What the Heck Is CPOM and Why Should You Care If You’re a Nurse Practitioner in Texas?
Let’s talk about something most nurse practitioners don’t hear about until it’s too late: the Corporate Practice of Medicine, or CPOM. Sounds like a dry legal concept, but if you plan to open a clinic or home health business in Texas, it can make or break your entire structure.
Think of CPOM like a silent tripwire: invisible until you’re already tangled in a legal mess.
1. What Is CPOM?
In plain English, CPOM means that only licensed professionals can control the practice of medicine in Texas. A layperson—or a regular LLC—can’t direct medical decisions, employ doctors, or profit from medical services unless they’re properly licensed and structured.
Even as a nurse practitioner, you might not be legally allowed to “own” a practice, depending on how it’s organized and what services you offer.
2. Who Needs to Worry About CPOM?
If you’re offering any clinical services—telehealth visits, medication management, postpartum care, injectibles, fillers, hydration—CPOM might apply. This is especially true if:
You’re co-founding a practice with a non-clinical partner
You’re hiring physicians
You plan to bill insurance
You’re offering services outside of your NP license
I often see NPs form standard LLCs or partnerships and only realize the issue when they try to get credentialed or face a board inquiry.
3. What’s the Solution?
The best workaround is the MSO/PLLC structure:
The PLLC (Professional Limited Liability Company) is owned by licensed providers and technically “owns” the practice.
The MSO (Management Services Organization) handles back-office support—billing, scheduling, marketing, HR—and is often owned by the provider or a non-licensed business partner.
This model preserves compliance while allowing financial flexibility. But be careful—if your contracts or ownership stakes are poorly drafted, you may still be in violation.
We help nurse practitioners build legally compliant, investor-ready structures that stand up to CPOM and position you for growth.
4. Real Talk: Enforcement Is Real
Some NPs believe CPOM is a theoretical risk. But the Texas Medical Board and HHSC have been increasingly aggressive in reviewing clinic ownership, particularly in Medicaid and telehealth contexts.
We’ve saved clients thousands by structuring things right from the start.
5. Your Next Step
Before you file your LLC, sign a lease, or hire your first employee, talk to a lawyer who knows this terrain. We offer a CPOM Compliance Check that reviews your current or planned structure and gives you a custom roadmap for compliance.
You didn’t go to school for legal headaches. I did.