California Legislature—2015–16 Regular Session

Assembly BillNo. 2024


Introduced by Assembly Member Wood

(Coauthors: Assembly Members Bigelow, Dahle, Gallagher, and Obernolte)

February 16, 2016


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

LEGISLATIVE COUNSEL’S DIGEST

AB 2024, as introduced, Wood. Critical access hospitals: employment.

Existing law, the Medical Practice Act, restricts the employment of physicians and surgeons and doctors of podiatric medicine by a corporation or other artificial legal entity to entitites that do not charge for professional services rendered to patients and are approved by the Medical Board of California, subject to specified exemptions.

This bill would authorize a federally certified critical access hospital to employ those medical professionals and charge for professional services rendered by those medical professionals, and would prohibit the critical access hospital from directing or interfering with the professional judgment of a physician and surgeon, as specified.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1

SECTION 1.  

Section 2401 of the Business and Professions
2Code
is amended to read:

P2    1

2401.  

(a) Notwithstanding Section 2400, a clinic operated
2primarily for the purpose of medical education by a public or
3private nonprofit university medical school, which is approved by
4the board or the Osteopathic Medical Board of California, may
5charge for professional services rendered to teaching patients by
6licensees who hold academic appointments on the faculty of the
7university, if the charges are approved by the physician and surgeon
8in whose name the charges are made.

9(b) Notwithstanding Section 2400, a clinic operated under
10subdivision (p) of Section 1206 of the Health and Safety Code
11may employ licensees and charge for professional services rendered
12by those licensees. However, the clinic shall not interfere with,
13control, or otherwise direct the professional judgment of a
14physician and surgeon in a manner prohibited by Section 2400 or
15any otherbegin delete provision ofend delete law.

16(c) Notwithstanding Section 2400, a narcotic treatment program
17operated under Section 11876 of the Health and Safety Code and
18regulated by the State Department of Health Care Services, may
19employ licensees and charge for professional services rendered by
20those licensees. However, the narcotic treatment program shall
21not interfere with, control, or otherwise direct the professional
22judgment of a physician and surgeon in a manner prohibited by
23Section 2400 or any otherbegin delete provision ofend delete law.

24(d) Notwithstanding Section 2400, a hospital that is owned and
25operated by a licensed charitable organization, that offers only
26 pediatric subspecialty care, that, prior to January 1, 2013, employed
27licensees on a salary basis, and that has not charged for professional
28services rendered to patients may, commencing January 1, 2013,
29charge for professional services rendered to patients, provided the
30following conditions are met:

31(1) The hospital does not increase the number of salaried
32licensees by more than five licensees each year.

33(2) The hospital does not expand its scope of services beyond
34pediatric subspecialty care.

35(3) The hospital accepts each patient needing its scope of
36services regardless of his or her ability to pay, including whether
37the patient has any form of health care coverage.

38(4) The medical staff concur by an affirmative vote that the
39licensee’s employment is in the best interest of the communities
40served by the hospital.

P3    1(5) The hospital does not interfere with, control, or otherwise
2direct a physician and surgeon’s professional judgment in a manner
3prohibited by Section 2400 or any otherbegin delete provision ofend delete law.

begin insert

4(e) Notwithstanding Section 2400, a federally certified critical
5access hospital may employ licensees and charge for professional
6services rendered by those licensees. However, the critical access
7hospital shall not interfere with, control, or otherwise direct the
8professional judgment of a physician and surgeon in a manner
9prohibited by Section 2400 or any other law.

end insert


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