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Providers

Provider Disclosure Statement definitions

Ownership Interest

An individual or entity has an Ownership Interest in a Disclosing Entity if it possesses equity in the capital, stock, or profits of the Disclosing Entity. This includes being a partner in a Disclosing Entity that is organized as a Partnership, or a member of a Disclosing Entity that is organized as an LLC or similar entity. An individual or entity will be deemed to have an indirect Ownership Interest in the Disclosing Entity if that individual or entity has an Ownership Interest (as defined herein) in a different entity that possesses a direct or indirect Ownership Interest in the Disclosing Entity.

In addition, an individual or corporation will be deemed to have an Ownership Interest in a Disclosing Entity if that individual or corporation holds any mortgage, deed of trust, note, or other obligation secured by the property or assets of the Disclosing Entity, to the extent of the percentage of the value of the Disclosing Entity’s total assets so secured. For the purpose of determining an individual or entity’s Ownership Interest in the Disclosing Entity, take the sum of all forms of Ownership Interest described herein.

Control Interest

An individual or entity has a Control Interest in a Disclosing Entity to the extent that the individual or entity has operational direction or management of the Disclosing Entity, which may be maintained by any or all of the following devices:

  • The ability or authority to amend or change the corporate identity
  • The ability or authority to select members of the board of directors or trustees
  • The ability or authority to amend or change the by-laws, constitution, or other operating or management direction
  • The ability or authority to control the sale of any or all of the assets, to encumber such assets by way of mortgage or other indebtedness, to dissolve the entity, or to arrange for the sale or transfer of the Disclosing Entity to new ownership control

An individual or entity will be deemed to have an indirect Control Interest in the Disclosing Entity if that individual or entity has a Control Interest (as defined herein) in a different entity that possesses a direct or indirect Control Interest in the Disclosing Entity. For the purpose of determining an individual or entity’s Control Interest in the Disclosing Entity, take the sum of all forms of Control Interest described herein.