Conrad

This appeal presents the issue of whether Health and Safety Code section 32129 creates an exception to the historic doctrine prohibiting the corporate practice of medicine, by expressly or impliedly expanding the powers of a hospital district or health care district to employ physicians, as opposed to treating these physicians as independent contractors. The plaintiffs and appellants are a local hospital district, Palomar Pomerado Health System (the District), and nine physicians with whom the District has employment agreements, Alan J. Conrad, M.D., et al. (collectively Appellants). The defendant and respondent is the Medical Board of California (the Medical Board), an administrative agency which has the authority to enforce the Medical Practice Act, which establishes professional regulation and a discipline system for physicians. (Bus. & Prof. Code, §§ 2000 et seq., 2004.) Amicus curiae briefs have been filed at the trial and appellate levels by the California Medical Association (CMA), a professional association of physicians, and by several fellow hospital districts.

The trial court was presented with undisputed facts which raised a question of law as to the proper…