AB 2024, as amended, 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.
Thisbegin delete billend deletebegin insert bill, until January 1, 2024,end insert wouldbegin insert alsoend insert 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.begin insert The bill would require the Legislative Analyst, on or before July 1, 2023, to provide a report to the Legislature containing data on the impact of this authorization on federally certified critical access hospitals.end insert
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 2401 of the Business and Professions
2Code is amended to read:
(a) Notwithstanding Section 2400, a clinic operated
4primarily for the purpose of medical education by a public or
5private nonprofit university medical school, which is approved by
6the board or the Osteopathic Medical Board of California, may
7charge for professional services rendered to teaching patients by
8licensees who hold academic appointments on the faculty of the
9university, if the charges are approved by the physician and surgeon
10in whose name the charges are made.
11(b) Notwithstanding Section 2400, a clinic operated under
12subdivision (p) of Section 1206 of the Health and Safety Code
13may employ licensees and charge for professional services rendered
14by those licensees. However,
the clinic shall not interfere with,
15control, or otherwise direct the professional judgment of a
16physician and surgeon in a manner prohibited by Section 2400 or
17any other law.
18(c) Notwithstanding Section 2400, a narcotic treatment program
19operated under Section 11876 of the Health and Safety Code and
20regulated by the State Department of Health Care Services, may
21employ licensees and charge for professional services rendered by
22those licensees. However, the narcotic treatment program shall
23not interfere with, control, or otherwise direct the professional
24judgment of a physician and surgeon in a manner prohibited by
25Section 2400 or any other law.
26(d) Notwithstanding Section 2400, a hospital that is owned and
27operated by a licensed charitable organization, that offers only
28
pediatric subspecialty care, that, prior to January 1, 2013, employed
29licensees on a salary basis, and that has not charged for professional
30services rendered to patients may, commencing January 1, 2013,
31charge for professional services rendered to patients, provided the
32following conditions are met:
33(1) The hospital does not increase the number of salaried
34licensees by more than five licensees each year.
35(2) The hospital does not expand its scope of services beyond
36pediatric subspecialty care.
P3 1(3) The hospital accepts each patient needing its scope of
2services regardless of his or her ability to pay, including whether
3the patient has any form of health care coverage.
4(4) The medical staff concur by an affirmative vote that the
5licensee’s employment is in the best interest of the communities
6served by the hospital.
7(5) The hospital does not interfere with, control, or otherwise
8direct a physician and surgeon’s professional judgment in a manner
9prohibited by Section 2400 or any other law.
10(e) begin insert(1)end insertbegin insert end insert Notwithstanding Section 2400,begin insert until January 1, 2024,end insert
11 a federally certified critical access hospital may employ licensees
12and charge for
professional services rendered by those licensees.
13However, the critical access hospital shall not interfere with,
14control, or otherwise direct the professional judgment of a
15physician and surgeon in a manner prohibited by Section 2400 or
16any other law.
17
(2) On or before July 1, 2023, the Legislative Analyst shall
18provide a report to the Legislature containing data about the
19impact of paragraph (1) on federally certified critical access
20hospitals between January 1, 2017, and January 1, 2024, inclusive.
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