Summary
Existing law, the Medical Practice Act, restricts the employment of physicians and surgeons or doctors of podiatric medicine by a corporation or other artificial legal entity to entities that do not charge for professional services rendered to patients and are approved by the Medical Board of California, subject to specified exemptions. Existing law, the Local Health Care District Law, regulates the organization and management of health care districts. Existing law establishes the Department of Health Care Access and Information and charges it with various duties related to health planning and research development.
This bill would create an exemption to the general prohibition described above by authorizing health care districts and nonprofit corporations with a health care district as its sole corporate member that own or control a general acute care hospital to employ physicians and surgeons and charge for professional services. The bill would prohibit the health care district from interfering with, controlling, or otherwise directing the professional judgment of a physician or surgeon.
Bill text versions
Legislative Journey
- Introduced
- Committee
- Floor
- Passed Chamber 1
- Passed Chamber 2
- Signed
Feb 19, 2026
Read first time. To print.
HouseFeb 20, 2026
From printer. May be heard in committee March 22.
HouseMar 9, 2026
Referred to Coms. on HEALTH and B. & P.
HouseMar 25, 2026
From committee: Do pass and re-refer to Com. on B. & P. (Ayes 14. Noes 0.) (March 24). Re-referred to Com. on B. & P.
House