BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 950 (Hernandez) Hearing Date: 8/2/2010 Amended: 7/15/2010 Consultant: Katie Johnson Policy Vote: Health 7-1 _________________________________________________________________ ____ BILL SUMMARY: AB 950 would establish hospice facility as a new health facility licensing category under the authority of the California Department of Public Health and would permit licensed and certified hospice services providers to provide inpatient hospice services through the operation of a hospice facility. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund CDPH regulations $70 $120 $0 Special* OSHPD cost report review $0 $270 $35 Special** CDPH licensure revenue $0 $0 ($110) Special* and program costs at least $110 commencing upon adoption of regulations *State Department of Public Health Licensing and Certification Fund ** California Health Data and Planning Fund _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. This bill would establish "hospice facility" as a new health facility licensing category under the authority of the California Department of Public Health (CDPH) Licensing and Certification Division. It would provide that the licensing fee for hospice facility applicants would be set at the fee amount of that for congregate living health facilities, $203 per bed, for the first year of licensure. Thereafter, CDPH would annually publish the hospice licensure fee based on the department's costs in its list of annual fees for the licensure of health facilities. If CDPH were to license 30 facilities with 18 beds each, costs would be approximately $110,000 per year. There could also be increased costs to the department to conduct site inspections. CDPH would be required to develop regulations that would govern hospice facility licensure by June 30, 2015. The regulations would address, at a minimum, staffing standards, patient rights, disaster preparedness plans, seismic safety building requirements, and the scope of services to be provided within a hospice facility. It would cost CDPH approximately $70,000 in FY 2010-2011 and $120,000 in FY 2011-2012 to develop regulations. This bill would also require hospice facilities to file cost reports with the Office of Statewide Health Planning and Development (OSHPD). If 30 facilities sought licensure as hospice facilities, costs to OSHPD would be approximately $270,000 in FY 2011-2012 and minor and absorbable ongoing.