New California Bill Creates a Rift between Doctors and Physical Therapists

California Assembly

A bill recently introduced in the California Assembly would allow physicians to refer patients to physical therapy services which they own. This could potentially allow the doctors to directly profit from the referral.

Current state law, known as the Moscone-Knox Act prohibits physician corporations from employing physical therapists as well as referring patients to their own physical therapy clinics. The bill, AB 783, could override this law.

The bill was authored by Assembly member Mary Hayashi (D-Hayward) who was named “Legislator of the Year” for 2009 by the California Medical Association.

Physical Therapists in the state see the bill as unfair and see Hayashi’s close ties to the CMA a conflict of interest. Over the past two years the CMA has been Hayashi’s largest campaign contributor to the sum of over $22,000. When the bill was announced this week, hundreds of physical therapists in the state vowed aggressively fight it.

“This would be a disaster for patients and the state of California,” said the California Private Practice Group of physical therapists (CA PPG) President, Dave Powers, PT, DPT, MBA.  “Studies have shown when physicians control other professions, costs go up and quality goes down.  That’s why California lawmakers made it illegal years ago for physical therapists to be employed by medical doctors.”

Hayashi is the chairman for the committee which will hear the bill. If the bill is passed, it will take effect immediately because Hayashi has listed the bill with an “urgency status”.