New York Physician PC Owner & CPOM Guide

New York Education Law Article 131 is the core CPOM provision. It prohibits the practice of medicine by corporations and other business entities, and requires that physician services be rendered by a licensed physician in their individual capacity or through a properly structured professional service corporation. Non-physician ownership of medical PCs is prohibited.

New York medical professional service corporations are governed by Business Corporation Law Article 15. All shareholders must be licensed physicians in New York. The corporation's name must include the words 'Professional Corporation' or 'P.C.' The PC must file a certificate of authority with the New York Education Department.

The MSO-PC structure is the established compliance solution in New York, but New York courts and the Attorney General apply heightened scrutiny to management agreements. MSAs that effectively transfer operational control to the MSO have been found to violate the CPOM prohibition. New York-specific MSA provisions are essential.

New York courts have voided management agreements in several high-profile cases where the arrangements were found to give the MSO operational control over the medical practice. The New York Attorney General has pursued enforcement actions against medspa and telehealth operators. Recent enforcement has focused on the substance of the physician role — whether the physician is actually exercising clinical independence.

New York has specific rules for behavioral health entities, including psychiatry, psychology, and substance abuse treatment. Group behavioral health practices must structure for CPOM and for professional licensing requirements that vary by provider type.