Can a Physician Assistant open their own practice​ in California?

Physician assistants (PAs) in California often ask us if they can open and own their own practice in California. In our own research, we have encountered two perspectives to answer this question, which we will share here.

Traditional View: CPOM Doctrine Prohibits PA Ownership

Corporate Practice of Medicine (CPOM) Doctrine: California’s Business and Professions Code § 2400 prohibits corporations and other artificial entities from practicing medicine, aiming to ensure that medical decision-making remains under the control of licensed physicians. 

PA Ownership Restrictions: Under this doctrine, PAs cannot own a traditional medical practice but may own up to 49% of a Professional Medical Corporation (PMC), with the remaining 51% owned by a licensed physician. This structure ensures that physicians retain majority control, preserving the integrity of medical decisions.

Modern Interpretation: PAs Can Own Their Own PA Professional Corporation (PAC)

Physician Assistant Corporations: California Corporations Code § 13401.5 allows PAs to form their own Professional Corporations (PCs), known as Physician Assistant Corporations (PACs). In this model, a PA-owned PAC can employ or contract with licensed physicians for collaboration and supervision, enabling PAs to effectively operate their own practices while complying with CPOM laws.

Scope of Services: A PA-owned PAC can offer services that PAs are legally permitted to perform. While a collaborating physician is still required for supervision, the ownership and business control remain with the PA.

Some law firms in California share this perspective including Andrew Gale who has content on the subject on his website and on Youtube.

Conclusion

There are two interpretations regarding PA ownership of medical practices in California. The traditional view emphasizes physician ownership to maintain medical autonomy, while the modern interpretation supports PA-owned corporations with physician collaboration. 

The interpretation of PA-owned corporations is growing quickly. The number of PA owned corporations created in California has grown 11,300% since 2010.

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We hope sharing these two perspectives is helpful for PAs considering opening their own practices in California. Given the divergent perspectives, PAs should consult with qualified legal counsel to determine the best structure for their professional goals.

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