The Corporate Practice of Medicine (CPOM) doctrine exists to preserve the autonomy of physicians in clinical decision-making and protect patient care from commercial influences. While Minnesota adopts a more flexible approach to CPOM than many states, healthcare operations within the state must still navigate critical compliance requirements to align with state and federal regulations.

Minnesota’s Corporate Practice of Medicine (CPOM) laws significantly impact how healthcare providers operate in 2025. Access Plus Health helps you understand the implications of these regulations, from ownership structures to physician oversight requirements. With our guidance, you can navigate Minnesota’s CPOM framework while maintaining efficient and compliant healthcare operations.

As healthcare evolves with advancements in telemedicine, AI, and integrated care models, Minnesota’s CPOM laws continue to influence operational frameworks for hospitals, clinics, telehealth providers, and non-traditional medical practices in 2025. Here’s how these laws shape healthcare operations today and into the future.

1. CPOM Overview: Minnesota’s Balanced Approach

Minnesota does not strictly prohibit corporate entities from employing physicians, offering flexibility for healthcare businesses. However, the state enforces key principles to ensure ethical practices and the integrity of medical care.

• Key Principle: Physicians must maintain control over medical decisions, free from external interference by business interests.
• Industries Affected: Includes hospitals, telehealth providers, medical spas, urgent care centers, and healthcare startups.

2. Physician Employment: Balancing Autonomy and Efficiency

Minnesota allows corporate employment of physicians but emphasizes autonomy in clinical decisions. This balance directly impacts organizational structures and contractual agreements.

• Implications for Operations:
  
  • Employment contracts must explicitly separate clinical responsibilities from business management roles.
  • Physician autonomy must be preserved, especially in performance evaluations or revenue-sharing agreements.
  • Non-physician administrators should not have authority over clinical operations.

3. Telehealth: Expanding Access While Ensuring Compliance

The rapid adoption of telehealth has reshaped healthcare delivery in Minnesota, but CPOM regulations ensure that patient care standards remain consistent with in-person services.

• Key Compliance Factors:
  
  • Physicians providing telehealth services must hold a valid Minnesota license.
  • Telemedicine platforms must adhere to HIPAA standards to protect patient data.
  • Virtual care must uphold the same quality and ethical standards as traditional care.
• Operational Considerations:
  
  • Incorporate physician oversight into telehealth workflows.
  • Train staff to navigate telehealth-specific compliance requirements, such as obtaining informed consent.

4. Collaboration with Mid-Level Providers

Minnesota healthcare operations often rely on nurse practitioners (NPs) and physician assistants (PAs) to expand care delivery. CPOM laws require clear guidelines for their supervision and collaboration with physicians.

• Impact on Operations:
  
  • Written collaboration agreements must outline roles, responsibilities, and supervisory protocols.
  • Physicians must provide appropriate oversight, including regular chart reviews and consultations.
  • Telehealth services with mid-level providers require additional attention to ensure compliance with remote supervision requirements.

5. Fee-Splitting and Financial Arrangements

Fee-splitting and improper financial relationships remain prohibited under Minnesota’s CPOM regulations, ensuring that financial incentives do not compromise patient care.

• Compliance Strategies:
  
  • Structure physician compensation based on fair market value and avoid revenue-sharing models tied solely to patient referrals or service volumes.
  • Review financial arrangements regularly to identify and mitigate potential risks.

6. Data Security and Privacy in Digital Operations

With the rise of telemedicine and electronic medical records (EMRs), data security is more critical than ever. Minnesota healthcare providers must align with HIPAA and CPOM principles to protect sensitive patient information.

• Operational Best Practices:
  
  • Implement strong encryption and secure access protocols for all digital platforms.
  • Conduct regular cybersecurity audits and staff training to prevent breaches.
  • Develop clear policies for data sharing and patient consent, particularly in telehealth environments.

7. Adapting to Regulatory Updates for 2025

As healthcare innovations accelerate, Minnesota continues to refine its regulatory framework. Keeping pace with these changes is essential for operational success.

• Anticipated Updates:
  
  • Enhanced guidelines for AI integration in clinical decision-making.
  • Stricter enforcement of data security measures and HIPAA compliance.
  • Expanded telehealth regulations, including multi-state licensing through the Interstate Medical Licensure Compact (IMLC).

8. Structuring Healthcare Entities for CPOM Compliance

Healthcare organizations must carefully structure their operations to align with CPOM requirements while maximizing efficiency and innovation.

• Professional Corporations:
  
  • Physician-owned entities remain the preferred model for compliance, particularly in specialized practices like medical spas or aesthetics.
  • Non-physician-owned entities must ensure that physicians oversee all clinical aspects of care.
• Administrative Roles:
  
  • Define clear boundaries between administrative and clinical responsibilities to avoid conflicts.
  • Provide ongoing training to ensure administrators understand CPOM compliance requirements.

9. Leveraging AI and Technology

AI and other advanced technologies are increasingly integrated into healthcare operations. Minnesota’s CPOM laws guide their use to ensure they support, rather than replace, physician judgment.

• Operational Considerations:
  
  • Use AI tools as decision-support systems, not standalone diagnostic platforms.
  • Clearly document how AI-generated insights are incorporated into patient care decisions.
  • Train physicians and staff on ethical considerations in AI usage.

10. Best Practices for CPOM Compliance in 2025

To thrive under Minnesota’s CPOM regulations, healthcare providers should adopt proactive measures for compliance:

• Legal Reviews: Regularly consult with healthcare attorneys to review contracts, policies, and financial arrangements.
• Training Programs: Educate staff and leadership on CPOM principles, licensing requirements, and data security.
• Compliance Audits: Conduct periodic audits to identify and address potential vulnerabilities.
• Adaptability: Stay informed about regulatory changes and adjust operations accordingly.

Minnesota’s CPOM laws are integral to shaping ethical and efficient healthcare operations. While the state offers flexibility, organizations must remain vigilant to ensure compliance, particularly as telehealth, AI, and other innovations redefine the industry. By prioritizing physician autonomy, maintaining transparent financial practices, and adapting to evolving regulations, healthcare providers in Minnesota can build resilient and patient-centered operations in 2025 and beyond.