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
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           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