California Bill Would Relax State’s Ban on Hospitals Hiring Physicians

A new bill in the California legislature would loosen the state’s unusually tough restrictions against hospitals hiring physicians, seen as a barrier against building integrated health systems, according to a report by the Fresno Bee.

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California is one of only five states that prohibit hospitals from hiring doctors, but in 2003 the state began to allow physician-hiring by healthcare districts in selected rural counties with low-income populations.

The new bill seeks to extend that provision to privately-run rural hospitals and hospital districts in medically underserved areas. It would allow these hospitals able to hire up to five physicians each, while a similar bill supported by the California Hospital Association would allow these hospitals to hire up to 10 physicians each.

But the bills are running into stiff opposition from the California Medical Association, which wants to preserve the state ban on the “corporate practice of medicine” and protect physician autonomy.

Read the Fresno Bee‘s report on hiring physicians.

 

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