APRN co-own business - Texas

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Hey all,

I am a Psychiatric Mental Health NP in Texas, and my team and I, which consists of a psychiatrist (MD), and a PA-C, want to open an outpatient practice. I am aware that the MD would have to own 51% of the business at least, correct? Also, is the PA or myself able to co-own the business with him? I have not been able to find any clear answers and am not sure where to look or whom to reach out to in this particular case other than the BON and they really aren't able to clarify much on the legal aspect of co-owning businesses from what I have read.

Thanks for your help.

Steve PMHNP-BC

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From what I know regarding the laws in Texas. MD and Pa's may own a business together with a 51% MD and 49% PA relationship.

APRNs and MDs by law are not able to be business owners together in Texas. APRN must be 100% owner in collaboration with the MD or Vice versa.

This has not been confirmed but this was the legal information I was told by a attorney here in Texas.

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Specializes in FNP.

I would try the Texas Medical Board. As smd2521 posted, we were told in class that NPs are not allowed to partner with MDs in Texas.

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I was going to suggest you and the PA getting together as business partners and going 50/50 on the clinic and just pay a monthly service fee to the MD to sign off a small percent of your charts, not sure what percent is required in Texas. I know some CRNP's who have done this and love it and make tons of money and the autonomy is unheard of! That would probably be the only way I would practice if I chose the NP route.

I'm not sure how much Texas allows their NP's to prescribe in the realm of psych meds though so that could possibly be an issue. Also I think sadly your friend PA isn't allowed to strike it out on his own. I believe he is only allowed to practice directly "under" the MD so it looks like you'd have to find another NP to team up with as well.

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I was going to suggest you and the PA getting together as business partners and going 50/50 on the clinic and just pay a monthly service fee to the MD to sign off a small percent of your charts, not sure what percent is required in Texas. I know some CRNP's who have done this and love it and make tons of money and the autonomy is unheard of! That would probably be the only way I would practice if I chose the NP route.

I'm not sure how much Texas allows their NP's to prescribe in the realm of psych meds though so that could possibly be an issue. Also I think sadly your friend PA isn't allowed to strike it out on his own. I believe he is only allowed to practice directly "under" the MD so it looks like you'd have to find another NP to team up with as well.

THIS^

Even if state law permits it, not a good idea to go into a principal split share type of business partnership with a physician. Get another NP to partner with and pay the MD/DO the monthly dowry for the collaborating relationship. You will avoid many headaches and you will be better off financially.

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