Corporate Practice of Medicine (CPOM) Guide: Ohio
This guide provides a summary of Corporate Practice of Medicine (CPOM) laws in Ohio. CPOM doctrine is a legal framework designed to prevent business interests from interfering with medical decision-making. These laws vary by state and generally prohibit corporations and non-physicians from owning or controlling medical practices.
Read on to learn about Ohio’s CPOM doctrine, compliant business structures, and practical steps for healthcare business owners to remain compliant while practicing medicine.
Ohio CPOM Summary
Ohio has taken a different path from many other states. As of 2012, the State Medical Board of Ohio officially stated that the state does not prohibit the corporate practice of medicine. This means that physicians are legally allowed to work as employees of corporations or other business entities.
Previously, Ohio followed a more traditional CPOM model based on common law and older Attorney General opinions. But legal changes have reshaped the state's approach.
What Is CPOM Doctrine?
CPOM doctrine exists in many states to prevent non-physicians from controlling medical practices. The goal is to ensure that financial interests do not interfere with patient care and that only licensed professionals make medical decisions.
In states with CPOM laws, physicians must own and control medical practices, while corporations and investors are prohibited from directly employing physicians.
However, Ohio does not follow a strict CPOM doctrine. Here, corporations and non-physicians are generally allowed to employ physicians and own medical businesses, provided they comply with state regulations.
Staying CPOM Compliant in Ohio
Even though the formal ban on CPOM no longer exists, certain guardrails remain to prevent inappropriate corporate influence over medical care.
Physicians must always exercise independent clinical judgment and provide care that meets the minimal standard of care.
Corporations are not allowed to interfere with a physician’s professional decisions or dictate treatment in a way that violates accepted standards.
Pain management clinics are an exception—they must be owned by licensed physicians, per Ohio law.
In short, while doctors can work for corporate entities, the quality and independence of medical care must remain intact.
Who Do These Laws Apply To?
These rules affect:
Physicians employed by hospitals, corporations, startups, or medical groups.
Healthcare business owners and operators, including nonprofits or private equity-backed practices.
Medical executives and investors, especially in sectors like pain management or telemedicine, where ownership and compliance are more closely scrutinized.
Anyone involved in employing or partnering with physicians in Ohio should be familiar with these evolving standards.
Compliant Business Structures in Ohio
Ohio law permits licensed physicians to offer services through a wide range of entities, including:
General corporations (1701 entities)
Limited liability companies (1705 entities)
Professional associations (1785 entities)
Partnerships and nonprofit organizations
This flexibility means physicians can operate or be employed within most business models, as long as medical care is provided lawfully and ethically.
Non-Compliant Business Structures in Ohio
While there’s no formal CPOM ban, certain practices may still create legal risk. These include:
Corporate interference with clinical decisions, such as pressure to overprescribe or limit treatment for business reasons.
Pain management clinics not owned by physicians, which remain explicitly regulated.
Employment contracts that prevent doctors from exercising sound medical judgment or impose unreasonable restrictions.
If a business arrangement compromises a physician’s ability to act in the patient’s best interest, it may face regulatory scrutiny—even without a formal CPOM doctrine.
Consequences of Violations
Violations of the remaining standards can still carry serious consequences:
Regulatory actions from state medical boards or agencies.
Legal liability if patients are harmed due to business-driven medical decisions.
Loss of professional license for physicians who allow their clinical judgment to be compromised.
Fines or legal consequences for organizations that operate pain clinics unlawfully.
Key Takeaways
Ohio no longer enforces a blanket CPOM doctrine, allowing physicians to work for corporations and business entities.
Medical care must still be independent and in the patient’s best interest, with no undue corporate influence.
Pain management clinics remain strictly regulated and must be physician-owned.
Physicians and employers should ensure business arrangements preserve clinical autonomy.
The landscape is still evolving, so consulting healthcare legal counsel is essential for structuring compliant medical practices in Ohio.
