As California’s healthcare landscape continues to change, it’s more important than ever for medical providers and businesses to understand the Corporate Practice of Medicine (CPOM) laws. These laws dictate how medical practices are structured and ensure that clinical decisions are made by licensed professionals. Navigating CPOM regulations in 2025 is essential for staying compliant and legally protected.

California’s Corporate Practice of Medicine (CPOM) laws can be challenging to navigate, but Access Plus Health is here to provide you with the essential guidance you need in 2025. This comprehensive guide walks healthcare providers through the key elements of CPOM compliance, including ownership structures, permissible collaborations, and restrictions that can affect your practice. We help you build a strong, compliant foundation for your medical business, ensuring that you can operate legally and efficiently within California’s regulatory framework.

What You Need to Know About CPOM

The CPOM doctrine restricts non-physician entities from controlling or influencing the clinical aspects of medical practice. In California, physicians must retain ownership and control over the medical decisions that guide patient care. Non-physicians, including corporate investors, can only control the business side of the practice.

Key Steps for Navigating CPOM Regulations in 2025

1. Ensure Physician Control:
   
   • CPOM regulations require that physicians have sole control over clinical decisions. Non-physician owners cannot dictate treatment plans, prescribe medications, or influence medical decisions in any way.
   • What You Can Do: Maintain clear boundaries between business operations and clinical decisions. Structure your practice so that physicians make all clinical decisions while non-physicians focus on business management.
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2. Utilize Management Service Organizations (MSOs):
   
   • MSOs allow non-physicians to manage the business aspects of a practice while preserving the physicians’ control over clinical matters. This structure is essential for healthcare businesses with non-physician investors or owners.
   • What You Can Do: If your practice involves non-physician investors, set up an MSO to handle operational tasks such as billing, HR, and marketing, while ensuring that clinical decisions remain under the control of licensed physicians.
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3. Telemedicine and CPOM Compliance:
   
   • Telemedicine is a growing field, and CPOM compliance is just as important in virtual healthcare as it is in traditional settings. Physicians must have control over all aspects of telemedicine services, including diagnosis, treatment, and patient care.
   • What You Can Do: For telemedicine practices, ensure that physicians are the ones making all clinical decisions. Non-physicians can assist with operational logistics but must not interfere with the medical side.
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4. Address Legal Risks of Non-Compliance:
   
   • Non-compliance with CPOM laws can lead to severe consequences, such as loss of licensure, financial penalties, and even lawsuits.
   • What You Can Do: Regularly review your practice's structure to ensure it complies with CPOM laws. Work with legal professionals to stay up to date with any regulatory changes and avoid costly mistakes.

Navigating California’s CPOM laws in 2025 is crucial for ensuring that medical practices remain compliant and continue to operate successfully. By understanding the boundaries of physician control, utilizing MSOs, and keeping telemedicine services compliant, healthcare providers can confidently move forward with their practices while ensuring high standards of patient care.