AB 2744, as introduced, Gordon. Healing arts: referrals.
Existing law provides for the licensure and regulation of various healing arts professions and vocations by boards within the Department of Consumer Affairs. Under existing law, it is unlawful for licensed healing arts practitioners, except as specified, to offer, deliver, receive, or accept any rebate, refund, commission, preference, patronage dividend, discount, or other consideration, in the form of money or otherwise, as compensation or inducement for referring patients, clients, or customers to any person. Existing law makes a violation of this provision a public offense punishable upon a first conviction by imprisonment, as specified, or a fine not exceeding $50,000, or by imprisonment and that fine.
This bill would provide that the payment or receipt of consideration for advertising, wherein a licensed healing arts practitioner offers or sells prepaid services, does not constitute a referral of services.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 650 of the Business and Professions Code
2 is amended to read:
(a) Except as provided in Chapter 2.3 (commencing with
4Section 1400) of Division 2 of the Health and Safety Code, the
5offer, delivery, receipt, or acceptance by any person licensed under
6this division or the Chiropractic Initiative Act of any rebate, refund,
7commission, preference, patronage dividend, discount, or other
8consideration, whether in the form of money or otherwise, as
9compensation or inducement for referring patients, clients, or
10customers to any person, irrespective of any membership,
11proprietary interest, or coownership in or with any person to whom
12these patients, clients, or customers are referred is unlawful.
13(b) The payment or receipt of consideration for services other
14than the referral of patients which is based on a percentage of gross
15revenue or
similar type of contractual arrangement shall not be
16unlawful if the consideration is commensurate with the value of
17the services furnished or with the fair rental value of any premises
18or equipment leased or provided by the recipient to the payer.
19(c) The offer, delivery, receipt, or acceptance of any
20consideration between a federally qualified health center, as defined
21in Section 1396d(l)(2)(B) of Title 42 of the United States Code,
22and any individual or entity providing goods, items, services,
23donations, loans, or a combination thereof to the health center
24entity pursuant to a contract, lease, grant, loan, or other agreement,
25if that agreement contributes to the ability of the health center
26entity to maintain or increase the availability, or enhance the
27quality, of services provided to a medically underserved population
28served by the health center, shall be permitted only to the extent
29sanctioned or permitted by federal law.
30(d) Except as provided in Chapter 2.3 (commencing with Section
311400) of Division 2 of the Health and Safety Code and in Sections
32654.1 and 654.2 of this code, it shall not be unlawful for any person
33licensed under this division to refer a person to any laboratory,
34pharmacy, clinic (including entities exempt from licensure pursuant
35to Section 1206 of the Health and Safety Code), or health care
36facility solely because the licensee has a proprietary interest or
37coownership in the laboratory, pharmacy, clinic, or health care
38facility, provided, however, that the licensee’s return on investment
P3 1for that proprietary interest or coownership shall be based upon
2the amount of the capital investment or proportional ownership of
3the licensee which ownership interest is not based on the number
4or value of any patients referred. Any referral excepted under this
5section shall be unlawful if the prosecutor proves that there was
6no valid medical need for the
referral.
7(e) Except as provided in Chapter 2.3 (commencing with Section
81400) of Division 2 of the Health and Safety Code and in Sections
9654.1 and 654.2 of this code, it shall not be unlawful to provide
10nonmonetary remuneration, in the form of hardware, software, or
11information technology and training services, as described in
12subsections (x) and (y) of Section 1001.952 of Title 42 of the Code
13of Federal Regulations, as amended October 4, 2007, as published
14in the Federal Register (72 Fed. Reg. 56632 and 56644), and
15subsequently amended versions.
16(f) “Health care facility” means a general acute care hospital,
17acute psychiatric hospital, skilled nursing facility, intermediate
18care facility, and any other health facility licensed by the State
19Department of Public Health under Chapter 2 (commencing with
20Section 1250) of Division 2 of the Health and Safety Code.
21(g) The payment or receipt of consideration for advertising,
22wherein a licensee offers or sells prepaid services, shall not
23constitute a referral of patients. To the extent the licensee
24determines, after consultation with the purchaser of the prepaid
25service, that a prepaid service is not appropriate for the purchaser,
26the licensee shall provide the purchaser a refund of the full
27purchase price.
28(g)
end delete
29begin insert(h)end insert A violation of this section is a public offense and is
30punishable upon a first conviction by imprisonment in a county
31jail for not more than one year, or by imprisonment pursuant to
32
subdivision (h) of Section 1170 of the Penal Code, or by a fine not
33exceeding fifty thousand dollars ($50,000), or by both that
34imprisonment and fine. A second or subsequent conviction is
35punishable by imprisonment pursuant to subdivision (h) of Section
361170 of the Penal Code, or by that imprisonment and a fine of fifty
37thousand dollars ($50,000).
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