Enforcement: Limited · HRS 415A-9 / ch. 453

CPOM Compliance for Hawaii Healthcare Startups

Hawaii has no California-style standalone CPOM statute, but HRS § 415A-9 still limits professional-corporation shares to licensed persons, and HRS Chapter 453 still licenses who may practice medicine.

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The law in Hawaii

Hawaii CPOM is Limited. The state does not copy California Business & Professions Code § 2400. Official HRS § 415A-9 lets a professional corporation issue shares only to individuals authorized by law to render a professional service permitted by the articles; transfers to unqualified persons are void. DCCA professional-corporation filings also remind organizers that not less than one-half of the directors and all officers other than the secretary and treasurer must be qualified licensed persons. HRS Chapter 453 still licenses medicine and surgery. Honolulu 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Do not cite the absence of a California-style standalone ban as permission for a lay operating company to practice medicine. Hawaii's dental statutes show the legislature knows how to write explicit non-licensee ownership bans when it wants them; medicine still runs through licensure and the Professional Corporation Act share rules. A medical-director title on a Delaware company does not satisfy HRS Chapter 453.

Do not treat DCCA article review as a rubber stamp for a lay-owned medical practice. 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 Hawaii

Form a Hawaii professional corporation under HRS Chapter 415A owned by a Hawaii-licensed MD or DO. The MSO, often the Delaware operating company, 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.

If you also treat California, Washington, Oregon, Nevada, or Alaska patients, Hawaii's Limited label does not control those states. Start with the CPOM 50-state guide. Neighboring Pacific / West Coast California, Washington, Oregon, and Nevada 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.

Hawaii fact patternTypical entityWhy
Hawaii-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 Honolulu / Maui / Big IslandHawaii professional corporation + FMV MSABuyers and payers test CPOM compliance the same way they do in strict states
Physician employed by a hospital or other permitted employerMay sit outside a professional entity if counsel confirms HRS ch. 453Chapter 453 licenses the person. It does not let a startup MSO hold itself out as the practice
Hawaii plus California, Washington, Oregon, or NevadaForm for the neighboring states you treat, then qualify HawaiiHawaii's Limited label does not soften California B&P § 2400 or Oregon SB 951

Fee-splitting and funds-flow risk

Board / DCCA filing rules plus HRS § 415A-9 share limits 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 Hawaii CPOM with the fee-risk table on CPOM compliance.

Hawaii patternRiskSafer pattern
Lay LLC holds itself out as practicing medicineHigh: HRS ch. 453 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 domestic professional corporationHigh: § 415A-9Licensed-physician ownership with qualified directors/officers
Cite "no CPOM statute" as a startup waiverWrong read: Professional Corporation Act still limits sharesPhysician PC + FMV MSA for venture-backed and multi-state files
Physician PC + FMV MSA + separate booksBase caseRevisit FMV when volume changes

Board vs buyer / payer checks

Licensing boards and DCCA filings are one file. Buyers and payers run another. Use both columns. Full operating map: CPOM compliance.

Who checksWhat they sampleHawaii fail signal
Hawaii medical licensing / DCCALicense under HRS ch. 453; professional-corporation shares vs § 415A-9; qualified directors/officersFigurehead PC owner; MSO writing protocols; unlicensed holding-out
Buyer diligenceShareholder ledger vs DCCA; § 415A-9 owner file; one claim from payer to PC bank to MSA invoiceMSO lockbox; percentage MSA; no Hawaii-licensed owner
Payer / credentialingClaim TIN and group NPI on the physician-owned PCMarketing MSO TIN on the claim

What Hawaii 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.

Hawaii CPOM FAQ

Does Hawaii have CPOM?

Hawaii is Limited / more flexible than California or New York. There is no B&P § 2400 analogue. HRS § 415A-9 and HRS Chapter 453 still expect licensed control of medicine and clean professional-corporation owners. Foundry keeps Hawaii as Limited on the CPOM 50-state guide.

Do I still need an MSO-PC in Hawaii?

Yes for most venture-backed and multi-state models. The professional entity holds clinical care; the MSO is paid fair market value for non-clinical services.

Can unlicensed owners hold a Hawaii professional corporation?

Official HRS § 415A-9 still restricts shares to individuals authorized to render the professional service. Confirm current text with counsel.

Does HRS Chapter 453 let a lay LLC practice medicine?

No. Chapter 453 licenses who may practice medicine. It is not a waiver for an unlicensed operating company to hold itself out as the practice.

How does Foundry help with Hawaii CPOM?

MSO-PC formation is $15,000 one-time. A Hawaii-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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