The healthcare industry has seen an increase in Friendly-PC models, where a management services organization (MSO) backed by private equity funds partners with a physician-owned Professional Corporation (PC) to provide management services. These models aim to maintain compliance with the Corporate Practice of Medicine doctrine and are adaptable to telehealth services. Business considerations for MSOs and PCs include maintaining control and trust, while compliance considerations involve laws such as the Corporate Practice of Medicine, fraud and abuse, and data privacy. Establishing a contractual structure with agreements such as Management Services and Transfer Restriction Agreements is key to successful implementation. Friendly-PC models are expected to grow with the expansion of telehealth and private equity investment in healthcare.
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“Friendly” PC Models: Key Contractual and Compliance Considerations
