BILL NUMBER: SB 1274	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 9, 2012

INTRODUCED BY   Senator Wolk

                        FEBRUARY 23, 2012

   An act to amend Section 2401 of the Business and Professions Code,
relating to healing arts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1274, as amended, Wolk. Healing arts: hospitals: employment.
   Existing law, the Medical Practice Act, restricts the employment
of licensed physicians and surgeons and podiatrists by a corporation
or other artificial legal entity, subject to specified exemptions.
   This bill would authorize a hospital that is owned and operated by
a licensed charitable organization, that offers only pediatric
subspecialty care, that, prior to January 1, 2013, employed licensees
on a salary basis, and that has not charged for professional
services rendered to patients, to charge for services rendered to
patients, provided certain conditions are met, including, but not
limited to, that the hospital does not increase the number of
salaried licensees by more than 5 each year  and 
 ,  that the hospital accepts each patient regardless of his
or her ability to pay  , and that the medical staff concur by an
affirmative vote that the physician and surgeon's employment meets a
specified standard  .
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2401 of the Business and Professions Code is
amended to read:
   2401.  (a) Notwithstanding Section 2400, a clinic operated
primarily for the purpose of medical education by a public or private
nonprofit university medical school, which is approved by the
Division of Licensing or the Osteopathic Medical Board of California,
may charge for professional services rendered to teaching patients
by licensees who hold academic appointments on the faculty of the
university, if the charges are approved by the physician and surgeon
in whose name the charges are made.
   (b) Notwithstanding Section 2400, a clinic operated under
subdivision (p) of Section 1206 of the Health and Safety Code may
employ licensees and charge for professional services rendered by
those licensees. However, the clinic shall not interfere with,
control, or otherwise direct the professional judgment of a physician
and surgeon in a manner prohibited by Section 2400 or any other
provision of law.
   (c) Notwithstanding Section 2400, a narcotic treatment program
operated under Section 11876 of the Health and Safety Code and
regulated by the State Department of Alcohol and Drug Programs, may
employ licensees and charge for professional services rendered by
those licensees. However, the narcotic treatment program shall not
interfere with, control, or otherwise direct the professional
judgment of a physician and surgeon in a manner prohibited by Section
2400 or any other provision of law.
   (d) Notwithstanding Section 2400, a hospital owned and operated by
a health care district pursuant to Division 23 (commencing with
Section 32000) of the Health and Safety Code may employ a licensee
pursuant to Section 2401.1, and may charge for professional services
rendered by the licensee, if the physician and surgeon in whose name
the charges are made approves the charges. However, the hospital
shall not interfere with, control, or otherwise direct the physician
and surgeon's professional judgment in a manner prohibited by Section
2400 or any other provision of law.
   (e) Notwithstanding Section 2400, a hospital that is owned and
operated by a licensed charitable organization, that offers only
pediatric subspecialty care, that, prior to January 1, 2013, employed
licensees on a salary basis, and that has not charged for
professional services rendered to patients may, commencing January 1,
2013, charge for services rendered to patients, provided the
following conditions are met:
   (1) The hospital does not increase the number of salaried
licensees by more than five physicians and surgeons or podiatrists
each year.
   (2) The hospital does not expand its scope of services beyond
pediatric subspecialty care.
   (3) The hospital accepts each patient needing its scope of
services regardless of his or her ability to pay, including whether
the patient has any form of health insurance. 
   (4) The medical staff concur by an affirmative vote that the
physician and surgeon's employment is in the best interest of the
communities served by the hospital.  
   (5) The hospital does not interfere with, control, or otherwise
direct the physician and surgeon's professional judgment in a manner
prohibited by Section 2400 or any other provision of law.