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CA PPG Says California Physicians Contradict Themselves Regarding Employment Legislation
Date:4/20/2011

would allow medical corporations to eventually monopolize all health care services. Pretty soon, there will be no independent-minded health care professional to guard against referrals to services that are unnecessary and clinically inappropriate. AB 783 will remove the rigid checks and balances in place under current law."

Studies by the Medicare Payment Advisory Commission and the Office of Inspector General examining physician owned physical therapy services (POPTS) have found over-referrals, excessive costs and substandard care in over 91 percent of reviewed cases. Using statistics from a California workers' compensation study conducted during the early 1990s, the adverse economic impact of POPTS on the California workers' compensation system can be estimated to have exceeded $8 billion during the last two decades.

"The hypocrisy of CMA's strategy to enrich its members by legalizing the employment and control of physical therapy services while fighting the ability of small rural hospitals in underserved areas of the state to employ physicians is striking," said Richard Katz, PT, president and CEO of Adient Health, Northridge. "AB 1360 is simply the hospital's version of AB 783, but on a smaller scale."

According to an article in California Healthline, the physicians are on record contending that, "if physicians become hospital employees, hospital administrators would have more influence over physicians and their medical decisions, which could compromise patient care."  

That's the same line of reasoning the California Private Practice Group of physical therapists is using to oppose legalizing the employment of physical therapists by physician controlled medical corporations as proposed in AB 783.


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SOURCE California Private Practice Group of physical therapists
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