The Corporate Practice of Medicine (CPOM) laws in Maryland are fundamental to preserving the ethical and professional integrity of healthcare delivery. These regulations ensure that clinical decision-making remains under the exclusive control of licensed physicians, free from interference by non-physician entities. As healthcare businesses expand operations, incorporate telehealth, and adopt advanced technologies in 2025, understanding and adhering to Maryland’s CPOM rules is essential for maintaining compliance and avoiding legal pitfalls.

Maryland’s CPOM laws require healthcare businesses to navigate complex compliance requirements. Access Plus Health offers tailored strategies to address these challenges, helping you implement compliant operational practices in 2025. Let us simplify the process and ensure your business remains aligned with Maryland’s regulatory standards.

What is CPOM and Why Does it Matter?

CPOM prohibits corporations and other non-physician entities from owning, operating, or exerting control over medical practices. This doctrine protects:

• Physician Autonomy: Ensures that patient care decisions are made solely by licensed physicians.
• Patient Care Standards: Reduces the risk of decisions being influenced by financial or corporate pressures.
• Legal and Ethical Accountability: Holds physicians directly accountable for clinical outcomes.

Key Considerations for Maryland CPOM Compliance

1. Ownership and Control

• Physician Ownership: Medical practices in Maryland must be owned and controlled by licensed physicians or physician-led entities.
• Administrative Support Only: Non-physician entities, such as corporations, are limited to providing administrative services, including billing, marketing, and human resources.

2. Management Services Agreements (MSAs)

• MSAs should clearly define the roles and responsibilities of non-physician entities and physicians.
• Contracts must explicitly state that clinical decision-making is the sole responsibility of licensed physicians, ensuring no corporate influence.

3. Technology Integration

• The use of AI-driven tools, telemedicine platforms, and remote monitoring systems must be implemented in a manner that supports physician decision-making rather than replacing or influencing it.
• Physicians must oversee the integration and use of these technologies to remain compliant with CPOM rules.

4. Telehealth Operations

• Maryland’s CPOM laws apply to virtual care delivery. Physicians overseeing telehealth operations must hold valid Maryland medical licenses.
• Telehealth providers must maintain clear distinctions between administrative tasks and clinical oversight to ensure compliance.

5. Multi-State Operations

• Healthcare businesses operating across state lines must align their structures with Maryland’s CPOM rules while reconciling them with regulations in other states.

Steps for Ensuring CPOM Compliance

1. Engage Legal Experts

• Consult healthcare attorneys to review ownership structures, contracts, and operational workflows to ensure compliance with Maryland CPOM laws.

2. Develop Clear Policies

• Establish internal policies that delineate administrative and clinical responsibilities, ensuring compliance at all organizational levels.

3. Conduct Routine Audits

• Periodically review operational workflows, contracts, and technology use to identify potential risks and address them proactively.

4. Train Staff and Partners

• Educate all stakeholders, including physicians, administrators, and corporate partners, on CPOM rules and their implications for day-to-day operations.

5. Monitor Technological Implementations

• Regularly assess AI and digital health tools to ensure they align with CPOM principles and enhance, rather than replace, physician oversight.

Compliance Challenges in 2025

1. Integration of Advanced Technologies:
   The rapid adoption of AI, machine learning, and telemedicine platforms requires careful oversight to avoid CPOM violations.
2. Ambiguities in MSAs:
   Poorly drafted agreements can blur the line between clinical and administrative roles, leading to inadvertent non-compliance.
3. Cross-State Operations:
   For multi-state healthcare businesses, navigating differing CPOM laws across jurisdictions can complicate compliance efforts.
4. Telehealth Growth:
   As telemedicine expands, ensuring compliance with CPOM rules while managing virtual care operations becomes increasingly complex.

Consequences of Non-Compliance

Non-compliance with Maryland’s CPOM regulations can result in:

• Financial Penalties: Significant fines and sanctions imposed by state regulatory bodies.
• Reputational Damage: Loss of trust from patients, stakeholders, and regulatory authorities.
• Legal Risks: Potential lawsuits and the risk of losing licensure for involved physicians.
• Operational Disruption: The need to restructure ownership and management models to regain compliance.

Future Trends in CPOM Compliance

1. Telehealth-Specific Guidelines

• Maryland may introduce more detailed regulations to address the complexities of telehealth operations while upholding CPOM principles.

2. AI and Automation Oversight

• With the rise of AI in healthcare, clearer rules governing its use are expected to ensure it supports, rather than undermines, physician autonomy.

3. Standardized Multi-State Frameworks

• Healthcare businesses may adopt standardized compliance frameworks to navigate varying CPOM laws across states.

Maryland’s CPOM regulations are foundational to ethical and effective healthcare delivery. For healthcare businesses, ensuring compliance in 2025 requires a proactive approach that includes legal consultation, clear policies, and regular audits. By prioritizing physician autonomy and aligning operations with CPOM principles, organizations can maintain trust, avoid legal risks, and succeed in a rapidly evolving healthcare landscape. Whether operating traditional practices or embracing telehealth innovations, adherence to Maryland CPOM laws ensures long-term operational stability and patient-centered care.