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State Legislation: Bill Amendments · May 19, 2026 · Primary source

CA AB 2311: new version, 05/19/26 - Amended Assembly

Score 50PRIMARYregulatoryState legislature

Summary

California AB 2311, an earlier amended version from May 2026, creates a time-limited exemption through January 1, 2037, to California's corporate practice of medicine prohibition, allowing health care districts and affiliated nonprofit corporations that own or control a general acute care hospital to directly employ physicians and surgeons and bill for professional services. The exemption requires that the employing entity not interfere with the professional judgment of employed physicians. Employing entities must publish annual reports on physician recruitment and retention on their websites. The bill was chaptered as Chapter 299, Statutes of 2026 on September 18, 2026.

What this may mean

California health care districts and their sole-member nonprofit corporations operating general acute care hospitals gain new authority to directly employ physicians and bill for professional services, a structural change to California's corporate practice of medicine doctrine. The exemption is temporary, sunsetting on January 1, 2037, and carries a clinical-independence condition prohibiting employer control over physician professional judgment. Annual public reporting on recruitment and retention is required as a condition of using the exemption.

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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