Nevada Corporate Practice of Medicine Rules (2026 Guide)

Nevada treats the corporate practice of medicine as off-limits, but the rule comes from a slightly unusual place. There is no single statute that says "corporations may not practice medicine." Instead, Nevada attorneys general have repeatedly concluded that a general business corporation cannot practice medicine, and the professional entity statute in NRS Chapter 89 limits ownership of a medical entity to licensed people. As of October 2026, the practical result is the same as in other strong CPOM states.

For a non-physician founder, that means you cannot own the entity that employs physicians and bills for medical care. You can own a management company that contracts with a physician-owned entity. For an NP or PA founder, Nevada grants nurse practitioners full practice authority, but whether an APRN can own a medical professional entity is a separate question with no clear answer in the statute.

This is general information, not legal advice. Confirm the current rules with a healthcare attorney licensed in Nevada. Last reviewed October 2026. State rules change often; statute and case references are summaries, not quotations.

Key takeaways

Nevada's CPOM prohibition rests mainly on attorney general opinions, including a 1977 opinion holding that a corporation formed under the general corporation law may not lawfully practice medicine.
Under NRS 89.070, a Nevada professional entity may issue ownership interests only to natural persons licensed to render the same professional service the entity was formed to provide.
NRS 630.305 makes it a ground for discipline for a physician to accept compensation intended to influence patient care, and it restricts dividing fees except in limited circumstances; confirm the current wording.
Out-of-state physicians treating Nevada patients by telehealth need a Nevada license, which can be the telemedicine license under NRS 630.261.
Most non-physician-led practices in Nevada use a physician-owned professional entity plus a management services organization (MSO).

Does Nevada have a corporate practice of medicine doctrine?

Yes, in practice. Nevada's version is built on attorney general guidance rather than case law or one clear statute.

A 1977 Nevada attorney general opinion concluded that no corporation organized under the state's general corporation law may lawfully practice medicine, while physicians themselves may practice in corporate form through a professional corporation. Later opinions followed the same line. A 2010 Nevada Attorney General opinion addressing hospital employment of physicians is the most-cited modern statement. It noted that physicians in Nevada have historically worked as contractors, not employees, of private hospitals. It also said candidly that neither the Nevada Supreme Court nor the Legislature has expressly decided whether the doctrine exists, and it tied the analysis to NRS 630.305(1)(a), which bars a physician from accepting compensation that is intended or tends to influence the physician's objective evaluation or treatment of a patient.

Some exceptions are written into statute. NRS 450.180 lets county hospital trustees employ physicians, and health maintenance organizations and certain nonprofit medical service corporations operate under their own chapters.

The issue is still live. In 2023 the Legislature heard AB11, a Patient Protection Commission bill, where testimony framed hospital employment of physicians as contested. Check whether AB11 was enacted, amended, or died before relying on any hospital-employment position.

The Clark County Bar Association's October 2024 Communique summarized the working rule for local practitioners: persons who are not healthcare providers may not own businesses that practice medicine, and the friendly PC model must be drafted so business goals do not drive medical decisions.

Who can own a medical practice in Nevada?

Physicians, through a professional entity formed under NRS Chapter 89. Key rules:

Ownership. NRS 89.070 allows a professional entity to issue ownership interests only to natural persons licensed to provide the same specific professional service. Owners also cannot transfer voting control to an unlicensed person through a voting trust, with a narrow exception.
Permitted combinations. NRS 89.050 allows an entity for medicine to include licensees in homeopathic medicine, osteopathic medicine, chiropractic, naprapathy, and psychology. The list also includes registered nurses holding a master's degree in psychiatric nursing.
Who delivers care. The entity may render professional services only through licensed officers, managers, and employees.
Clinical independence. NRS 89.055 bars owners of medical entities from using agreements or financial incentives to interfere with the professional judgment of other licensees practicing through the entity.

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

Nevada is a full practice authority state for nurse practitioners. An APRN can evaluate, diagnose, and treat within scope without a physician agreement.

Ownership is less clear. NRS 89.050's list of professions that may combine with medicine names psychiatric nurses with a master's degree but does not expressly name APRNs generally. An NP owning a medical professional entity that employs physicians is not something the statute plainly authorizes, so NP founders should get Nevada counsel on entity choice before forming.

Physician assistants practice through a relationship with a physician under NRS Chapter 630. A PA should not expect to own a medical entity outright. Confirm the current supervision or collaboration terms with the Board of Medical Examiners.

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

The structure is standard. A Nevada-licensed physician owns the professional entity. A separate MSO, which can be owned by anyone, provides non-clinical services under a management services agreement: technology, billing, marketing, staffing support, real estate, and capital. See our friendly PC-MSO model explainer for the general mechanics.

Nevada-specific pressure points:

Fee division. NRS 630.305 restricts dividing a fee between licensees and allows it only in limited circumstances; confirm the current conditions with Nevada counsel. A management fee drafted as a cut of professional revenue invites the same scrutiny.
Compensation that influences care. NRS 630.305(1)(a) reaches any fee or rebate from a corporation that tends to influence treatment. Avoid MSA terms that reward the physician for volume, prescribing, or referrals.
Owner interference. NRS 89.055 means the physician owner must keep real control over clinical protocols, hiring of clinicians, and medical records.

A fixed or fair-market-value fee, reviewed annually, is the safer default. Our management services agreement guide walks through fee structures.

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

Nevada licensure follows the patient. Under NRS 629.515, a provider at a distant site who uses telehealth to direct care, diagnose, or prescribe for a patient located in Nevada must hold a valid Nevada license, and is subject to Nevada law and the Board's jurisdiction.

Nevada offers a route many states do not: a telemedicine license under NRS 630.261 for physicians licensed in another state who care for Nevada patients through telehealth. Eligibility conditions apply, including holding a license in another state, and the section has been amended over time. Confirm the current eligibility requirements with the Nevada State Board of Medical Examiners before relying on this path.

CPOM follows the patient too, so the entity treating Nevada residents should be owned by a Nevada-licensed physician. See telehealth licensing by state for how Nevada compares.

Nevada CPOM at a glance

Topic	Nevada (as of October 2026)
CPOM enforcement	Strong in practice; based on AG opinions
Primary legal basis	AG opinions (1977, 2010); NRS 89.050, 89.055, 89.070; NRS 630.305
Professional entity options	Professional entity under NRS Chapter 89, owned by licensed natural persons
Fee-splitting rule	NRS 630.305 restricts fee division (confirm current conditions)
NP practice authority	Full
Out-of-state telehealth licensing	Yes, telemedicine license under NRS 630.261
Typical structure for non-physician founders	Nevada physician-owned professional entity plus MSO

Frequently asked questions

Is the corporate practice of medicine illegal in Nevada?

Nevada attorneys general have concluded that a general business corporation cannot practice medicine. There is no single statute stating the ban, and the 2010 AG opinion acknowledged that courts and the Legislature have not squarely ruled. In practice, founders should treat Nevada as a strong CPOM state.

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

Not the clinical entity. NRS 89.070 limits ownership of a Nevada professional entity to licensed natural persons who provide the entity's professional service. A non-physician can own the MSO that contracts with the physician-owned entity.

Can a Nevada hospital employ physicians?

County hospitals have express statutory authority under NRS 450.180. Employment by private hospitals has been debated for years, including during the 2023 AB11 hearings. Get current Nevada counsel before relying on private hospital employment.

Do out-of-state physicians need a Nevada license for telehealth?

Yes. NRS 629.515 requires a Nevada license for a distant-site provider treating a patient located in Nevada. Physicians licensed elsewhere may qualify for Nevada's telemedicine license under NRS 630.261.

Can a Nevada MSO charge a percentage of practice revenue?

It is risky. NRS 630.305 restricts fee division and compensation that tends to influence care. Most Nevada MSAs use a flat or fair-market-value fee instead.

Sources

Launch in Nevada 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. Licensed providers make every clinical decision, and MyOrbitHealth does not practice medicine. Compare Nevada with other states in our 50-state CPOM guide, or explore PC-MSO formation, physician PC owner services, or book a call.