The Corporate Practice of Medicine (CPOM), Explained
Why non-physicians can't own medical practices in most states — and the management structure that keeps you compliant.
The Corporate Practice of Medicine doctrine restricts who can own a medical practice. In most states, only licensed physicians can own a Professional Corporation that provides medical services.
For entrepreneurs and investors, that creates a problem: how do you build, fund, and scale a wellness business when you can't legally own the medical entity?
The answer is the MSO–PC structure. A Management Services Organization (MSO) owned by the non-physician handles everything administrative — marketing, real estate, equipment, payroll, IT. A Professional Corporation (PC) owned by the physician handles everything clinical.
The two entities are tied together by a Management Services Agreement that respects the line between business and medicine. Done correctly, this structure is the bedrock of compliant wellness businesses nationwide.