California PT's Need Your Help

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We Need Your Help: It is Time To Help Your California Colleagues Fight a

Scourge on Our Profession

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California Physical Therapy Association opposes AB 783, which represents an

inherent conflict of interest for physicians

SACRAMENTO, Calif., March 1, 2011 /PRNewswire/ -- The California Physical

Therapy Association (CPTA) strongly opposes Assembly Bill 783, which would

legalize the employment of physical therapists by medical and podiatric

medical corporations and allow physicians to refer to themselves for the

primary benefit of increasing profits to physicians.

AB 783, introduced by Assembly Member Hayashi (D-Hayward), amends Section

2406 of the Business and Professions Code and Section 13401.5 of the

Corporations Code by adding licensed physical therapists to the list of

healing arts practitioners who may be shareholders, officers, directors or

professional employees of medical or podiatric medical corporations. Under

this legislation, medical corporations can, in effect, control the point of

access to physical therapy services and then refer patients only to

themselves. Introduction of this bill comes after the September

2010California Legislative Counsel opinion stating it is illegal for

physical

therapists to be employed by a medical corporation.

" This poses an inherent conflict of interest by establishing a self-referral

for profit situation and removes consumer choice, " said Dr. Syms, PT,

President of CPTA. " Furthermore, studies show that self-referrals by

physicians to services in which they have an ownership interest result in

unnecessary and inadequate care and higher costs for both consumers and

payers. This is particularly disturbing in light of California's current

budget crisis. "

In 2006, the Office of Inspector General provided a report to the Department

of Health and Human Services that showed when a physician orders and directs

physical therapy services, 91 percent of the time the care is below

professional standards and considered unnecessary and fraudulent under the

Medicare program.

Additionally, a study of California's workers' compensation system

summarized in the New England Journal of Medicine in 1992 indicated physical

therapy was initiated 2.3 times more often by physicians in self-referral

arrangements.

" Contrary to AB 783 supporters' claims, this bill isn't about saving jobs, "

stressed CPTA Executive Director, DeFoe. " This bill is about cementing

the practice by physicians of owning physical therapy clinics and employing

physical therapists to reap substantial income from excessive billing for

the substandard delivery of physical therapist services. "

" Ironically, " noted Syms, " for years, physicians in California have opposed

the corporate practice of medicine but, with this legislation, have no

problem with medical corporations employing other medical professionals such

as physical therapists. "

*CPTA is the largest voice for the physical therapy profession in the state

of California and the third largest physical therapy association in the

world. CPTA is a chapter of the **American Physical Therapy

Association*<http://www.apta.org/>

*, representing more than 77,000 physical therapists and physical therapist

assistants nationwide.*

SOURCE California Physical Therapy Association

Kovacek, PT, DPT, MSA

PKovacek@...

Cell (313) 492-4293

Personal Fax

www.PTManager.com