Understanding the Corporate Practice of Medicine (CPOM) and Ketamine Clinics
Introduction
The corporate practice of medicine (CPOM) is a legal doctrine that significantly impacts the operation of ketamine clinics across the United States. CPOM dictates who can own and control medical practices, including those providing ketamine therapy. While CPOM is not a federal law, many states have adopted it to ensure that only licensed physicians can practice medicine or own medical practices in order to protect patients from profiteering by non-professionals.
Ketamine clinics, which often operate at the intersection of medical and business interests, must carefully structure their ownership, management, and operations to comply with CPOM. Failure to do so can result in severe legal consequences, including fines, loss of licenses, and even criminal charges.
What is the Corporate Practice of Medicine (CPOM)?
The corporate practice of medicine (CPOM) is a legal doctrine that prohibits corporations from practicing medicine or employing physicians to provide medical services. CPOM is designed to prevent business entities from interfering with the professional judgment of physicians and other healthcare professionals.
CPOM is a state law, and its implementation varies across different states. In states with strict CPOM laws, only licensed physicians can own and operate medical practices. In states with more lenient CPOM laws, non-physicians can own medical practices, but physicians must retain control over all medical decisions.
Why Was It Enacted?
The corporate practice of medicine (CPOM) was enacted to protect patients from the commercialization of medicine. CPOM ensures that medical decisions are made by licensed professionals, not by corporate managers or shareholders.
Why is CPOM Important for Ketamine Clinics?
Ketamine clinics often operate at the intersection of medical and business interests, making them particularly vulnerable to CPOM violations. If a ketamine clinic is owned or controlled by non-physicians, it may violate CPOM laws, leading to severe legal consequences.
Legal Strategies for Ketamine Clinics Under CPOM
Ketamine clinics can implement several legal strategies to ensure compliance with CPOM:
- Structure the clinic as a professional corporation (PC) or a professional limited liability company (PLLC)
- Use a management services organization (MSO) to handle business operations while physicians retain control over medical decisions
Contact Spodek Law Group
Spodek Law Group offers experienced legal representation for ketamine clinics, including those operating under the corporate practice of medicine (CPOM) doctrine. Contact Spodek Law Group today at 908-643-7005.
Written By
Todd Spodek
Todd Spodek is the Managing Partner of Spodek Law Group P.C. He is a second-generation trial attorney who has been recognized as one of the Top 100 Trial Lawyers in the country. He has represented clients in some of the highest-profile federal criminal cases in the Eastern District of Pennsylvania and beyond.
