Enforcement: Limited · 8 Del. C. 605 / 610

CPOM Compliance for Delaware Healthcare Startups

Delaware has no California-style standalone CPOM statute, but 8 Del. C. §§ 603, 605, and 610 still limit professional-corporation shareholders to licensed persons, and Title 24 Chapter 17 still licenses who may practice medicine.

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The law in Delaware

Key authorities (official text)

8 Del. C. § 603 · 8 Del. C. § 605 · 8 Del. C. § 610 · 24 Del. C. ch. 17

Delaware Code Title 8, Chapter 6 (Professional Service Corporations) · §§ 601–619 index · Delaware Code Title 24, Chapter 17 (Medical Practice Act).

Delaware CPOM is Limited. The state does not copy California Business & Professions Code § 2400. Official 8 Del. C. § 603 defines a professional corporation as one whose shareholders are individuals duly licensed to render the same professional service (medicine is expressly listed). 8 Del. C. § 605 authorizes licensed persons to organize such a corporation. 8 Del. C. § 610 bars issuance of capital stock to anyone other than a licensed individual. Title 24 Chapter 17 still licenses medicine. Wilmington diligence still wants a physician-owned PC plus a fair-market-value MSA.

Do not cite the absence of a California-style standalone ban as permission for a lay operating company to practice medicine. The Professional Service Corporation Act binds entities that elect that form; Title 24 still licenses people. A medical-director title on a Delaware operating company does not satisfy either layer.

Do not treat a Delaware HQ as a CPOM passport. CPOM follows the patient. If you treat New York, New Jersey, Pennsylvania, or Maryland patients, those states control. Collaboration for NPs/PAs is a different job from owning the Professional Corporation. See collaborating physician vs physician PC owner.

Typical PC / MSO structure in Delaware

When Delaware patients or a Delaware clinical entity are in scope, form a Delaware professional corporation under Title 8 Chapter 6 owned by a Delaware-licensed MD or DO. The MSO provides non-clinical services under a written MSA at fair market value. Clinical revenue lands in the PC. Foundry forms that structure ($15,000) and matches a friendly PC owner ($3,000/mo). Not a rented Super PC. Not a reading of "Delaware has no CPOM" as coverage for other patient states.

If you also treat Pennsylvania, New Jersey, Maryland, or New York patients, Delaware's Limited label does not control those states. Start with the CPOM 50-state guide. Neighboring Pennsylvania, New Jersey, Maryland, and New York have their own statutes.

When you still need a PC vs only an MSO

Use the table as an operator rule, not a filing opinion. Confirm with counsel.

Delaware fact patternTypical entityWhy
Delaware-only, cash-pay, physician already owns the practiceMay stay on the existing professional corporationStill document clinical control and FMV admin if an MSO is in the picture
Venture-backed or multi-state telehealth that includes Wilmington / Dover patientsDelaware professional corporation + FMV MSABuyers and payers test CPOM compliance the same way they do in strict states
Delaware HQ with patients only in other statesForm for the patient states; Delaware HQ alone is not enoughCPOM follows the patient, not the HQ charter
Delaware plus Pennsylvania, New Jersey, Maryland, or New YorkForm for the neighboring states you treat, then qualify Delaware if neededDelaware's Limited label does not soften NYSED or New Jersey Board rules

Fee-splitting and funds-flow risk

Title 8 Chapter 6 share rules plus Title 24 licensure are the corporate-practice overlay buyers still test. A percentage-of-collections management fee is the pattern that looks most like a split of professional fees and like de facto control. Prefer a fixed or FMV-supported admin fee. Pair Delaware CPOM with the fee-risk table on CPOM compliance.

Delaware patternRiskSafer pattern
Lay LLC holds itself out as practicing medicineHigh: Title 24 license overlayLicensed-physician ownership of the professional corporation
MSO paid % of professional collectionsHigh: diligence + fee-split overlayFixed FMV admin fee with a memo
Lay equity in a professional corporation under Title 8 ch. 6High: § 610Licensed-physician ownership only
Cite Delaware HQ as covering NY / NJ / PA patientsWrong read: CPOM follows the patientForm for each patient state; see the 50-state guide
Physician PC + FMV MSA + separate booksBase caseRevisit FMV when volume changes

Board vs buyer / payer checks

Licensing boards discipline licensees. Buyers and payers run a different file. Use both columns. Full operating map: CPOM compliance.

Who checksWhat they sampleDelaware fail signal
Delaware medical licensingLicense under Title 24 ch. 17; professional-corporation owner list vs § 610Figurehead PC owner; MSO writing protocols; unlicensed holding-out
Buyer diligenceShareholder ledger vs Division of Corporations; § 610 owner file; one claim from payer to PC bank to MSA invoiceMSO lockbox; percentage MSA; no Delaware-licensed owner when Delaware patients sit in scope
Payer / credentialingClaim TIN and group NPI on the physician-owned PCMarketing MSO TIN on the claim

What Delaware founders need to know

Operational checklist: CPOM compliance. Setup path: MSO-PC formation ($15,000). Full map: CPOM 50-state guide. Book a call · Pricing.

Delaware CPOM FAQ

Does Delaware have CPOM?

Delaware is Limited / more flexible than California or New York. There is no B&P § 2400 analogue. 8 Del. C. §§ 605 / 610 and Title 24 still expect licensed control of medicine and clean professional-corporation owners. Foundry keeps Delaware as Limited on the CPOM 50-state guide.

Do I still need an MSO-PC in Delaware?

Yes for most venture-backed and multi-state models that treat Delaware patients or use a Delaware clinical entity. The professional entity holds clinical care; the MSO is paid fair market value for non-clinical services.

Can unlicensed owners hold a Delaware professional corporation?

Official 8 Del. C. § 610 still restricts capital stock to licensed individuals. Confirm current text with counsel.

Does a Delaware HQ replace state-by-state CPOM?

No. CPOM follows the patient, not your Delaware HQ. Form for each patient state on the CPOM 50-state guide.

How does Foundry help with Delaware CPOM?

MSO-PC formation is $15,000 one-time. A Delaware-licensed physician PC owner is $3,000/mo. Foundry is not a law firm.

Related reading

Last reviewed 2026-09-28 by Matthew Milford, Founder. Foundry PC is not a law firm. General information only, not legal advice. Prices: MSO-PC formation $15,000 one-time · friendly PC owner $3,000/mo.

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