{"id":6067,"date":"2022-05-24T08:48:33","date_gmt":"2022-05-24T08:48:33","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/california-statutes\/?page_id=6067"},"modified":"2022-05-24T16:34:15","modified_gmt":"2022-05-24T16:34:15","slug":"labor-code-139-3","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/california-statutes\/california-statutes\/labor-code-139-3\/","title":{"rendered":"Labor Code 139.3"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-l3jwwv9a-a73799d8ec3121a658939579877ad295\">\n#top .av-special-heading.av-l3jwwv9a-a73799d8ec3121a658939579877ad295{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-l3jwwv9a-a73799d8ec3121a658939579877ad295 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-l3jwwv9a-a73799d8ec3121a658939579877ad295 .av-subheading{\nfont-size:22px;\n}\n<\/style>\n<div  class='av-special-heading av-l3jwwv9a-a73799d8ec3121a658939579877ad295 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><div class='av-subheading av-subheading_above'><p>California<\/p>\n<\/div><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >Labor Code &#8211; LAB \u00a7 139.31<\/h1><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_hr-3a876428eececa9d35452247ddb053af\">\n#top .hr.hr-invisible.av-av_hr-3a876428eececa9d35452247ddb053af{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-av_hr-3a876428eececa9d35452247ddb053af hr-invisible  avia-builder-el-1  el_after_av_heading  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad\">\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av_searchform_wrapper{\nborder-color:#edae44;\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad #s.av-input-field{\ncolor:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av-input-field-icon.av-search-icon{\ncolor:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av-input-field-icon.av-search-icon.avia-svg-icon svg:first-child{\nfill:#edae44;\nstroke:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad #searchsubmit{\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad .av_searchsubmit_wrapper{\nbackground-color:#edae44;\n}\n<\/style>\n<div  class='avia_search_element av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad  avia-builder-el-3  el_after_av_textblock  el_before_av_hr '><search><form action='https:\/\/crowdsourcelawyers.com\/california-statutes\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-4ee94ae86cde3b232e718bb4ac84e6ad' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CA statutes' aria-label='Search CA statutes' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='10' \/><input type='hidden' name='results_hide_fields' value='' \/><\/div><\/form><\/search><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_hr-3a876428eececa9d35452247ddb053af\">\n#top .hr.hr-invisible.av-av_hr-3a876428eececa9d35452247ddb053af{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-av_hr-3a876428eececa9d35452247ddb053af hr-invisible  avia-builder-el-4  el_after_avia_sc_search  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<section  class='av_textblock_section av-l3jx0ptp-9c4e09dbb6e21d3e255a3b9e25eb6e86 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><div class=\"row\">\n<div class=\"subsection\"><\/div>\n<div class=\"subsection\">\n<p>The prohibition of\u00a0<span class=\"cite\">Section 139.3\u00a0<\/span>shall not apply to or restrict any of the following:<\/p>\n<div class=\"subsection\">\n<p>(a)\u2002A physician may refer a patient for a good or service otherwise prohibited by\u00a0<span class=\"cite\">subdivision (a) of Section 139.3\u00a0<\/span>if the physician&#8217;s regular practice is where there is no alternative provider of the service within either 25 miles or 40 minutes traveling time, via the shortest route on a paved road. \u2002A physician who refers to, or seeks consultation from, an organization in which the physician has a financial interest under this subdivision shall disclose this interest to the patient or the patient&#8217;s parents or legal guardian in writing at the time of referral.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(b)\u2002A physician who has one or more of the following arrangements with another physician, a person, or an entity, is not prohibited from referring a patient to the physician, person, or entity because of the arrangement:<\/p>\n<div class=\"subsection\">\n<p>(1)\u2002A loan between a physician and the recipient of the referral, if the loan has commercially reasonable terms, bears interest at the prime rate or a higher rate that does not constitute usury, is adequately secured, and the loan terms are not affected by either party&#8217;s referral of any person or the volume of services provided by either party.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(2)\u2002A lease of space or equipment between a physician and the recipient of the referral, if the lease is written, has commercially reasonable terms, has a fixed periodic rent payment, has a term of one year or more, and the lease payments are not affected by either party&#8217;s referral of any person or the volume of services provided by either party.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(3)\u2002A physician&#8217;s ownership of corporate investment securities, including shares, bonds, or other debt instruments that were purchased on terms that are available to the general public through a licensed securities exchange or NASDAQ, do not base profit distributions or other transfers of value on the physician&#8217;s referral of persons to the corporation, do not have a separate class or accounting for any persons or for any physicians who may refer persons to the corporation, and are in a corporation that had, at the end of the corporation&#8217;s most recent fiscal year, total gross assets exceeding one hundred million dollars ($100,000,000).<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(4)\u2002A personal services arrangement between a physician or an immediate family member of the physician and the recipient of the referral if the arrangement meets all of the following requirements:<\/p>\n<div class=\"subsection\">\n<p>(A)\u2002It is set out in writing and is signed by the parties.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(B)\u2002It specifies all of the services to be provided by the physician or an immediate family member of the physician.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(C)\u2002The aggregate services contracted for do not exceed those that are reasonable and necessary for the legitimate business purposes of the arrangement.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(D)\u2002A written notice disclosing the existence of the personal services arrangement and including information on where a person may go to file a complaint against the licensee or the immediate family member of the licensee, is provided to the following persons at the time any services pursuant to the arrangement are first provided:<\/p>\n<div class=\"subsection\">\n<p>(i)\u2002An injured worker who is referred by a licensee or an immediate family member of the licensee.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(ii)\u2002The injured worker&#8217;s employer, if self-insured.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(iii)\u2002The injured worker&#8217;s employer&#8217;s insurer, if insured.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(iv)\u2002If the injured worker is known by the licensee or the recipient of the referral to be represented, the injured worker&#8217;s attorney.<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(E)\u2002The term of the arrangement is for at least one year.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(F)\u2002The compensation to be paid over the term of the arrangement is set in advance, does not exceed fair market value, and is not determined in a manner that takes into account the volume or value of any referrals or other business generated between the parties, except that if the services provided pursuant to the arrangement include medical services provided under Division 4, compensation paid for the services shall be subject to the official medical fee schedule promulgated pursuant to\u00a0<span class=\"cite\">Section 5307.1\u00a0<\/span>or subject to any contract authorized by\u00a0<span class=\"cite\">Section 5307.11\u00a0<\/span>.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(G)\u2002The services to be performed under the arrangement do not involve the counseling or promotion of a business arrangement or other activity that violates any state or federal law.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<div class=\"subsection\">\n<p>(c)(1)\u2002A physician may refer a person to a health facility as defined in\u00a0<span class=\"cite\">Section 1250 of the Health and Safety Code\u00a0<\/span>, to any facility owned or leased by a health facility, or to an outpatient surgical center, if the recipient of the referral does not compensate the physician for the patient referral, and any equipment lease arrangement between the physician and the referral recipient complies with the requirements of paragraph (2) of subdivision (b).<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(2)\u2002Nothing shall preclude this subdivision from applying to a physician solely because the physician has an ownership or leasehold interest in an entire health facility or an entity that owns or leases an entire health facility.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(3)\u2002A physician may refer a person to a health facility for any service classified as an emergency under\u00a0<span class=\"cite\">subdivision (a)\u00a0<\/span>or\u00a0<span class=\"cite\">(b) of Section 1317.1 of the Health and Safety Code\u00a0<\/span>. \u2002For nonemergency outpatient diagnostic imaging services performed with equipment for which, when new, has a commercial retail price of four hundred thousand dollars ($400,000) or more, the referring physician shall obtain a service preauthorization from the insurer, or self-insured employer. \u2002Any oral authorization shall be memorialized in writing within five business days.<\/p>\n<\/div>\n<\/div>\n<div class=\"subsection\">\n<p>(d)\u2002A physician compensated or employed by a university may refer a person to any facility owned or operated by the university, or for a physician service, to another physician employed by the university, provided that the facility or university does not compensate the referring physician for the patient referral. \u2002For nonemergency diagnostic imaging services performed with equipment that, when new, has a commercial retail price of four hundred thousand dollars ($400,000) or more, the referring physician shall obtain a service preauthorization from the insurer or self-insured employer. \u2002An oral authorization shall be memorialized in writing within five business days. \u2002In the case of a facility which is totally or partially owned by an entity other than the university, but which is staffed by university physicians, those physicians may not refer patients to the facility if the facility compensates the referring physician for those referrals.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(e)\u2002The prohibition of\u00a0<span class=\"cite\">Section 139.3\u00a0<\/span>shall not apply to any service for a specific patient that is performed within, or goods that are supplied by, a physician&#8217;s office, or the office of a group practice. \u2002Further, the provisions of\u00a0<span class=\"cite\">Section 139.3\u00a0<\/span>shall not alter, limit, or expand a physician&#8217;s ability to deliver, or to direct or supervise the delivery of, in-office goods or services according to the laws, rules, and regulations governing his or her scope of practice. \u2002With respect to diagnostic imaging services performed with equipment that, when new, had a commercial retail price of four hundred thousand dollars ($400,000) or more, or for physical therapy services, or for psychometric testing that exceeds the routine screening battery protocols, with a time limit of two to five hours, established by the administrative director, the referring physician obtains a service preauthorization from the insurer or self-insured employer. \u2002Any oral authorization shall be memorialized in writing within five business days.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(f)\u2002The prohibition of\u00a0<span class=\"cite\">Section 139.3\u00a0<\/span>shall not apply where the physician is in a group practice as defined in\u00a0<span class=\"cite\">Section 139.3\u00a0<\/span>and refers a person for services specified in\u00a0<span class=\"cite\">Section 139.3\u00a0<\/span>to a multispecialty clinic, as defined in\u00a0<span class=\"cite\">subdivision (l) of Section 1206 of the Health and Safety Code\u00a0<\/span>. \u2002For diagnostic imaging services performed with equipment that, when new, had a commercial retail price of four hundred thousand dollars ($400,000) or more, or physical therapy services, or psychometric testing that exceeds the routine screening battery protocols, with a time limit of two to five hours, established by the administrative director, performed at the multispecialty facility, the referring physician shall obtain a service preauthorization from the insurer or self-insured employer. \u2002Any oral authorization shall be memorialized in writing within five business days.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(g)\u2002The requirement for preauthorization in Sections (c), (e), and (f) shall not apply to a patient for whom the physician or group accepts payment on a capitated risk basis.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(h)\u2002The prohibition of\u00a0<span class=\"cite\">Section 139.3\u00a0<\/span>shall not apply to any facility when used to provide health care services to an enrollee of a health care service plan licensed pursuant to the Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2 (commencing with\u00a0<span class=\"cite\">Section 1340\u00a0<\/span>) of Division 2 of the Health and Safety Code).<\/p>\n<\/div>\n<div class=\"subsection\">\n<p>(i)\u2002The prohibition of\u00a0<span class=\"cite\">Section 139.3\u00a0<\/span>shall not apply to an outpatient surgical center, as defined in\u00a0<span class=\"cite\">paragraph (7) of subdivision (b) of Section 139.3\u00a0<\/span>, where the referring physician obtains a service preauthorization from the insurer or self-insured employer after disclosure of the financial relationship.<\/p>\n<\/div>\n<div class=\"subsection\">\n<p><span class=\"added-material\">(j)\u2002The prohibition of\u00a0<span class=\"cite\">Section 139.3\u00a0<\/span>shall not apply to a physician&#8217;s financial interest in a retailer of prescription drugs sold by a physical retail outlet commonly accessed by the public or a mail-order pharmacy serving a broad national or regional market, provided that the majority of the physician&#8217;s practice, with regard to income, time, and number of patients, does not relate to occupational medicine and the physician receives no remuneration from the retailer of prescription drugs to market or otherwise solicit occupational injury or occupational disease patients.<\/span><\/p>\n<\/div>\n<p><br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<\/div>\n<\/div>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":7,"featured_media":0,"parent":2019,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-6067","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Labor Code 139.3 - California Statutes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crowdsourcelawyers.com\/california-statutes\/california-statutes\/labor-code-139-3\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Labor Code 139.3 - California 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