California Changes How ODs and Opticians Can Work

Existing California law prohibits an OD and optician from having any kind of business relationship in regards to an individual practice. ODs also cannot have any such relationship with companies that supply products to physicians, optometrists, and opticians.

A new bill (AB 684) recently passed will those prohibitions when the governor signs it into law. It institute the following:

• Prohibits ODs from having any profit-sharing arrangement with an optician or optical company.
• ODs, opticians and operating companies can own and operate a health plan so long as the plan’s ODs do not provide optometric services to enrollees.
• Provide for the direct or indirect provision of products and services to the health plan or its contracted providers or enrollees or to other optometrists, as specified.
• ODs, opticians, optical companies, and health plans could enter into a lease or other written agreement an optometrist “if specified conditions are contained in a written agreement.”
• Authorizes the State Board of Optometry, to inspect lease agreements. 

Read the legislation.