Section 12AA. Any person registered or licensed pursuant to this chapter who refers a patient for physical therapy services to any partnership, corporation, firm or other legal entity in which the registered or licensed person has a financial ownership interest shall disclose such interest to the patient and shall inform the patient that such services may be available from other physical therapists in the patient’s community.

Terms Used In Massachusetts General Laws ch. 112 sec. 12AA

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Interests: includes any form of membership in a domestic or foreign nonprofit corporation. See Massachusetts General Laws ch. 156D sec. 11.01
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.

Each patient who is referred by a registered or licensed person shall be furnished by each registered or licensed person with a written referral which states conspicuously on its face the following:

”The referring registered or licensed person maintains an ownership interest in the facility to which you are being referred for physical therapy service. Physical therapy services may be available elsewhere in the community.”

A physician shall also disclose such ownership interest to the board of registration in medicine on a form to be prescribed by such board. Such disclosure shall contain the names and ownership interests of all other parties owning an interest in such physical therapy service.

For the purposes of this section, the term ”ownership interest” shall mean any and all ownership interest including, but not limited to, any membership, proprietary interest, stock interest, partnership interest, co-ownership in any form or any profit-sharing arrangement but shall not apply to financial arrangements between a health maintenance organization organized in accordance with chapter one hundred and seventy-six G, or a preferred provider arrangement organized in accordance with chapter one hundred and seventy-six I, and its participating providers, and shall not apply to financial arrangements among participating providers of such health maintenance organization or such preferred provider arrangement.

The board of registration in medicine shall prescribe by regulations that physicians report such ownership interest to the said board.

The board of registration in medicine may prescribe by regulations that physicians report referrals to the said board. Violation of this section shall constitute grounds for disciplinary action by the board of registration in medicine.

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