Lackner

At issue in this appeal is the validity of a provision of the Medi-Cal reimbursement statutes (Welf. & Inst. Code, § 14077, eff. Sept. 22, 1976) which mandated the Director of the State of California Department of Health Services (director) to establish a new, uniform schedule for reimbursing physicians and dentists for services rendered to Medi-Cal patients, retroactive to July 1, 1976.

We conclude that the legislation, insofar as it is retroactive, violates article IV, section 17 of the California Constitution, prohibiting payment of extra compensation to contractors for services already rendered, and article I, section 10 of the United States Constitution, prohibiting the impairment of contracts. We reverse the judgment mandating the director to apply his administrative schedules retroactively.

Facts

On September 22, 1976, Assembly Bill No. 4242 (1975-1976 Reg. Sess.) was signed into law as urgency legislation. (Stats. 1976, ch. 1207, § 2, p. 5494; codified, in relevant part, as Welf. & Inst. Code, §§ 14075-14080.) The legislation, intended to assure Medi-Cal recipients of reasonable access to medical care, required the Director of the State Department of Health…