BILL NUMBER: AB 2024	INTRODUCED
	BILL TEXT


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:

  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 board
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 Health Care Services, 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 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 professional 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 licensees 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 care coverage.
   (4) The medical staff concur by an affirmative vote that the
licensee'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 a physician and surgeon's professional judgment in a manner
prohibited by Section 2400 or any other  provision of
 law. 
   (e) Notwithstanding Section 2400, a federally certified critical
access hospital may employ licensees and charge for professional
services rendered by those licensees. However, the critical access
hospital 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 law.