California Gov. Gavin Newsom has signed legislation allowing critical access hospitals in the state to employ physicians.
AB 242, written by Assemblymember Jim Wood and approved by Mr. Newsom on Oct. 10, follows two legislative pilots that resulted from SB 376 in 2003 that applied to qualified district hospitals, authored by then-Sen. Wesley Chesbro, and AB 2024 in 2016 that applied to critical access hospitals, written by Mr. Wood, a news release from Mr. Wood's office said. AB 242 removes the Jan. 1 sunset date of AB 2024 that allows critical access hospitals to employ physicians and bill for those services. AB 242 permanently allows critical access hospitals to employ physicians.
"Critical access hospitals provide care to Californians who live in more remote areas, and they have real challenges finding enough physicians to adequate staff their hospitals," Mr. Wood said in the release. "The pilots have allowed these hospitals to hire physicians who may prefer to be an employee, and it has also provided an incentive to attract physicians to smaller, rural communities where a private practice may not be financially feasible."
Mr. Wood added that the legislation will allow physicians to have confidence that their employment arrangements will not be restricted by the prior sunset timeline.
The legislation comes as the number of critical access hospitals across the U.S. has risen by hundreds since 2004.