Existing law generally restricts corporations and other artificial legal entities from employing physicians, surgeons, or doctors of podiatric medicine unless the entity does not charge patients for the professional services provided and the entity is approved by the Medical Board of California, subject to specified exceptions.
AB 2311 establishes an additional exception, until January 1, 2037, that permits a health care district, or a nonprofit corporation whose sole corporate member is a health care district, that owns or controls a general acute care hospital to directly employ physicians and surgeons and charge for their professional services if specified requirements are satisfied. Among other requirements, the employing entity and hospitals under the entity’s ownership or control cannot interfere with, control, or otherwise direct a physician’s professional judgment. A qualifying health care district or nonprofit corporation that employs physicians under this authority must also publish an annual report on its website containing specified information concerning its hospitals’ ability to recruit and retain physicians and surgeons.
AB 2311 amends, repeals, and adds Section 2401 of the Business and Professions Code.
