Section § 445

Explanation

This California law makes it illegal for anyone or any business to charge for referring people to doctors, hospitals, or other health facilities for profit. If there's a fee for the referral, it's assumed to be for profit. However, this rule doesn't apply to certain government programs and prepaid health plans.

Hospitals and doctors can't make agreements with out-of-state medical referral services that would be banned if they were based in California. If someone breaks this law, they could be charged with a misdemeanor, leading to a fine or jail time. The California Attorney General can also take civil action against violators without needing to prove specific damages.

No person, firm, partnership, association or corporation, or agent or employee thereof, shall for profit refer or recommend a person to a physician, hospital, health-related facility, or dispensary for any form of medical care or treatment of any ailment or physical condition. The imposition of a fee or charge for any such referral or recommendation creates a presumption that the referral or recommendation is for profit.
The provisions of this section shall not apply to referrals or recommendations which are made under the crippled children services program or prepaid health plans.
A physician, hospital, health-related facility or dispensary shall not enter into a contract or other form of agreement to accept for medical care or treatment any person referred or recommended for such care or treatment by a medical referral service business located in or doing business in another state if the medical referral service business would be prohibited under this part if the business were located in or doing business in this state.
A violation of the provisions of this section shall constitute a misdemeanor and upon conviction thereof may be punished by imprisonment in the county jail for not longer than one year, or a fine of not more than five thousand dollars ($5,000), or by both such fine and imprisonment.
Any violation of this section may be enjoined in a civil action brought in the name of the people of the State of California by the Attorney General, except that the plaintiff shall not be required to allege facts necessary to show or tending to show lack of adequate remedy at law or to show or tending to show irreparable damage or loss.