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California Business And Professions Code Section 809.05

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It is the policy of this state that peer review be
performed by licentiates.  This policy is subject to the following
limitations:
   (a) The governing bodies of acute care hospitals have a legitimate
function in the peer review process.  In all peer review matters,
the governing body shall give great weight to the actions of peer
review bodies and, in no event, shall act in an arbitrary or
capricious manner.
   (b) In those instances in which the peer review body's failure to
investigate, or initiate disciplinary action, is contrary to the
weight of the evidence, the governing body shall have the authority
to direct the peer review body to initiate an investigation or a
disciplinary action, but only after consultation with the peer review
body.  No such action shall be taken in an unreasonable manner.
   (c) In the event the peer review body fails to take action in
response to a direction from the governing body, the governing body
shall have the authority to take action against a licentiate.  Such
action shall only be taken after written notice to the peer review
body and shall fully comply with the procedures and rules applicable
to peer review proceedings established by Sections 809.1 to 809.6,
inclusive.
   (d) A governing body and the medical staff shall act exclusively
in the interest of maintaining and enhancing quality patient care.
   (e) It is not the intent or purpose of this section to prohibit or
discourage public members on state licensing boards and medical
quality review committees from participating in disciplinary actions
as authorized by law.

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Last modified: July 31, 2008