California PTA Laws Practice Exam

In a physical therapy corporation, what percentage of shares must be owned by physical therapists?

1. At least 49%

2. At least 51%

3. At least 75%

4. Exactly 50%

The correct answer is: At least 51%

In California, a physical therapy corporation must adhere to specific ownership regulations, particularly concerning who can hold shares in the corporation. The requirement that at least 51% of the shares must be owned by licensed physical therapists ensures that those who have the necessary training and qualifications are in control of the business. This percentage reflects the intent to maintain high standards of practice and professional integrity within the field of physical therapy. The ownership stipulation is designed to prevent any potential conflicts of interest and ensures that non-therapists do not have undue influence over the clinical practice and decision-making processes. By mandating that a majority of the shares are held by qualified professionals, the law prioritizes patient care and the expertise of physical therapists in managing clinical operations. This requirement plays an essential role in protecting the integrity of the profession and fostering a healthcare environment that emphasizes accountability and expertise. Understanding this ownership structure is critical for anyone involved in establishing or managing a physical therapy corporation in California.