Telehealth · Michigan

Michigan telehealth MSO-PC: licensing, coverage, and who owns the practice

Michigan requires a license where the patient sits, consent before the telehealth service, and a physician-owned professional corporation. See where the PC fits.

Updated November 4, 2026

Book a Free Call

Direct answer

A Michigan telehealth company needs clinicians who are licensed where the patient is located. MCL 500.3476 says telemedicine services must be provided by a professional licensed, registered, or otherwise authorized in the patient's state, and that an insurer provides at least the same coverage as a face-to-face service. MCL 333.16284 requires consent. MCL 333.16285 sets the prescribing conditions. The clinical side sits in a professional corporation owned by Michigan-licensed physicians under MCL 450.1284, with a founder-owned MSO paid a fixed fair-market-value fee. Foundry forms that MSO-PC for $15,000 one-time and matches a Michigan-licensed friendly PC owner for $3,000/mo.

Michigan is moderate on the CPOM 50-state guide. The Public Health Code and the professional-corporation chapter are on Michigan CPOM. The telehealth MSO-PC hub covers the multi-state build. After papers, run CPOM compliance. General information only, not legal advice. Foundry is not a law firm.

Licensing: who may treat Michigan patients online

Path	Who it fits	Limits
Michigan license	A physician treating a patient located in Michigan	Issued through LARA and the Michigan Board of Medicine
Interstate Medical Licensure Compact	A physician who qualifies in a compact state	MCL 333.16189. The result is still a Michigan license. The compact says practice occurs where the patient is
Out-of-state physician with no Michigan license	Not the ordinary path	MCL 500.3476 ties the professional to the patient's state. A consultation exception, if one applies, is narrow. Do not treat a panel on it

MCL 333.16283 defines telehealth as the use of electronic information and telecommunication technologies to support or promote long-distance clinical health care, education, public health, or health administration. Telemedicine in that section uses the insurance-code definition: the professional can examine the patient through a HIPAA-compliant secure interactive audio or video system, or through store-and-forward online messaging. There is no separate Michigan telemedicine license to apply for in place of a full license.

Consent, prescribing, and coverage

Rule	What it says	What it means for the PC
MCL 333.16284	No telehealth service without consent, obtained directly or indirectly. Inmate exception for the Department of Corrections	Put consent in the PC's intake, not only in a marketing checkbox
MCL 333.16285	A prescriber may prescribe within scope. Controlled substances still meet the Public Health Code rules for that professional. Follow-up availability or a referral is required	Prescribing authority stays with the licensed clinician on the PC
MCL 500.3476	No face-to-face requirement for services appropriately provided through telemedicine. At least the same coverage as face-to-face. Cost sharing still follows the policy	Covered services can move online. Negotiate the rate in the PC contract
MCL 333.16288	Sections 16284 to 16287 do not require new or additional third-party reimbursement, and do not limit a service the law already allows	Do not read the consent statute as a rate order. Read 500.3476 for coverage

A disciplinary subcommittee can restrict a professional's telehealth practice for a violation of the consent or prescribing sections (MCL 333.16286). Federal controlled-substance telemedicine rules are separate. The DEA telemedicine flexibilities under 21 CFR 1307.41 run through December 31, 2026, and each prescriber needs the registration that applies to the patient's location. Confirm the Michigan automated prescription system check for the drug you prescribe. The statute does not set a minute count for that check.

Who owns the Michigan practice

Role	Where it sits	Michigan note
Physician owner	Owns the Michigan professional corporation	Michigan-licensed MD or DO. MCL 450.1284: each shareholder is licensed to render that professional service
Treating clinicians	Employed or contracted by the PC	Michigan license or a compact license that is a Michigan license. Not the MSO payroll
Founder and investors	Own the MSO	Brand, software, marketing, billing support. Hospital, nonprofit, and licensed-HMO exceptions do not cover this company
MSO fee	Written management services agreement	Fixed or cost-plus at fair market value. Run the MSA red-flag audit on CPOM compliance

Clinical revenue and the claim TIN belong to the PC. The MSO invoices for defined non-clinical work. If any patient is in Utah, Utah requires a domestic professional entity. See Utah CPOM. See how the MSO and the PC fit together before you sign.

Setup steps for a Michigan telehealth company

List each visit type, the payers you plan to bill, and any controlled substances.
License each physician in Michigan directly or through the compact, and confirm NP and PA licenses for Michigan patients.
Match a Michigan-licensed physician to own the PC through friendly PC owner matching ($3,000/mo).
Form the Michigan professional corporation and the MSO, and sign a fair-market-value MSA. See MSO-PC formation ($15,000). Typical formation is 1 to 3 days after the states, the clinical model, and the physician match are scoped.
Build consent, identity, and follow-up into the PC's intake. Keep prescribing authority on the licensed prescriber.
Put the claim TIN and group NPI on the PC, and route clinical payments to the PC's bank account.

Pricing

MSO-PC formation

$15,000

One-time. The MSO and the Michigan physician-owned PC, scoped to your visit model.

Friendly PC owner

$3,000/mo

A Michigan-licensed physician who owns your PC.

Michigan telehealth MSO-PC FAQ

Do I need a Michigan license to treat Michigan patients by telehealth?

Yes. MCL 500.3476 requires the professional to be licensed, registered, or otherwise authorized in the state where the patient is located. Michigan enacted the Interstate Medical Licensure Compact at MCL 333.16189. The compact is a path to a Michigan license, and it says the practice of medicine occurs where the patient is located. It is not a waiver of Michigan licensure.

What consent and follow-up does Michigan require?

MCL 333.16284 says a health professional shall not provide a telehealth service without directly or indirectly obtaining consent for treatment. The exception in that section is a Department of Corrections inmate in a correctional facility. MCL 333.16285 allows a prescription when the professional is a prescriber acting within scope. A controlled substance still has to meet that professional's requirements under the Public Health Code. After the visit, the professional must be available for follow-up or refer the patient to another professional.

Does Michigan require the same payment for telehealth as in person?

MCL 500.3476 says an insurer shall not require face-to-face contact for services appropriately provided through telemedicine, and shall provide at least the same coverage as a face-to-face service. Telemedicine in that section is a HIPAA-compliant secure interactive audio or video system, or store-and-forward online messaging. MCL 333.16288 says the telehealth consent and prescribing sections do not require new or additional third-party reimbursement. Confirm the rate in each PC contract.

Can a lay founder own a Michigan telehealth practice?

Not the clinical entity. MCL 450.1284 requires each shareholder of a professional corporation to be licensed in Michigan to provide that professional service. Treating clinicians belong on the physician-owned PC, not the MSO. Hospital, nonprofit-foundation, and licensed-HMO exceptions do not cover a venture-backed telehealth company. The MSO is paid a fixed fair-market-value fee.

How much does Foundry charge for a Michigan telehealth MSO-PC?

MSO-PC formation is $15,000 one-time. A Michigan-licensed friendly PC owner is $3,000/mo.

Ready to treat Michigan patients online?

Book a free 20-minute call with your visit model and states. We will scope the PC, the MSO, and the physician owner.