As California continues to modernize its healthcare system, the rise of telemedicine has introduced new challenges and opportunities for medical practices. While telehealth services expand access to care, healthcare providers must ensure that they remain compliant with the state’s Corporate Practice of Medicine (CPOM) laws. For 2025, understanding how CPOM intersects with telehealth regulations is essential for maintaining legal and ethical standards in both traditional and virtual healthcare settings. In this blog, we’ll explore key insights on CPOM compliance for telemedicine providers and other medical businesses in California.

As telehealth continues to expand, healthcare providers in California must understand how CPOM regulations apply to remote care models. Access Plus Health offers key insights into how telehealth practices can structure their collaborations to remain compliant with state laws, especially when working with NPs, PAs, and other providers.

What is the Corporate Practice of Medicine (CPOM)?

CPOM laws prevent non-physician individuals or entities from owning or controlling medical practices in California. The goal of CPOM is to protect the integrity of clinical decision-making by ensuring that only licensed professionals, such as physicians, are in charge of medical care. These laws prohibit business interests from influencing patient treatment, keeping medical practices focused on providing high-quality care.

The Role of Telemedicine in CPOM Compliance

Telemedicine has become an increasingly important tool in healthcare, especially for expanding access to care in remote or underserved areas. However, as telemedicine providers offer virtual care options, they must adhere to the same CPOM laws that govern in-person medical practices.

Here are key insights for telehealth and medical providers to navigate CPOM compliance in California:

1. Physician Control in Telemedicine
   
   • Just as with in-person medical practices, CPOM laws require that physicians retain full control over clinical decisions in telemedicine settings. Non-physician business owners or operators cannot influence the medical decisions made during virtual consultations or in the delivery of care. Physicians must be the ones making clinical decisions, whether they are in-person or through telehealth platforms.
   • Action Step: Ensure that your telehealth platform is structured in a way that preserves physician autonomy over clinical decisions. This includes having clear agreements in place that separate the roles of healthcare providers and non-physician administrators.
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2. Telemedicine Business Structures
   
   • Non-physicians can still play a role in managing telehealth operations, but they must not cross into areas that affect patient care. Business professionals can oversee the administrative side of telemedicine—such as billing, marketing, and scheduling—but clinical decision-making must remain with licensed physicians.
   • Action Step: If your telehealth business involves non-physician management, work with legal experts to set up a compliant structure. Management Service Organizations (MSOs) are often used to separate business and clinical functions, but these must be carefully crafted to ensure compliance with CPOM.
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3. Licensing and Telemedicine Regulations
   
   • As telemedicine continues to grow, providers must also comply with California’s licensing and telemedicine-specific regulations. For example, physicians providing telehealth services must be licensed in California or in the state where the patient is located. Additionally, the practice of medicine, including telehealth, must adhere to the same standards as in-person care.
   • Action Step: Ensure that all telehealth providers are properly licensed and that the telehealth service complies with both CPOM and telemedicine regulations in California. Telemedicine licenses may require specific credentials or approvals.
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4. Legal Protections and Compliance Risks
   
   • Non-compliance with CPOM laws in telemedicine can lead to significant legal risks, including loss of licensure and financial penalties. As a telehealth provider, maintaining CPOM compliance is crucial not only for staying within the law but also for ensuring patient trust and the integrity of care delivery.
   • Action Step: Schedule regular compliance audits to assess the telemedicine aspects of your practice. Consulting with a healthcare attorney can help you stay ahead of regulatory changes and avoid costly legal issues.

As telemedicine continues to expand, understanding how California’s Corporate Practice of Medicine laws apply to virtual healthcare is essential for compliance in 2025. By ensuring that physicians retain control over clinical decisions, structuring telemedicine operations in compliance with CPOM regulations, and staying informed about licensing requirements, telehealth providers can confidently navigate the evolving healthcare landscape. Staying compliant with CPOM laws will allow healthcare providers to expand access to care while ensuring high-quality, patient-centered practices.