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PC-MSO & CPOM All 50 States + DC

PC-MSO Formation: how a non-physician legally owns a telehealth business

The short version: in most states only a physician can own a medical practice. A PC-MSO (or "friendly PC") structure solves that — a physician-owned Professional Corporation (PC) owns the clinical care, and your Management Services Organization (MSO) owns the business and provides everything non-clinical under a Management Services Agreement (MSA). TrueEval forms the PC, provides the physician owner and medical director, and structures the MSA — so you can operate compliantly in all 50 states.

The three pieces of a compliant structure

CPOM keeps medicine owned by clinicians. The PC-MSO model satisfies that while letting a non-physician founder build, own, and scale the business.

The PC

A physician-owned Professional Corporation employs the providers and owns all clinical care and decisions. This is the entity CPOM requires a doctor to own.

The MSO

Your Management Services Organization — you own it, it can hold investors — provides every non-clinical service: tech, marketing, scheduling, billing, HR, operations.

The MSA

The Management Services Agreement binds the two: it defines the services and a management fee that must avoid fee-splitting and never hand the MSO control of clinical decisions.

CPOM compliance

Strictness varies by state (CA, NY, TX, NJ, IL are strictest). The structure is built to the strictest state you serve and kept current as rules change.

Where these structures fail

  • Fee-splitting: a management fee set as a straight percentage of clinical revenue in a state that prohibits it.
  • Clinical control: an MSA that lets the non-physician MSO direct diagnosis, prescribing, or provider hiring — making the PC a 'sham.'
  • One-size-fits-all: copying a structure built for one state into a state with different CPOM rules.
  • A figurehead PC with no real clinical operation behind it — regulators look at substance, not paperwork.

How TrueEval does it

  • We form the friendly PC and provide the physician owner through our licensed medical group — no scrambling to recruit a nominee doctor.
  • We supply the clinical layer that makes the PC real: prescribing providers in every state, a designated medical director, good faith exams, and chart review.
  • We help structure the MSA so clinical control stays with the PC and the fee arrangement holds up.
  • We operate across all 50 states and monitor CPOM + telehealth changes so your structure stays current.

Need PC-MSO Formation? It already runs under our medical group

Take the assessment — tell us your specialty + target states and we'll map your gaps and what onboarding looks like for you.

Frequently asked questions

Regulatory Information Disclaimer

The telehealth compliance information presented on this page is provided for general informational purposes only and should not be construed as legal advice. The telehealth regulatory landscape is evolving rapidly, with state legislatures, medical boards, and federal agencies frequently updating rules, guidance, and enforcement priorities. While TrueEval makes every effort to keep this information current and accurate, we cannot guarantee that all details reflect the very latest regulatory changes at the time of your visit.

We strongly recommend consulting with a qualified healthcare attorney or compliance professional before making business decisions based on this information. For the most current regulatory requirements, refer directly to your state medical board and relevant licensing authorities. Last reviewed: February 2026.

Need PC-MSO Formation? It already runs under our medical group

Take the assessment — tell us your specialty + target states and we'll map your gaps and what onboarding looks like for you.