BILL ANALYSIS AB 950 Page 1 ASSEMBLY THIRD READING AB 950 (Hernandez) As Amended June 2, 2009 Majority vote HEALTH 17-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Jones, Fletcher, Adams, |Ayes:|De Leon, Nielsen, | | |Ammiano, Block, Carter, | |Ammiano, | | |Conway, De Leon, | |Charles Calderon, Davis, | | |Emmerson, Hall, Hayashi, | |Duvall, Fuentes, Hall, | | |Hernandez, Bonnie | |Harkey, Miller, | | |Lowenthal, Nava, V. | |John A. Perez, Price, | | |Manuel Perez, Salas, | |Skinner, Solorio, Audra | | | Audra Strickland | |Strickland, Torlakson, | | | | |Krekorian | ----------------------------------------------------------------- SUMMARY : Establishes a new health facility licensing category of hospice facility (HF), as specified. Specifically, this bill : 1)Establishes the HF as a new type of health facility, defined as a freestanding health facility, which has been licensed by the Department of Public Health (DPH) as a hospice facility for the provision of all levels of hospice care, including routine care, continuous care, inpatient respite care, and general inpatient care, and as a hospice program, under existing law. 2)Requires a hospice provider who provides short-term inpatient respite or inpatient care directly in the hospice provider's own facility to apply for licensure. 3)Establishes minimum services and requirements that a HF must meet as follows: a) Medical direction/staff; b) Skilled nursing services; c) Palliative care; d) Social services/counseling services; e) Bereavement services; f) Volunteer services; g) Dietary services; AB 950 Page 2 h) Pharmaceutical services; i) Physical therapy, occupational therapy, and speech-language therapy; j) Patient rights; aa) Disaster preparedness; bb) An adequate, safe, and sanitary physical environment; cc) Housekeeping; dd) Patient medical records; and, ee) Other administrative requirements. 4)Requires DPH to adopt regulations for HFs and to prescribe standards for the provision of services outlined in 3) above. 5)Requires the HF regulations adopted by DPH to include, but not be limited to: a) Minimum staffing standards that require at least one licensed nurse to be on duty 24 hours per day and that prohibit direct care staff from taking care of more than six patients at any given time; b) Patient rights so that each patient is: i) Fully informed of his or her total health status and the options for end-of-life care; ii) Provided care that reflects individual preferences regarding end-of-life care, including the right to refuse any treatment or procedure; iii) Treated with consideration, respect, and full recognition of dignity and individuality, including privacy in treatment and in the care of personal needs; and, iv) Entitled to visitors of his or her own choosing, at any time the patient chooses, and ensured privacy for those visits. c) Disaster preparedness for both internal and external disasters that protect hospice patients, employees, and visitors, and reflects coordination with local agencies that are responsible for disaster preparedness and emergency response; and, d) Additional qualifications and requirements for AB 950 Page 3 licensure. 6)Requires a HF to obtain and to pay the costs of, criminal background checks for employees, volunteers, and contractors in compliance with the Medicare conditions of participation (COP) and as may be required in state law. 7)Requires a licensed HF to provide a home-like environment that is comfortable and accommodating to both the patient and the patient's visitors and to continue to provide services to family and friends after the patient's stay in the HF, in accordance with the patient's plan of care. Authorizes the hospice program operating the HF to provide the follow-up services to the family. 8)Requires a HF to demonstrate the ability to meet licensing requirements and to be fully responsible for meeting all licensing requirements, regardless of whether those requirements are met through direct provision by the HF or under contract with another entity. Specifies that a HF's reliance on contractors to meet the licensing requirements does not exempt the HF or in any way mitigate the HF's responsibilities. 9)Requires a HF to meet the same building standards as a congregate living health facility, as described in existing law. 10)Authorizes a HF to be located adjacent to, physically connected to, or on the building grounds of another health facilities or residential care facility. 11)Requires an HF to submit evidence, as part of the application for licensure submitted to DPH, that the HF is in compliance with local building codes and that the physical environment of the HF is adequate to provide the level of care and service required by the residents of the HF, as determined by DPH. 12)Requires a HF to meet the fire protection standards set forth in the Medicare COP for hospice services. 13)Requires building standards adopted by DPH relating to fire and panic safety, and other HF regulations, to apply uniformly throughout the state, and prohibits local jurisdictions from AB 950 Page 4 adopting or enforcing any ordinance or local rule or regulation relating to fire and panic safety in HF buildings or structures that is inconsistent with the rules and regulations for HFs adopted by DPH. 14)Exempts a HF from having to submit construction plans to the Office of Statewide Health Planning and Development for new construction or renovation. 15)Eliminates the requirement for DPH to draft regulations required by this bill if the California Hospice and Palliative Care Association (CHAPCA) drafts the necessary regulations, in consultation with DPH, other state departments, and stakeholders, and submits the draft regulations as a petition for regulation pursuant to the Administrative Procedures Act (APA). 16)Makes legislative findings and declarations related to the need for and importance of hospice services to provide supportive care to terminally ill patients, their primary caregivers and families. Finds that permitting the establishment of licensed hospice facilities is consistent with federal legal affirmations of the right of an individual to refuse life-sustaining treatment and with United State Supreme Court in Olmstead v. L. C. by Zimring (1999) 527 U.S. 581, which held that persons with disabilities have the right to live in the most integrated setting possible with appropriate access to care and choice of community-based services and placement options. 17)Expresses legislative intent to permit the licensure of hospice inpatient facilities in order to improve access to care, to provide additional care options, and to provide for a home-like environment within which to provide care and treatment for persons who are experiencing the last phases of life. 18)Makes other technical and clarifying changes. EXISTING LAW : 1)Provides for licensure and regulation by DPH of persons or agencies providing hospice services, and defines hospice as a specialized form of interdisciplinary health care that is AB 950 Page 5 designed to provide palliative care; alleviate the physical, emotional, social, and spiritual discomforts of a terminally ill individual; and provide supportive care to caregivers and family members, according to specified criteria. 2)Requires licensed hospice providers to provide, or make provision for, specified basic services, including skilled nursing services, inpatient care, home health aide services, social services and counseling, bereavement, medical direction, and volunteer services. 3)Includes hospice care as a covered benefit under Medicare and Medi-Cal, under specified conditions, including that an individual is certified as terminally ill and his or her life expectancy is six months or less. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)One-time fee-supported special fund costs of $250,000 to DPH to promulgate regulations and to license 5 to 10 free-standing hospice facilities. Annual costs will depend on the number of initial and renewal licenses issued by DPH. 2)Unknown potential savings to Medi-Cal to the extent patients shift from inpatient medical intervention-heavy settings to hospice which reduces and eliminates medical intervention per patient and family wishes. Research shows expenditures are 50% lower in the last month of life and 30% lower in the last year of life for patients in hospice vs. non-hospice care. COMMENTS : According to the author, this bill will improve the options patients and their families have to obtain hospice services. According to CHAPCA, the sponsor of this bill, hospice providers must currently contract with other licensed facilities to provide inpatient hospice which can create conflicts in regulations and philosophies of care. CHAPCA points out that 95% of all hospice care is provided to patients in their own home, but when a patient can no longer remain safely at home, hospices need the flexibility to provide their services in facilities that are as home-like and residential as possible, as in the new licensing category of HF proposed in this bill. AB 950 Page 6 Under current California law, hospice is a licensed service and not a facility type. DPH evaluates hospice programs and certifies that they meet federal COP for Medicare and Medicaid (Medi-Cal in California). Health facilities may arrange for the provision of hospice services in settings such as: general acute care beds; skilled nursing facility beds; and, congregate living health facility beds through an agreement with a licensed hospice provider who will provide the hospice services. Those facilities, however, must still follow the regulations for which the facility bed is licensed. This bill allows for the creation of HFs which would presumably be dedicated specifically to the provision of hospice services and designed and staffed to meet the specialized needs of dying patients and their families. CHAPCA, the sponsor of this bill, states that this bill will expand the choices available to terminally ill patients and their families. CHAPCA contends this bill will also save money for patients, families, and the state. CHAPCA points out that currently when hospice patients cannot remain safely at home, they often move to a skilled nursing facility even though their symptoms and plan of care may not warrant that level of care. The Alliance for Catholic Health Care writes in support that this bill would address concerns relative to the current limitations on hospice care, such as conflicting regulations and philosophies of care, lack of adequate staffing levels to meet hospice COP requirements, and increasing difficulty in obtaining contracts for hospice care. Service Employees International Union (SEIU) is opposed unless this bill is amended. SEIU is opposed because this bill eliminates the public process for developing regulations under the APA and instead substitutes draft regulations to be proposed by the industry to be regulated. SEIU objects to industry self-regulation. SEIU suggests that after the debacles in the banking industry, as well as the long sorry history of the Joint Commission on the Accreditation of Health Organizations, the lesson has been learned that industries cannot be trusted to regulate themselves. Analysis Prepared by : Deborah Kelch / HEALTH / (916) 319-2097 FN: 0001369