

By Byanca Hutchins
At its November 22, 2024, meeting, the Medical Board of California (“Board”) reviewed proposed legislation to establish a new Physician Health and Wellness Program (“PHWP”). This proposal comes after the Board’s previous diversion program was discontinued in 2007, following an audit that revealed significant shortcomings, such as failing to ensure random drug testing of participants, inadequate monitoring of contractors, and insufficient responses to relapses. The new legislation aims to create a more effective program to assist physicians with substance abuse disorders and other health conditions, allowing them to receive treatment and safely return to practice.
During the meeting, the Board discussed key differences between the proposed legislation and previous efforts. First, the proposed legislation seeks to revise SB 1177 (Galgiani) (Chapter 591, Statutes of 2016), as the Board was advised that the current language of SB 1177 did not follow nationally recognized best practices and did not encourage individuals with impairing or potentially impairing conditions to self-refer (or be referred by others) into the program to seek help. Another key difference is the proposal to have the program administered by a 501(c)(3) nonprofit organization, which would facilitate donation and help ensure that the program’s mission remains focused on physician wellness.
The proposed legislation also broadens the scope of the program to address not only substance abuse, but any condition that may impair a physician’s ability to practice, including mental or physical health conditions. Under the new proposal, the Board would not be required to impose uniform standards on voluntary participants. It would have the option to refer physicians to the PHWP instead of pursuing disciplinary action. Additionally, the program would offer civil immunity for good faith reports related to physician impairment, which is intended to promote timely reporting while maintaining accountability.
During the public comment portion of the meeting, Marcus Friedman, Administrative Director of the Consumer Protection Policy Center (“CPPC”) of University of San Diego School of Law, raised concerns about the proposed legislation. Friedman questioned the exemption of voluntary participants from certain uniform standards and expressed worries that the requirement for the program to be administered by a 501(c)(3) organization would limit the selection of experienced vendors. Friedman also noted that there were little changes made from the previous PHWP, and the critical issue of funding has yet to be addressed in the proposed legislation.
At the conclusion of the meeting, the Board voted to direct staff to work with the Legislature to find an author for a bill to carry the proposal and authorize President Lawson and Vice President Healzer to work with staff, the Legislature, and stakeholders to move forward with the proposal. The majority of the Board members voted to move forward with the legislative proposal.
On February 6, 2025, Assemblymember Marc Berman announced the introduction of AB 408 (Berman) on behalf of MBC and the California Medical Association (“CMA”), which would formalize the proposed Physician Health and Wellness Program. The earliest the bill may be heard in committee is March 7, 2025.

