Rhode Island CPOM Rules 2026: Who Can Own a Practice

Rhode Island limits ownership of physician practice entities to licensed professionals, but it has never enacted an express corporate practice of medicine (CPOM) ban. In 2026 the legislature considered one. The Rhode Island Ban on the Corporate Practice of Medicine Act (S 2459) would have barred unlicensed owners from owning medical practices or employing licensees and regulated MSO contracts. The Senate committee held it for further study in March 2026, and it did not pass.

As of October 2026, the bottom line for a non-physician founder is the friendly PC-MSO model, plus a new compliance step: the Attorney General's pre-merger notification rule for medical practice groups, effective January 28, 2026, which can reach MSO formations and private equity deals. NP founders are better off than in most states, because Rhode Island grants nurse practitioners full practice authority.

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

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

Key takeaways

Rhode Island's professional service corporation law limits ownership of physician professional corporations to licensed professionals.
The 2026 Ban on the Corporate Practice of Medicine Act (S 2459) was held for further study in the Senate Health and Human Services Committee on March 3, 2026, and did not become law.
The Rhode Island Attorney General's Pre-Merger Notification Rule for Medical-Practice Groups took effect January 28, 2026, and requires notice 60 days before covered transactions close.
Rhode Island grants nurse practitioners full practice authority, so NPs can diagnose, treat, and prescribe without a physician agreement.
Rhode Island has no telehealth registration; physicians treating Rhode Island patients need a full Rhode Island license.

Does Rhode Island have a corporate practice of medicine doctrine?

Partly. Rhode Island has no statute that expressly says "a corporation may not practice medicine," and no leading appellate case on the point. Its CPOM position comes from two places:

Licensure. Only licensed individuals may practice medicine.
Entity law. Physicians who incorporate must use a professional service corporation (or a professional LLC) owned by licensed professionals.

That is why we classify Rhode Island as Moderate: lay ownership of the clinical entity is blocked, but there is no detailed statutory regime policing management companies.

The 2026 bill. S 2459 would have changed that. Holland & Knight's summary explains it would have made it unlawful for unlicensed persons and entities to own a medical practice or employ healthcare licensees, required physician ownership and control of medical practices, and regulated contracts between practices and MSOs. On March 3, 2026, the Senate Health and Human Services Committee held it for further study, according to LegiScan. A House companion was also held. Expect a similar bill to return. Build your MSO agreement now as if it had passed: physician control of clinical matters, no MSO veto over clinical staffing, and clean termination rights for the practice.

Who can own a medical practice in Rhode Island?

Professional service corporations. Rhode Island's professional service corporation law lets physicians and several other health professions incorporate. Shareholders, directors, and officers generally must be licensed in a covered profession.
Professional LLCs. LLCs may render the professional services covered by the PSC law, subject to licensing approvals.
Multidisciplinary entities. Rhode Island allows certain combinations of licensed health professions in one entity. Confirm which professions may co-own with physicians before you add NP or PA owners.
Hospitals and licensed facilities employ physicians under their own licensing frameworks.

A lay investor's equity belongs in the MSO, not the clinical entity.

Can nurse practitioners and physician assistants own a practice in Rhode Island?

AANP classifies Rhode Island as Full practice. Rhode Island NPs are licensed by the Board of Nursing and may diagnose, treat, and prescribe, including controlled substances within their role and population focus, without a physician agreement. Some guides describe a transition period for newly certified NPs, so check the current rule for new graduates.

That makes Rhode Island one of the better states for NP-led telehealth. An NP-owned brand can deliver NP-scope care directly. The CPOM limits bite when the brand also employs physicians, because physician services generally must run through a physician-owned professional entity.

PAs practice in collaboration with physicians. A physician must be available for consultation, and PAs cannot own a physician practice entity on their own. A PA-heavy model still needs physician partners. See our collaborating physician guide.

How does the friendly PC-MSO model work in Rhode Island?

The standard structure works: a Rhode Island-licensed physician owns the PC, and the MSO provides non-clinical services for a fair-market-value fee. Two Rhode Island specifics:

1. The AG's pre-merger rule. The Attorney General's Pre-Merger Notification Rule for Medical-Practice Groups took effect January 28, 2026. According to McDermott's summary, it requires Rhode Island-based medical practice groups to give the AG 60 days' notice before covered transactions. Covered deals include bringing in a private equity or other significant equity investor, reaching a certain group size, and forming an MSO relationship. Penalties for late notice can be significant, and the AG can seek to block a closing until notice is given. Put the AG filing on your launch timeline.

2. Fee terms. We did not find a Rhode Island rule that expressly bans percentage-based management fees. S 2459 shows the direction legislators want to go, so flat or cost-plus fees at fair market value are the safer design. Our management services agreement guide walks through the clauses.

What does this mean for a telehealth brand serving Rhode Island patients?

Full license required. Rhode Island has no out-of-state telehealth registration. Physicians treating patients located in Rhode Island need a full Rhode Island license, subject to narrow consultation exceptions. The state's Board of Medical Licensure and Discipline has reported that about a third of active physician licenses belong to physicians practicing via telemedicine from outside the state.
NPs and PAs also need Rhode Island licenses. NPs can practice independently once licensed.
Pre-merger rule. The AG rule targets Rhode Island-based groups. If you form a Rhode Island practice entity or acquire one, check whether your MSO relationship triggers notice.

Neighbor guide: Connecticut. For licensing in every state, see telehealth licensing by state.

Rhode Island CPOM at a glance

Topic	Rhode Island (as of October 2026)
CPOM enforcement	Moderate; licensed-owner entity rules, no express statutory ban (S 2459 held in 2026)
Primary legal basis	Professional service corporation law; physician licensure law
Professional entity options	Professional service corporations, professional LLCs (licensed owners)
Fee-splitting rule	No express rule on MSO percentage fees identified; use FMV flat or cost-plus fees
NP practice authority	Full
Out-of-state telehealth licensing	No; full Rhode Island license required
Typical structure for non-physician founders	Friendly PC owned by an RI-licensed physician plus MSO; AG pre-merger notice where triggered

Frequently asked questions

Can a non-physician own a medical practice in Rhode Island?

Not the physician practice entity. Rhode Island professional service corporations must be owned by licensed professionals. A non-physician can own the MSO that provides business services to a physician-owned practice.

Did Rhode Island pass a corporate practice of medicine ban in 2026?

No. The Ban on the Corporate Practice of Medicine Act (S 2459) was held for further study in the Senate Health and Human Services Committee on March 3, 2026. A similar bill may return in a later session.

Does forming an MSO in Rhode Island require notice to the Attorney General?

It can. The Attorney General's pre-merger notification rule for medical practice groups, effective January 28, 2026, requires 60 days' notice before covered transactions, which can include private equity investments and MSO formations. Check the rule's thresholds with counsel.

Can nurse practitioners practice independently in Rhode Island?

Yes. Rhode Island grants NPs full practice authority, so they can diagnose, treat, and prescribe without a physician agreement once licensed.

Can out-of-state doctors treat Rhode Island patients by telehealth?

Only with a full Rhode Island license, apart from narrow consultation exceptions. Rhode Island does not offer a telehealth-only registration.

Sources

For every other state, start with our corporate practice of medicine 50-state guide.

Launch in Rhode Island 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 and physician PC owner services, or book a call.