What is a friendly PC / PC-MSO structure, and why does it matter for insurance?

A friendly PC / PC-MSO structure is the common way telehealth companies organize to satisfy the corporate-practice-of-medicine doctrine, which in many states holds that only licensed physicians (or physician-owned entities) may own a medical practice. The company splits into a physician-owned professional corporation (the PC) that holds the clinical relationships and employs or contracts the clinicians, and a management-services organization (the MSO) that owns the technology, brand, and operations and provides administrative services to the PC.

For insurance, that split determines who carries what. The PC holds the clinical exposure, so it needs telemedicine professional liability (medical malpractice). The MSO owns the platform and holds the patient data, so it needs cyber and technology E&O. Insuring the wrong entity, or assuming one policy covers both, is the most common structural mistake.

Because a single incident can implicate both entities, the PC and MSO should name each other as additional insured where appropriate, and the management-services agreement should address indemnity between them, so a cross-entity claim does not fall between two separately-placed policies.