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New California law prohibits medical device physician-owned companies in workers' compensation program

19 January 2012

Medical Device Alert

The California legislature recently enacted a bill (AB 378), effective 1 January 2012, that expands the existing state law prohibiting physician self-referral in the context of workers’ compensation patients in a way that apparently will now prohibit physicians treating California workers’ compensation patients from owning an interest in the company that supplies not only prescription drugs, but also implantable medical devices to their patients. This development will be of interest to physicians, hospitals, ambulatory surgical centers, and medical device manufacturers and distributors, since it effectively reverses existing California law and outlaws physician-owned companies (POCs) in the California workers’ compensation space.   

Read: "New California law prohibits medical device physician-owned companies in workers' compensation program"

The team

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