The healthcare landscape in California continues to evolve, and with it, so do the regulations governing medical practices. For 2025, healthcare providers must remain vigilant about the Corporate Practice of Medicine (CPOM) doctrine, which governs how medical practices must be structured and operated to remain compliant. In this post, we’ll outline the key considerations and challenges for medical practices navigating California’s CPOM regulations in 2025.
California’s CPOM regulations can be tricky, especially when structuring partnerships and collaborations in your medical practice. Access Plus Health helps you navigate these rules, ensuring that your relationships with non-physician providers, such as NPs and PAs, comply with state law.
What You Need to Know About CPOM Regulations in California
CPOM regulations restrict non-physicians from owning or controlling medical practices in California. Only licensed physicians or other healthcare professionals are permitted to make clinical decisions. This legal framework ensures that the practice of medicine is carried out by qualified individuals, without the interference of non-medical business interests.
Key Considerations for Medical Practices in 2025
- Adhering to Physician Ownership Requirements: In 2025, medical practices in California must still adhere to the principle that only licensed physicians can own and control medical entities. This means non-physicians cannot operate medical businesses or make decisions about patient care.
Tip for Compliance: Structure your practice in a way that ensures full compliance with California law. If you are considering joint ventures or partnerships, make sure that physicians retain the authority over clinical decisions, even if non-physicians are involved in business management.
- Telehealth Compliance: With the rapid growth of telemedicine, California’s CPOM regulations continue to apply to virtual care. Telehealth practices must be carefully structured to avoid non-physician control over patient care. Physicians must still have the final say on all clinical decisions, even when care is provided remotely.
Tip for Compliance: Ensure your telehealth operations align with CPOM regulations. Your telemedicine platform should have mechanisms in place to ensure that physicians control clinical decisions and non-physicians do not exert influence over treatment protocols.
- Management Service Organizations (MSOs): MSOs allow non-physicians to manage administrative functions of a medical practice, such as billing, marketing, and staffing, while physicians retain control over clinical decisions. MSOs provide a solution for physicians who want to benefit from business expertise without violating CPOM regulations.
Tip for Compliance: If you are using an MSO model, ensure the management agreement is structured in a way that clearly separates clinical and business functions. The management company should not interfere with medical decision-making.
- Staying Updated on Legislative Changes: California’s healthcare laws are subject to change, and new regulations may be introduced to address emerging issues in healthcare, such as telemedicine, corporate influence in medical practice, and data privacy concerns. For 2025, healthcare providers must keep abreast of any legislative changes that could impact CPOM regulations.
Tip for Compliance: Regularly check with your legal counsel or healthcare compliance specialists to stay informed about changes in California’s CPOM regulations and ensure your practice remains compliant.
Navigating California’s CPOM regulations in 2025 requires careful attention to detail, a strong understanding of legal structures, and a commitment to maintaining ethical standards in patient care. By adhering to CPOM guidelines, medical practices can avoid legal pitfalls, ensure the integrity of clinical decisions, and continue providing high-quality care to patients.
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