California Nursing Home Administrator License Practice Exam

What percentage of ownership interest is considered to indicate a controlling interest for an applicant or licensee?

1. 5%

2. 10%

3. 3%

4. 15%

The correct answer is: 5%

The correct answer indicates that a 5% ownership interest is the threshold for establishing a controlling interest in the context of licensing for nursing home administrators in California. This percentage is significant because it reflects the regulatory framework within which control and decision-making authority in a facility are assessed. In the realm of nursing home management, having even a small percentage of ownership can imply significant influence over operations and policies, especially if combined with other ownership interests or management agreements. This standard helps ensure that individuals who have any meaningful stake in a facility are subject to the scrutiny of regulatory oversight, thereby maintaining accountability in managing care standards and business practices. Understanding this percentage is crucial for applicants and licensees as it aligns with regulatory requirements aimed at safeguarding resident care and upholding facility integrity.