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How Non-Physicians Can Legally Buy a Healthcare Business

The healthcare industry offers a wealth of opportunities for entrepreneurs, including those without medical degrees. While navigating the regulatory complexities might seem daunting, non-physicians can legally buy a healthcare business by adhering to specific legal and operational frameworks. This blog will explore how you can enter this lucrative market without a medical license, emphasizing that non-physicians can legally buy a healthcare business with the right approach.

Understand the Basics

The CPOM doctrine exists to ensure clinical decisions stay in the hands of licensed professionals, not business owners. If you’re not a physician, you can’t directly own or control a medical practice in many states. But you can still structure your business in a way that complies with the law while allowing you to profit from its operations.

The MSO Model

One popular solution is the Management Services Organization (MSO) model. Instead of owning the practice, you create an MSO. It will handle all non-clinical operations, like billing, marketing, HR, and office management. The MSO enters into a Management Services Agreement (MSA) with the medical practice, getting paid for its services.

This keeps the clinical side with licensed physicians. You can manage and profit from the business’s operations. It’s legal, effective, and widely used in the healthcare industry.

Partner with a Physician

Another option is partnering with a physician. In this structure, the physician owns the clinical side. You handle the operations and admin tasks. It’s a collaborative approach that leverages your business expertise and their medical license. Just make sure roles are clearly defined in your agreement.

Stick to Non-Clinical Businesses

If the business you’re eyeing doesn’t involve direct patient care—like a medical billing service, wellness center, or home health agency—you may not face CPOM restrictions. These businesses still require compliance with healthcare laws, but ownership is typically open to non-physicians.

Do Your Homework

Before buying, conduct thorough due diligence. Have a healthcare attorney review compliance with state and federal laws. Perform a financial audit to uncover liabilities or risks and ensure the business’s revenue streams are stable. Finally, assess operations to identify areas for improvement after you take over.

Structure the Deal Wisely

Consider an asset purchase rather than a full ownership transfer. Buying specific assets can help avoid liabilities tied to the original owner. Also, update licenses, certifications, and payer enrollments if the business works with Medicare or Medicaid.

Build a Winning Team

Don’t go it alone. Healthcare attorneys, accountants, and consultants are vital for navigating the legal and operational complexities. Here at Dike Law our expertise will help you stay compliant while also maximizing your investment. Schedule a meeting, and let’s discuss your goals

Final Thoughts

Buying a healthcare business as a non-physician is challenging, but it’s far from impossible. Whether you opt for the MSO model, partner with a physician, or focus on non-clinical ventures, the key is to plan carefully, stay compliant, and build the right team. With the right approach, you’ll be well on your way to success in this dynamic industry.

If you’re buying a healthcare business, consult a healthcare attorney or credentialing specialist. They will ensure a smooth, compliant transition. The right guidance can set you up for long-term success. Contact us today to learn how we can support you in this process! Don’t leave anything to chance. Schedule a meeting with Dike Law Group today to discuss how we can help you conduct a comprehensive audit and ensure your healthcare business acquisition is a success.

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