BILL ANALYSIS AB 1589 Page 1 Date of Hearing: April 17, 2001 ASSEMBLY COMMITTEE ON HEALTH Helen Thomson, Chair AB 1589 (Simitian) - As Introduced: February 23, 2001 POLICY QUESTION : Should the Medical Board be required to conduct a study on the electronic transmission of prescriptions by physicians, and report its results to the Legislature before May 1, 2002? SUBJECT : Healing arts: electronic transmission prescriptions. SUMMARY : Requires the Medical Board of California (Board) to conduct a study on the electronic transmission of prescriptions by physicians, and report its results to the Legislature before May 1, 2002. Specifically, this bill : 1)Requires the Board to conduct a study and report its results to the Legislature before May 1, 2002, on the electronic transmission of prescriptions by physicians. 2)Requires the report to include recommendations for methods to encourage physicians and surgeons to issue prescriptions by electronic transmission and identification of systems to protect patients for whom prescriptions are issued using that process, including, but not limited to, the issuance of digital certification to physicians to use when transmitting prescriptions electronically. 3)Defines "digital certification" as an electronic signature verifying the identity of the physician who is transmitting the prescription electronically. 4)Make various legislative findings, based on a specified report, that approximately 7,000 deaths occurred in the United States as a result of medication errors in 1993. Makes further legislative findings, based on the Institute for Safe Medicine Practices, that of the 3 billion prescriptions issued each year in the United States, nearly all of them are handwritten, and illegible prescriptions result in more than 150 million inquiries each year by pharmacists for clarification from the physician who issued the prescription. AB 1589 Page 2 EXISTING LAW : 1)Establishes the Board within the Department of Consumer Affairs, charged with the licensing and regulation of physicians. 2)Establishes the Board of Pharmacy to regulate the practice of pharmacy. 3)Prohibits dangerous drugs or devices from being sold or furnished without a prescription, and defines a "prescription" as an oral, written, or electronic transmission order issued by licensed prescribers, as specified. Further defines "electronic transmission prescription" as including both image prescriptions (facsimile) and data prescriptions electronically transmitted from a licensed prescriber to a pharmacy. 4)Permits a prescriber to electronically enter a prescription into a pharmacy's or hospital's computer from any location outside of the pharmacy or hospital with the permission of the pharmacy or hospital. FISCAL EFFECT : Unknown COMMENTS : 1)PURPOSE OF THIS BILL . According to the author, as the industry explores options to make health care delivery more efficient and cost-effective, there is a need to develop standard protocols regarding signature verification, security, and interfacing with current requirements relative to prescribing drugs. The author provided a white paper from the Institute for Safe Medication Practices (ISMP), calling for the elimination of handwritten prescriptions within 3 years. The ISMP paper stated that the health care industry has been slow to adopt new technologies, and that prescription writing is perhaps the most important paper transaction remaining in our increasingly digital society. ISMP argues that the hurdles until very recently have been clinicians' reticence about computers, a lack of hardware and software that would conveniently allow prescribers to select medications electronically, and fear of the costs associated with such technology. ISMP asserts that AB 1589 Page 3 fortunately, the advent of wireless hand-held devices is making it increasingly possible to solve the "handwriting crisis," perhaps on all three counts. 2)INSTITUTE OF MEDICINE (IOM) REPORT . In November of 1999, IOM released a report, "To Err is Human: Building a Safer Health System," which found that approximately 7,000 hospital patients die annually across the country from preventable medication-related errors. The IOM report found that 2 out of every 100 hospital patients will die or be injured as a result of preventable medication errors, and that each medication error increases the cost of a hospital stay by an average of $4,700. The IOM report included several recommendations to address medication-related errors, including that health care organizations and the professionals affiliated with them establish patient safety programs which incorporate well-understood safety principles, such as standardizing and simplifying equipment, supplies, and processes, and that health care organizations implement proven medication safety practices. 3)COMMENT . While the Medical Board licenses and regulates physicians, who make up the bulk of the providers permitted to issue prescriptions, the Board of Pharmacy oversees the practice of pharmacy and should be included in any state effort examining ways of improving the prescription process. Additionally, regulatory boards are not always the most appropriate entities to conduct studies. The author may wish to consider an amendment that would require the Medical Board, in consultation with the Board of Pharmacy, to commission a study under the parameters of this bill. Finally, the author may wish to consider a later reporting date; the May 1, 2002 deadline currently in this bill for reporting the results to the Legislature may not give the Board sufficient time to develop and conduct the study. REGISTERED SUPPORT / OPPOSITION : Support None on file AB 1589 Page 4 Opposition None on file Analysis Prepared by : Vincent D. Marchand / HEALTH / (916) 319-2097