Bill Text: CA SB1274 | 2011-2012 | Regular Session | Chaptered
Bill Title: Healing arts: hospitals: employment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-09-29 - Chaptered by Secretary of State. Chapter 793, Statutes of 2012. [SB1274 Detail]
Download: California-2011-SB1274-Chaptered.html
BILL NUMBER: SB 1274 CHAPTERED BILL TEXT CHAPTER 793 FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2012 APPROVED BY GOVERNOR SEPTEMBER 29, 2012 PASSED THE SENATE MAY 3, 2012 PASSED THE ASSEMBLY AUGUST 22, 2012 AMENDED IN SENATE APRIL 26, 2012 AMENDED IN SENATE APRIL 9, 2012 INTRODUCED BY Senator Wolk FEBRUARY 23, 2012 An act to amend Section 2401 of the Business and Professions Code, relating to healing arts. LEGISLATIVE COUNSEL'S DIGEST SB 1274, Wolk. Healing arts: hospitals: employment. Existing law, the Medical Practice Act, restricts the employment of licensed physicians and surgeons and podiatrists by a corporation or other artificial legal entity, subject to specified exemptions. This bill would authorize a hospital that is owned and operated by a licensed charitable organization, that offers only pediatric subspecialty care, that, prior to January 1, 2013, employed licensees on a salary basis, and that has not charged for professional services rendered to patients, to charge for services rendered to patients, provided certain conditions are met, including, but not limited to, that the hospital does not increase the number of salaried licensees by more than 5 each year, that the hospital accepts each patient regardless of his or her ability to pay, and that the medical staff concur by an affirmative vote that the licensee's employment meets a specified standard. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 2401 of the Business and Professions Code is amended to read: 2401. (a) Notwithstanding Section 2400, a clinic operated primarily for the purpose of medical education by a public or private nonprofit university medical school, which is approved by the board or the Osteopathic Medical Board of California, may charge for professional services rendered to teaching patients by licensees who hold academic appointments on the faculty of the university, if the charges are approved by the physician and surgeon in whose name the charges are made. (b) Notwithstanding Section 2400, a clinic operated under subdivision (p) of Section 1206 of the Health and Safety Code may employ licensees and charge for professional services rendered by those licensees. However, the clinic shall not interfere with, control, or otherwise direct the professional judgment of a physician and surgeon in a manner prohibited by Section 2400 or any other provision of law. (c) Notwithstanding Section 2400, a narcotic treatment program operated under Section 11876 of the Health and Safety Code and regulated by the State Department of Alcohol and Drug Programs, may employ licensees and charge for professional services rendered by those licensees. However, the narcotic treatment program shall not interfere with, control, or otherwise direct the professional judgment of a physician and surgeon in a manner prohibited by Section 2400 or any other provision of law. (d) Notwithstanding Section 2400, a hospital owned and operated by a health care district pursuant to Division 23 (commencing with Section 32000) of the Health and Safety Code may employ a licensee pursuant to Section 2401.1, and may charge for professional services rendered by the licensee, if the physician and surgeon in whose name the charges are made approves the charges. However, the hospital shall not interfere with, control, or otherwise direct the physician and surgeon's professional judgment in a manner prohibited by Section 2400 or any other provision of law. (e) Notwithstanding Section 2400, a hospital that is owned and operated by a licensed charitable organization, that offers only pediatric subspecialty care, that, prior to January 1, 2013, employed licensees on a salary basis, and that has not charged for professional services rendered to patients may, commencing January 1, 2013, charge for professional services rendered to patients, provided the following conditions are met: (1) The hospital does not increase the number of salaried licensees by more than five licensees each year. (2) The hospital does not expand its scope of services beyond pediatric subspecialty care. (3) The hospital accepts each patient needing its scope of services regardless of his or her ability to pay, including whether the patient has any form of health care coverage. (4) The medical staff concur by an affirmative vote that the licensee's employment is in the best interest of the communities served by the hospital. (5) The hospital does not interfere with, control, or otherwise direct a physician and surgeon's professional judgment in a manner prohibited by Section 2400 or any other provision of law.