§ 4500. Legislative findings and statement of policy. The security of
the health and welfare of the residents of this state requires, that the
utmost attention be given to assure that persons seeking medical care
and treatment in this state receive adequate care rendered within the
standards of ethics and public policy applicable to all practices of
medicine. Medical referral services, organized as profit making
enterprises within this state, have been found to be engaged in the
practice of medicine, have been sharing fees received for referrals with
doctors and hospitals to whom patients are referred, have been otherwise
compensating doctors and hospitals for accepting patients referred to
them, have been giving medical advice by telephone to persons seeking
referrals and have been advertising their services, all in violation of
the standards of ethics and public policy applicable to the practice of
medicine and which would be violations of standards of professional
conduct if the acts were performed by physicians. Such profit making
referral services have consistently engaged in practices inimical to the
public interest which would be prohibited to physicians and have engaged
in relationships with physicians which are in violation of the laws and
public policy of this state and which have permitted physicians to
benefit indirectly from acts and practices which would be prohibited to
them directly. It is hereby declared to be the public policy of this
state that the public health, safety and welfare of the citizens of this
state require that such profit making medical referral service
organizations be declared to be invalid and unlawful in this state.