Compliance

Florida Corporate Practice of Medicine Rules (2026 Guide)

Florida corporate practice of medicine explained: no formal CPOM ban, but clinic licensure and a strict fee-splitting statute shape every MSO deal.

MyOrbitHealth Compliance TeamOctober 18, 20269 min read
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Florida does not have a corporate practice of medicine doctrine. No Florida statute, attorney general opinion, or appellate case bars a lay person or corporation from owning a medical practice or employing physicians. The catch is that Florida regulates the business of medicine through two other channels. The Health Care Clinic Act requires a clinic license from the Agency for Health Care Administration (AHCA) for most entities not wholly owned by licensed practitioners. And the fee-splitting provision of the medical practice act polices how management companies get paid. Bottom line for a non-physician founder: you can own the practice, but expect a clinic license and, generally, a medical director, and do not take a percentage of revenue for bringing patients in. NP and PA founders face the same clinic rules, with tighter clinical scope.

This is general information, not legal advice. Confirm the current rules with a healthcare attorney licensed in Florida.

Last reviewed October 2026. State rules change often; statute and case references are summaries, not quotations.

Key takeaways

  • As of October 2026, Florida has no corporate practice of medicine prohibition, so non-physicians and investors may own medical practices and employ physicians.
  • Florida's Health Care Clinic Act (Fla. Stat. 400.9905 and following) requires an AHCA clinic license for entities that provide and bill for health care services unless an exemption applies, such as being wholly owned by licensed health care practitioners.
  • Florida's medical practice act generally bars physicians from taking part in split-fee arrangements for patient referrals, and Board of Medicine declaratory statements have reportedly treated percentage-of-revenue management fees tied to patient generation as improper fee splitting.
  • Florida's Patient Brokering Act (Fla. Stat. 817.505) is a criminal anti-kickback law that reaches all payors, including cash-pay practices.
  • Out-of-state physicians can treat Florida patients by telehealth after registering under Fla. Stat. 456.47, without a full Florida license.

Does Florida have a corporate practice of medicine doctrine?

No. Florida health-law practitioners consistently describe the state as having no formal CPOM doctrine, and our research found no statute or court decision adopting one. A Florida Healthcare Lawfirm analysis notes that the real constraints are clinic licensure, fee-splitting rules, and the requirement that lay owners stay out of clinical decisions. Florida does restrict corporate practice in dentistry and optometry, which is a common source of confusion. The Health Law Firm covers that distinction.

That could change. The Florida Medical Association adopted a 2023 resolution on the corporate practice of medicine, and bills that would have limited non-physician control of practices have been introduced; check whether any was enacted. Watch each session.

Who can own a medical practice in Florida?

Almost anyone can. The real question is whether the practice needs an AHCA clinic license.

The Health Care Clinic Act. Fla. Stat. 400.9905 defines a "clinic" as an entity that provides health care services to individuals and tenders charges for reimbursement for those services. Clinics must be licensed by AHCA unless an exemption applies. The exemption that matters most covers a sole proprietorship, group practice, partnership, or corporation that is wholly owned by licensed health care practitioners, or by practitioners together with certain close family members, with a licensed owner supervising the business and responsible for legal compliance. Practices that qualify typically hold a certificate of exemption rather than a license. Confirm the current exemption wording, including which practitioner types count, before relying on it.

Lay-owned clinics. A clinic owned in any part by a non-practitioner investor generally needs the full license. Licensed clinics generally must appoint a medical director with responsibility for the clinic's compliance with the Act; confirm the current requirements with AHCA or counsel. The medical director sets the clinical guardrails. The lay owner runs the business.

The MSO trap. A Physicians Practice report warns that physician-owned groups selling into an MSO structure may put the practitioner-owned exemption at risk if the deal changes who owns or controls the entity. Check the exemption before you close, not after.

Professional entities. Physicians may also form professional corporations or professional limited liability companies under Fla. Stat. chapter 621. A medical PLLC's members generally must be licensed to provide the professional service; confirm the current membership rules with counsel. Because Florida has no CPOM bar, using a professional entity is a choice, not a requirement.

Can nurse practitioners and physician assistants own a practice in Florida?

Yes. With no CPOM doctrine, an NP or PA can own a Florida practice entity outright. The clinic analysis still applies: an entity wholly owned by licensed practitioners may qualify for the exemption, while one that brings in lay investors likely needs an AHCA license and a medical director. Confirm that an NP- or PA-owned entity falls within the exemption before relying on it.

Clinical authority is narrower than ownership. Florida is classified as Restricted for NP practice. Under Fla. Stat. 464.0123, an APRN can register for autonomous practice after at least 3,000 supervised clinical hours within the preceding five years plus graduate pharmacology and differential diagnosis coursework, and only in primary care. Other APRNs practice under a physician protocol, and PAs under physician supervision. Owning the company does not change who must supervise the clinical work.

How does the friendly PC-MSO model work in Florida?

In most states, the friendly PC exists to satisfy CPOM. In Florida, founders use it to keep a practitioner-owned clinic-license exemption, or to build a structure that scales into CPOM states without a rebuild. Our friendly PC-MSO explainer covers the mechanics.

The binding constraint is the fee.

Fee splitting under the medical practice act. Florida law generally makes it grounds for discipline for a physician to pay or receive commissions, kickbacks, or rebates, or to take part in a split-fee arrangement, for patient referrals. Confirm the current statutory wording with counsel. "Fee splitting" is not defined in the statute. The Board of Medicine has filled the gap through dozens of declaratory statements, which the Florida Bar Journal has catalogued.

A frequently cited Board ruling is In re Bakarania. As described in published commentary, the Board found that a management company's percentage of practice revenue, paid for services that included practice enhancement and marketing, was an improper split fee, while a reasonable flat fee for the same services was acceptable. A later Board statement reportedly allowed percentage fees for purely administrative work that is not designed to bring more patients into the practice. The Florida Bar Journal history notes that marketing services are the recurring "red flag." A Florida appellate court reportedly applied similar logic in Gold, Vann & White v. Friedenstab, treating a percentage of the revenue generated by management and practice-enhancement services as an indirect fee for referrals. Confirm these rulings, their citations, and their current status with Florida counsel.

Patient Brokering Act. Fla. Stat. 817.505 makes it a crime to pay or receive kickbacks or split fees to induce patient referrals. Unlike the federal Anti-Kickback Statute, it applies regardless of payor. A cash-only telehealth brand is not exempt.

In practice, use a flat or cost-plus fee set at fair market value, and keep marketing out of any percentage formula.

What does this mean for a telehealth brand serving Florida patients?

Florida is one of the few states with a true out-of-state telehealth registration. Under Fla. Stat. 456.47, a physician or other practitioner licensed elsewhere may treat Florida patients by telehealth after registering annually with the applicable board, without a full Florida license. Registrants need an active, unencumbered license and a clean recent disciplinary history, and they must meet registered-agent and liability-coverage requirements. Registrants generally may not open a Florida office or see Florida patients in person; confirm the current restrictions in the statute. Our telehealth licensing by state guide compares this to other states' pathways.

Florida telehealth providers may generally prescribe Schedule III through V drugs. Schedule II drugs may be prescribed by telehealth only in narrow circumstances; confirm the current exceptions in the statute before prescribing.

Florida's rules apply because the patient is in Florida, wherever your company is based. For a multi-state brand, the practical structure is an MSO with a physician-owned PC holding the clinical relationships, a flat management fee, and Florida-registered or Florida-licensed providers. It satisfies Florida easily and transfers to stricter states like Illinois with few changes.

Florida CPOM at a glance

Topic Florida (as of October 2026)
CPOM enforcement None; no statutory or case-law CPOM doctrine
Primary legal basis Health Care Clinic Act (Fla. Stat. 400.9905 et seq.); fee-splitting rule in the medical practice act
Professional entity options Any business entity; PA or PLLC under Fla. Stat. ch. 621 optional
Fee-splitting rule Strict; percentage fees tied to patient generation or marketing treated as split fees
NP practice authority Restricted (autonomous registration for primary care after 3,000 hours)
Out-of-state telehealth licensing Yes, registration under Fla. Stat. 456.47
Typical structure for non-physician founders Direct ownership with AHCA clinic license and medical director, or MSO plus physician-owned PC

Frequently asked questions

Can a non-physician own a medical practice in Florida?

Yes. Florida has no corporate practice of medicine doctrine. A practice that is not wholly owned by licensed health care practitioners will generally need a clinic license from AHCA and a medical director under the Health Care Clinic Act.

Can a Florida management company charge a percentage of collections?

It is risky. Board of Medicine declaratory statements have reportedly treated percentage fees tied to marketing or other patient-generating services as improper fee splitting under the medical practice act. A later Board statement reportedly allowed percentage fees for purely administrative services; confirm current Board positions with counsel. Many advisors use a flat fair-market-value fee to avoid the question.

Can a nurse practitioner open their own practice in Florida?

Yes. An NP may own a Florida practice. Clinical independence is limited: autonomous APRN registration under Fla. Stat. 464.0123 requires 3,000 supervised hours and covers primary care only. Other NPs practice under a physician protocol.

Do out-of-state doctors need a Florida license for telehealth?

Not necessarily. Fla. Stat. 456.47 lets out-of-state practitioners register to provide telehealth to Florida patients. Registrants generally may not open a Florida office or provide in-person care, and Schedule II telehealth prescribing is limited to narrow circumstances.

Does Florida's Patient Brokering Act apply to cash-pay telehealth?

Yes. Fla. Stat. 817.505 applies regardless of who pays. Paying anyone for patient referrals can create criminal exposure even with no insurance billing involved.

Sources

Launch in Florida on a structure that is already built

Florida's rules reward a clean fee design, so the structure matters more than the ownership chart. MyOrbitHealth can handle PC-MSO formation for your brand, supply physician PC owner services or a collaborating physician, or let you launch on its existing MSO / friendly-PC structure with 2,400+ board-certified providers across all 50 states. For the full state-by-state picture, see our corporate practice of medicine 50-state guide, or book a call.

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