Can Non-Physicians Engage in the Corporate Practice of Medicine in Florida?
The corporate practice of medicine (“CPOM”) is a legal doctrine that generally prohibitsunlicensed individuals and entities practicing in healthcare, including medicine, podiatry, dentistry, optometry, and chiropractic care. The CPOM prohibition aims to prevent unlicensed individuals or entities from influencing professional healthcare treatment decisions that heighten the risk of a provider dividing his or her loyalty between generating profits and administering quality care.
Florida is one of only a few states that do not specifically prohibit physicians from engaging in the practice of medicine through a corporate structure, with certain exceptions. For example, dentistry (Florida Statute §466.0285)and optometry (Florida Statute §463.014) practices still require those professionals to own the dental or optometry practice entirely, while Florida law does not prohibit the CPOM for physician practices. Notwithstanding the tools available for non-physicians to engage with the management and business aspects of a practice, such as a Management Services Organization, non-physicians still can have an ownership interest in a healthcare practice, subject to certain conditions.
The Corporate Practice of Medicine in Florida for Physician Practices.
In Florida, non-physicians can both own a medical practice on their own or jointly own a medical practice with other physicians.However, Florida requires entities with non-physician owners to register the practice as a health care clinic and a physician must be employed as a medical director to direct and supervise the clinical aspects of the practice.In other words, a physician may be employed by or contracted by non-physician owned entities for the delivery of healthcare services. For this arrangement, the non-physicians must not be engaged in the diagnosis and treatment of patients and cannot exercise any control over the physician’s professional judgment or the way he or she renders medical care to patients.
Florida’s Health Care Clinic Act requires health care clinics to obtain a license, unless an exemption applies.TheActmandates that facilities with non-physician owners to obtain a health care clinic license.
What Is a Clinic Under the Act?
Florida’s Health Care Clinic Act defines a “clinic” as “an entity where health care services are provided to individuals and which tenders charges for reimbursement for such services” (i.e., governmentpayors, such as Medicare and Medicaid, or private commercial insurance). The Act provides for exemptions that allow certain facilities to operate withoutobtaining a health care clinic license. If exempt,the Agency for Health Care Administration (“AHCA”)allows health care clinics to apply for a Certificate of Exemption.However, non-physicians with ownership interests in healthcare clinics do not fall under any exemption.
Healthcare providers must be careful to comply with the CPOM doctrine.While non-physicians may engage in the CPOM, it is important to ensure that the practice complies with the applicable laws and regulations. Violating the Health Care Clinic Act is a felony and could result in loss of license and repayment of all revenue for billed services, as well as other fines and penalties.
