How PC Ownership Enables Better Business and Patient Outcomes
The balance between healthcare business operations and quality patient care can present challenges. Healthcare providers are under increasing pressure to manage operational demands while maintaining the highest standards of clinical care.
This tension has paved the way for innovative models of collaboration, with Professional Corporation (PC) ownership emerging as a new solution.
For physicians and healthcare businesses, the PC ownership model offers a pathway to streamline operations, ensure regulatory compliance, and ultimately produce successful patient outcomes.
Understanding the PC Ownership Model
At its core, a PC is a business entity specifically designed for licensed professionals such as physicians, lawyers, or accountants. In the healthcare sector, the PC ownership model allows licensed physicians to form corporations through which they deliver medical services.
This structure aligns with legal and regulatory requirements dictated by Corporate Practice of Medicine (CPOM) doctrine and creates a framework for collaborative partnerships between physicians and non-physician entrepreneurs.
The PC ownership model ensures that clinical decisions remain in the hands of licensed professionals while enabling entrepreneurs to contribute their expertise in business management, operations, and strategy. Ideally, this combination results in a healthcare practice that is both operationally efficient and focused on delivering high-quality patient care.
The Collaborative Advantage: Physicians and Entrepreneurs
For Physicians: A Focus on Patient Care
One of the greatest advantages of the PC ownership model for physicians is the ability to focus more on patient care while entrusting operational responsibilities to business experts. Physicians are trained to prioritize clinical excellence, yet many find themselves burdened by the administrative demands of running a medical practice. Partnering with a healthcare entrepreneur allows physicians to:
Streamline Operations: Entrepreneurs bring expertise in areas such as human resources, billing and coding, marketing, and facility management. This allows physicians to operate in an environment optimized for efficiency.
Navigate Complex Regulations: Compliance with healthcare regulations, including CPOM laws, HIPAA, and billing standards, can be overwhelming. Entrepreneurs with experience in healthcare operations can ensure the practice adheres to these requirements, reducing legal risks.
Financial Stability and Growth: A business-savvy partner can identify opportunities for financial improvement, whether through cost savings, strategic partnerships, or the implementation of new technologies.
By delegating these operational challenges to a trusted partner, physicians can channel their energy into what they do best—delivering high-quality, patient-centered care.
For Entrepreneurs: A Legal Pathway into Healthcare
For non-physician entrepreneurs, the PC ownership model offers an avenue to participate in the healthcare industry without violating CPOM restrictions. By partnering with a licensed physician who owns the Professional Corporation, entrepreneurs can:
Invest in a Growing Industry: Healthcare remains one of the most dynamic and resilient industries. Entrepreneurs can leverage their expertise to create a thriving business while respecting the boundaries set by CPOM laws.
Enhance Efficiency: Entrepreneurs excel at identifying inefficiencies and implementing solutions. From adopting new technologies to optimizing workflows, they can play a critical role in improving the overall performance of a medical practice.
Support Innovation: Entrepreneurs can introduce innovative models of care delivery, such as telehealth, remote patient monitoring, or integrated care platforms, that physicians may not have the time or resources to explore independently.
This partnership is mutually beneficial, creating a win-win situation where entrepreneurs contribute to the business’s success while empowering physicians to deliver outstanding care.
Enhancing Patient Outcomes through Collaboration
While the operational and financial benefits of the PC ownership model are clear, its greatest impact lies in the improvement of patient outcomes. By fostering collaboration between clinical and business experts, this model creates an environment where patient care can thrive.
Improved Access to Resources
Through effective management and strategic planning, PC owners and their partners can allocate resources more efficiently. This might mean investing in advanced medical equipment, hiring additional staff to reduce patient wait times, or implementing electronic health record (EHR) systems to enhance care coordination.
Higher Standards of Care
With a physician at the helm of the Professional Corporation, medical decisions are always guided by clinical expertise and patient welfare. Meanwhile, business partners ensure the practice is financially sustainable and operationally sound, enabling the practice to maintain or exceed quality standards.
Expanding Care Options
Entrepreneurs often bring a forward-thinking approach to business. They may advocate for expanding services to include offerings such as preventive care programs, chronic disease management, or telehealth consultations. These additions not only diversify revenue streams but also address broader patient needs.
Challenges and Things to Consider
While the benefits of the PC ownership model are substantial, success requires careful planning and execution. Key considerations include:
Crafting Clear Agreements: Management Service Agreements (MSAs) are legally binding contracts that outline the relationship between a Professional Corporation (PC) owned by a licensed physician and a business entity. These agreements should clearly outline the roles and responsibilities of all parties to prevent misunderstandings and ensure compliance with CPOM laws.
Maintaining Clinical Autonomy: Physicians must retain control over all medical decisions to uphold the integrity of the doctor-patient relationship.
Navigating Legal Complexities: Compliance with state-specific CPOM regulations and other healthcare laws is critical. Legal and regulatory experts should be consulted to structure agreements appropriately.
Building Trust: Successful collaboration requires mutual respect and trust between physicians and their business partners. Regular communication and shared goals are essential.
Stay Compliant — Find a PC Owner with Zivian Health
The PC ownership model represents a promising path forward for healthcare practices. By bringing together the strengths of physicians and entrepreneurs, this approach offers a sustainable solution to the dual challenges of operational complexity and patient care quality. For entrepreneurs eager to make a meaningful impact in healthcare, PC ownership offers an innovative and effective model for collaboration.
At Zivian Health, we specialize in helping healthcare providers and businesses navigate the intricacies of PC ownership and CPOM compliance. Whether you’re a physician interested in becoming a PC owner or a healthcare business seeking a compliant operational model, we’re here to guide you every step of the way.
Contact Zivian Health today to learn more about how PC ownership can transform your practice and help you build in healthcare.
