AB 2744, as amended, 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 sellsbegin delete prepaid services,end deletebegin insert services on an Iend insertbegin insertnternet platform,end insert does not constitute a referral ofbegin delete services.end deletebegin insert patients. The bill would require the purchaser of the service to receive a refund of the full purchase price if the licensee determines, after consultation with the purchaser, that the service is not appropriate for the purchaser. The bill would specify that these provisions do not apply to basic health care services or essential health benefits, as defined. The bill would also provide that the entity that provides end insertbegin insertadvertising
is required to be able to demonstrate that the licensee consented in writing to these provisions.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:
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
P3 1654.1 and 654.2 of this code, it shall not be unlawful for any person
2licensed under this division to refer a person to any laboratory,
3pharmacy, clinic (including entities exempt from licensure pursuant
4to Section 1206 of the Health and Safety Code), or health care
5facility solely because the licensee has a proprietary interest or
6coownership in the laboratory, pharmacy, clinic, or health care
7facility, provided, however, that the licensee’s return on investment
8for that proprietary interest or coownership shall be based upon
9the amount of the capital investment or proportional ownership of
10the licensee which ownership interest is not based on the number
11or value of any patients referred. Any referral excepted under this
12section shall be unlawful if the prosecutor proves that there was
13no valid medical need for the
referral.
14(e) Except as provided in Chapter 2.3 (commencing with Section
151400) of Division 2 of the Health and Safety Code and in Sections
16654.1 and 654.2 of this code, it shall not be unlawful to provide
17nonmonetary remuneration, in the form of hardware, software, or
18information technology and training services, as described in
19subsections (x) and (y) of Section 1001.952 of Title 42 of the Code
20of Federal Regulations, as amended October 4, 2007, as published
21in the Federal Register (72 Fed. Reg. 56632 and 56644), and
22subsequently amended versions.
23(f) “Health care facility” means a general acute care hospital,
24acute psychiatric hospital, skilled nursing facility, intermediate
25care facility, and any other health facility licensed by the State
26Department of Public Health under Chapter 2 (commencing with
27Section 1250) of Division 2 of the Health and Safety Code.
28(g) The payment or receipt of consideration for advertising,
29wherein a licensee offers or sellsbegin delete prepaid services,end deletebegin insert services on an
30Internet platform,end insert shall not constitute a referral of patients. To the
31extent the licensee determines, after consultation with the purchaser
32of thebegin delete prepaidend delete service, thatbegin delete a prepaidend deletebegin insert theend insert service is not appropriate
33for the purchaser, thebegin delete licensee shall provide theend delete purchaserbegin insert
shall
34receiveend insert a refund of the full purchase price.begin insert This subdivision shall
35not apply to basic health care services, as defined in subdivision
36(b) of Section 1345 of the Health and Safety Code, or essential
37health benefits, as defined in Section 1367.005 of the Health and
38Safety Code and Section 10112.27 of the Insurance Code. The
39entity that provides the advertising shall be able to demonstrate
P4 1that the licensee consented in writing to the requirements of this
2subdivision.end insert
3(h) A violation of this section is a public offense and is
4punishable upon a first conviction by imprisonment in a county
5jail for not more than one year, or by imprisonment pursuant to
6subdivision (h) of Section 1170 of the Penal Code, or by a fine not
7exceeding fifty thousand dollars ($50,000), or by both that
8imprisonment and fine. A second or
subsequent conviction is
9punishable by imprisonment pursuant to subdivision (h) of Section
101170 of the Penal Code, or by that imprisonment and a fine of fifty
11thousand dollars ($50,000).
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