--- title: "Mississippi Corporate Practice of Medicine Rules (2026 Guide)" description: "Mississippi corporate practice of medicine explained: the board's hands-off policy, physician-only PCs, NP collaboration, and telemedicine licensing." slug: mississippi-corporate-practice-of-medicine date: 2026-10-18 updated: 2026-10-18 author: MyOrbitHealth Compliance Team category: Compliance cpom: Limited or unsettled --- # Corporate Practice of Medicine in Mississippi: What Telehealth and Clinic Founders Need to Know Mississippi is a soft CPOM state with one hard edge. The State Board of Medical Licensure has said, in a written policy (Policy 3.02), that it will not concern itself with the form of a physician's business arrangement as long as the physician is licensed in Mississippi, keeps sole discretion over treatment, and avoids referral payments. No statute or recent appellate decision bans lay ownership of medical practices outright. The hard edge is the professional corporation statute. If you use a medical professional corporation, its shareholders generally must be licensed physicians. As of October 2026, we classify Mississippi's CPOM risk as limited or unsettled. For a non-physician founder, a physician-owned practice entity managed by a lay-owned MSO remains the cleanest structure, because it fits every reading of the law. NP founders face a bigger obstacle than CPOM: Mississippi law has required every NP to practice under a collaborative relationship with a physician, so check whether any 2026 legislation changed that. This is general information, not legal advice. Confirm the current rules with a healthcare attorney licensed in Mississippi. *Last reviewed October 2026. State rules change often; statute and case references are summaries, not quotations.* ## Key takeaways - Board of Medical Licensure Policy 3.02 has said the Board will not concern itself with the form of a licensee's business arrangement if listed conditions are met, including Mississippi licensure and physician control of treatment; confirm the policy's current text. - Under Miss. Code § 79-10-31, a professional corporation may issue shares only to persons authorized to render its professional service, and shares issued in violation are void. - A 2014 law-firm survey found no Mississippi fee-splitting statute specific to health care; confirm whether later legislation changed this. The Board can still discipline unethical conduct likely to harm the public. - Out-of-state physicians must hold a Mississippi license to treat Mississippi patients by telemedicine under Miss. Code § 73-25-34. - Mississippi NPs have been required to practice in a collaborative or consultative relationship with a physician under a protocol approved by the Board of Nursing; confirm whether 2026 legislation changed this. ## Does Mississippi have a corporate practice of medicine doctrine? Only in a limited form. Mississippi's corporate practice reasoning traces to older Mississippi Supreme Court decisions about optometry, which held that a corporation without statutory authority could not practice optometry directly or through licensed employees, according to a [2014 Balch & Bingham state survey](https://www.balch.com/-/media/files/insights/publications/2014/08/corporate-practice-of-medicine--mississippi/files/corporate-practice-of-medice--mississippi/fileattachment/cpommississippi.pdf). Those cases have not been extended to medicine by a modern appellate decision we could find. The current position comes from the regulator. In [Board Policy 3.02](https://www.msbml.ms.gov/board-policies), the State Board of Medical Licensure has said it reconsidered its corporate practice policy in light of managed care and integrated health systems. It decided not to concern itself with the form or type of business arrangement a licensee enters, provided certain prerequisites are met. As we summarize them, those prerequisites include the following; confirm the full current list, which may include other conditions: - the physician is licensed by the Board, - treatment methods remain in the physician's sole and absolute discretion, and - the physician does not accept compensation as an inducement for referrals, with arrangements also measured against federal anti-kickback rules. The policy has been amended since it was first adopted, so confirm its current text before relying on it. On its terms as summarized here, the Board polices clinical independence and kickbacks, not ownership. We still call Mississippi "limited or unsettled" rather than "none," because a policy can change and no modern Mississippi court has squarely decided whether a lay corporation may employ physicians. ## Who can own a medical practice in Mississippi? There are two separate questions. **Medical professional corporations.** The Mississippi Professional Corporation Act is strict. Under [Miss. Code § 79-10-31](https://codes.findlaw.com/ms/title-79-corporations-associations-and-partnerships/ms-code-sect-79-10-31/), a professional corporation may issue shares only to individuals authorized to render the same professional service, to other qualifying professional corporations, to certain qualifying general partnerships, or to others the licensing authority expressly authorizes. Shares issued in violation are void. If a shareholder dies or becomes disqualified, the corporation must reacquire the shares unless a qualified person takes them. Policy 3.02 has also stated that shareholders of a professional corporation rendering medical services may only be licensed physicians. **Other entities.** Because the Board says it will not regulate the form of the arrangement, lay-owned entities that employ Mississippi-licensed physicians are not expressly barred by Board policy. We treat that route as higher risk, because it rests on a policy rather than a statute. Some practice types carry their own ownership rules. The Board's administrative code also restricts who may own a pain management practice, generally favoring ownership by Mississippi-licensed physicians or by a hospital or health care entity; confirm the current rule. If your service line touches chronic pain or controlled substances, read the [Board's administrative code](https://www.msbml.ms.gov/sites/default/files/Rules_Laws_Policies/12-2025%20Administrative%20Code.pdf) before choosing a structure. ## Can nurse practitioners and physician assistants own a practice in Mississippi? **Nurse practitioners.** Mississippi has reduced NP practice authority. Under [Miss. Code § 73-15-20](https://law.justia.com/codes/mississippi/title-73/chapter-15/article-1/section-73-15-20/), an NP must practice in a collaborative or consultative relationship with a physician (or dentist), under a protocol reviewed and approved by the Board of Nursing. The protocol is filed at licensure, at renewal, and whenever the collaborator, protocol or practice site changes. [SB 2450 (2026)](https://billstatus.ls.state.ms.us/documents/2026/html/SB/2400-2499/SB2450IN.htm) proposed an hours-based exemption from the collaboration requirement for experienced NPs; check whether it or any similar bill was enacted. Until counsel confirms otherwise, plan on a collaborating physician for every Mississippi NP. Our [collaborating physician guide](/blog/collaborating-physician) covers how those agreements work. Because § 79-10-31 limits shares to persons authorized to render the corporation's service, an NP should not expect to co-own a medical professional corporation with physicians unless counsel confirms a licensing-authority authorization applies. Whatever entity an NP uses, the collaboration requirement still applies. **Physician assistants.** Mississippi PAs practice under physician supervision under the Board's PA rules. Those rules have been revised recently, so confirm the current requirements. In general, supervision must be continuous but does not always require the physician's physical presence, newer PAs face an initial on-site supervision period, and the supervising physician must be licensed in Mississippi and approved by the Board. PAs should not expect an ownership path into a medical professional corporation unless counsel confirms otherwise. ## How does the friendly PC-MSO model work in Mississippi? The [friendly PC-MSO model](/blog/friendly-pc-mso-model) works well here: a Mississippi-licensed physician owns the professional corporation, and your company's MSO provides technology, staff, marketing and billing support under a management services agreement. Mississippi-specific drafting points: - **Clinical control.** Policy 3.02 makes physician discretion over treatment the condition for the Board's hands-off stance. The MSA should say so plainly and the operations should match it. - **Referral payments.** The Board bars compensation as an inducement for referrals and points to federal anti-kickback rules. Avoid per-patient or per-prescription payments to physicians or to the MSO. - **Fee structure.** We found no Mississippi statute that expressly prohibits fee splitting in health care. The Board can still discipline "dishonorable or unethical conduct likely to deceive, defraud or harm the public" under the Medical Practice Act. A flat or cost-based management fee is the conservative choice. - **Equity.** Keep the physician as the only shareholder of a medical PC. Use the MSA, not shares, to define the MSO's economics. ## What does this mean for a telehealth brand serving Mississippi patients? CPOM and licensure follow the patient. The Board's [telemedicine rules (Part 2635, Chapter 5)](https://www.msbml.ms.gov/sites/default/files/Part%202635_Chapter5_TelemedicineWEB_0.pdf) state that medicine is practiced where the patient is located. Licensure is the gating item. Under [Miss. Code § 73-25-34](https://law.justia.com/codes/mississippi/title-73/chapter-25/general-provisions/section-73-25-34/), a physician outside Mississippi who renders a medical opinion or treatment to a patient in Mississippi through transmitted data must first be licensed by the Board. We found a narrow exception for an out-of-state physician consulted by a Mississippi-licensed physician who already has a relationship with the patient. The rules also require informed consent and an appropriate examination, which can be remote if the technology gives equivalent information. Confirm with the Board whether any telemedicine-specific license option is available. Practical setup: Mississippi-licensed physicians in a physician-owned PC, NPs with filed collaborative protocols, and PAs under Board-approved supervision. Our [telehealth licensing by state guide](/blog/telehealth-licensing-by-state) compares Mississippi with neighboring states. ## Mississippi CPOM at a glance | Topic | Mississippi (as of October 2026) | |---|---| | CPOM enforcement | Limited or unsettled: Board does not regulate business form if its conditions are met | | Primary legal basis | Board Policy 3.02; Miss. Code § 79-10-31; older optometry case law | | Professional entity options | Professional corporation (shares generally limited to licensed physicians) | | Fee-splitting rule | No health-care-specific statute found; Board discipline for unethical conduct and referral inducements | | NP practice authority | Reduced: collaborative or consultative relationship with a physician and Board-approved protocol | | Out-of-state telehealth licensing | Mississippi license required (Miss. Code § 73-25-34), with a narrow consultation exception | | Typical structure for non-physician founders | Physician-owned PC plus lay-owned MSO under a flat-fee MSA | ## Frequently asked questions ### Can a non-physician own a medical practice in Mississippi? A non-physician generally cannot own shares in a medical professional corporation. The Board's Policy 3.02 has said it will not regulate the form of other business arrangements if physicians keep control of treatment and avoid referral payments. A physician-owned PC with a lay-owned MSO is the lowest-risk structure. ### Is the corporate practice of medicine illegal in Mississippi? No statute or modern appellate case bans it outright for medicine. The Board's policy focuses on licensure, clinical independence and kickbacks. Because that is a policy and not a statute, we treat the doctrine as limited or unsettled. ### Can a nurse practitioner practice independently in Mississippi? Generally no. Mississippi NPs have been required to practice in a collaborative or consultative relationship with a physician under a protocol approved by the Board of Nursing. Bills to add an hours-based exemption have been introduced; check whether any has been enacted. ### Do out-of-state doctors need a Mississippi license for telemedicine? Yes. Miss. Code § 73-25-34 requires a Mississippi license before treating a patient in Mississippi through telemedicine. The main exception we found is a consultation requested by a Mississippi-licensed physician who already treats the patient. ### Does Mississippi prohibit fee splitting? We found no Mississippi statute that specifically bans fee splitting in health care. The Board can still discipline unethical conduct and bars payments that induce referrals. Use a flat or cost-based MSO fee and have Mississippi counsel review it. ## Sources - [Mississippi State Board of Medical Licensure, Board Policies (Policy 3.02)](https://www.msbml.ms.gov/board-policies) - [Mississippi State Board of Medical Licensure, Administrative Code (Dec. 2025)](https://www.msbml.ms.gov/sites/default/files/Rules_Laws_Policies/12-2025%20Administrative%20Code.pdf) - [Miss. Code § 79-10-31, Professional corporation shares](https://codes.findlaw.com/ms/title-79-corporations-associations-and-partnerships/ms-code-sect-79-10-31/) - [Miss. Code § 73-25-34, Telemedicine licensing](https://law.justia.com/codes/mississippi/title-73/chapter-25/general-provisions/section-73-25-34/) - [Board of Medical Licensure, Part 2635 Chapter 5: Practice of Telemedicine](https://www.msbml.ms.gov/sites/default/files/Part%202635_Chapter5_TelemedicineWEB_0.pdf) - [Miss. Code § 73-15-20, Advanced practice registered nurses](https://law.justia.com/codes/mississippi/title-73/chapter-15/article-1/section-73-15-20/) - [Balch & Bingham, Corporate Practice of Medicine: Mississippi (2014)](https://www.balch.com/-/media/files/insights/publications/2014/08/corporate-practice-of-medicine--mississippi/files/corporate-practice-of-medice--mississippi/fileattachment/cpommississippi.pdf) For every other state, start with our [corporate practice of medicine 50-state guide](/blog/corporate-practice-of-medicine-50-state-guide). ## Launch in Mississippi on a structure that is already built MyOrbitHealth can form a PC-MSO structure for your brand, supply a physician PC owner or collaborating physician, or let you launch on its existing MSO / friendly-PC structure with 2,400+ licensed providers making every clinical decision. Explore [PC-MSO formation](/pc-mso-formation) and [physician PC owner services](/physician-pc-owner), or [book a call](https://myorbithealth.com/book). ```html ```