Physicians and surgeons: 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. Existing law established, until January 1, 2011, a pilot project to allow qualified district hospitals that, among other things, provide more than 50% of patient days to the care of Medicare, Medi-Cal, and uninsured patients, to employ a physician and surgeon, if the hospital does not interfere with, control, or otherwise direct the professional judgment of the physician and surgeon. The pilot project authorized the direct employment of a total of 20 physicians and surgeons by those hospitals to provide medically necessary services in rural and medically underserved communities. This bill would authorize a health care district, as defined, and a clinic owned or operated by a health care district, as specified, to employ physicians and surgeons if the health care district's service area includes a Medically Underserved Area (MUA) or a Medically Underserved Population (MUP) , or has been federally designated as a Health Professional Shortage Area (HPSA) ; the district board conducts a public hearing and adopts a formal resolution declaring the need for the district to recruit and directly employ one or more physicians and surgeons; and the executive officer of the district provides specified documentation to the Medical Board of California. Upon receipt of that documentation, the bill would require the Medical Board of California to approve the employment of up to 5 primary or specialty care physicians and surgeons by the district, and, upon receipt of additional documentation after that employment, to approve an additional 5 primary or specialty care physicians and surgeons. The bill would provide that a district may, until December 31, 2022, enter into, renew, or extend any employment contract with a physician and surgeon for up to 10 years. The bill would require the Office of Statewide Health Planning and Development, in consultation with the State Department of Public Health and the Medical Board of California, to report to the Legislature by June 1, 2020, with regard to the efficacy of the employment of physicians and surgeons by health care districts, as specified.