<P> California Health & Safety Code section 1206 (I) exempts from licensure clinics operated by a nonprofit corporation (such as a medical foundation) if they meet certain requirements, including conducting medical research and health education, and providing medical care through a group of 40 or more independent contractor physicians and surgeons . The foundation's board must consist of physician, hospital and local community representatives, with affiliated physicians making up no more than 20 percent of the board's members . </P> <P> It is for these reasons that organizations such as the Cedars - Sinai Medical Center restructured in 1994 to become the Cedars - Sinai Health System, comprising the Cedars - Sinai Medical Care Foundation, Physician - Hospital Organization and Cedars - Sinai Medical Center ." </P>

Informative report of a non profit association hospital aims and objectives