If you are a private equity (PE) firm that invests in physician practice management companies, it is a common question: What constitutes control, and how much is too much? This is a question that commonly has been asked under state law corporate practice of medicine prohibitions. On the flip side, control, and having enough of it, is paramount to being able to consolidate managed physician practices for GAAP financial reporting purposes and federal income tax purposes. For 2024 and beyond, layer onto that the complexities of complying with the Corporate Transparency Act (CTA), and you just may have a riddle wrapped in a mystery inside an enigma.
Read the full article: What Constitutes Control and How Much is Too Much? Considerations for Private Equity Firms and Their Physician Practice Management Companies under the Corporate Transparency Act //
Source: https://www.bassberry.com/news/corporate-transparency-act-physician-practice-management-private-equity