California PTA Laws Practice Exam

What is the maximum allowable percentage of shares that can be owned by non-physical therapists in a physical therapy corporation?

1. 51%

2. 49%

3. 25%

4. 35%

The correct answer is: 49%

In California, the regulations governing physical therapy corporations stipulate that a maximum of 49% of the shares can be owned by individuals who are not licensed physical therapists. This rule is designed to ensure that the control and management of the corporation remain primarily in the hands of those who are qualified and licensed to practice physical therapy. This regulation helps to maintain the professional and ethical standards of practice within the field, ensuring that business decisions align with the best interests of patient care and professional integrity. By limiting non-physical therapists to owning no more than 49% of the shares, the law aims to prevent conflicts of interest and protect the professional autonomy of licensed practitioners. The other percentages available in the choices do not align with the legal guidelines set forth in California law concerning ownership in physical therapy corporations, making 49% the accurate and legally permissible limit.