A law requiring businesses — including certain health systems and practices — to report who owns or has significant control over their operations went into effect in January.
Complying with the law is something that ASCs and other healthcare entities should prioritize, according to a June 10 post by healthcare revenue cycle management company Coronis Health.
The Corporate Transparency Act requires that companies report "beneficial ownership" information to the U.S. Department of Treasury's Financial Crimes Enforcement Network, with the term "beneficial ownership" defined as anyone who directly or indirectly exercises substantial control over the company, or owns or controls 25% or more of the company's ownership interests, according to the post.
Each company must report its owners' full name, residential address and date of birth, along with an image of identification for each owner. Each company is required to report information such as where it was formed and its current address, according to Coronis. Businesses that do not report the required information are subject to civil penalties of up to $500 per day or criminal penalties of up to two years in prison and a fine of up to $10,000.
Per Coronis, there are companies that are exempt from the law, including insurance companies, accounting firms, public utilities, banks and tax-exempt entities. Companies that were created prior to Jan. 1 have one year to file its report, while companies created during 2024 have 90 days to file a report. Companies created after Jan. 1, 2025, have to file within 30 days.
Ownership information can be filed independently here.