial for telehealth and medical businesses to address in 2025. Access Plus Health provides a clear and actionable guide to help you navigate these laws, ensuring compliance while focusing on patient care and business growth. Let us simplify the complexities of CPOM compliance for your telehealth or medical practice.

What Are Michigan’s CPOM Regulations?

The CPOM doctrine in Michigan mandates that medical decision-making must remain under the sole authority of licensed physicians, preventing non-physician entities from owning, controlling, or interfering in clinical practices. Key objectives include:

• Preserving Physician Autonomy: Ensuring licensed physicians retain full control over patient care decisions.
• Maintaining Ethical Standards: Preventing profit-driven motives from compromising clinical outcomes.
• Enhancing Accountability: Holding physicians directly responsible for the quality and safety of care delivered.

Key Principles of Michigan’s CPOM Laws

1. Physician Ownership

• Medical practices must be owned and operated by licensed physicians or physician-led entities.
• Non-physician entities are restricted to providing administrative support, such as billing, marketing, and operational logistics.

2. Clinical Decision-Making Authority

• Physicians must maintain full authority over all clinical decisions, including diagnosis, treatment, and patient management.
• Non-physician entities cannot influence or dictate clinical practices.

3. Applicability Across Care Models

• Michigan’s CPOM regulations apply to all care models, including traditional practices, telehealth platforms, and hybrid healthcare systems.

Challenges for Telehealth and Medical Businesses

1. Complex Ownership Structures

• Multi-state telehealth companies must align their structures with Michigan’s CPOM laws while accommodating differing regulations in other states.

2. Integration of Emerging Technologies

• Digital tools such as AI, telehealth platforms, and wearable devices must be implemented to support, not replace, physician decision-making.

3. Contractual Ambiguities

• Poorly drafted Management Services Agreements (MSAs) can blur the lines between administrative and clinical roles, risking non-compliance.

4. Data Security

• Compliance with HIPAA and Michigan-specific privacy laws is critical for telehealth providers to ensure patient trust and regulatory adherence.

Compliance Strategies for Telehealth and Medical Businesses

1. Clear Ownership Structures

• Ensure that practices and telehealth operations are owned or controlled by licensed Michigan physicians.
• Non-physician entities should focus solely on administrative roles without influencing clinical decisions.

2. Develop Robust MSAs

• Clearly outline the roles and responsibilities of physicians and non-physician entities.
• Include specific clauses that prohibit non-physician entities from interfering in patient care decisions.

3. Conduct Regular Compliance Audits

• Periodically review contracts, workflows, and operational practices to ensure adherence to Michigan’s CPOM laws.

4. Educate Key Stakeholders

• Train physicians, administrators, and corporate partners on the nuances of Michigan’s CPOM regulations and their implications for daily operations.

5. Monitor Technology Use

• Implement AI tools and telehealth platforms in a manner that supports physician oversight and compliance with CPOM principles.

Special Considerations for Telehealth Providers

1. Licensing Requirements

• Telehealth providers must ensure all physicians practicing in Michigan are licensed in the state and familiar with local CPOM laws.

2. Oversight of Virtual Care

• Physicians must oversee all clinical aspects of telehealth services, from initial consultations to ongoing patient management.

3. Technology Compliance

• Ensure that AI-assisted diagnostic tools and wearable health devices are used as support systems rather than decision-makers.

The Role of MSAs in CPOM Compliance

Management Services Agreements (MSAs) are critical tools for maintaining compliance with Michigan’s CPOM laws. Key aspects to consider include:

• Defining Responsibilities: Clearly separate administrative tasks from clinical decision-making.
• Prohibiting Interference: Include explicit language that restricts non-physician entities from influencing patient care.
• Regular Updates: Review and revise MSAs periodically to reflect changes in operations and regulations.

Consequences of Non-Compliance

Failure to comply with Michigan’s CPOM regulations can lead to:

• Financial Penalties: Fines imposed by state regulatory authorities.
• Licensure Risks: Physicians involved in non-compliant practices may face suspension or revocation of their licenses.
• Reputational Damage: Non-compliance can erode trust among patients, stakeholders, and regulators.

Future Trends in Michigan CPOM Compliance

1. Telehealth-Specific Regulations

• With the expansion of virtual care, Michigan may introduce additional guidelines to address telehealth-specific compliance challenges.

2. AI and Automation Oversight

• As AI tools become more prevalent in diagnostics and patient management, Michigan may establish clearer regulations to align these technologies with CPOM principles.

3. Cross-State Compliance Frameworks

• Multi-state healthcare businesses may develop standardized compliance strategies to navigate varying CPOM laws effectively.

Benefits of CPOM Compliance

1. Enhanced Patient Trust: Compliance demonstrates a commitment to ethical, patient-centered care, fostering confidence among patients and stakeholders.
2. Legal and Financial Protection: Adhering to CPOM laws minimizes the risk of fines, lawsuits, and operational disruptions.
3. Operational Efficiency: Clear delineation of roles and responsibilities reduces conflicts and streamlines workflows.

Michigan’s CPOM regulations are integral to maintaining ethical healthcare delivery and ensuring that patient care decisions are free from corporate influence. For telehealth and medical businesses, navigating these rules requires a proactive approach, including robust compliance strategies, clear contracts, and ongoing education. By prioritizing physician autonomy and aligning with regulatory frameworks, healthcare organizations can thrive in Michigan’s dynamic healthcare environment while delivering high-quality, patient-focused care in 2025.