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.