CA SB726

Establishes a pilot project allowing qualified health care districts and qualified rural hospitals to directly employ physicians and surgeons to improve recruitment and retention in rural and medically underserved areas.

Permits qualified health care districts and rural hospitals to employ up to 2 physicians and surgeons at any time, with authorization for up to 5 total if clear community need is demonstrated through a public hearing.

Requires employment contracts between districts/hospitals and physicians to not exceed 10 years and includes mandatory dispute resolution under the Medical Board of California for disputes relating to clinical practice.

Extends the pilot project through January 1, 2018, and requires the Medical Board to submit a preliminary report by July 1, 2013, and a final report by July 1, 2016, evaluating the project's effectiveness and impact on consumer protection.

Applies only to facilities located in medically underserved areas or Health Professional Shortage Areas, and requires districts/hospitals to demonstrate unsuccessful recruitment efforts for at least 12 continuous months before hiring.