Enforcement: Moderate · § 40-47-30

CPOM Compliance for South Carolina Healthcare Startups

South Carolina is more flexible than California on classic CPOM, but S.C. Code § 40-47-30 still requires authorization before anyone practices medicine, and Title 33 Chapter 19 still restricts who may own the professional corporation.

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The law in South Carolina

Key authorities (official text)

SCLLR · Board of Medical Examiners · S.C. Code Title 40 Chapter 47 · Title 33 Chapter 19

South Carolina Board of Medical Examiners · S.C. Code Title 40 Chapter 47 · Title 33 Chapter 19 (Professional Corporation Supplement).

South Carolina CPOM is Moderate. The state does not copy California Business & Professions Code § 2400. Official text of S.C. Code § 40-47-30(A): a person may not practice medicine in this State unless the person is twenty-one years of age and has been authorized to do so pursuant to Article 1. § 40-47-20(36) defines “Practice of Medicine,” including holding out as authorized to practice, prescribing, diagnosing or treating, surgery, a documented medical opinion or treatment for a patient in the State by a physician located outside the State after transmission of patient data from within a state, and a determination of medical necessity affecting diagnosis or treatment. Charleston, Greenville, and Columbia digital-health diligence still wants a physician-owned PC plus a fair-market-value MSA.

Do not treat the absence of a B&P § 2400 analogue as permission for a lay operating company to practice medicine. Chapter 47 licenses people. A medical-director title on a Delaware company does not satisfy § 40-47-30. The Board of Medical Examiners sits under § 40-47-10 and disciplines licensees for misconduct under § 40-47-110, including obtaining fees under dishonorable, false, or fraudulent circumstances and violating the code of medical ethics adopted by the board. Professional corporations sit in the South Carolina Professional Corporation Supplement. § 33-19-109 is how a person elects professional-corporation status. § 33-19-130(a) says a domestic or foreign corporation may render professional services in this State only through individuals licensed or otherwise authorized in this State to render the services. § 33-19-200(a) limits issuance of shares to individuals authorized to render the professional service, to certain general partnerships of qualified persons, and to professional corporations authorized to render that service. § 33-19-300 requires that not less than one-half of the directors, and all officers except the secretary and treasurer, be qualified persons. Collaboration and supervision under § 40-47-195 are a different job from owning the Professional Corporation. See collaborating physician vs physician PC owner.

Typical PC / MSO structure in South Carolina

Form a South Carolina professional corporation under Chapter 19 owned by a South Carolina-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. Not a reading of § 40-47-195 supervision as a substitute for Chapter 19 ownership.

If you also treat North Carolina or Georgia patients, South Carolina’s Moderate label does not control those states. Start with the CPOM 50-state guide and form for the footprint you actually have. Neighboring North Carolina and Georgia 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.

South Carolina fact patternTypical entityWhy
South Carolina-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 Charleston / Greenville / ColumbiaSouth Carolina professional corporation + FMV MSABuyers and payers test CPOM compliance the same way they do in strict states. § 40-47-20(36)(e) treats inbound telemedicine as practice of medicine
NP/PA practice with a supervising physicianStill a physician-owned PC plus a § 40-47-195 supervision fileSupervision is not PC ownership. See collaborating physician
South Carolina plus North Carolina or GeorgiaForm for the neighboring states you treat, then qualify South CarolinaSouth Carolina’s Moderate label does not soften NCGS 90 or Georgia board rules

Fee-splitting and funds-flow risk

S.C. Code § 40-47-110 is the Board of Medical Examiners misconduct overlay. 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 South Carolina CPOM with the fee-risk table on CPOM compliance.

South Carolina patternRiskSafer pattern
Lay LLC holds itself out as practicing medicineHigh: § 40-47-30 / § 40-47-20(36) license overlayLicensed-professional corporation under Chapter 19
MSO paid % of professional collectionsHigh: § 40-47-110(B)(11) and (13) + diligence overlayFixed FMV admin fee with a memo
Out-of-state physician treats SC patients without a SC licenseHigh: § 40-47-20(36)(e) telemedicine overlaySouth Carolina-licensed clinician; form for the footprint you treat
Lay equity in the professional corporationHigh: § 33-19-200 / § 33-19-300Licensed-physician ownership of the PC
Physician PC + FMV MSA + separate booksBase caseRevisit FMV when volume changes

Board of Medical Examiners vs buyer / payer checks

The Board of Medical Examiners disciplines licensees. Buyers and payers run a different file. Use both columns. License risk and diligence risk are not the same test. Full operating map: CPOM compliance.

Who checksWhat they sampleSouth Carolina fail signal
SCLLR / Board of Medical ExaminersUnlicensed practice (§ 40-47-30); misconduct (§ 40-47-110)Figurehead PC owner; MSO writing protocols; inbound telemedicine without a SC license
Buyer diligenceShareholder ledger vs Secretary of State; one claim from payer to PC bank to MSA invoiceMSO lockbox; percentage MSA; no South Carolina-licensed owner
Payer / credentialingClaim TIN and group NPI on the physician-owned PCMarketing MSO TIN on the claim

What South Carolina 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.

South Carolina CPOM FAQ

Does South Carolina have strict CPOM?

South Carolina is Moderate / more flexible than California or New York. There is no B&P § 2400 analogue. S.C. Code § 40-47-30, Chapter 19, and § 40-47-110 still expect licensed control of medicine and clean fees. Foundry keeps South Carolina as Moderate on the CPOM 50-state guide.

Do I still need an MSO-PC in South Carolina?

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.

Is telemedicine into South Carolina the practice of medicine?

Yes on the statutory definition. § 40-47-20(36)(e) covers a documented medical opinion or treatment for a patient in the State by a physician located outside the State after transmission of patient data from within a state.

How does South Carolina treat fee-splitting?

§ 40-47-110 is the disciplinary overlay. A percentage-of-collections MSA is the high-risk pattern. Prefer a fixed FMV admin fee.

How does Foundry help with South Carolina CPOM?

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

Related reading

Last reviewed 2026-09-18 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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