#75 - Why Your MSO-PC Structure Might Be Illegal Now: California & Oregon CPOM Crackdown

This episode is sponsored by NURP NURP helps busy physicians grow their wealth through AI-powered algorithmic trading designed for demanding careers. No day trading, no guesswork, and no constant market watching required.  Ready to put your money to work? Visit start.nurp.com/doctors  to learn more.  Trading involves risk, and results may vary. This is not financial advice. __________________________________ In this episode of Telemedicine Talks, Leo Damasco and Phoebe Gutierrez welcome Brigid Maloney, practice group leader at Lippes Matthias and their legal counsel, for a deep dive into the Corporate Practice of Medicine (CPOM). They explore why approximately 30 states prohibit corporations and non-physicians from practicing medicine, with California and New York being among the strictest. The conversation covers recent California developments, including a new law restricting certain transfer agreements, an Attorney General amicus brief, and a $2.3 million settlement with Aspen Health, and Oregon’s elimination of stock transfer restriction agreements. Brigid explains how these changes impact MSO/PC relationships, the importance of true physician leadership, operational compliance with Management Services Agreements (MSAs), and why “friendly physician” relationships are shifting toward more collaborative, trust-based partnerships. They also discuss best practices for updating documents, the risks of non-compliance, and why physician involvement in business decisions benefits both sides. Top 3 Takeaways: CPOM Is Alive and Enforced: California’s recent actions (new law, AG brief, and Aspen Health settlement) signal strict enforcement. MSOs must restructure relationships with their PCs, especially in California and Oregon. Stock Transfer Restriction Agreements Are Under Fire: California has curbed them, and Oregon eliminated them. Without proper compliant structures, friendly physicians gain full control of the PC, creating major risks for MSOs. Strong Physician-MSO Partnerships Matter: Transactional “signature-only” relationships are fading. Sophisticated, involved physician partners who engage in operations, protocols, and decision-making create better compliance and stronger companies. About the Show Telemedicine Talks explores the evolving world of digital health, helping physicians navigate new opportunities, regulatory challenges, and career transitions in telemedicine. About the Guest Brigid  Maloney is a practice group leader for the law practice of Lippes Matthias and serves as legal counsel to Telemedicine Talks. She specializes in healthcare law, with deep expertise in corporate practice of medicine, MSO/PC structures, regulatory compliance, and telemedicine. She is known for her practical, straightforward advice and helps clients build compliant, sustainable healthcare businesses. Connect with Brigid Maloney: Email: [email protected] About the Hosts: Dr. Leo Damasco – Pediatrician and emergency medicine doctor turned telemedicine advocate, helping physicians transition to digital health. Phoebe Gutierrez – Former state regulator turned telehealth executive, specializing in compliance and sustainable virtual care models.   Connect with Phoebe Gutierrez: https://www.linkedIn.com/in/pkgutierrez/   [email protected] (mailto:[email protected])   The information provided in Telemedicine Talks is for educational and informational purposes only and should not be construed as medical, legal, or financial advice. While we discuss best practices, industry trends, and real-world experiences, every situation is unique. Listeners should consult with qualified professionals before making decisions related to telemedicine practice, compliance, contracts, or business operations. The views expressed by the hosts and guests are their own and do not necessarily reflect those of any organizations they may be affiliated with. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.