(SACRAMENTO) – An important bill to address the growing crisis in supplying physicians to rural and inner-city hospitals and clinics cleared the Assembly Health Committee today on a bipartisan vote of 13-4, and will now go to the full Assembly for a vote. 

“For decades, we have endured an acute shortage of doctors at hospitals in our inner-cities and in our outermost rural areas.  In some instances, this has led to no access to healthcare for those communities.  AB1944 addresses this problem by giving hospitals and clinics located in medically underserved communities the ability to hire physicians,” said Assemblymember Sandré R. Swanson (D-Oakland).   

AB 1944 will authorize all California Health Care Districts to directly hire and employ physicians.  In addition, the bill will protect patients’ and physicians’ rights by prohibiting these Districts from interfering in medical decisions.  Current law prohibits the employment of physicians by corporations and other artificial entities, even though there are several exemptions to this prohibition in law and practice.  Public entities, such as State and County health agencies, currently employ thousands of physicians statewide.  Health Care Districts, on the other hand, are the only public healthcare providers in California prohibited from direct physician employment. 

“The communities served by California Health Care Districts have suffered from a chronic shortage of physicians for decades.  There are very few willing recruits to replace retiring doctors because today’s fiscal realities and physicians’ educational debts force them to seek more secure environments or contractual arrangements.  California’s physician hiring ban has been and remains a significant barrier to the recruitment of doctors in these communities,” Assemblymember Swanson noted.

“This legislation is essential to providing populations and communities that are currently being denied quality healthcare the opportunity to have it.  The situation will continue to get worse as more budget cuts occur and the current physician workforce approaches retirement,” said Peter Gamby, who testified on behalf of the Association of California Health Care Districts.

Willie L. Pelote of the American Federation of State, County and Municipal Employees (AFSCME) echoed Mr. Gamby’s concerns. “It is unfair for a significant portion of the population to not have access to healthcare. This bill authorizes the direct employment of physician and surgeons by district hospitals, eliminating a previously developed pilot project that authorized such direct employment on a more limited basis. AB 1944 will undoubtedly bring positive change to medically underserved areas and Californians. Legislatures need to provide quality healthcare to all residents” stated Pelote.

“This legislation proactively addresses the problem of encouraging physicians to practice in rural and low-income inner-city environments, where the majority of Medi-Cal and Medicare patients reside. This bill will safeguard the health of Californians in these most vulnerable areas,” concluded Swanson.