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Medical board says it is not responsible for 'daily deal marketing cease and desist' letters sent to physicians

The Medical Board of California issued a statement last week that it did not author a letter apparently coming from its  Discipline Coordination Unit warning physicians to immediately "cease and desist " from conducting any daily deal marketing arrangements with sites such as Groupon, Living Social  and Amazon. A number of California physicians have called the medical board stating that they have received these letters dated November 6, 2013, on the medical board’s masthead.
 
These letters are fraudulent and were not generated by the medical board. When the medical board receives any complaint regarding a physician—including the use of daily deal marketing or internet-based coupon sites—the complaints are evaluated on a case-by-case basis to determine whether there is a violation of the law.
 
Physicians should, however, use caution when using such sites. While each deal varies, typically the physician agrees to give the coupon company a percentage of the revenue obtained from patients using the coupon (reports suggest as high as 50 percent) in return for the marketing company's promotion of the practice through various types of coupons or "daily deals."
 
Even if patients using such coupons are cash-paying and non-insured, the activity raises significant legal issues for physicians. Accordingly, physicians should act with extreme caution in this area, after obtaining the advice of an attorney experienced in health care fraud and abuse laws.
 
For more information, see CMA On-Call document #0104, "Practice Promotion through Third Party Coupons." On-Call documents are available free to members in CMA's online health law library at www.cmanet.org/cma-on-call. Nonmembers can purchase documents for $2/page.
 
If you receive a cease and desist letter and wish to verify its authenticity, please contact the medical board at (916) 263-2528.

Governor signs CMA-sponsored bill to expedite physician licensure for practice in underserved areas

Governor Jerry Brown has signed a bill (AB 1288) sponsored by the California Medical Association (CMA) that requires priority review status be given to the license applications of physicians who can demonstrate that they intend to practice in a medically-underserved area or serve a medically-underserved population.
 
With California facing an uneven disbursement of physicians, increasing the physician pipeline to those areas to ensure delivery of safe, quality medical care will be crucial to the health of those communities.
 
“We need more physicians in rural and underserved areas of California,” said Paul R. Phinney, M.D., CMA president. “Assembly Bill 1288 will expedite relief to parts of the state suffering from uneven physician distribution, more quickly bringing highly-trained and educated medical professionals to areas where they can efficiently and effectively treat patients and lead integrated health care teams.”
 
AB 1288 (V. Manuel Perez – Riverside) will not change the vigorous standards of the Medical Practice Act but will instead focus resources on the areas and populations with the greatest need. The new license processing requirements will apply to both the Medical Board of California and the Osteopathic Board of California.
 
“CMA has a continued commitment to address the physician distribution problem, and legislation like AB 1288 is a step in the right direction,” added Dr. Phinney. “The leadership of members like Assemblymember V.M. Perez is what we need to put more physicians in the pipeline of underserved communities like Riverside and Imperial Counties, while upholding the integrity of the medical profession; providing safe, quality care to patients who need it the most.”
 
CMA has long advocated for programs, such as the Steven M. Thompson Loan Repayment Program, that provide support physicians who practice in rural or underserved parts of the state.
 
Thank you to all of our legislative key contacts who took the time to contact the governor. Your advocacy was key in getting AB 1288 signed into law.

CMA opposes bill that lowers standard of proof for physician discipline

California legislators are currently considering a bill, SB 670 (Steinberg), that would increase the likelihood that limitations will be erroneously placed on a physician’s ability to practice. SB 670 allows the Medical Board of California to use a significantly lower standard of proof – "probable cause" instead of the more reliable "clear and convincing evidence" – to determine if a physician's prescribing of controlled substance is a danger to patients and the public. This reduces the level of evidence needed to justify placing a serious limitation on the physician’s license.
 
The use of this lower "probable cause" standard in the Medical Practice Act is unprecedented. No other health care professional, including others allowed to prescribe, order, furnish or dispense controlled substances, are subject to a similarly low standard.
 
SB 670 can destroy a physician’s ability to practice. Any limitation on a license, even a temporary one, can impact a physician’s ability to contract with payors or to maintain medical staff privileges, eviscerating a physician’s practice and livelihood. Limitations that are ordered based on weak evidence and incomplete investigations are more likely to be overturned, resulting in wasted time and resources with no improvement to public safety. Most importantly, the limitation undermines patients’ continuity of care.
 
The majority of people who abuse prescription drugs do not get them from a prescription. While the California Medical Association recognizes that there are a few physicians who do not prescribe appropriately and should be disciplined by the medical board, that discipline should be pursued when negligence is clear, not just probable. Facilitating unfair punishment that does not allow for sufficient due process hurts physicians and their patients.
 
Physicians are eager to be partners in the effort to address misuse of prescription drug abuse, but taking away physicians’ rights is not the solution.

Medical board to suspend licenses of physicians with delinquent taxes

The Medical Board of California will soon be sending notices to physicians who have outstanding tax obligations, warning that their medical licenses may be suspended if they do not pay their tax obligation or enter into a payment plan within 90 days.

A new state law, passed in 2011, authorizes the medical board to deny an application for licensure and to suspend the license of any licensee who has outstanding tax obligations due to the Franchise Tax Board (FTB) or the State Board of Equalization (BOE) and appears on either the FTB or BOE's certified lists of top 500 tax delinquencies over $100,000.

Physicians who fail to either pay the taxes owed or enter into a payment installment plan with the relevant agencies will have their licenses denied or suspended until the Medical Board of California receives a release from the FTB or BOE. The form for requesting a release will be included with the preliminary notice of suspension.

Suspensions will be posted on the medical board's website and publicly distributed through its electronic notification system.

The law prohibits the Medical Board of California from refunding any money paid for the issuance or renewal of a license where the license is denied or suspended.

Names of those owing money to that state are published by the FTB and BOE on their websites. Physicians can check if they are currently on the FTB's or the BOE's lists. If you believe you are on either list in error, please call the FTB at (866) 418-3702 or the BOE at (916) 445-5167.

Click here for more information.