CPOM Compliance for New Jersey Healthcare Startups

The Law in New Jersey

New Jersey enforces CPOM through Board of Medical Examiners regulation rather than statute. N.J.A.C. 13:35-6.16 requires 100% physician (or licensed-professional) ownership and control of medical practices, restricts the entity forms physicians may practice through, and prohibits general business corporations from employing physicians outside a short list of exceptions such as licensed hospitals and HMOs.

What New Jersey Founders Need to Know

• Medical practices must be 100% owned and controlled by licensed professionals — lay equity is prohibited
• Permitted forms: sole proprietorship, partnership, professional association, or LLC composed solely of licensed professionals in the same or closely allied fields
• General business corporations cannot employ physicians to provide care, with only narrow exceptions (hospitals, HMOs, and similar licensed entities)
• Owners must hold active NJ licenses — an inactive license disqualifies ownership until reactivated
• Non-physician investors participate through MSO arrangements providing administrative services at fair market value
• Telehealth companies serving NJ patients must comply even if headquartered elsewhere

How Foundry PC Helps New Jersey Startups

Foundry PC matches healthcare founders with a Friendly PC Owner — a New Jersey-licensed physician who owns the professional entity — and structures the MSO relationship at fair market value so your company operates in full compliance with Board of Medical Examiners rules. We handle the matching, the entity formation, and ongoing compliance so you can focus on building.

Further Reading