BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1000
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1000 (Wieckowski and Maienschein)
          As Amended  September 6, 2013
          Majority vote
           
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          |ASSEMBLY:  |77-0 |(May 29, 2013)  |SENATE: |33-0 |(September 10, |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    B., P. & C.P.  

           SUMMARY  :  Allows patients to access physical therapy services  
          without a referral for 45 calendar days or 12 visits, whichever  
          comes first, after which the patient must receive an in-person  
          examination from a physician and surgeon or podiatrist, who must  
          also sign off on the physical therapist's plan of care; expands  
          the types of licensed professionals permitted to work for a  
          professional corporation; and permits a licensed physical  
          therapist (PT) to be a shareholder, officer, or director of a  
          medical and podiatric professional corporation, as specified.   
          Specifically,  this bill  :  

          1)Requires a physician and surgeon, podiatrist, or other  
            referring practitioner who refers a patient to receive  
            services from a PT employed by a professional corporation to  
            comply with existing law regarding financial arrangements for  
            referrals, and requires the referring practitioner to provide  
            notice to the patient, orally and in writing, in a least  
            14-point type and signed by the patient, of the following:

             a)   That the patient may seek physical therapy treatment  
               services from a PT of his or her choice who may not  
               necessarily be employed by the medical or podiatry  
               corporation; and,

             b)   If the patient chooses to be treated by an employed PT,  
               the financial interest, if any, the referring practitioner  
               has in the corporation.

          2)States that the provision requiring the referring practitioner  
            to provide notice that the patient may go to the PT of his or  
            her choice, and to notify the patient of any financial  
            interest the referring provider has in the medical  
            corporation, shall not apply to a physician and surgeon,  








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            podiatrist, or other referring practitioner who is in a  
            medical group with which a licensed non-profit health care  
            service plan exclusively contracts to provide professional  
            medical services.

          3)Permits a person to initiate physical therapy treatment  
            directly from a licensed PT if the treatment is within the  
            PT's scope of practice and all of the following conditions are  
            met:

             a)   If, at any time, the PT has reason to believe that the  
               patient has signs or symptoms of a condition that requires  
               treatment beyond the scope of practice of a PT, or the  
               patient is not progressing toward documented treatment  
               goals as demonstrated by objective, measurable or  
               functional improvement, the PT shall refer the patient to a  
               physician and surgeon, dentist, podiatrist, or  
               chiropractor, as appropriate;

             b)   The PT shall comply with laws relating to his or her  
               title, as specified, and shall disclose to the patient any  
               financial interest he or she has in treating the patient  
               and, if working in a physical therapy corporation, shall  
               comply with existing law regarding financial arrangements  
               for referrals, as specified;

             c)   With the patient's written authorization, the PT shall  
               notify the patient's physician and surgeon, if any, that  
               the PT is treating the patient; and,

             d)   The PT shall not continue treating the patient beyond 45  
               calendar days or 12 visits, whichever occurs first, without  
               receiving, from a physician and surgeon or a podiatrist,  
               and acting within his or her scope of practice, a dated  
               signature on the PT's plan of care indicating approval.   
               Approval of the PT's plan of care shall include an  
               in-person patient examination and evaluation of the  
               patient's condition and, if indicated, testing by the  
               physician and surgeon or podiatrist. 

          4)States that the 45 calendar day or 12 visit conditions do not  
            apply to a PT when he or she is only providing wellness  
            physical therapy services to a patient, as specified.

          5)Clarifies that this bill does not restrict or alter the scope  








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            of practice of any other health care professional.

          6)Clarifies that this bill does not expand or modify the scope  
            of practice for PTs, including the prohibition on a physical  
            therapist diagnosing a disease.

          7)States that the provisions of this bill shall not be construed  
            to require a health care service plan, insurer, workers'  
            compensation insurance plan, employer, or state program to  
            provide coverage for direct access to treatment by a PT.

          8)Requires a PT to provide notice orally and in writing, in at  
            least 14-point type and signed by the patient, to a person  
            initiating physical therapy treatment services directly but  
            before providing those services, as specified.

          9)States that violation of these provisions constitutes  
            unprofessional conduct.

          10)States that existing law which provides for the types of  
            licensees a professional corporation may employ as  
            shareholders, officers, directors, or a professional employee,  
            as specified, does not limit employment by a professional  
            corporation to only those professions specifically designated.  
             

          11)Permits any person licensed as a healing arts professional  
            under the Business and Professions Code (BPC), the  
            Chiropractic Act, or the Osteopathic Act to be employed to  
            render professional services by a professional corporation, as  
            specified.

          12)Permits a licensed PT to be a shareholder, officer, or  
            director of a medical and podiatric professional corporation,  
            as specified.

          13)Makes technical and conforming changes.

          14)Makes legislative findings and declarations.

          15)Adds language to avoid chaptering issues with SB 198 (Lieu). 

           The Senate amendments  :

          1)Clarify that the provision requiring the referring  








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            practitioner to provide notice that the patient may go to the  
            PT of his or her choice, and to notify the patient of any  
            financial interest the referring provider has in the medical  
            corporation shall not apply to a physician and surgeon,  
            podiatrist, or other referring practitioner who is in a  
            medical group with which a licensed non-profit health care  
            service plan exclusively contracts to provide medical  
            services.

          2)Clarify that the bill does not restrict or alter the scope of  
            practice of any other health care professional.

          3)Expand the list of entities that are not required, by the  
            terms of this bill, to provide coverage for direct access to  
            treatment by a physical therapist to include a workers'  
            compensation insurance plan, employers, and state programs.  

          4)Make technical and clarifying changes.

          5)Add language to avoid chaptering issues with SB 198 (Lieu). 

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee:

          1)Minor costs to update existing regulations by the Physical  
            Therapy Board (Physical Therapy Fund).  The Physical Therapy  
            Board indicates that it will need to make minor updates to  
            existing regulations, which can be performed as part of  
            ongoing updates to existing regulations at minor additional  
            cost.

          2)No additional costs to Medi-Cal, CalPERS health plans, or  
            state employers (various funds). The bill specifically  
            provides that "direct access" to physical therapy services  
            does not obligate health plans or health insurers to provide  
            coverage for such services.  Therefore, the bill will not  
            require Medi-Cal managed care plans or CalPERS health plans to  
            pay for such services.  In addition, regulations governing  
            Medi-Cal fee for service require enrollees to gain prior  
            authorization for physical therapy services, which must also  
            be prescribed by a licensed health care practitioner.

           COMMENTS  :   

           1)Purpose of this bill  .  This bill would allow consumers to have  








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            direct access without physician referral to a PT for treatment  
            for up to 45 calendar days or 12 visits, whichever comes  
            first.  It also authorizes the creation of a professional  
            physical therapy corporation, and generally permits any  
            healing arts licensee to be a shareholder, officer, director,  
            or professional employee of an authorized professional  
            corporation.  AB 1000 aims to represent the reconciled  
            interests of certain physician, orthopedic physician, and  
            physical therapist groups as they relate to direct access to  
            physical therapy and employment in professional corporations.   
            This bill is sponsored by the California Physical Therapy  
            Association.   

           2)Access to physical therapy in California  .  Under current law,  
            a PT may work with a patient directly to "promote and maintain  
            physical fitness," but a PT must have a doctor's diagnosis and  
            referral to "perform tissue penetration for the purpose of  
            evaluating neuromuscular performance," on a patient, which is  
            essentially the heart of physical therapy practice.  This  
            interpretation of law is based on a 1965 Attorney General  
            Opinion.  

            MediCal covers physical therapy services but requires that a  
            patient be under the care of a physician.  MediCal also  
            requires that the services be furnished pursuant to a plan of  
            care, and that the plan be certified and recertified  
            periodically by a physician (usually every 30 days).

            According to the Federation of State Physical Therapy Boards  
            (FSPTB), there are 17 jurisdictions that have unlimited direct  
            access to physical therapy, 30 jurisdictions with limited  
            direct access and 6 jurisdictions that have no direct access.   
            This bill would make California a limited direct access state,  
            allowing patients to visit a PT for 45 days or 12 visits,  
            whichever comes first, before requiring an in-person  
            examination by a physician.  The rationale for limited direct  
            access is that any condition serious enough that it cannot be  
            resolved within 45 days or 12 visits warrants examination and  
            possible diagnosis by a physician to rule out more serious  
            problems.  

           3)Professional corporations  .  A professional corporation is an  
            organization made up primarily of individuals of the same  
            trade or profession.  The Moscone-Knox Professional  
            Corporations Act of 1968 authorized the formation of  








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            professional corporations to obtain certain benefits of the  
            corporate form of doing business, such as limited legal  
            liability.  Current law specifies which healing arts licensees  
            may be shareholders, officers, directors or professional  
            employees of professional corporations controlled by a  
            differing profession so long as the sum of all shares owned by  
            those differently licensed persons does not exceed 49% of the  
            total number of shares of the professional corporation.  

            This bill would also authorize the creation of a PT  
            corporation, allow any person licensed under BPC, the  
            Chiropractic Act, or the Osteopathic Act to be employed to  
            render professional services under the 16 authorized types of  
            professional corporations, and permit a PT to be a  
            shareholder, officer, or director of a medical or podiatric  
            professional corporation. 
           

          Analysis Prepared by  :    Sarah Huchel / B.,P. & C.P. / (916)  
          319-3301 


          FN:  
          0002730