As California introduces a new wave of healthcare laws and regulations, physicians must stay ahead of the curve to avoid penalties, protect their practices, and serve patients ethically. The 2025 legislative updates reflect tightening rules around AI, prescribing, privacy, and physician identity, making physician regulation more complex than ever.
Whether you operate a small clinic or an extensive group practice, understanding these California healthcare laws is critical for risk reduction and long-term success.
This law prohibits anyone other than a licensed physician or surgeon from using terms like “Dr.,” “M.D.,” or “physician” in a healthcare setting. It’s a move to reduce patient confusion and clarify who provides medical care.
What to do:
Audit all staff job titles, email signatures, and patient-facing materials to ensure only licensed professionals use physician-specific language. This is a key shift in physician regulation in California.
Pathologists can now review digital lab data remotely under a central CLIA certificate, without needing separate licenses for each location. This makes scaling and telehealth integration easier.
What to do:
Ensure your lab systems and documentation are aligned with state and federal requirements to avoid any disruptions.
Under the California Consumer Privacy Act (CCPA), “neural data” (such as brainwave activity) is now classified as sensitive personal information. While HIPAA-covered entities are exempt, this has significant implications for hybrid or tech-forward practices.
What to do:
Review your data collection practices—especially if you use neurotech, wearables, or AI—and ensure patient consent and disclosures are compliant with California healthcare law.
Previously required only for minors, opioid risk disclosures must now be provided to all patients before prescribing a controlled substance. This law eliminates the exemption for chronic pain patients.
What to do:
Update workflows and EMR templates to ensure staff are making and documenting this disclosure every time an opioid is prescribed.
If your practice uses AI to generate written or verbal patient communications (texts, emails, portal messages), you must disclose this and provide clear contact information for a human provider.
What to do:
Audit your communication systems and revise message templates now. This is part of a growing wave of California healthcare laws regulating technology in care delivery.
Physicians are no longer required to disclose personal medical conditions that do not impair their ability to practice safely. This protects doctors’ privacy and reduces unnecessary scrutiny.
What to do:
Stay informed about what you’re legally required to report because this law gives physicians more precise boundaries around license-related disclosures.
Health plans using AI or algorithms to assess medical necessity must now follow strict transparency and fairness standards. Importantly, only a licensed physician or qualified provider can make a final adverse determination based on medical necessity.
What to do:
If you’re dealing with denied claims, request documentation on how decisions were made. Practices should understand these standards when challenging AI-driven utilization decisions, especially as they relate to referrals and billing practices. For a deeper look at how these issues overlap, see how the Stark Law is evolving in 2025.
New healthcare laws often expose weak spots in policies, training, and recordkeeping. A strong compliance program is a legal buffer and a practical way to prevent issues before they arise.
Fenton Jurkowitz Law Group is a dedicated healthcare law firm helping physicians navigate shifting regulations, avoid penalties, and stay focused on patient care. We support your practice through every legal update, from operational reviews to urgent compliance matters. Reach out through our website today to connect with a healthcare attorney who can help maintain compliance without disrupting care delivery.