Arkansas ownership & cpom for med spas

Ownership & corporate practice of medicine in Arkansas

⚠️ Arkansas regulates the ownership interest through disclosure. The board treats it as an ethical violation for a physician to fail to disclose to a patient that the physician holds an ownership interest in a facility or service, outside the physician’s own practice, to which the physician refers that patient. Delegation is separately bounded by who the employee is: a medical assistant is defined as an employee who has been delegated tasks and who has NOT been licensed or specifically authorized to perform them. And the medical corporation act is as absolute as this corpus gets. All of the officers, directors and shareholders of a corporation subject to that subchapter must at all times be licensed under the Arkansas Medical Practices Act, and “No person who is not so licensed shall have any part in the ownership, management, or control of the corporation, nor may any proxy to vote any shares of the corporation be given to a person who is not so licensed.” Ownership, management and control are named separately, so leaving the shares in licensed hands while moving control elsewhere is reached by the same sentence. Licensed people form the entity under the ordinary Business Corporation Act, only licensed employees may treat, and the corporation needs a certificate of registration from the Arkansas State Medical Board. These claims survey §§ 4-29-305 to 4-29-309 and two board rules; they do not survey the rest of Arkansas’s entity law.

• (3) A licensed physician fails to disclose to a patient that the physician has an ownership interest in a facility or service to which the physician refers the patient that is outside of the physician’s own practice;

  17 CAR § 140-2601(3) (Ethical violations for physicians) · verified Sep 4, 2026

• (2) "Medical assistant" means an employee of a physician who has been delegated medical practices or tasks and who has not been licensed by or specifically authorized to perform the practice or task pursuant to other provisions of Arkansas law;

  17 CAR § 140-2502(2) (definition of “Medical assistant”) · verified Sep 4, 2026

• Arkansas is as absolute as this corpus gets, and it reaches the proxy. “All of the officers, directors, and shareholders of a corporation subject to this subchapter shall at all times be persons licensed pursuant to the Arkansas Medical Practices” Act. And then: “No person who is not so licensed shall have any part in the ownership, management, or control of the corporation, nor may any proxy to vote any shares of the corporation be given to a person who is not so licensed.” Ownership, management AND control are named separately, so an arrangement that leaves the shares in licensed hands while moving control elsewhere is reached by the same sentence.

  Ark. Code Ann. § 4-29-307 (Medical Corporation Act — officers, directors, and shareholders) · verified Sep 8, 2026

• The entity is formed under the ordinary corporation act but only by licensed people, and only licensed employees may treat. One or more persons licensed under the Arkansas Medical Practices Act “may associate to form a corporation pursuant to the Arkansas Business Corporation Act of 1987” “to own, operate, and maintain an establishment for the study, diagnosis, and treatment of human ailments and injuries, whether physical or mental”. “However, medical or surgical treatment, consultation, or advice may be given by employees of the corporation only if they are licensed pursuant to the Arkansas Medical Practices Act”. A corporation subject to the subchapter also needs a certificate of registration from the Arkansas State Medical Board.

  Ark. Code Ann. §§ 4-29-305, 4-29-309 (Medical Corporation Act — formation; certificate of registration) · verified Sep 8, 2026