CPOM Compliance for Wisconsin Healthcare Startups
Wisconsin is more flexible than California or Texas on classic CPOM, but Wis. Stat. § 448.03 still requires a Medical Examining Board license, and § 448.08 still polices fee-splitting.
Get a Free CPOM AssessmentThe law in Wisconsin
Key authorities (official text)
Wisconsin Medical Examining Board · Wis. Stat. ch. 448 · ch. 180 service corporationsMedical Examining Board (DSPS) · Wis. Stat. § 448.03 · § 448.08 · § 180.1901 · § 180.1903.
Wisconsin CPOM is Moderate. The state does not copy California Business & Professions Code § 2400. Official text of Wis. Stat. § 448.03(1)(a) says: “No person may practice medicine and surgery, or attempt to do so or make a representation as authorized to do so, without a license to practice medicine and surgery granted by the board.” That is a license-to-practice rule. Commentators often infer a corporate-employment ban from it; Foundry cites the statute as written. § 448.08 is the sharper overlay: fee, commission, or rebate for a referral, or pay for services not actually rendered. Milwaukee and Madison digital-health diligence still wants a physician-owned service corporation plus a fair-market-value MSA.
Wisconsin is not permission for a lay LLC to hold itself out as practicing medicine. Chapter 448 licenses people, not operating companies. A medical-director title on a Delaware company does not satisfy § 448.03. The Medical Examining Board (under DSPS) disciplines licensees; hospital and some safety-net employment exceptions exist and do not stretch to a typical venture-backed telehealth company. Confirm those exceptions with counsel.
Professional / service corporations sit in Wis. Stat. § 180.1901 et seq. § 180.1903 is the organizing statute commentators cite for a medical service corporation. Collaboration for NPs/PAs is a different job from owning the Professional Corporation. See collaborating physician vs physician PC owner. Longer narrative: Wisconsin CPOM blog guide.
Typical PC / MSO structure in Wisconsin
Form a Wisconsin service corporation under chapter 180 owned by a Wisconsin-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, Texas, New York, or Illinois patients, Wisconsin’s Moderate label does not control those states. Start with the CPOM 50-state guide and form for the footprint you actually have.
When you still need a PC vs only an MSO
Use this as an operator rule, not a filing opinion. Confirm with counsel.
| Wisconsin fact pattern | Typical entity | Why |
|---|---|---|
| Wisconsin-only, cash-pay, physician already owns the practice | May stay on the existing service corporation | Still document clinical control and FMV admin if an MSO is in the picture |
| Venture-backed or multi-state telehealth that includes Wisconsin | Wisconsin-aware physician service corp + FMV MSA | Buyers and payers test CPOM compliance the same way they do in strict states |
| Wisconsin plus California, Texas, or Illinois | Form for the strict / moderate states, then qualify Wisconsin | Wisconsin’s Moderate label does not soften B&P 2400, Occupations Code ch. 155, or 225 ILCS 60 |
Fee-splitting note
Wis. Stat. § 448.08 restricts giving or receiving a fee, commission, rebate, or other compensation for sending or referring a person to a licensee, or for professional services not actually rendered personally or at the licensee’s direction. 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.
| Wisconsin pattern | Risk | Safer pattern |
|---|---|---|
| Lay LLC holds itself out as practicing medicine | High: § 448.03 license overlay | Licensed-professional service corporation under §§ 180.1901–180.1921 |
| MSO paid % of professional collections | High: § 448.08 overlay | Fixed FMV admin fee with a memo |
| Physician PC + FMV MSA + separate books | Base case | Revisit FMV when volume changes |
What Wisconsin founders need to know
- Wisconsin is Moderate, not “no CPOM.” § 448.03(1)(a) is a license rule; do not quote it as a corporate-employment ban unless counsel agrees on that reading.
- § 448.08 is the fee-splitting overlay even when classic CPOM commentary is light.
- Hospital / safety-net employment exceptions do not automatically cover a venture-backed digital-health company.
- Milwaukee / Madison health-tech diligence still asks who owns the PC, who bills, and how the MSA is priced.
- Foundry does not drop clients into a plug-in 50-state PC. Multi-state needs a 50-state licensed physician.
Operational checklist: CPOM compliance. Setup path: MSO-PC formation ($15,000). Full map: CPOM 50-state guide. Book a call from the homepage.
Wisconsin CPOM FAQ
Does Wisconsin have strict CPOM?
Wisconsin is Moderate / more flexible than California or Texas. There is no B&P § 2400 analogue. Wis. Stat. § 448.03, § 448.08, and §§ 180.1901–180.1921 still expect licensed control of medicine and clean fees. Foundry keeps Wisconsin as Moderate on the CPOM 50-state guide.
Do I still need an MSO-PC in Wisconsin?
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 Wisconsin treat fee-splitting?
§ 448.08 is the fee-splitting overlay. A percentage-of-collections MSA is the high-risk pattern. Prefer a fixed FMV admin fee.
How does Foundry help with Wisconsin CPOM?
MSO-PC formation is $15,000 one-time. A Wisconsin-licensed physician PC owner is $3,000/mo. Foundry is not a law firm.