PsychPAC Posted November 1, 2022 Share Posted November 1, 2022 I am in the research stage of starting a private practice, however I am having some difficulty understanding legality of practice ownership. I have been reading about Corporate Practice of Medicine, MSO's and PC's and I am evermore confused. Specifically, what percentage of a private practice can a PA legally own? I am hoping someone here can help me clear this up before I start paying a lawyer for my ignorance. I have read that a physician must own 51% in California, however I am not sure if this is correct. Reading through some of the other threads, I have seen 1% is the requirement for physician ownership, but only a requirement for Medicare. Quote Link to comment Share on other sites More sharing options...
jmj11 Posted November 10, 2022 Share Posted November 10, 2022 I suspect that different states might have different laws. I only know about my state, where I owned a practice. In Washington, if you organize as a LLC rather than a PLLC, then the PA can own 100%. However, as you have allude to, CMS required less than 100% ownership by the PA, thus the 99% limit if you did business with them. There was some attempts to remove this restriction from CMS, but honestly, I don't know if that ever went through. In a PLLC, again in Washington state, each owner had to be of the same profession. So, if the PA wanted to do business with CMS and wanted to organize as a PLLC, then the other 1% owner had to be a PA. In my case, the 1% owner was an MD so that's why I had to organized as a LLC. Quote Link to comment Share on other sites More sharing options...
Moderator ventana Posted December 4, 2022 Moderator Share Posted December 4, 2022 Depends on the state. medicare did away with 1% rule join your state PA association and ask them. Quote Link to comment Share on other sites More sharing options...
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