PAC August Newsletter
Final Legislative Push, a Great Mixer in Orange County, More Free Member Benefits, and Meet Dr. Scott and Dr. Gaor!
A message from PAC President and CEO Matthew Robinson, plus the latest on our priority bills, member benefits, and physician stories from around California.
Independent physicians and PAC supporters gather with Assemblymember Cottie Petrie-Norris at PAC’s July 23 Orange County reception.
Members,
With summer in full swing, the legislative session has entered its final stretch, and PAC’s advocacy on behalf of California’s independent physicians continues. Lawmakers are returning to Sacramento this month to make final decisions on bills that will directly affect prior authorization, claims reimbursement, credentialing, and the administrative burdens facing independent practices.
Keep reading for our Legislative Update, which includes the latest on PAC’s priority bills and what to expect as lawmakers wrap up the 2025-26 legislative session.
PAC’s advocacy also extends beyond the Capitol. Our July 23 reception in Orange County was a success, bringing together independent physicians in the region and a state lawmaker for an evening focused on protecting private practice and strengthening physician advocacy.
The event gave independent physicians an opportunity to network, learn more about PAC and our advocacy, and inspire one another to become more involved in promoting private practice. We were especially pleased to be joined by Assemblymember Cottie Petrie-Norris, a Democrat who represents the communities of Costa Mesa, Irvine, and Tustin. Attendees shared the challenges of independent and small group practice, and the Assemblywoman offered helpful insights on how to effectively engage with lawmakers in advocating for change.
PAC is thrilled to introduce a new partnership with Healthcare Compliance Pros (HCP), giving PAC members discounts on solutions designed to reduce the burden of maintaining compliance that can take valuable time and energy away from patient care. Read on for details on what this partnership can offer your practice.
Our podcast, PAC & Forth, continues to grow, with new episodes live on Apple Podcasts, Spotify, and YouTube. The podcast informs, connects, and amplifies the voice of California’s independent physician community. Please follow, subscribe, and share with colleagues to help strengthen that voice across the state.
With gratitude,
Matthew Robinson, President and CEO
Legislative Update
Sacramento is closing in on the finish line. On June 29, Governor Newsom signed his final state budget as California’s 40th governor. The plan totals $352 billion in spending for 2026-27, a 40% increase since Newsom first took office eight years ago. The budget also estimates major increases in projected revenues over the next three years, fueled primarily by higher tax revenue tied to stock market gains.
However, the Legislative Analyst’s Office (LAO), the state’s nonpartisan, independent watchdog, has warned that California’s ballooning commitments to social programs make the state increasingly vulnerable to future economic downturns.
Back in May, PAC was the first provider association to endorse Xavier Becerra for Governor. Should Becerra be elected California’s next governor in November, the state’s rapid budget growth and uncertain tax revenues will be delicate considerations as the new administration crafts its first state budget proposal.
On August 3, lawmakers returned to the Capitol from summer recess, and the Appropriations Committees will address the final “Suspense File” on August 13. The legislative session concludes with a deadline of August 31, and all bills that pass both houses must be signed or vetoed by the Governor on September 30.
In the final weeks of the legislative session, PAC is working hard to pass these important bills:
AB 539
Assemblymember Pilar Schiavo
SB 964
Senator Lola Smallwood-Cuevas
Would allow treating providers to adjust the dose or frequency of a medication for patients with chronic conditions and cancer without additional prior authorization or utilization management. PAC is helping lawmakers understand that once a medication has been approved, treating physicians should be able to make clinically necessary adjustments without sending patients back through another round of health plan review.
SB 1049
Senator Akilah Weber Pierson
Would give providers 90 days from a plan or insurer’s most recent action to submit a corrected claim and prohibit plans and insurers from denying those claims solely because they fall outside the original filing deadline. PAC is pushing back against plans that turn minor, fixable claims issues into unpaid care, especially for small practices with limited administrative capacity.
AB 1199
Assemblymember Joe Patterson
Would allow hospitals to conduct medical staff re-credentialing and reappointment every three years instead of every two years. PAC is fighting to eliminate redundant paperwork for physicians with no identified performance concerns.
AB 1703
Assemblymember Gregg Hart
Would protect patients from erroneous representations by prohibiting individuals who are not licensed by the Osteopathic Medical Board from using misleading marketing practices and titles.
November ballot measures we're watching
Sacramento is closing in on the finish line. On June 29, Governor Newsom signed his final state budget as California’s 40th governor. The plan totals $352 billion in spending for 2026-27, a 40% increase since Newsom first took office eight years ago. The budget also estimates major increases in projected revenues over the next three years, fueled primarily by higher tax revenue tied to stock market gains.
However, the Legislative Analyst’s Office (LAO), the state’s nonpartisan, independent watchdog, has warned that California’s ballooning commitments to social programs make the state increasingly vulnerable to future economic downturns.
Back in May, PAC was the first provider association to endorse Xavier Becerra for Governor. Should Becerra be elected California’s next governor in November, the state’s rapid budget growth and uncertain tax revenues will be delicate considerations as the new administration crafts its first state budget proposal.
On August 3, lawmakers returned to the Capitol from summer recess, and the Appropriations Committees will address the final “Suspense File” on August 13. The legislative session concludes with a deadline of August 31, and all bills that pass both houses must be signed or vetoed by the Governor on September 30.
In the final weeks of the legislative session, PAC is working hard to pass these important bills:
Prop. 3
Would make a high-earner income tax permanent. The tax, which could be as high as 12% of taxable income, would apply to households with annual incomes over $721,000 for couples and over $360,000 for individuals. The tax would generate between $5 billion and $15 billion each year for K-12 schools and community colleges.
Prop. 38
Would allow the state to borrow $8.4 billion in debt to research immune system-based technologies for treating conditions including cancer, heart disease and Alzheimer’s. The money would be divided between a UC-affiliated nonprofit and a grant for public or nonprofit institutions. Any resulting technologies or drugs from the research would be sold at 20% below the national standard.
Prop. 40
Would apply a one-time 5% wealth tax on the assets of California’s 200 billionaires. The measure seeks to offset Medicaid cuts enacted last year under President Donald Trump and is projected to raise $100 billion.
Prop. 44
Would require federally qualified health centers (FQHCs) to spend 90% of revenue on direct patient care services that aid in providing care to low-income and underserved individuals. Clinics that don’t comply would be fined, with the money collected going into a state-operated account for worker training and staffing. PAC is part of a large healthcare coalition in opposition to this measure as it would drastically affect access to care.
PAC is proud to continue fighting for independent physicians. We will keep you updated.
PAC Announces New Collaboration with Healthcare Compliance Pros
PAC is pleased to announce a new collaboration with Healthcare Compliance Pros (HCP), a healthcare compliance organization with decades of experience and a software platform designed to help practices simplify compliance and reduce risk.
This collaboration is intended to help PAC members manage key compliance obligations more efficiently, reducing administrative burden so physicians and their teams can stay focused on patient care.
PAC members will receive a 20% discount on annual access to HCP compliance solutions, including support for HIPAA, OSHA, corporate compliance, online workforce training, security risk analysis, exclusion monitoring, California-specific requirements, and more.
Riding the Waves of Corporate Compliance
We invite you to join an upcoming webinar with Jake Yates, Compliance Consultant at HCP.
Mark your calendar: Sept. 23, 2026 / 11:00 a.m. PT / RSVP here.
During this webinar, we will take a closer look at corporate compliance requirements, especially those specific to California. We will also discuss where organizations frequently get into trouble and how to prevent your organization from “wiping out.”
Learning Objectives:
- Understand and apply the elements of an effective Corporate Compliance Program and key Corporate Compliance activities
- Understand and identify Conflicts of Interest
- Identify Fraud, Waste, and Abuse
- Understand and identify the Anti-Kickback Statute and Stark Law and violations
- Understand California-specific Corporate Compliance Regulations
Check out the latest from PAC & Forth – PAC's Official Podcast
New episodes of PAC & Forth are live on Apple Podcasts, Spotify, and YouTube! The podcast informs, connects, and amplifies the voice of California’s independent physician community. Please follow, subscribe, and share with colleagues to help amplify the voice of independent physicians across California.
To suggest a future podcast guest or topic, email info@pac-md.org.
Build a Stronger Practice with Astrana Health
Through PAC’s collaboration with Astrana Health, members can access resources and tools designed to help them deliver better care for Medicare patients and reduce administrative burden without affecting their autonomy or existing payor contracts.
As part of PAC’s collaboration with Astrana Health, PAC members can access:
- Flexible, tailored ACO pathways with Astrana taking on the risk
- Dedicated support to boost outcomes ($375+ Average PMPY)
- Stronger revenue potential (+58% Average FFS increase)
- Actionable data and performance-enhancing tools
- Exclusive on-the-ground care management support
Connect with Astrana Health today for a no-cost, no-obligation assessment.
Or contact Sean Zargari from Astrana Health directly at Sean.Zargari@astranahealth.com
Member Spotlight:
Dr. Emilie Scott and Dr. James Gaor
Click here to watch highlights of our conversation with Dr. Emilie Scott and Dr. James Gaor, a married couple who run a direct primary care practice in Orange County.
Q: What pushed you to leave employed medicine and open an independent practice?
James: I loved emergency medicine and the opportunity to help people in urgent situations. But more and more patients were coming to the emergency department because they had no meaningful access to primary care. After stabilizing them, I often had nowhere reliable to send them. It was frustrating to know that many would return because the larger system had failed them.
Emilie: I experienced the same problem from the primary care side. I was caring for complex patients in 15-minute visits, often with language barriers, and I regularly left feeling that I had failed all day long. Later, I managed a panel of roughly 3,000 patients. When someone became sick, I frequently had no space to see them, even though I was the physician who knew them best.
Direct primary care made sense because it aligned the incentives differently. When a practice is supported by patient membership fees, its success depends on patients receiving accessible, attentive care, not on generating more codes and billing. We opened Halcyon to create that kind of environment.
Q: What is a big lesson you've learned about private practice?
Emilie: One of the best hiring lessons we received was: if a candidate is not a “hell yes,” the answer is no. The right people make everything easier because you can trust them to work autonomously and support the culture you are trying to build.
We have also learned not to limit our hiring search to people with healthcare experience. Sometimes someone from hospitality or another service-oriented field is a better fit. Technical skills can be taught. It is much harder to teach warmth, judgment, energy, and the ability to connect with patients.
Q: What's it like being married to your business partner?
James: Initially, I continued working full-time in the emergency department while Emilie built the practice. We expected that transition to take five years, but her patient panel grew quickly enough that I joined the practice much sooner.
Emilie: We balance each other. My instinct is often to move quickly and take on everything at once, while James reminds us to slow down. We share the same priorities, including the belief that our children are only young once.
The trust between us also matters professionally. James knows my intentions and the kind of physician I am. Having a business partner who understands and supports your clinical judgment is very different from working in an organization where you may be pressured to make decisions that do not reflect the best interests of the patient.
Our hope is that more physicians find a path back to autonomy. Whether it is direct primary care or another independent model, physicians should have the power to create practices that support their patients, their families, and the reasons they entered medicine in the first place.