Video Summary:
In this video, we answer the question: “Can a Physician Assistant Own a Medical Corporation in California?” Andy Gale from Gale & Vallance in Orange County breaks down this often misunderstood topic, explaining the legal distinction between a Professional Medical Corporation and a Physician Assistant Corporation. He clarifies what California law allows when it comes to physician assistants hiring supervising physicians and outlines the specific provisions under the Corporations Code and Medical Practice Act.
To learn more about the legal requirements and ownership rules, check out our detailed article on can a physician assistant own a medical corporation in California.
This video is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney to discuss your specific situation.
Introduction and Disagreement
[00:00:00 – 00:00:04]
Transcript:
Unfortunately I think this lawyer is misinformed. Well I believe the lawyer is misinformed.
Intro Music
[00:00:07 – 00:00:36]
Transcript:
[Music]
[Music]
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[Music]
The Legal Inquiry About a Physician Hiring Agreement
[00:00:58 – 00:01:26]
Transcript:
Asked another lawyer if he could help them write a contract where the physician was going to be hired as a contractor to act as a supervising physician and the lawyer asked if whether or not they’d spoken with a compliance expert because he stated in California only Physicians can own medical practices, that they needed to own 51 percent of the business in order to conduct a medical business. He said PAs cannot run a medical practice and hire a physician as employer or contractor and that the physician needs to be the majority of the practice.
Clarifying the 51% Rule for Medical Corporations
[00:01:34 – 00:01:57]
Transcript:
Here’s the rule: the lawyer is partially correct that if we’re talking about setting up a professional medical Corporation, the answer is correct that a physician or surgeon must own 51 percent of that Corporation, and a physician’s assistant may own 49 if that’s the way they want to set up that Professional Medical Corporation.
Clarification: This Is Not a Medical Corporation
[00:01:57 – 00:02:03]
Transcript:
However, we’re not talking about a professional medical Corporation. We’re talking about something completely different. And in this case we’re discussing a physician assistant Corporation.
Physician Employed by a PA Corporation
[00:02:11 – 00:02:24]
Transcript:
So a physician may be employed by a professional physician assistant Corporation to render Professional Services. That’s my conclusion and I say this because I believe it’s expressly permitted by Corporations Code Section 13401.
Legal Basis and the Medical Practice Act
[00:02:29 – 00:02:53]
Transcript:
Sets out sort of the chapter in the chapters known as the Medical Practice Act, and this is the section that has all of the information as it pertains to operating a medical practice or being a physician. So long as we’re designated in this section—we are—and so long as the person that we want to hire is covered under Division Two, which a physician is, then we’re good to go.
Final Thoughts: Can a Physician Assistant Own a Medical Corporation in California?
Understanding the answer to “Can a Physician Assistant Own a Medical Corporation in California?” is critical before starting your own practice. As explained in this video by Andy Gale of Gale & Vallance in Orange County, California law does allow physician assistants to form their own professional corporations and employ supervising physicians—under specific legal conditions. These rules are outlined in the Corporations Code and the Medical Practice Act.
Still, every situation is unique, so it’s best to consult with a qualified attorney to ensure your setup complies with California’s legal and licensing requirements.
