CHA-supported SB 726 (Ashburn, R-Bakersfield) is one of three physician-employment bills introduced in the Legislature this year. SB 726 would revise and extend a pilot project created under SB 376 (Chapter 411, Statutes of 2003) authorizing the direct employment of physicians by qualified rural and district hospitals. The SB 376 pilot project will sunset Dec. 31, 2010.
Under SB 726, rural hospitals and health care districts that serve a medically underserved area, medically underserved population or Health Professional Shortage Area would be eligible to participate in the pilot project, and would be able to employ up to five physicians – both primary-care and specialty physicians – per hospital.
Unlike the current pilot project, there would be no statewide cap on the number of physicians who could be hired, and medical staff approval would not be required.
Although a number of organizations support SB 726, there also is strong opposition by the California Medical Association and others. The bill passed the Assembly Appropriations Committee last week and will be heard next by the full Assembly.
Two other bills introduced this year, AB 648 (Chesbro, D-Eureka), sponsored by CHA, and AB 646 (Swanson, D-Oakland) are two-year bills in the Senate Business and Professions Committee. Both bills also would allow qualified hospitals to hire physicians as part of a pilot project.