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)

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 doctors of podiatric medicine by a corporation or other artificial legal entity tobegin delete entititesend deletebegin insert entitiesend insert that do not charge for professional services rendered to patients and are approved by the Medical Board of California, subject to specified exemptions.

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 medicalbegin delete professionals, and would prohibit the critical accessend deletebegin insert professionals end insertbegin insertif 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 theend insert hospitalbegin delete from directing or interferingend deletebegin insert does not direct or interfereend insert with the professional judgment of a physician and surgeon, as specified. The bill would require thebegin delete Legislative Analyst,end deletebegin insert board,end insert 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 accessbegin delete hospitals.end deletebegin insert hospitals and their ability to recruit and retain physicians and surgeons, as specified.end insert

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. 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
23not interfere with, control, or otherwise direct the professional
24judgment of a physician and surgeon in a manner prohibited by
25Section 2400 or any other law.

26(d) Notwithstanding Section 2400, a hospital that is owned and
27operated by a licensed charitable organization, that offers only
28 pediatric subspecialty care, that, prior to January 1, 2013, employed
29licensees on a salary basis, and that has not charged for professional
30services rendered to patients may, commencing January 1, 2013,
31charge for professional services rendered to patients, provided the
32following conditions are met:

P3    1(1) The hospital does not increase the number of salaried
2licensees by more than five licensees each year.

3(2) The hospital does not expand its scope of services beyond
4pediatric subspecialty care.

5(3) The hospital accepts each patient needing its scope of
6services regardless of his or her ability to pay, including whether
7the patient has any form of health care coverage.

8(4) The medical staff concur by an affirmative vote that the
9licensee’s employment is in the best interest of the communities
10served by the hospital.

11(5) The hospital does not interfere with, control, or otherwise
12direct a physician and surgeon’s professional judgment in a manner
13prohibited by Section 2400 or any other law.

14(e) (1) Notwithstanding Section 2400, until January 1, 2024, a
15federally certified critical access hospital may employ licensees
16and charge for professional services rendered by thosebegin delete licensees.
17However, the critical accessend delete
begin insert licensees to patients, provided both
18of the following conditions are met:end insert

begin insert

19
(A) The medical staff concur by an affirmative vote that the
20licensee’s employment is in the best interest of the communities
21served by the hospital.

end insert

22begin insert(B)end insertbegin insertend insertbegin insertTheend insert hospitalbegin delete shallend deletebegin insert doesend insert not interfere with, control, or
23otherwise directbegin delete the professional judgment ofend delete a physician and
24begin delete surgeonend deletebegin insert surgeon’s professional judgmentend insert in a manner prohibited
25by Section 2400 or any other law.

26(2) begin insert(A)end insertbegin insertend insert On or before July 1, 2023, thebegin delete Legislative Analystend delete
27begin insert boardend insert shall provide a report to the Legislature containing data
28about the impact of paragraph (1) on federally certified critical
29access hospitalsbegin insert and their ability to recruit and retain physicians
30and surgeonsend insert
between January 1, 2017, and January 1,begin delete 2024,end deletebegin insert 2023,end insert
31 inclusive.begin insert end insertbegin insertThis report shall be submitted in compliance with Section
329795 of the Government Code.end insert

begin insert

33
(B) The requirement for submitting a report imposed under
34subparagraph (A) is inoperative on July 1, 2027.

end insert


O

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