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State Legislation: Bill Amendments · September 18, 2026 · Primary source

CA AB 2311: new version, 09/18/26 - Chaptered

Score 63PRIMARYregulatoryState legislature

Summary

California AB 2311 was signed by the Governor and chaptered as Chapter 299, Statutes of 2026 on September 18, 2026, enacting a time-limited exemption from California's corporate practice of medicine prohibition under the Medical Practice Act. The law authorizes California health care districts and nonprofit corporations with a health care district as sole corporate member, where those entities own or control a general acute care hospital, to directly employ physicians and surgeons and bill for their professional services through January 1, 2037. The exemption is conditioned on the employing entity refraining from interfering with or directing the professional judgment of employed physicians, and requires annual public reporting on physician recruitment and retention.

What this may mean

Chapter 299 creates a new and distinct corporate practice exemption category in California law that did not previously exist, directly affecting how California health care districts structure their physician workforce and billing arrangements for general acute care hospital services through January 1, 2037. Employing entities must publish annual reports on their websites covering physician recruitment and retention data as a condition of using the exemption. The law does not apply to entities that do not meet the health care district ownership or control requirement for a general acute care hospital.

Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.

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