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Texas CPOM

What Every Healthcare Business Needs to Know

Texas CPOM, or the Corporate Practice of Medicine doctrine, is an important law. It shapes how healthcare businesses function in the state. It limits who can employ doctors and how medical practices are structured. If you’re a business or investor wanting to enter the Texas healthcare market, you must know the rules. Noncompliance can lead to legal issues, fines, and loss of a medical license.

Understanding Texas CPOM

It was created to prevent businesses from controlling medical decisions. So, non-physician investors, private companies, and some hospitals cannot directly employ doctors. Texas allows only licensed physicians or approved nonprofits to own medical practices.

Who Can Employ Physicians in Texas?

CPOM laws allow only certain types of organizations to employ doctors. Physicians can form and own businesses under these laws. They can use structures like professional associations (PAs), PLLCs, and PCs. Hospitals cannot employ doctors, except for some rural ones and a few in medical programs.

The Role of Management Services Organizations (MSOs)

In Texas, non-physician investors use MSOs to bypass CPOM rules. MSOs help medical practices with administration. But they do not provide medical services. This lets physicians focus on patient care. The MSO will handle billing, office management, and marketing. However, the physician must always remain in control of medical decisions. If an MSO tries to influence doctors, it could violate Texas CPOM laws. It would then face serious consequences.

Read more about MSO’s

Penalties for Violating Texas CPOM

Breaking CPOM laws can lead to major legal problems. A business that unlawfully employs doctors could face charges. It would be for practicing medicine without a license. This can result in fines, contract disputes, and even criminal charges. Doctors who work for non-compliant businesses risk losing their medical licenses. Also, the Texas Medical Board investigates and enforces these rules. So, businesses that ignore them may face penalties.

Best Practices for Compliance

Healthcare businesses can avoid Texas CPOM violations by structuring their organizations correctly. Medical practices should be owned by licensed physicians or approved nonprofits. MSOs should provide only administrative support and leave all medical decisions to doctors. Legal agreements must be carefully written. They must avoid giving non-physicians control over medical services. The best way to follow CPOM rules is to consult a healthcare attorney.

Looking Ahead

Texas CPOM continues to shape how healthcare businesses operate. Companies must stay up to date with legal changes to avoid costly mistakes. For those who know the rules, Texas is a strong market for healthcare businesses if they follow the law.

Following Texas CPOM guidelines helps healthcare businesses succeed. It ensures high patient care standards.

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