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Arkansas enforces CPOM mainly through its Medical Corporation Act. That law does more than limit who can hold stock. A version of the Act compiled by the Arkansas State Medical Board has included language barring unlicensed persons from any part in the ownership, management, or control of a medical corporation; confirm the current wording. As of October 2026, a non-physician founder should not expect to own a physician practice entity in Arkansas or to steer it. The workable model is a physician-owned corporation, with your company providing non-clinical services under a management agreement. We did not find an out-of-state telehealth registration in Arkansas, so plan on a full Arkansas license for physicians treating Arkansas patients by telehealth. NP founders may have some room. A document hosted on the state health department's website reportedly acknowledges that many Arkansas clinics are owned by APRNs through corporations or LLCs. But Arkansas is a reduced-practice state, and how the ownership statutes apply to non-physician owners is not settled.
This is general information, not legal advice. Confirm the current rules with a healthcare attorney licensed in Arkansas. Last reviewed October 2026. State rules change often; statute and case references are summaries, not quotations.
Key takeaways
- Arkansas's Medical Corporation Act (Ark. Code 4-29-301 et seq.) limits medical corporations to Arkansas-licensed physicians, and a board-compiled version of the Act has included language reaching ownership, management, and control by unlicensed persons; confirm the current text.
- If that "management or control" language is current, it is the distinctive Arkansas risk for MSOs, because a management agreement that gives the MSO practical control could conflict with it.
- Professional LLCs that practice medicine are reported to be subject to the same Medical Corporation Act rules and to register with the Arkansas State Medical Board.
- We did not find an Arkansas out-of-state telehealth registration, so plan on a full Arkansas medical license for out-of-state physicians who treat Arkansas patients by telehealth.
- Arkansas nurse practitioners have reduced practice authority, and a document hosted on a state website reportedly calls the statutes ambiguous as applied to APRN-owned clinics.
Does Arkansas have a corporate practice of medicine doctrine?
Yes, and it is statutory at its core. The Medical Corporation Act sets the terms for practicing medicine through a corporation. In the version compiled in the Arkansas State Medical Board's statute book, it requires officers, directors, and shareholders to be licensed physicians. That compilation also includes language barring unlicensed persons from any part in the ownership, management, or control of the corporation. Confirm the current wording of the Act before relying on it.
If that language is current, it is broader than most states' PC laws. Many states only restrict who can own shares. Arkansas's text, in that version, also speaks to management and control. That is why we classify Arkansas as moderate rather than limited, though some secondary sources treat it as stricter; have counsel confirm. It is also why MSO agreements here need more care than in states with share-only rules. Other authorities may add to the picture, and hospitals are generally treated as able to employ physicians. Have counsel confirm the current authorities before you rely on any exception.
Who can own a medical practice in Arkansas?
Medical corporation. Under the Medical Corporation Act, shareholders, officers, and directors must hold an Arkansas medical license. A lay founder cannot hold shares and should not hold a director or officer seat in the medical corporation.
Professional LLC. Arkansas permits LLCs to practice medicine, but secondary sources report that such an LLC must register with the Arkansas State Medical Board and comply with the Medical Corporation Act's requirements. Do not assume that switching to an LLC gets around the ownership rule.
Retired and inactive physicians. A 2025 bill proposed letting physicians keep ownership of a medical corporation after their license goes inactive or they retire. Check whether it became law before you rely on it in succession planning.
APRN-owned clinics. A document titled Ownership of Medical Practices in Arkansas, hosted on the Arkansas Department of Health site, reportedly notes that many Arkansas clinics are currently owned and operated by APRNs through corporations or LLCs. As summarized, it calls the statutory language ambiguous for non-physician owners and recommends consulting counsel; read the document itself before relying on it. That is a useful signal of real-world practice. It is not a safe harbor.
Can nurse practitioners and physician assistants own a practice in Arkansas?
Arkansas is a reduced-practice state. APRNs who prescribe generally do so under a collaborative practice agreement with a physician. Arkansas has also reportedly created a pathway for experienced APRNs to seek more independent practice. Confirm whether it exists in its current form and the current eligibility requirements with the Arkansas State Board of Nursing before you plan staffing around it.
PAs generally practice under physician supervision in Arkansas. Confirm the current supervision rules with the Arkansas State Medical Board.
On ownership, the honest answer is "often done, not clearly blessed." A state-hosted document reportedly acknowledges APRN-owned clinics are common, and calls the law unclear. An NP founder who wants low risk can own the management company and keep clinical services in a physician-owned medical corporation. An NP founder who owns the clinical entity directly should get a written opinion from Arkansas counsel first.
How does the friendly PC-MSO model work in Arkansas?
The friendly PC-MSO model is the standard answer in Arkansas, with one adjustment. Because the Medical Corporation Act, in the board-compiled version, reaches "management or control," the management services agreement should be drafted to avoid giving the MSO control of the medical corporation. In practice:
- The physician owner keeps final authority over clinical policy, hiring and supervision of clinicians, scheduling that affects care, and prescribing protocols.
- The MSO provides defined services: software, billing, marketing, non-clinical staff, and space. It does not hold board seats or officer titles in the medical corporation.
- Stock transfer restriction agreements, often used to keep a friendly PC aligned, should be reviewed so they do not amount to lay control under Arkansas's text.
- Fees should be fair market value for services actually delivered. We did not confirm a specific Arkansas fee-splitting statute, but per-referral or open-ended percentage fees invite scrutiny under federal anti-kickback law and general professional-conduct rules.
What does this mean for a telehealth brand serving Arkansas patients?
We did not find an Arkansas out-of-state telehealth registration or telemedicine-only license. Plan on a full Arkansas medical license for any physician treating a patient located in Arkansas, and confirm with the Arkansas State Medical Board. The Interstate Medical Licensure Compact can shorten that for eligible physicians; see our telehealth licensing by state guide.
CPOM applies where the patient is. If your company is in Delaware and your physician is in Texas, Arkansas's Medical Corporation Act still governs the Arkansas practice entity. Build Arkansas into your PC network as its own state, with an Arkansas-licensed physician owner or an owner licensed in every state the PC serves.
Arkansas CPOM at a glance
| Topic | Arkansas (as of October 2026) |
|---|---|
| CPOM enforcement | Moderate |
| Primary legal basis | Medical Corporation Act, Ark. Code 4-29-301 et seq. (licensed ownership; confirm current management and control wording) |
| Professional entity options | Medical corporation; PLLC reportedly subject to the same rules and board registration (confirm) |
| Fee-splitting rule | No specific statute confirmed; use FMV fees |
| NP practice authority | Reduced |
| Out-of-state telehealth licensing | None found (plan on a full Arkansas license) |
| Typical structure for non-physician founders | Physician-owned medical corporation plus an MSO with carefully limited control |
Frequently asked questions
Can a non-physician own a medical practice in Arkansas?
Not the physician practice entity itself. Arkansas's Medical Corporation Act limits shareholders, officers, and directors to licensed physicians, and a board-compiled version of the Act also reaches management and control by unlicensed persons. Non-physicians typically own a management services company that contracts with a physician-owned corporation.
Does an LLC avoid Arkansas's medical corporation rules?
Do not assume it does. An LLC practicing medicine in Arkansas is reported to be subject to the Medical Corporation Act requirements and to register with the Arkansas State Medical Board. Plan as if the ownership limits follow the practice, not the entity label, and confirm with Arkansas counsel.
Can a nurse practitioner own a clinic in Arkansas?
Many reportedly do, according to a document hosted by the Arkansas Department of Health, but that document is also described as calling the law ambiguous for non-physician owners. Arkansas NPs have reduced practice authority, so a collaborating physician is usually still needed. Get a written opinion from Arkansas counsel before relying on direct NP ownership.
Can out-of-state doctors treat Arkansas patients by telehealth?
Plan on an Arkansas medical license. We did not find an Arkansas out-of-state telehealth registration, so telehealth programs should use Arkansas-licensed physicians and confirm current rules with the Arkansas State Medical Board.
Sources
- Arkansas State Medical Board: Arkansas Medical Practices Act Statutes and Rules
- Ark. Code Title 4, Ch. 29, Subchapter 3, Medical Corporation Act (Justia)
- Ownership of Medical Practices in Arkansas (Arkansas Department of Health site)
- Arkansas Legislature: SB 262 (2025)
Compare Arkansas with every other state in our corporate practice of medicine 50-state guide.
Launch in Arkansas on a structure that is already built
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