Rhode Island ownership & cpom for med spas

Corporate-practice-of-medicine limits on who may own an aesthetic practice. Below are the Rhode Island rules that govern it, each linked to its primary source.

Ownership & corporate practice of medicine in Rhode Island

In a Rhode Island professional service corporation, every officer, director and shareholder must be a licensed practitioner — and must be employed by the corporation in that practice. a corporation organized under that chapter may render the professional services of NOT MORE THAN ONE of the enumerated professions, provided that every officer, director and shareholder is an individual authorized to practice that profession and is employed by the corporation in it; and no individual may be an officer, shareholder, director or employee of any other corporation practicing the same profession without the prior written approval of the applicable regulatory agency. The chapter then names the combinations it permits, the first of which groups physicians, dentists, registered nurses, podiatrists, optometrists, physician assistants, chiropractic physicians, physical therapists, psychologists, midwives and nurse-midwives. Investment is left open — the chapter does not prohibit such a corporation from investing its funds in real estate, mortgages, stocks, bonds or any investment not otherwise prohibited. And the eligibility rule has teeth: if a shareholder BECOMES ineligible they must transfer their shares to an eligible person or offer them to the corporation for redemption at fair-market value, and where transfer is blocked by the articles or bylaws the corporation SHALL redeem them and compensate the holder in full. Dividing fees, or agreeing to split or divide fees received for professional services with any person for bringing to or referring a patient, is unprofessional conduct.

Any corporation organized under this chapter may engage in rendering professional services of not more than one of the professions enumerated in §7-5.1-2, provided that every officer, director, and shareholder of the corporation is an individual authorized to practice the profession and is employed by the corporation in that practice. No individual may be an officer, shareholder, director, or employee of any other corporation engaged in the practice of the same profession without the prior written approval of the applicable regulatory agency or agencies.
R.I. Gen. Laws §7-5.1-3(a) · verified Sep 3, 2026
Nothing in these provisions is to be construed to prohibit a corporation organized under this chapter from engaging in the practice of the following combination of professions: Physicians, dentists, registered nurses, podiatrists, optometrists, physician assistants, chiropractic physicians, physical therapists, psychologists, midwives, or nurse-midwives.
R.I. Gen. Laws §7-5.1-3(b)(1) · verified Sep 3, 2026
“Professional services” means the rendering of personal services by a person authorized to practice as one of the following professions as defined: Physicians; Dentists; Attorneys at law; Professional engineers; Architects; Certified public accountants and licensed public accountants; Veterinarians; Chiropractors; Podiatrists; Registered nurses; Optometrists; Physical therapists; Landscape architects; Land surveyors; Opticians; Physician assistants; Psychologists; or Midwives or nurse-midwives.
R.I. Gen. Laws §7-5.1-2(2) · verified Sep 3, 2026
Nothing contained in these provisions is to be interpreted to prohibit any corporation organized under this chapter from investing its funds in real estate, mortgages, stocks, bonds, or any investment not otherwise prohibited by the general corporation law.
R.I. Gen. Laws §7-5.1-4 · verified Sep 3, 2026
Unprofessional conduct includes dividing fees or agreeing to split or divide the fees received for professional services for any person for bringing to or referring a patient.
R.I. Gen. Laws §5-37-5.1(12) · verified Sep 3, 2026
If any shareholder becomes ineligible, he or she shall transfer his or her shares to an eligible person or offer them to the corporation for redemption at their fair-market value. If the articles of incorporation or the bylaws of the corporation restrict transfer of its shares, and transfer of the shares to an eligible person is prevented, the corporation shall redeem the shares of the ineligible shareholder, and compensate the ineligible shareholder in full for the fair-market value of his or her shares determined as of the date that the ineligibility occurred.
R.I. Gen. Laws §7-5.1-5(a) · verified Sep 3, 2026

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