PC-MSO Formation: how a non-physician legally owns a telehealth business
In most states only a physician can own a medical practice. A PC-MSO (friendly-PC) structure solves that: a physician-owned Professional Corporation owns the clinical care, and your Management Services Organization owns the business under a Management Services Agreement. TrueEval forms the PC, provides the physician owner and medical director, and structures the MSA across all 50 states.
- The PC — a physician-owned Professional Corporation that owns the clinical care and decisions.
- The MSO — your founder-owned entity that provides all non-clinical services and can hold investors.
- The MSA — the agreement binding them, with a fee that must avoid fee-splitting and never control clinical decisions.
Frequently asked questions
What is a PC-MSO structure?
A PC-MSO (friendly-PC) separates the clinical entity from the business entity. A physician-owned Professional Corporation owns the medical care; a founder-owned Management Services Organization provides non-clinical services under a Management Services Agreement. It lets a non-physician operate compliantly in Corporate Practice of Medicine states.
Why can't a non-physician open a telehealth company directly?
In CPOM states a non-physician cannot legally own the clinical entity, employ the prescribers, or direct clinical decisions. The PC-MSO keeps clinical ownership with a licensed physician while the founder owns the business-side MSO.
What are the biggest PC-MSO compliance pitfalls?
Fee-splitting (a management fee set as a percentage of clinical revenue in states that prohibit it), the MSO controlling clinical decisions (making the PC a 'sham'), and ignoring state-by-state CPOM variation.
How does TrueEval set up a PC-MSO?
TrueEval forms the friendly PC, provides the physician owner and medical director through its licensed medical group, supplies the clinical layer the PC needs to function, and helps structure the MSA — across all 50 states.