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HomeBusiness and Professions CodeDiv. 2Ch. 5Art. 18§ 2401 Medical School Clinic Fees

§ 2401 Medical School Clinic Fees

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
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§ 2401 Medical School Clinic Fees

Key Takeaways

  • •Some special clinics and hospitals can charge for doctor services even if they usually can't.
  • •Doctors in these places must be allowed to make their own medical decisions without bossy interference.
  • •These places include teaching clinics, drug treatment programs, kids' hospitals, and small rural hospitals.
  • •The rules make sure patients get care even if they can't pay, and doctors aren't told what to do by bosses.

Example

A small hospital in a rural town hires a doctor to work there.

The hospital can charge patients for the doctor's work, but the hospital can't tell the doctor how to treat patients. The other doctors at the hospital must agree that hiring this doctor is good for the town.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2401 Medical School Clinic Fees

(a) Notwithstanding Section 2400, a clinic operated primarily for the purpose of medical education by a public or private nonprofit university medical school, which is approved by the board or the Osteopathic Medical Board of California, may charge for professional services rendered to teaching patients by licensees who hold academic appointments on the faculty of the university, if the charges are approved by the physician and surgeon in whose name the charges are made. (b) Notwithstanding Section 2400, a clinic operated under subdivision (p) of Section 1206 of the Health and Safety Code may employ licensees and charge for professional services rendered by those licensees. However, the clinic shall not interfere with, control, or otherwise direct the professional judgment of a physician and surgeon in a manner prohibited by Section 2400 or any other law. (c) Notwithstanding Section 2400, a narcotic treatment program operated under Section 11876 of the Health and Safety Code and regulated by the State Department of Health Care Services, may employ licensees and charge for professional services rendered by those licensees. However, the narcotic treatment program shall not interfere with, control, or otherwise direct the professional judgment of a physician and surgeon in a manner prohibited by Section 2400 or any other law. (d) Notwithstanding Section 2400, a hospital that is owned and operated by a licensed charitable organization, that offers only pediatric subspecialty care, that, before January 1, 2013, employed licensees on a salary basis, and that has not charged for professional services rendered to patients may, commencing January 1, 2013, charge for professional services rendered to patients, provided the following conditions are met: (1) The hospital does not increase the number of salaried licensees by more than five licensees each year. (2) The hospital does not expand its scope of services beyond pediatric subspecialty care. (3) The hospital accepts each patient needing its scope of services regardless of the patient’s ability to pay, including whether the patient has any form of health care coverage. (4) The medical staff concur by an affirmative vote that the licensee’s employment is in the best interest of the communities served by the hospital. (5) The hospital does not interfere with, control, or otherwise direct a physician and surgeon’s professional judgment in a manner prohibited by Section 2400 or any other law. (e) Notwithstanding Section 2400, a federally certified critical access hospital may employ licensees and charge for professional services rendered by those licensees to patients, provided both of the following conditions are met: (1) The medical staff concur by an affirmative vote that the licensee’s employment is in the best interest of the communities served by the hospital. (2) The hospital does not interfere with, control, or otherwise direct a physician and surgeon’s professional judgment in a manner prohibited by Section 2400 or any other law. (Amended by Stats. 2023, Ch. 641, Sec. 1. (AB 242) Effective January 1, 2024.)

Last verified: January 22, 2026

Key Terms

treatmentjudgmentcritical access hospitalseducationmedicalschoolpatienthealth

Related Statutes

  • § 2052.5 Eligible Patient Telehealth Consent
  • § 2786.3 Nursing Program Clinical Waivers
  • § 3524.5 Physician Assistant Continuing Education
  • § 3640 Naturopathic Diagnostic Authority
  • § 4052.8 Pharmacist Vaccine Administration Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 2401.
View Official Source