CA SB563

Prohibits employers and utilization review entities from offering financial incentives to physicians based on the number of medical treatment modifications, delays, or denials they make.

Requires the Administrative Director of the Division of Workers' Compensation to have authority to review compensation agreements, payment schedules, and contracts between employers/utilization review entities and physicians, with such information kept confidential under the Public Records Act.

Prohibits insurers or third-party administrators from referring utilization review services to entities in which they have a financial interest unless they provide prior written disclosure to the employer of the entity and their financial interest.

Maintains existing timeframes for utilization review decisions: five working days (not exceeding 14 days) for prospective or concurrent reviews, 72 hours for emergency cases, and 30 days for retrospective denials.

Makes legislative findings that confidentiality protections for submitted information serve the constitutional interest of protecting privacy and integrity of materials disclosed to the Administrative Director.