California to Take Action Against POPTs Physical Therapists

Three Major Developments in the California POPTS Battle

Development 1

Department of Consumer Affairs (DCA) Legal Opinion Confirms PTs Working in POPTS Arrangement are Subject to Discipline by the CA PT Board.

The CA Private Practice Group discovered this document posted on www.stoppopts.org, which confirms five other legal opinions, clarifying that it is illegal for physical therapists to work for a medical corporation. The DCA can apparently no longer keep the CA PT Board from bringing physical therapists into compliance with the law.

Quote from DCA Legal Affairs Opinion

"It is evident from the applicable statutes that the Physical Therapy Board of California has jurisdiction over physical therapists and is empowered to enforce obedience to its regulations and all statutes governing the corporate practice of physical therapy.  Consequently, it our opinion that a physical therapist may be subject to discipline by the Physical Therapy Board of California for providing professional physical therapy services as an employee of a professional corporation, other than a naturopathic doctor corporation."

Development 2

The CA Physical Therapy Board held its usual meeting yesterday. In light of this legal counsel opinion, they voted unanimously 5 yes,0 no, to begin the disciplinary process.

The first 153 physical therapists accused of working for POPTS, will now be investigated.

Finally, enforcement of the law begins. Those physical therapists working in POPTS clinics risk suspension or revocation of their license if they do not come into compliance with the law.

Development 3

On the legislative front, AB 783, which if passed would legalize POPTS, passed through the Assembly floor 51 yes, 0 No, and over a dozen abstentions. This in itself is a significant improvement. In 2009, when AB 1152 was voted on in the Assembly, there was unanimous approval. The next major stop is the Senate Business and Professions Committee, where a similar bill to AB 783 was soundly defeated in 2009.

It might be time for POPTS physical therapists to jump ship.

Get many more answers on May 19th, 2011 when the CA Private Practice Group will hold it’s meeting to update its members on POPTS and the future of physical therapy.

Sign up now – go to www.cppsig.com

The CA PPG Board of Directors 

**The California Private Practice Group is a special interest group of the California Physical Therapy Association.

POPTs by the Numbers

This recent article says it all...

From Stephen Noonoo at Physical Therapy Products.

California Physical Therapists Face New Challenges

There may be a opportunities for California physical therapists to purchase their employer physical therapy clinics for pennies on the dollar after a new ruling by the State of California Legislative Counsel found that physician-owned physical therapy clinics (POPTs) are illegal in California.

This ruling developed from stalled 2009 legislation put forth by podiatrists to add physical therapists to the list of professionals allowed to be employed in medical practices.

Physical therapists are currently NOT on the list and, as a result, the recent Legislative Counsel ruling determined that their participation in these businesses is illegal.

"The existing California Corporations Code does not specifically include physical therapists on the list of those who may be shareholders, officers, directors, or professional employees of medical, podiatric or chiropractic corporations.

In 2009, Assembly Bill (AB) 1152 was brought forward by the California Podiatric Medical Association to determine the legality of podiatrists owning a physical therapy practice.

They were later joined by the California Medical Association and California Chiropractic Association.

Assembly Bill 1152 would have amended Section 2406 of the Business and Professions Code and Section 13401.5 of the Corporations Code to add licensed physical therapists to the list of healing art practitioners who may be shareholders, officers, directors, or professional employees of medical, podiatric or chiropractic corporations.

CPTA strongly opposed AB 1152 because the legislation would have made it legal for medical, podiatric and chiropractic corporations to employ physical therapists.

In effect, under this legislation, these corporations could control the point of access to physical therapist services and then refer patients only to themselves.

This type of arrangement poses an inherent conflict of interest and removes choice for the consumer.

On July 13, 2009 the members of the Senate Business Professions and Economic Development Committee understood the potential conflict and did not pass the bill.

The opinion from Legislative Counsel confirms that, because the California Corporations Code does not specifically include physical therapists on the list of those who may be employed by a medical corporation, a physical therapist is prohibited from providing physical therapy services as an employee of a medical corporation and may be subject to discipline by the Physical Therapy Board of California for doing so."

According to the California Physical Therapists' Association (CPTA) employee physical therapists have three options:

1. Buy out the practice
2. Become an independent contractor
3. Find new empoyment

The CPTA has laid out these options in the CPTA Employment Toolkit to help affected therapists transition to new business arrangements.

As an independent physical therapist involved in Government Affairs in Florida I watch events like the California decision with keen interest.

Is this way the right way?

Does the California decision improve their position compared to the position of physical therapists in South Carolina?

Is the California approach better than the approach taken in Washington state?