We’ve all seen the boom in medical practices offering aesthetic and/or IV therapy treatments in recent years. And yes, providing aesthetic treatments or IV therapy treatments is generally considered the practice of medicine. The legal landscape governing these practices can vary significantly from state to state. Let’s take a look at the differences between California and Florida. The first thing to understand is the corporate practice of medicine (“CPOM”).
The CPOM doctrine is a legal principle that prohibits corporations and non-physician entities from practicing medicine or employing healthcare professionals to provide medical services. This doctrine aims to safeguard the integrity of the doctor-patient relationship and ensure that medical decisions are made by licensed and qualified healthcare professionals. Each state has their own take on the CPOM doctrine.
California has historically upheld a strict interpretation of the CPOM doctrine. Having a “medical director” of a medical practice isn’t enough in California. A physician has to own at least 51% of the medical practice. Other licensed healthcare professionals, like a nurse, can own up to 49% of the medical practice. Non-healthcare professionals are prohibited from owning or controlling medical practices.
Florida, on the other hand, takes a more flexible approach to the CPOM doctrine. While the state recognizes the importance of physician oversight, it allows for greater latitude in the ownership and management of medical practices by non-healthcare professionals. Here, medical practices are permitted to be owned by non-healthcare professionals, although a medical director or supervising physician is required to supervise midlevels, like nurses and physician assistants. Florida’s approach allows for a more diverse range of ownership structures in the rapidly expanding fields of aesthetics and IV therapy.
Understanding each state’s take on the CPOM doctrine is key for anyone in the game – physicians, nurses, non-healthcare, so that owners and operators can properly structure their businesses.
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