Senate Committee Votes Down Measure on Hiring of Physical Therapists

A Senate committee has rejected a bill (AB 783) that would have allowed doctors to hire physical therapists and refer patients to them, the Pasadena Star-News reports.

Members of the Senate Committee on Business, Professions and Economic Development voted against the bill, which was authored by Assembly member Mary Hayashi (D-Hayward).

The legislation sought to reverse existing state laws that prohibit health care corporations from employing physical therapists and benefiting financially from referrals to those employees.

Support for Legislation

Supporters of AB 783 -- which include the California Medical Association and the California Orthopaedic Association -- say the legislation would have kept thousands of physical therapists from losing their jobs.

Hayashi said, "Without this bill, most physical therapists will have no choice but to quit their jobs or risk losing their license."

Opposition to Bill

James Syms, president of the California Physical Therapy Association, dismissed the idea that physical therapists would lose their jobs because AB 783 was voted down. He said, "Therapists can still contract with hospitals. This just means that doctors can't benefit financially from the arrangement."

According to Syms, AB 783 would have created an "egregious arrangement" that would have negatively affected patient care. He said, "When physicians refer to services they own, there is an inherent conflict of interest" (Galindo, Pasadena Star-News, 6/29).