Which statement best describes the corporate practice of medicine doctrine?

• A. It regulates physician advertising and marketing practices.
• B. It limits non-physician control over medical practices to preserve physician medical judgment.
• C. It governs the credentialing of hospital staff.
• D. It determines maximum malpractice insurance premiums.

Answer: (B)

The corporate practice of medicine doctrine centers on keeping medical decision-making under physician control rather than in the hands of business or non-medical entities. It exists to protect patient welfare and preserve physicians’ professional judgment by limiting who can employ physicians and direct how medical services are provided. That’s why the statement describing the doctrine as limiting non-physician control over medical practices to preserve physician medical judgment is the best fit.

In practice, this means non-physician ownership or day-to-day control over medical decisions is restricted, while physician-owned professional corporations or appropriately structured hospital arrangements can exist to support practice logistics, so long as the physicians retain medical decision authority. Other options describe different regulatory realms: advertising regulation falls under separate rules, credentialing of hospital staff is governed by medical staff bylaws and accreditation processes, and malpractice insurance premiums are set by insurers based on risk, not CPOM.