New Jersey Physician PC Owner & CPOM Guide

New Jersey CPOM prohibition is grounded in the Medical Practice Act and related professional licensing statutes. Non-physicians may not own entities that practice medicine. The New Jersey Board of Medical Examiners has authority to enforce these provisions and has taken action against non-compliant arrangements, particularly in the behavioral health sector.

New Jersey has specific regulatory frameworks for behavioral health providers, including rules for psychiatry, psychology, licensed clinical social workers, and substance abuse treatment. Group behavioral health practices must navigate both CPOM requirements and scope-of-practice rules. Substance abuse treatment facilities have additional licensing requirements under the New Jersey Division of Mental Health and Addiction Services.

The MSO-PC structure is used for New Jersey physician entities. New Jersey permits both professional corporations and professional limited liability companies (PLLCs) for physician practices. New Jersey has specific requirements for the name of professional entities (must include 'P.C.' or 'P.L.L.C.' as appropriate).

New Jersey enacted the Telemedicine and Telehealth Act in 2017, which regulates telehealth providers serving New Jersey patients. The Act applies to the practice of telemedicine, which requires appropriate licensure. Telehealth operators serving New Jersey patients must structure for New Jersey CPOM compliance.

The New Jersey Board of Medical Examiners has enforcement authority over physician entities and MSO arrangements. Enforcement activity has been present in the behavioral health and substance abuse treatment sectors. As in other states, non-compliant structures risk license action, voided contracts, and regulatory penalties.