BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 924|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
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                                 THIRD READING


          Bill No:  SB 924
          Author:   Price (D), et al.
          Amended:  1/26/12
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEV. COMM.  :  5-2, 5/2/11
          AYES:  Price, Emmerson, Negrete McLeod, Walters, Wyland
          NOES:  Correa, Vargas
          NO VOTE RECORDED:  Corbett, Hernandez

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Physical therapists:  direct access to services 
          and professional 
                      corporations 

           SOURCE  :     Author


           DIGEST  :    This bill allows patients to initiate physical 
          therapy treatment directly from a licensed physical 
          therapist, provided the treatment is within the scope of 
          practice of a physical therapist.  In addition, this bill 
          adds licensed physical therapists and licensed occupational 
          therapists to the list of healing arts practitioners who 
          may be shareholders, officers, directors, or professional 
          employees of medical and podiatry corporations.

          ANALYSIS  :    

          Existing law:
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          1.Establishes the Physical Therapy Act, which is enforced 
            by the Physical Therapy Board of California (PT Board), 
            to license and regulate the practice of physical 
            therapists.

          2.Defines physical therapy as the art and science of 
            physical or corrective rehabilitation or of physical or 
            corrective treatment of any bodily or mental condition of 
            any person by the use of the physical, chemical, and 
            other properties of heat, light, water, electricity, 
            sound, massage, and active, passive, and resistive 
            exercise, and shall include physical therapy evaluation, 
            treatment planning, instruction and consultative 
            services.  Indicates that the practice of physical 
            therapy includes the promotion and maintenance of 
            physical fitness to enhance the bodily movement related 
            health and wellness of individuals through the use of 
            physical therapy interventions.  Specifies that the use 
            of roentgen rays and radioactive materials, for 
            diagnostic and therapeutic purposes, and the use of 
            electricity for surgical purposes, including 
            cauterization, are not authorized under the term 
            "physical therapy."  Indicates that a physical therapy 
            license issued pursuant does not authorize the diagnosis 
            of disease.

          3.Provides that an applicant for a physical therapy license 
            must be a graduate of a professional degree program of an 
            accredited postsecondary institution/s approved by the PT 
            Board, and must complete academic coursework and clinical 
            internship in physical therapy.

          4.Provides that the words "diagnose" or "diagnosis" include 
            any undertaking by any method, device, or procedure 
            whatsoever, and whether gratuitous or not, to ascertain 
            or establish whether a person is suffering from any 
            physical or mental disorder.  Such terms shall also 
            include the taking of a person's blood pressure and the 
            use of mechanical devices or machines for the purpose of 
            making a diagnosis and representing to such person any 
            conclusion regarding his/her physical or mental 
            condition.  Machines or mechanical devices for measuring 
            or ascertaining height or weight are excluded from this 

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            section.

          This bill:

          1. Adds licensed physical therapists and licensed 
             occupational therapists to the list of healing arts 
             practitioners who may be shareholders, officers, 
             directors, or professional employees of medical 
             corporations and podiatry corporations, and provides 
             that specified healing arts licensees may be 
             shareholders, officers, directors, or professional 
             employees of a physical therapy corporation.

          2. Requires a medical corporation, podiatry corporation or 
             physical therapy corporation disclose to its patients, 
             orally and in writing, when initiating any physical 
             therapy treatment services, that the patient may seek 
             physical therapy treatment services from a physical 
             therapy provider of his/her choice who may not 
             necessarily be employed by the medical or podiatry 
             corporation.

          3. Provides that this disclosure requirement does not apply 
             to any medical corporation that contracts with a health 
             care service plan with a license issued pursuant to the 
             Knox-Keene Health Care Service Plan Act of 1975 if the 
             licensed health care service plan is also exempt from 
             federal taxation pursuant to Section 501(c)(3) of the 
             Internal Revenue Code.

          4. Allows patients to initiate physical therapy treatment 
             directly from a licensed physical therapist provided 
             that the treatment is within the scope of practice of 
             physical therapists, as specified, and all of the 
             following conditions are met:

             A.    If, at any time, the physical therapist has reason 
                to believe that the patient has signs or symptoms of 
                a condition that requires treatment beyond the scope 
                of practice of a physical therapist, the physical 
                therapist shall refer the patient to a person holding 
                a physician and surgeon's certificate issued by the 
                Medical Board of California (MBC) or by the 
                Osteopathic Medical Board of California (OMBC) or to 

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                a person licensed to practice dentistry, podiatric 
                medicine, or chiropractic.

             B.    The physical therapist complies with existing law 
                relating to unearned rebates, refunds and discounts.

             C.    With the patient's written authorization, the 
                physical therapist shall notify the patient's 
                physician and surgeon, if any, that the physical 
                therapist is treating the patient.

             D.    The physical therapist shall not continue treating 
                that patient beyond 30 business days or 12 visits, 
                whichever occurs first, without receiving, from a 
                person holding a physician and surgeon's certificate 
                from the MBC or the OMBC, a dated signature on the 
                physical therapist's plan of care indicating approval 
                of the physical therapist's plan of care. 

             E.    Approval of the physical therapist's plan of care 
                shall include an appropriate patient examination by 
                the person holding a physician and surgeon's 
                certificate from the MBC or the OMBC.


          5. Provides that the conditions specified in #4A to E 
             above, do not apply to a physical therapist when 
             providing evaluation or wellness physical therapy 
             services to a patient, as specified.

          6. States that this bill shall be not construed to expand 
             or modify the scope of practice for physical therapists, 
             as specified, including the prohibition on a physical 
             therapist diagnosing a disease.

          7. Provides that this bill shall not be construed to 
             require a health care service plan, insurer or workers 
             compensation insurance plan to provide coverage for 
             direct access to treatment by a physical therapist.

          8. Requires, when a person initiates physical therapy 
             services, a physical therapist not perform physical 
             therapy treatment services without first providing a 
             specified written notice, orally and in writing, on one 

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             page, in at least 14-point type, and obtaining a patient 
             signature on the notice.

           Background
           
          The Physical Therapy Act (PT Act) defines the practice of 
          physical therapy as the art and science of physical or 
          corrective rehabilitation or of physical or corrective 
          treatment of any bodily or mental condition of any person 
          by the use of the physical, chemical, and other properties 
          of heat, light, water, electricity, sound, massage, and 
          active, passive, and resistive exercise, and shall include 
          physical therapy evaluation, treatment planning, 
          instruction and consultative services.  Furthermore, the 
          practice of physical therapy includes the promotion and 
          maintenance of physical fitness to enhance the bodily 
          movement related health and wellness of individuals through 
          the use of physical therapy interventions.  However, the 
          use of roentgen rays and radioactive materials, for 
          diagnostic and therapeutic purposes, and the use of 
          electricity for surgical purposes, including cauterization, 
          are not authorized under the term "physical therapy."  The 
          PT Act provides that a physical therapy license does not 
          authorize the diagnosis of disease.  Additionally, the PT 
          Act indicates that a physical therapist, upon specified 
          authorization of a physician and surgeon, may perform 
          tissue penetration for the purpose of evaluating 
          neuromuscular performance as part of the practice of 
          physical therapy, provided that the physical therapist is 
          certified by the PT Board to perform the tissue penetration 
          and evaluation and the physical therapist does not develop 
          or make diagnostic or prognostic interpretations of data 
          produced.  To obtain licensure, a physical therapy 
          applicant must be a graduate of a professional degree 
          program of an accredited postsecondary institution/s 
          approved by the PT Board, and must complete academic 
          coursework and clinical internship in physical therapy.

          To access physical therapy treatment, an initial diagnosis 
          for a medical condition must be made by a physician and 
          surgeon or another practitioner who is authorized to 
          diagnose.  This current state of the law was echoed by a 
          1965 Attorney General (AG) Opinion which reviewed the 
          validity of a statute that allowed a physical therapist to 

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          conduct specified methods of treatment but prohibits 
          him/her from making a diagnosis.  The issue was whether 
          this statute was invalid because it was indefinite and 
          uncertain.  In upholding the statute, the AG Opinion 
          indicated that the practice of medicine consists of three 
          parts: diagnosis, prescription, and treatment.  The AG 
          opinion pointed out that although it is impossible to treat 
          a bodily or mental condition without first ascertaining the 
          condition, this does not imply that the one rendering the 
          treatment must also have performed the diagnosis.  However, 
          the AG opinion was clear that a licensed physical therapist 
          in not authorized to diagnose, and that the AG perceived no 
          conflicts, ambiguities, or uncertainties in limiting the 
          practice of licensed physical therapists to treating 
          ailments diagnosed by those found to be qualified and 
          authorized by law to diagnose.  Therefore, a licensed 
          physical therapist may only treat an ailment basing his 
          treatment upon a physician's diagnosis. 

          The federal Medicare Program covers physical therapy 
          services but limits how much is covered for 
          medically-necessary outpatient physical therapy.  The 
          outpatient therapy limits for 2011, is $1,870 for physical 
          therapy and speech language pathology combined.  There are 
          certain exceptions to these limits if the services are 
          medically necessary.  Medicare coverage for physical 
          therapy requires that a patient must be under the care of a 
          physician, the services must be furnished under a plan of 
          care, and the plan of care must be certified/recertified 
          periodically by a physician (usually every 30 days).

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes


          CTW:mw  1/30/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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