non-chiropractor-own-a-chiropractic-practice

Can a Non-Chiropractor Own a Chiropractic Practice in the State of…?

Investors and other buyers looking to purchase a chiropractic business often email us to ask “Can a non-chiropractor own a chiropractic practice?”
The quick answer is that in approximately half of the states,  it is legal for a non-chiropractor to own a chiropractic practice.  And of course, that means that the other half of the states do not permit non-DC ownership.  So the best answer is: it depends.
How Chiropractic Franchises, Multi-Disciplinary Practices Get Around this Rule
The primary reason that the answer to this question is not a fixed one is the fact that each state can establish its own set of rules or requirements regarding if a non-chiropractor can own a chiropractic practice.
But a quick survey of businesses in any given state will reveal that there are chiropractic franchises and multi-disciplinary practices being operated and owned by non-chiropractors. So how do they get around this rule?
The answer is fairly simple — the legal structure of the business ownership.
I’m not an attorney and not privy to the exact details of how the legal structure workaround takes place, but a simplistic explanation is that a management entity corporation is created to own the chiropractic practice.  That management company is “owned” by a chiropractor or chiropractic group.  The actual business can then be owned and operated by whoever underneath that management company. Depending on whether the management company is a franchise, an individual investor or some other variation on the theme, the business(owned by the non-DC) pays the management company a flat fee, royalty or some other arrangement for their ownership of the chiropractic practice.
This is how chiropractic franchises such as The Joint Chiropractic® and similar businesses operates in every state and why non-DCs own those franchises, even though they may be located in a state that does not permit a non-DC’s to own a chiropractic practice.
Which States Do NOT Permit a Non-Chiropractor to Own a Chiropractic Practice
In their franchise disclosure document, The Joint Chiropractic® points out which states would require setting up a separate entity to get around the issue of non-DC owners. (see link)  According to their research, the following states forbid non-DC ownership:
1. Arkansas
2. California
3. Colorado
4. District of Columbia
5. Florida
6. Hawaii
7. Illinois
8. Kansas
9. Kentucky
10. Maryland
11. Michigan
12. Minnesota
13. New Jersey
14. New York
15. North Carolina
16. Oregon
17. Pennsylvania
18. Rhode Island
19. South Dakota
20. Tennessee
21. Vermont
22. Washington
23. West Virginia
24. Wyoming
Accordingly, in these states, you would have to set up a management entity to legally work around this issue.
Which States ALLOW a Non-Chiropractor to Own a Chiropractic Practice
These states fall on the other side of the fence and, at this time, do not have any rules expressly forbidding a non-chiropractor to own a chiropractic practice:
1. Alabama*
2. Alaska
3. Arizona
4. Connecticut
5. Delaware
6. Georgia
7. Idaho
8. Indiana
9. Iowa
10. Louisiana
11. Maine
12. Massachusetts*
13. Mississippi
14. Missouri
15. Montana
16. Nebraska
17. Nevada
18. New Hampshire
19. New Mexico
20. North Dakota
21. Ohio
22. Oklahoma
23. Texas
24. Utah
25. Virginia
26. Wisconsin
*Alabama and Massachusetts fall in between and permit a non-DC to own a practice, but require a special permit or registration.
Do Your Due Diligence
This intent of this article is to help both chiropractors looking to sell their practice and buyers looking to purchase a chiropractic practice navigate the issue and answer the question “can a non-chiropractor own a chiropractic practice?”
It is NOT intended to be legal advice and the information above can change within a moments notice, so it is upon you to verify its accuracy.   In other words, to definitively answer this question, you should do your legal research to confirm this info with the state you wish to own a practice.