028 - Corporate Practice of Medicine Laws: Employed Physician’s Remedy—or Nightmare?

What is the Corporate Practice of Medicine? <br /><br />In this episode, Brad Adatto, a business law and healthcare attorney, takes us on a journey through the intent, implications, and risks associated with state laws that “ban” the corporate practice of medicine. He describes how these state laws arise from a variety of legal and regulatory sources, and prohibit corporations (or any “non-physicians”) from employing physicians or owning medical practices. <br /><br />The Corporate Practice of Medicine Doctrine (CPMD) originated in the early 1900s and sought to prevent: <br />1. Commercialization of medicine or lay people profiting from physician practice <br />2. Business interests conflicting with the best interests of patients <br />3. Obligations of employment interfering with physician decision-making <br /><br />How do the Corporate Practice of Medicine laws vary by state? <br /><br />Widely! To further complicate the legal landscape—there are big variations in enforcement. Mr. Adatto divvies the states up into three categories: <br />1. Strict adherence: only physicians can own medical practices (example: New York) <br />2. Mixed: Physicians and non-physicians can co-own a medical practice as long as physicians own a majority (example: California) <br />3. Lenient: Anyone can own a medical practice (example: Florida) <br /><br />How could a physician get in trouble with the Corporate Practice of Medicine? <br /><br />Well, I have to admit, Mr. Adatto did not reassure me that Corporate Practice of Medicine Laws were the answer to my quest for bolstering physician leadership and physician autonomy. In his business law practice, he not only advises non-physician entities about how to avoid legal snarls—he also counsels physicians about how to stay out of trouble with the Corporate Practice of Medicine laws. <br /><br />Here is some of his advice: <br /><br />1. Do not assume “because everyone is doing it” your practice structure is legal. <br />2. Hit “pause” and hire a healthcare attorney to make sure the co