Enforcement: Nuanced · Policy 3.02

CPOM Compliance for Mississippi Healthcare Startups

Mississippi has no California-style standalone CPOM ban. The Board still keeps medical judgment with the licensed physician, and a medical professional corporation's shareholders are licensed physicians.

Get a Free CPOM Assessment

The law in Mississippi

Key authorities (official text)

Policy 3.02 · Miss. Code § 79-10-31 · § 73-25-1 · § 73-25-33

Board policies (Policy 3.02) · Medical Practice Act · Professional Corporation Act compilation (SOS).

Mississippi CPOM is Nuanced. The state does not copy California Business and Professions Code § 2400. Mississippi State Board of Medical Licensure Policy 3.02 (revised by the Board on 16 May 1996 and 20 September 2001, and still published on the Board's policy page) says the Board does not concern itself with the form of a licensee's business arrangement when listed prerequisites are met. Those prerequisites include a Board-licensed physician, sole discretion over the method of treatment, and no compensation as an inducement for referrals. Point 8 of the same policy says that, pursuant to Miss. Code Ann. § 79-10-31, shareholders of a professional corporation rendering medical services shall only be licensed physicians. Medicine itself is licensed under § 73-25-1 and defined in § 73-25-33. Jackson diligence still wants a physician-owned PC plus a fair-market-value MSA.

Do not read "the Board does not police the business form" as permission for a lay operating company to practice medicine or to hold the medical PC. Policy 3.02 is a conditional statement. The physician has to stay licensed. Treatment decisions stay with that physician. Billing discretion stays with that physician, with a managed-care caveat the policy itself describes. Referral inducements are out. And if the clinical entity is a professional corporation rendering medical services, the shareholders are licensed physicians. A medical-director title on a Mississippi marketing company does not satisfy point 8.

The share statute is broader on its face than the Board's medical reading. The Secretary of State's Professional Corporation Act compilation sets out § 79-10-31: a professional corporation may issue shares to individuals authorized by law in this or another state to render the professional service in the articles; to professional corporations authorized in Mississippi to render that service; to certain general partnerships; and to any other person or entity only if the licensing authority expressly authorizes it. Shares issued in violation are void. The licensing authority may restrict that issuance by rule. For medicine, the licensing authority's published policy is the tighter sentence: licensed physician shareholders. Foundry's operator default follows Policy 3.02, point 8. Do not build a lay-equity medical PC on subsection (1)(d) without counsel confirming that the Board has expressly authorized it. The compilation is a Secretary of State file, not a substitute for the current code. Confirm the section text before you file.

§ 79-10-5 in that same compilation defines a professional corporation as a corporation for profit, other than a foreign professional corporation, subject to the chapter. A foreign professional corporation is one incorporated under another state's law to render professional services. § 79-10-17 says a domestic or foreign corporation may render professional services in Mississippi only through individuals licensed or otherwise authorized in Mississippi to render the services. That rendering rule is not a passport for an out-of-state shell. The people who practice in Mississippi need Mississippi authority. The shareholder rule for a medical PC is a separate file.

§ 79-10-37, as set out in the compilation, requires the professional corporation to acquire (or cause a qualified person to acquire) shares when a shareholder dies and the successor is not qualified, when a shareholder becomes disqualified, or when shares pass by operation of law to a disqualified person, with a short exception if disqualification lasts no more than five months. Price follows the articles, bylaws, or a private agreement, or the statutory appraisal path if no price is set. Put succession in the PC documents. An MSO side letter does not replace that acquisition duty.

The practice of medicine sits on top of the corporate statute. § 73-25-1 says every person who desires to practice medicine must first obtain a license from the State Board of Medical Licensure. § 73-25-33 defines the practice of medicine to include suggesting, recommending, prescribing, or directing a drug, medicine, appliance, or other agency for the cure, relief, or palliation of disease, or the treatment of injury, when compensation is received or intended. § 73-25-34 is the telemedicine overlay: practicing medicine across state lines into Mississippi generally requires a Board license, with the exceptions the section actually lists. A lay LLC that holds itself out as diagnosing or prescribing does not become compliant because Mississippi is labeled Nuanced. The Board publishes the Act as a reference and tells readers the official Mississippi Code controls for legal purposes. Use the Board page to find the section, then confirm the code.

Do not treat a Mississippi charter as a CPOM passport. CPOM follows the patient. If you treat Alabama, Louisiana, Arkansas, or Tennessee patients, those states control. If Utah patients are on the panel, Utah needs a domestic professional entity under Utah Code § 16-11-7. Registering another state's PC in Utah is not a substitute, and Foundry does not cover Utah with a plug-in network. See Utah CPOM. Collaboration for NPs or PAs is a different job from owning the Professional Corporation. See collaborating physician vs physician PC owner. Aesthetics operators who add Mississippi should also read the med spa hub. Multi-state telehealth framing is on the telehealth hub.

Typical PC / MSO structure in Mississippi

When Mississippi patients or a Mississippi clinical entity are in scope, form a professional corporation whose medical shareholders are licensed physicians, consistent with Policy 3.02 and § 79-10-31. The MSO provides non-clinical services under a written MSA at fair market value. Clinical revenue lands in the PC. The physician keeps the treatment decisions Policy 3.02 assigns to the licensee. Foundry forms that structure ($15,000) and matches a friendly PC owner ($3,000/mo). Not a rented Super PC. Not a reading of "Mississippi is flexible" as coverage for other patient states.

If you also treat Alabama, Louisiana, or Tennessee patients, Mississippi's Nuanced label does not control those states. Start with the CPOM 50-state guide. Neighboring Alabama, Louisiana, and Tennessee have their own pages.

When you still need a PC vs only an MSO

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

Mississippi fact patternTypical entityWhy
Mississippi-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 model that includes Jackson, Gulfport, or Biloxi patientsPhysician-owned professional corporation + FMV MSABuyers and payers test CPOM compliance the same way they do in strict states
Mississippi HQ with patients only in other statesForm for the patient states; a Mississippi HQ alone is not enoughCPOM follows the patient, not the HQ charter
Med spa or aesthetics brand where injectables, devices, or prescribing are in the menuPhysician PC for the medicine; MSO for the brandA medical director contract is not the shareholder ledger. See med spa MSO-PC
Mississippi plus Alabama, Louisiana, or TennesseeForm for each neighboring patient state, then the Mississippi PC if Mississippi patients are in scopeA Nuanced label does not soften those states

Fee-splitting and funds-flow risk

Policy 3.02 already flags compensation as an inducement for referrals, plus the federal anti-kickback statutes it names. 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. Clinical cash lands in the PC bank. The MSO invoices the PC. Pair Mississippi with the fee-risk table on CPOM compliance.

Mississippi patternRiskSafer pattern
Lay LLC holds itself out as practicing medicineHigh: § 73-25-1 and § 73-25-33Licensed physician ownership of the professional corporation
MSO paid a percentage of professional collectionsHigh: diligence, plus Policy 3.02's referral-inducement lineFixed FMV admin fee with a memo
Lay equity in a medical professional corporationHigh: Policy 3.02 point 8 and § 79-10-31Licensed physician shareholders. Other categories only if counsel shows an express Board authorization
MSO writes protocols or sets the clinical fee scheduleHigh: Policy 3.02 points 2 and 3Treatment and billing discretion stay with the licensed physician
Cite the Mississippi charter as covering AL, LA, or TN 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 sampleMississippi fail signal
Mississippi State Board of Medical LicensureLicense under § 73-25-1; Policy 3.02 judgment and shareholder points; telemedicine under § 73-25-34Figurehead PC owner; MSO writing protocols; unlicensed holding-out; telemedicine into Mississippi without the license the section requires
Buyer diligenceShareholder ledger vs Policy 3.02 point 8; one claim from payer to PC bank to MSA invoiceMSO lockbox; percentage MSA; lay shares on the medical PC
Payer / credentialingClaim TIN and group NPI on the physician-owned PCMarketing MSO TIN on the claim

What Mississippi 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.

Sources

Mississippi CPOM FAQ

Does Mississippi have CPOM?

Mississippi is Nuanced on the CPOM 50-state guide. There is no California B&P § 2400 analogue. Policy 3.02 still expects licensed medical judgment, and point 8 limits shareholders of a medical professional corporation to licensed physicians under § 79-10-31. § 73-25-1 still requires a license to practice medicine.

Do I still need an MSO-PC in Mississippi?

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

Can a lay company own a Mississippi medical professional corporation?

Policy 3.02, point 8, says shareholders of a professional corporation rendering medical services shall only be licensed physicians. The statute lists other possible holders only in defined cases, including an express licensing-authority authorization. The operator default is the licensed physician shareholder. Confirm current text with counsel.

Does a Mississippi entity replace state-by-state CPOM?

No. CPOM follows the patient, not your Mississippi charter. Form for each patient state on the CPOM 50-state guide, including Alabama and Louisiana when those patients are on the panel. Utah patients need a domestic Utah professional entity. See Utah CPOM.

How does Foundry help with Mississippi CPOM?

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

Related reading

Last reviewed 2026-10-16 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 Mississippi?

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

Book a Free Call