Ownership
Ownership
For the purposes of facility registration, the facility owner is defined as the person or entity who has the right to receive the payment and the explanation of benefits (EOB) from the payer/insurer. It ties the responsibility for the management of the facility to the profits the facility makes. This is in accordance with the definition of “owner” and “ownership interest” in Title 1, Chapter 1, Subchapter A, Section 1.002 of the Texas Business Organization Code.
In practice, this means that the Therapist in Charge is often not the “owner” of the facility in which he works. The Therapist in Charge can be listed as the owner of the facility only when he – or the company in which he has an ownership interest - is the person/entity who has the right to the payment and the EOB. A contract company providing PT or OT services to a clinic can be the owner only if it meets the same criteria. In most cases, it is easy to identify the person or entity considered the “owner” of the facility for registration purposes. If you have any questions about your existing or future registration, contact the Facility Registration Department.
Change of Ownership or Managing Officers
Facility registration cannot be transferred to a new owner. If a facility is bought, sold or ownership is otherwise transferred, the new owner must submit a registration application, pay the registration fee, and receive a new facility registration number. The old registration and renewal certificates must be returned to the board.
A change of ownership is considered to occur when:
- a sole proprietor (individual) incorporates or changes to a partnership;
- a partnership incorporates or changes to a sole proprietor;
- a corporation dissolves and changes its status to a partnership or sole proprietor;
- a sole proprietor (individual), partnership or corporation purchases, sells or transfers the ownership to another individual, partnership or corporation.
Change of Managing Officers
If there is a change of managing partners in a partnership, or managing officers in a corporation, the owner of the facility must send the board written notification within 30 days. Please see the rules for the information required on managing officers.
FAQs
What information must I provide to register my facility?
As it states in both the PT and OT rules::
(a) Each registration application must include:
1. Name of the facility;
2. Physical/street address of the facility;
3. Mailing address, if different from the street address;
4. Name of the owner;
5. Type of ownership;
6. Identification/contact information for the facility owner as follows:
(A) Sole proprietor
- name, home address, date of birth, social security number of the sole proprietor
- federal employer identification number if applicable
(B) Partnership
- name, home address, date of birth, social security number of the managing partner
- federal employer identification number
(C) Corporation
- names, home addresses, dates of birth, and social security numbers of managing officers (for purposes of this subsection, managing officers are defined as the top four executive officers, including the corporate officer in charge of physical therapy facility operations);
- federal employer identification number
(D) Governmental entity (federal, state, local)
- name, home address, date of birth, social security number of the individual completing the application
- federal employer identification number
7. The name and license number of the physical therapist in charge and his or her signature;
8. Names and license numbers of all PTs and PTAs who practice in the facility;
9. The social security number and signature of the owner, managing partner or officer, or person authorized to complete the registration application;
10. The non-refundable application fee, as set by the executive council.
I am the sole owner of my facility. I am considering incorporating. Will that affect my facility registration?
Yes. The Board rules state that a registration may not be sold or transferred, and that a change in the type of ownership requires a new registration.
Who may own a OT or PT facility?
The Boards have no rules restricting ownership of a facility. There is no requirement that an OT own an OT facility, or a PT own a PT facility, nor any restriction against other professionals owning an OT or PT facility. For information about state requirements for business organizations, you should consult an attorney or the Texas Secretary of State's webpage. The Boards take no position on the type of partnership or incorporation.
