BILL NUMBER: AB 2024 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 9, 2016
AMENDED IN SENATE MAY 23, 2016
AMENDED IN ASSEMBLY APRIL 11, 2016
INTRODUCED BY Assembly Member Wood
(Coauthors: Assembly Members Bigelow, Dahle, Gallagher, and
Obernolte)
( Coauthor: Senator Gaines
)
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 amended, Wood. Critical access hospitals: employment.
Existing law, the Medical Practice Act, restricts the employment
of physicians and surgeons and or
doctors of podiatric medicine by a corporation or other artificial
legal entity to entities that do not charge for professional services
rendered to patients and are approved by the Medical Board of
California, subject to specified exemptions. Existing law
establishes the Office of Statewide Health Planning and Development,
which succeeds to and is vested with all the duties, powers,
responsibilitie s, and jurisdiction of the State
Department of Public Health relating to health planning and research
development.
This bill, until January 1, 2024, would also authorize a federally
certified critical access hospital to employ those medical
professionals and charge for professional services rendered by those
medical professionals if the medical staff concur by an affirmative
vote that the professional's employment is in the best interest of
the communities served by the hospital and the hospital does not
direct or interfere with the professional judgment of a physician and
surgeon, as specified. The bill would require the board,
office, 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 and
their ability to recruit and retain physicians and surgeons, as
specified.
Vote: majority. Appropriation: no. Fiscal committee: yes.
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 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 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 law.
(e) (1) Notwithstanding Section 2400, until January 1, 2024, a
federally certified critical access hospital may employ licensees and
charge for professional services rendered by those licensees to
patients, provided both of the following conditions are met:
(A) 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.
(B) 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 law.
(2) (A) On or before July 1, 2023, the board
Office of Statewide Health Planning and Development
shall provide a report to the Legislature containing data about
the impact of paragraph (1) on federally certified critical access
hospitals and their ability to recruit and retain physicians and
surgeons between January 1, 2017, and January 1, 2023, inclusive.
This report shall be submitted in compliance with Section 9795 of the
Government Code.
(B) The requirement for submitting a report imposed under
subparagraph (A) is inoperative on July 1, 2027.