AB-2311 • 2026

Health care districts: employment.

Healthcare

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Schiavo
Last action: 2026-04-21
Official status: From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 2.) (April 21). Re-referred to Com. on APPR.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide information on the cost implications or specific consequences of violating the prohibition against controlling doctors' decisions.

Health Care Districts: Employment Rules

This law allows health care districts and certain nonprofits to hire doctors and charge for their services, but it stops the district from controlling how doctors make professional decisions.

What This Bill Does

Creates an exemption that lets health care districts and specific nonprofits hire physicians and surgeons who work in hospitals.
Allows these organizations to charge patients for medical services provided by hired doctors.
Prohibits health care districts from interfering with, controlling, or directing the professional judgment of doctors they employ.

Who It Names or Affects

Health care districts
Nonprofit corporations that have a health care district as their only member and own hospitals
Physicians and surgeons who work in these organizations

Terms To Know

health care district: A local government agency that provides or helps provide medical services to the community.
nonprofit corporation: An organization that does not aim to make a profit and uses its money to achieve its goals, such as providing healthcare.

Limits and Unknowns

Doesn't specify how much it will cost or who pays for the changes.
Only applies to health care districts and specific nonprofits, not other types of organizations.
Doesn't explain what happens if a district tries to interfere with doctors' professional judgment.

Bill History

2026-04-21 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 15. Noes 2.) (April 21). Re-referred to Com. on APPR.
2026-03-25 California Legislative Information
From committee: Do pass and re-refer to Com. on B. & P. (Ayes 14. Noes 0.) (March 24). Re-referred to Com. on B. & P.
2026-03-09 California Legislative Information
Referred to Coms. on HEALTH and B. & P.
2026-02-20 California Legislative Information
From printer. May be heard in committee March 22.
2026-02-19 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2311, as introduced, Schiavo.
Health care districts: employment.
Existing law, the Medical Practice Act, restricts the employment of physicians and surgeons or doctors of podiatric medicine by a corporation or other artificial legal entity to entities that do not charge for professional services rendered to patients and are approved by the Medical Board of California, subject to specified exemptions. Existing law, the Local Health Care District Law, regulates the organization and management of health care districts. Existing law establishes the Department of Health Care Access and Information and charges it with various duties related to health planning and research development.
This bill would create an exemption to the general prohibition described above by authorizing health care districts and nonprofit corporations with a health care district as its sole
corporate member that own or control a general acute care hospital to employ physicians and surgeons and charge for professional services. The bill would prohibit the health care district from interfering with, controlling, or otherwise directing the professional judgment of a physician or surgeon.

Current Bill Text

Read the full stored bill text

Download Bill PDF