The California Court of Appeals recently reversed a decision that would have required physicians who own surgery centers to obtain a surgical license from the California Department of Health Services (DHS)if nonowner physicians would also be practicing in the facility. Currently, physician-owned surgery centers are exempt from DHS licensing requirements. If this ruling had been allowed to stand it would have had profound implications for ambulatory surgical centers.

CMA earlier this year filed an amicus curiae brief urging the Third District Court of Appeals in Sacramento to reverse its original ruling.

This ruling “would have subjected [physicians] to unwarranted and costly regulation, given the fact that physicians who own ambulatory surgical centers already are subject to stringent regulation by their licensing agency, the Medical Board of California,” stated CMA in the brief. “Further, it would essentially force physicians to practice in a partnership, as opposed to a medical corporation—the form of practice most commonly chosen by physicians, and therefore could increase physician liability for those physicians who must become partners in order to practice. The net effect of this opinion will be a needless increase in health care costs.”

The court agreed with CMA and vacated its earlier ruling.

Click here to read CMA's brief.

Contact: CMA legal department, 916/551-2033 or legalinfo@cmanet.org.