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

CA AB 2311: new version, AB2311

Score 60PRIMARYregulatoryState legislature

Summary

California AB 2311, chaptered as Chapter 299, Statutes of 2026 on September 18, 2026, creates a temporary exemption through January 1, 2037 to California's corporate practice of medicine prohibition, allowing health care districts and their affiliated nonprofit corporations that own or control a general acute care hospital to employ physicians and surgeons and charge for professional services. The exemption is conditioned on prohibiting interference with physician professional judgment. Employing entities must publish annual reports on physician recruitment and retention on their websites.

What this may mean

Health care districts and their sole-member nonprofit corporations operating general acute care hospitals in California now have a statutory pathway to directly employ physicians and bill for their professional services through January 1, 2037, subject to conditions including clinical independence protections. This creates a new employment and compensation structure available to a defined class of California public health entities that affects physician contracting and revenue-cycle arrangements.

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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