California based physical therapists must make sure their business arrangements are very clear. The California Physical Therapy Association is available to assist in defining new business arrangements that comply with the laws.
The State of California Legislative Counsel has rendered an opinion that it is illegal for PTs to be employed by any professional corporation except for those owned by physical therapists and Naturopaths. In its opinion, the Legislative Counsel confirms that, because the existing California Corporations Code does not specifically include physical therapists on the list of those who may be employed by a medical corporation, a physical therapist is prohibited from providing physical therapy services as an employee of a medical corporation, podiatric corporation, or chiropractic corporation. This ruling means that physical therapists in these employment situations may be subject to discipline by the Physical Therapy Board of California (PTBC).