Rural hospitals: physician services.

Existing law requires the Secretary of the California Health and Welfare Agency to establish an Office of Rural Health within the agency and sets forth its powers and duties relating to promoting a strong working relationship between state government, prescribed entities, and rural consumers and relating to developing health initiatives and maximizing existing resources without duplication. Existing law generally provides for the licensure of health facilities, including rural general acute care hospitals, by the State Department of Public Health. Existing law requires the department to provide expert technical assistance to strategically located, high-risk rural hospitals, as defined, to assist the hospitals in carrying out an assessment of potential business and diversification of service opportunities. Existing law also requires the department to continue to provide regulatory relief when appropriate through program flexibility for such items as staffing, space, and physical plant requirements. This bill would, until January 1, 2022, establish a demonstration project authorizing a rural hospital, as defined, that meets specified conditions, to employ up to 10 physicians and surgeons at one time, except as provided, to provide medical services at the rural hospital or other health facility that the rural hospital owns or operates, and to retain all or part of the income generated by the physicians and surgeons for medical services billed and collected by the rural hospital if the physician and surgeon in whose name the charges are made approves the charges. The bill would require a rural hospital that employs a physician and surgeon pursuant to those provisions to develop and implement a policy regarding the independent medical judgment of the physician and surgeon. The bill would require these physicians and surgeons to biennially sign a specified statement. The bill would impose various duties on the department and the Medical Board of California including a requirement that the board deliver a report to the Legislature regarding the demonstration project by January 1, 2019.