(a) The board may issue licenses authorized under Section 4180 to two independently owned clinics that share a clinic office space, provided that the clinics comply with the following:
(1) Each clinic maintains a separate clinic license with the board with its own professional directors, administrators, owners, and officers.
(2) Each clinic maintains physically separate and locked drug stocks.
(3) Each clinic separately maintains all records required by this article, including acquisition and disposition records.
(4) Dangerous drugs and dangerous devices shall not be loaned between the two licensed clinics.
(b) Dangerous drugs and dangerous device losses at the shared clinic office shall be reported to the board as required by law. Each clinic may be jointly and severally responsible for the drug losses.
(c) The applicants shall also provide the board with a copy of the co-location agreement and a one-time application fee of seven hundred fifty dollars ($750) for the licenses.
(d) Any change in ownership in either clinic shall require a new application under this section and fees as required by subdivision (q) of Section 4400 and subdivision (c) of this section.
(e) The board shall not issue licenses authorized under Section 4180 to two independently owned clinics that share a clinic office space pursuant to this section until the board is provided with documentation from the Director of the Department of Health Care Services that any Medi-Cal financing issues, including the ability to claim associated federal financial participation or 340(b) program participation, have been sufficiently addressed to the director’s satisfaction. The Department of Health Care Services may seek any federal approvals it deems necessary to implement this section.
(f) The board shall not issue licenses authorized under Section 4180 to two independently owned clinics that share a clinic office space pursuant to the section until the board is provided with documentation from the Director of the Department of Public Health that any licensing and regulatory issues have been sufficiently addressed to the director’s satisfaction.
(g) This section shall become inoperative on January 1, 2021, and as of that date is repealed.
(Added by Stats. 2017, Ch. 548, Sec. 9. (AB 401) Effective January 1, 2018. Repealed as of January 1, 2021, by its own provisions.)
Last modified: October 25, 2018