Corporate Practice of Medicine Update

Dear Physician Advocate:

AB 1360 (Swanson), a bill that would erode the ban on the corporate practice of medicine, narrowly received the five votes necessary to move out of the Assembly Business and Professions Committee. The bill was opposed by the chair, Assemblymember Mary Hayashi, and the Republican members of the committee, but the other Democratic members voted for the bill. The action came after strong testimony in opposition by CMA President James Hinsdale, MD, and a contentious debate, and only after Assemblymember Swanson agreed to “seriously” consider amendments sought by opposition did a few members give a “courtesy” vote to move the bill. Two members of the committee, Assemblymember Jerry Hill and Assemblymember Michael Allen, testified that they wanted the assemblymember to work with CMA on amended language, and that they may change their vote at a later date if that failed to occur.

AB 1360 is sponsored by the American Federation of State, County, and Municipal Employees (AFSCME) and supported by the Association of California Healthcare Districts. The fight moves to the Assembly Health Committee where this bill will be heard in two weeks. We have already begun lobbying members of the Health Committee and believe we have a good chance to stop the bill. We will keep you updated as the debate continues.

A big thank you to Dr. Hinsdale for taking time out of his schedule to come to Sacramento and add the physician’s voice to this debate.

More to come …