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HomeBusiness and Professions CodeDiv. 2Ch. 1Art. 6§ 654 Licensed Professional Referral Restrictions

§ 654 Licensed Professional Referral Restrictions

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 654 Licensed Professional Referral Restrictions

Key Takeaways

  • •If you have a license to do a certain job (like a doctor or a lawyer), you can't own part of another business that does a similar job if you send people to them.
  • •You also can't make deals to share money with them.
  • •This rule is to stop people from making money by sending customers to places they own or have deals with.

Example

A doctor who owns a part of a pharmacy and sends patients there to buy medicine.

The doctor is not allowed to own part of the pharmacy if they send patients there. This is to make sure the doctor sends patients to the best place, not just to make money.

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

Official Source
View on CA.gov

§ 654 Licensed Professional Referral Restrictions

No person licensed under Chapter 5 (commencing with Section 2000) of this division may have any membership, proprietary interest or coownership in any form in or with any person licensed under Chapter 5.5 (commencing with Section 2550) of this division to whom patients, clients or customers are referred or any profit-sharing arrangements. (Amended by Stats. 1979, Ch. 688.)

Last verified: January 23, 2026

Key Terms

patientlienownershiplicensemembership

Related Statutes

  • § 655.5 Clinical Lab Billing Disclosure
  • § 650.01 Healthcare Referral Financial Conflict
  • § 655.7 Pathology Service Billing Rules
  • § 726 Patient Sexual Misconduct Ban
  • § 5037 Accountant Work Product Ownership

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 654.
View Official Source