Some states allow non-veterinarians to own veterinary practices outright. Others restrict it through legislation or court decisions, but still leave room for certain ownership structures. If you’re exploring practice ownership without a veterinary license, the state where the practice operates will determine what’s possible and what legal structures you’ll need to put in place.

At Mahan Law, we represent non-veterinarians and licensed DVMs alike on ownership matters across the country, with deep experience in states that restrict the corporate practice of medicine. If you’re ready to explore your ownership options, contact our firm today to arrange a free initial consultation.

What Is the Corporate Practice of Medicine (CPOM) Doctrine?

The Corporate Practice of Medicine doctrine is a legal principle that restricts corporations and unlicensed individuals from employing licensed physicians or veterinarians to provide professional medical services. 

States that have adopted the CPOM doctrine do so to protect the integrity of clinical decision-making. The idea is that medical and veterinary judgments should rest with licensed professionals rather than business owners. This doctrine applies to veterinary medicine in many states, and it’s one of the main reasons why non-veterinarian ownership can get complicated.

Which States Allow Non-Veterinarian Ownership of Veterinary Practices?

Roughly 15 states currently permit non-veterinarians to own a veterinary practice outright. The rest either prohibit it by statute or restrict it through administrative and court decisions. 

It’s worth noting that CPOM laws aren’t uniform. Two states might both restrict corporate ownership of veterinary practices but draw the line in different places, allow different workarounds, or interpret their rules differently at the administrative level. What works in one state won’t necessarily work in another.

Mahan Law works with clients throughout the nation, with a particular focus on Kentucky, Illinois, Indiana, Michigan, Pennsylvania, New York, and North Carolina. Each of those states heavily restricts the corporate practice of medicine, which means non-veterinarian buyers in those markets need carefully structured, state-specific ownership models to stay compliant.

Legal Options for Non-Veterinarian Veterinary Practice Ownership

Even in states with strict CPOM restrictions, non-veterinarians have paths to practice ownership. Two of the most commonly used structures are Management Services Organizations (MSOs) and Administrative Services Agreements (ASAs).

Both models allow non-veterinarians to invest in and benefit from veterinary practices while maintaining clinical authority where state law requires it. The right choice depends on the state, the specifics of the deal, and the goals of everyone involved.

Management Services Organizations

An MSO is a separate legal entity that owns the physical and operational assets of a practice, including the facility, equipment, inventory, and non-clinical staff. The MSO contracts with the licensed veterinarian, who retains control over clinical decisions, patient records, and the supervision of other DVMs. The non-veterinarian owner participates in the financial returns of the practice through the MSO without crossing into the practice of veterinary medicine.

Administrative Services Agreements

An ASA achieves a similar result through a different structure. With this type of agreement, a non-veterinarian entity provides administrative and operational support to a separate veterinary professional services corporation, which handles all clinical services. The administrative entity bills for its services, and fees flow from the professional corporation to cover those costs. This structure works well in states that look skeptically at MSOs but recognize administrative service arrangements as compliant.

Why Veterinary Ownership Structures Must Be State-Specific

There’s no universal template for non-veterinarian ownership, and cookie-cutter approaches can create serious legal exposure. A structure that satisfies regulators in one state could easily run afoul of a different state’s veterinary practice act or CPOM interpretations. 

Some states have addressed non-veterinarian ownership through legislation. Others have developed their rules through administrative decisions or court opinions, which can be more difficult to track and more subject to change.

This is why it’s so important to work with an attorney who knows veterinary law specifically, not just general business or healthcare law, if you’re considering non-veterinarian ownership. The details of drafting an MSO or ASA, determining fee amounts, defining the veterinarian’s authority, and working out legal entity relationships must all reflect state-specific rules.

How a Veterinary Attorney Can Help Structure Compliant Ownership

The best way to protect everyone involved in a non-veterinarian ownership arrangement is to get the ownership structure right from the start. A veterinary attorney can assess which ownership models are available to you in your state, draft agreements that govern relationships between entities, and identify potential vulnerabilities before they turn into disputes.

At Mahan Law, founding attorney Anthony Mahan owns an animal hospital and serves as in-house counsel to more than 40 independent veterinary hospitals across the country. That real-world experience shapes how our team approaches veterinary law matters. We don’t just know what the law says. We understand how these legal structures function day to day and what can go wrong if they’re not set up properly.

We work with non-veterinarians looking to enter the veterinary space and with licensed DVMs developing growth or exit strategies. Whether you’re buying into a practice, building an MSO, or exploring an ASA, we can help you move forward with a structure that’s built to hold up.

Get the Legal Guidance You Need on Non-Veterinarian Veterinary Practice Ownership in Your State

The laws governing non-veterinarian ownership are complex and inconsistent from state to state. They’re also consequential enough that the structure you choose at the outset can affect your business interests for years to come. Non-veterinarian ownership is achievable in many areas, but it looks different depending on where you are and how you structure the deal.

At Mahan Law, we bring real-world veterinary ownership experience to every case we handle, and we charge on a flat-fee basis so you know what to expect from the start. Contact our office today to arrange a free initial consultation and find out how we can help you move forward with your non-veterinary ownership goals.

Non-Veterinarian Ownership by States

Some states allow non-veterinarians to own veterinary practices outright. Others restrict it through legislation or court decisions, but still leave room for certain ownership structures. If you’re exploring practice ownership without a veterinary license, the state where the practice operates will determine what’s possible and what legal structures you’ll need to put in place.

At Mahan Law, we represent non-veterinarians and licensed DVMs alike on ownership matters across the country, with deep experience in states that restrict the corporate practice of medicine. If you’re ready to explore your ownership options, contact our firm today to arrange a free initial consultation.

What Is the Corporate Practice of Medicine (CPOM) Doctrine?

The Corporate Practice of Medicine doctrine is a legal principle that restricts corporations and unlicensed individuals from employing licensed physicians or veterinarians to provide professional medical services. 

States that have adopted the CPOM doctrine do so to protect the integrity of clinical decision-making. The idea is that medical and veterinary judgments should rest with licensed professionals rather than business owners. This doctrine applies to veterinary medicine in many states, and it’s one of the main reasons why non-veterinarian ownership can get complicated.

Which States Allow Non-Veterinarian Ownership of Veterinary Practices?

Roughly 15 states currently permit non-veterinarians to own a veterinary practice outright. The rest either prohibit it by statute or restrict it through administrative and court decisions. 

It’s worth noting that CPOM laws aren’t uniform. Two states might both restrict corporate ownership of veterinary practices but draw the line in different places, allow different workarounds, or interpret their rules differently at the administrative level. What works in one state won’t necessarily work in another.

Mahan Law works with clients throughout the nation, with a particular focus on Kentucky, Illinois, Indiana, Michigan, Pennsylvania, New York, and North Carolina. Each of those states heavily restricts the corporate practice of medicine, which means non-veterinarian buyers in those markets need carefully structured, state-specific ownership models to stay compliant.

Legal Options for Non-Veterinarian Veterinary Practice Ownership

Even in states with strict CPOM restrictions, non-veterinarians have paths to practice ownership. Two of the most commonly used structures are Management Services Organizations (MSOs) and Administrative Services Agreements (ASAs).

Both models allow non-veterinarians to invest in and benefit from veterinary practices while maintaining clinical authority where state law requires it. The right choice depends on the state, the specifics of the deal, and the goals of everyone involved.

Management Services Organizations

An MSO is a separate legal entity that owns the physical and operational assets of a practice, including the facility, equipment, inventory, and non-clinical staff. The MSO contracts with the licensed veterinarian, who retains control over clinical decisions, patient records, and the supervision of other DVMs. The non-veterinarian owner participates in the financial returns of the practice through the MSO without crossing into the practice of veterinary medicine.

Administrative Services Agreements

An ASA achieves a similar result through a different structure. With this type of agreement, a non-veterinarian entity provides administrative and operational support to a separate veterinary professional services corporation, which handles all clinical services. The administrative entity bills for its services, and fees flow from the professional corporation to cover those costs. This structure works well in states that look skeptically at MSOs but recognize administrative service arrangements as compliant.

Why Veterinary Ownership Structures Must Be State-Specific

There’s no universal template for non-veterinarian ownership, and cookie-cutter approaches can create serious legal exposure. A structure that satisfies regulators in one state could easily run afoul of a different state’s veterinary practice act or CPOM interpretations. 

Some states have addressed non-veterinarian ownership through legislation. Others have developed their rules through administrative decisions or court opinions, which can be more difficult to track and more subject to change.

This is why it’s so important to work with an attorney who knows veterinary law specifically, not just general business or healthcare law, if you’re considering non-veterinarian ownership. The details of drafting an MSO or ASA, determining fee amounts, defining the veterinarian’s authority, and working out legal entity relationships must all reflect state-specific rules.

How a Veterinary Attorney Can Help Structure Compliant Ownership

The best way to protect everyone involved in a non-veterinarian ownership arrangement is to get the ownership structure right from the start. A veterinary attorney can assess which ownership models are available to you in your state, draft agreements that govern relationships between entities, and identify potential vulnerabilities before they turn into disputes.

At Mahan Law, founding attorney Anthony Mahan owns an animal hospital and serves as in-house counsel to more than 40 independent veterinary hospitals across the country. That real-world experience shapes how our team approaches veterinary law matters. We don’t just know what the law says. We understand how these legal structures function day to day and what can go wrong if they’re not set up properly.

We work with non-veterinarians looking to enter the veterinary space and with licensed DVMs developing growth or exit strategies. Whether you’re buying into a practice, building an MSO, or exploring an ASA, we can help you move forward with a structure that’s built to hold up.

Get the Legal Guidance You Need on Non-Veterinarian Veterinary Practice Ownership in Your State

The laws governing non-veterinarian ownership are complex and inconsistent from state to state. They’re also consequential enough that the structure you choose at the outset can affect your business interests for years to come. Non-veterinarian ownership is achievable in many areas, but it looks different depending on where you are and how you structure the deal.

At Mahan Law, we bring real-world veterinary ownership experience to every case we handle, and we charge on a flat-fee basis so you know what to expect from the start. Contact our office today to arrange a free initial consultation and find out how we can help you move forward with your non-veterinary ownership goals.