BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 950
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          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;








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             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  








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               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  








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            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  








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            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.










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          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