The Corporate Practice of Medicine (CPOM) doctrine ensures that licensed physicians maintain control over clinical decisions, safeguarding ethical and patient-centered care. Maryland’s CPOM laws offer flexibility in healthcare operations but require adherence to critical safeguards to prevent corporate interference in medical judgment. For healthcare providers, understanding and complying with these regulations is essential to avoid legal risks and maintain operational integrity in 2025.

Compliance with Maryland’s CPOM laws is essential for healthcare providers to avoid legal risks in 2025. Access Plus Health provides a comprehensive handbook to help you address ownership restrictions, physician oversight, and collaboration agreements. Let us simplify the process so you can focus on delivering quality care.

1. Key Principles of Maryland’s CPOM Laws

Maryland’s CPOM framework is designed to protect physician autonomy while allowing non-physician ownership of medical practices. Key principles include:

• Physician Oversight: All clinical decisions must be made exclusively by licensed physicians without influence from corporate or administrative entities.
• Ownership Flexibility: Non-physicians may own healthcare businesses, but their roles must not interfere with medical decision-making.
• Regulatory Compliance: Healthcare providers must comply with federal and state laws, including anti-kickback statutes, fair market value standards, and HIPAA.

2. Compliance Requirements for Healthcare Providers

To ensure compliance, healthcare providers in Maryland must address several critical areas:

• Licensing and Credentialing:
  
  • Physicians practicing in Maryland, including telehealth providers, must hold valid Maryland medical licenses.
  • Regular verification of licensure and credentials ensures ongoing compliance.
• Governance and Decision-Making:
  
  • Administrative roles must be clearly defined and separated from clinical responsibilities to prevent conflicts of interest.
  • Physicians must retain full authority over patient care and treatment protocols.
• Financial Arrangements:
  
  • Revenue-sharing models and referral agreements must comply with fair market value standards to avoid anti-kickback violations.
  • Transparent financial practices ensure adherence to ethical and legal standards.
• Data Security:
  
  • HIPAA compliance requires robust cybersecurity measures to protect patient data, particularly for organizations using electronic health records (EHR) or telehealth platforms.

3. Common CPOM Compliance Challenges

Healthcare providers often face challenges under Maryland’s CPOM regulations, including:

• Role Ambiguity:
  
  • Non-physician administrators may unintentionally encroach on clinical responsibilities.
• Solution: Develop governance structures that clearly separate clinical and administrative functions.
• Telehealth Licensing Issues:
  
  • Multi-state telehealth providers must meet Maryland-specific licensing requirements to serve residents.
• Solution: Implement robust credentialing processes and ensure compliance with state-specific standards.
• Complex Ownership Models:
  
  • Investor-driven practices may blur the lines between business interests and clinical decision-making.
• Solution: Engage legal counsel to design governance models that align with CPOM principles.

4. Best Practices for CPOM Compliance

To navigate Maryland’s CPOM laws effectively, healthcare providers should adopt the following strategies:

• Develop Governance Structures:
  
  • Clearly define the roles and responsibilities of physicians, administrators, and non-clinical staff to preserve physician autonomy.
• Conduct Compliance Audits:
  
  • Regularly review financial arrangements, governance policies, and operational practices to identify and address risks.
  • Use third-party audits for objective assessments.
• Draft Compliant Contracts:
  
  • Ensure employment agreements, partnership models, and financial arrangements align with CPOM laws and federal guidelines.
• Train Staff on CPOM Principles:
  
  • Provide ongoing education to all staff about Maryland’s CPOM regulations and the importance of compliance.

5. Preparing for 2025 and Beyond

Maryland’s CPOM regulations are likely to evolve in response to advancements in healthcare delivery and technology. Healthcare providers should prepare for:

• Telehealth Regulation Updates:
  
  • Stricter oversight of telehealth licensing and reimbursement policies.
• AI in Medicine:
  
  • New rules governing the ethical use of AI in diagnostics and clinical decision support.
• Data Privacy Enhancements:
  
  • Increased scrutiny on cybersecurity measures to protect patient information.
• Health Equity Initiatives:
  
  • Potential mandates to address disparities in healthcare delivery and outcomes.

Maryland’s CPOM laws play a critical role in protecting physician independence and ensuring ethical healthcare delivery. By understanding these regulations, adopting proactive compliance strategies, and preparing for future changes, healthcare providers can build sustainable operations that prioritize patient care and trust. This handbook serves as a guide to navigating Maryland’s CPOM framework, helping providers achieve long-term success in 2025 and beyond.