Attorney General No.


Secretary of State No.



HEALTH CARE REFERRALS, SERVICES, COSTS. INITIATIVE STATUTE. Prohibits licensed health care practitioner's referral of patients to laboratories, testing facilities, or rehabilitation facilities owned by referring licensee or licensee's family. Prohibits doctor's denial of medical services based on patient's MediCal or Medicare status, unless 15% of doctor's patients are on MediCal and 15% are on Medicare. Permits hospitals and clinics to hire salaried doctors. Prohibits fraudulent billing practices. Creates Office of Medical Fraud Investigations in Attorney General's Office. Sets maximum health care fees, and maximum rate for annual fee increases, if employers are required to provide employee health insurance or benefits. Summary of fiscal impact on state and local governments as estimated by Legislative Analyst and Director of Finance: Initial administrative costs to state General Fund of approximately $10 million, with annual administrative costs thereafter of at least several million dollars. Up to $30 million in initial administrative costs if employers are required by state or federal law to provide employee health insurance or benefits. Potential savings of several million dollars annually to state and local governments from possible reductions in referrals under workers' compensation and employee health-care programs. Unknown net impact on Medi-Cal Program, with potential costs due to increased utilization and potential savings due to reduced referrals.


Stanley R. Kyker California Restaurant Association, 3435 Wilshire Boulevard Suite 2606 (Equitable Plaza), Los Angeles, Ca 90010



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