Enforcement: Moderate · Health Occ. 14-301

CPOM Compliance for Maryland Healthcare Startups

Maryland is more flexible than California on classic CPOM, but Health Occupations § 14-301 still requires a Board of Physicians license, and § 14-404(a)(15) still polices paying for patient referrals.

Get a Free CPOM Assessment

The law in Maryland

Key authorities (official text)

Maryland Board of Physicians · Health Occupations Title 14 · Corps. & Assoc. Title 5, Subtitle 1

Maryland Board of Physicians · Health Occ. § 14-301 · § 14-601 · § 14-404 · CA § 5-101 · § 5-105 · § 5-112.

Maryland CPOM is Moderate. The state does not copy California Business & Professions Code § 2400. Official text of Health Occ. § 14-301 says an individual shall be licensed by the Board before the individual may practice medicine in this State. § 14-601 makes unlicensed practice unlawful. That is a license-to-practice rule, not a B&P 2400 clone. Commentators who cite Health-General § 14-401 as Maryland’s CPOM statute are in the wrong article: physician licensure is Health Occupations Title 14; professional corporations are Corporations & Associations Title 5, Subtitle 1. Baltimore and DC-corridor digital-health diligence still wants a physician-owned PC plus a fair-market-value MSA.

Maryland is not permission for a lay LLC to hold itself out as practicing medicine. Title 14 licenses people, not operating companies. A medical-director title on a Delaware company does not satisfy § 14-301. The Board of Physicians disciplines licensees under § 14-404. Hospital, licensed-facility, and HMO employment exceptions exist in Maryland practice and do not stretch to a typical venture-backed telehealth company. Confirm those exceptions with counsel.

Professional corporations sit in CA § 5-101 et seq. § 5-105 says a corporation may render professional services in the State only through individuals licensed or otherwise authorized to render those services. § 5-112 is how a corporation elects professional-corporation status. Collaboration for NPs/PAs is a different job from owning the Professional Corporation. See collaborating physician vs physician PC owner. Longer narrative: Maryland CPOM blog guide.

Typical PC / MSO structure in Maryland

Form a Maryland professional corporation under CA Title 5, Subtitle 1, owned by a Maryland-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, New York, New Jersey, or Virginia patients, Maryland’s Moderate label does not control those states. Start with the CPOM 50-state guide and form for the footprint you actually have. Neighboring Virginia is Limited, not a substitute memo.

When you still need a PC vs only an MSO

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

Maryland fact patternTypical entityWhy
Maryland-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 MarylandMaryland-aware physician PC + FMV MSABuyers and payers test CPOM compliance the same way they do in strict states
Maryland plus California, New York, or New JerseyForm for the strict / moderate states, then qualify MarylandMaryland’s Moderate label does not soften B&P 2400, BCL § 1507, or N.J.A.C. 13:35-6.16

Fee-splitting note

Health Occ. § 14-404(a)(15) lets a disciplinary panel reprimand, place on probation, suspend, or revoke a license if the licensee “pays or agrees to pay any sum to any person for bringing or referring a patient or accepts or agrees to accept any sum from any person for bringing or referring a patient.” § 14-404(a)(14) covers soliciting professional patronage through an agent. A percentage-of-collections management fee is the pattern that looks most like a split of professional fees. Prefer a fixed or FMV-supported admin fee. Pair this page with the fee-risk table on CPOM compliance.

Maryland patternRiskSafer pattern
Lay LLC holds itself out as practicing medicineHigh: § 14-301 / § 14-601 license overlayLicensed-professional corporation under CA Title 5, Subtitle 1
MSO paid % of professional collectionsHigh: § 14-404(a)(15) overlayFixed FMV admin fee with a memo
Cite Health-Gen. § 14-401 as the CPOM statuteWrong article: diligence teams noticeHealth Occupations Title 14 + CA Title 5
Physician PC + FMV MSA + separate booksBase caseRevisit FMV when volume changes

What Maryland founders need to know

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

Maryland CPOM FAQ

Does Maryland have strict CPOM?

Maryland is Moderate / more flexible than California or Texas. There is no B&P § 2400 analogue. Health Occ. § 14-301, § 14-601, § 14-404(a)(15), and CA Title 5, Subtitle 1 still expect licensed control of medicine and clean fees. Foundry keeps Maryland as Moderate on the CPOM 50-state guide.

Do I still need an MSO-PC in Maryland?

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.

How does Maryland treat fee-splitting?

§ 14-404(a)(15) is the referral-pay overlay. A percentage-of-collections MSA is the high-risk pattern. Prefer a fixed FMV admin fee.

How does Foundry help with Maryland CPOM?

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

Related reading

Last reviewed 14 September 2026 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.

Ready to get compliant in Maryland?

Book a free 20-minute call. We will map formation and a Maryland-licensed physician PC owner for the states you treat.

Book a Free Call