Cal-Medicon v. Los Angeles County Medical Assn.

Opinion

FLEMING, J.

Cal-Medicon, a corporation, and Malcolm F. Dorfman, M.D., appeal an order dismissing their action for injunctive relief against the Los Angeles County Medical Association (LACMA). The trial court sustained LACMA’s demurrer to the- first amended complaint without leave to amend on the ground that the complaint failed to state a cause of action.

The Complaint

Cal-Medicon assists the Los Angeles County Department of Public Social Services in obtaining medical examination's for recipients of the

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County’s Aid to Totally Disabled program. At the county’s request, CalMedicon transports persons for medical examination from their homes to the offices of doctors who are designated by the county or who list themselves with Cal-Medicon. Cal-Medicon also transcribes the doctor’s examination report and does the doctor’s billing and record keeping. Cal-Medicon receives a portion of the fees paid by the county to the doctors.

Dr. Dorfman participates in Cal-Medicon’s program. On 22 May 1970 he and other participating doctors received a letter from LACMA:

“It has come to the attention, Doctor Dorfman, of the Committee on Ethics that you have become associated with an organization called CalMedicon, Inc., a California corporation. Copies of the files indicate that you have provided a curriculum vitae to that organization and offered your services to patients provided by Cal-Medicon. It is our understanding that you have entered into a contract agreement with Cal-Medicon, Inc.

“It is the opinion of the Committee on Ethics that, by such agreement, you have been in violation of the Code of Ethics of the Amercian Medical Association and the Los Angeles County Medical Association by engaging in the solicitation of patients. In addition, it is the opinion of the Committee on Ethics that there may be a violation of Section 2399 of the Business and Professions Code of the State of California which covers ‘cappers and steerers.’

“The Committee on Ethics, therefore, would appreciate receiving from you an explanation of your relationship with Cal-Medicon, Inc. and the activities in which you are engaged in connection with this corporation. Thank you for your cooperation.”