Amended in Senate August 15, 2016

Amended in Senate June 9, 2016

Amended in Senate May 23, 2016

Amended in Assembly April 11, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2024


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 or doctors ofbegin delete podiatricend deletebegin insert pediatricend insert 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, responsibilities, 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 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.begin insert The bill would, on and after July 1, 2017, and until July 1, 2023, require a federally critical access hospital employing those medical professionals under this authorization to submit a report, on or before July 1 of each year, to the office as specified.end insert

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

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

P2    1

SECTION 1.  

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

3

2401.  

(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
P3    1not interfere with, control, or otherwise direct the professional
2judgment of a physician and surgeon in a manner prohibited by
3Section 2400 or any other law.

4(d) Notwithstanding Section 2400, a hospital that is owned and
5operated by a licensed charitable organization, that offers only
6 pediatric subspecialty care, that, prior to January 1, 2013, employed
7licensees on a salary basis, and that has not charged for professional
8services rendered to patients may, commencing January 1, 2013,
9charge for professional services rendered to patients, provided the
10following conditions are met:

11(1) The hospital does not increase the number of salaried
12licensees by more than five licensees each year.

13(2) The hospital does not expand its scope of services beyond
14pediatric subspecialty care.

15(3) The hospital accepts each patient needing its scope of
16services regardless of his or her ability to pay, including whether
17the patient has any form of health care coverage.

18(4) The medical staff concur by an affirmative vote that the
19licensee’s employment is in the best interest of the communities
20served by the hospital.

21(5) The hospital does not interfere with, control, or otherwise
22direct a physician and surgeon’s professional judgment in a manner
23prohibited by Section 2400 or any other law.

24(e) (1) Notwithstanding Section 2400, until January 1, 2024, a
25federally certified critical access hospital may employ licensees
26and charge for professional services rendered by those licensees
27to patients, provided both of the following conditions are met:

28(A) The medical staff concur by an affirmative vote that the
29licensee’s employment is in the best interest of the communities
30served by the hospital.

31(B) The hospital does not interfere with, control, or otherwise
32direct a physician and surgeon’s professional judgment in a manner
33prohibited by Section 2400 or any other law.

34(2) (A) On or before July 1, 2023, the Office of Statewide
35Health Planning and Development shall provide a report to the
36Legislature containing data about the impact of paragraph (1) on
37federally certified critical access hospitals and their ability to recruit
38and retain physicians and surgeons between January 1, 2017, and
39January 1, 2023, inclusive. This report shall be submitted in
40compliance with Section 9795 of the Government Code.begin insert The
P4    1requirement for submitting a report imposed under this
2subparagraph end insert
begin insertis inoperative on July 1, 2027.end insert

3(B) Thebegin delete requirement for submitting a report imposed under
4subparagraph (A) is inoperative on July 1, 2027.end delete
begin insert office shall
5determine the format of the report, as well as the methods and
6data elements to be utilized in the development of the report.end insert

begin insert

7
(C) On and after July 1, 2017, a federally certified critical
8access hospital that is employing licensees and charging for
9professional services rendered by those licensees to patients under
10this section shall submit to the office, on or before July 1 of each
11year, a report for any year in which that hospital has employed
12or is employing licensees and charging for professional services
13rendered by those licensees to patients. The report shall include
14data elements as required by the office and shall be submitted in
15a format as required by the office. The requirement for submitting
16reports imposed under this subparagraph shall be inoperative on
17July 1, 2023.

end insert


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