BILL ANALYSIS AB 1303 Page 1 Date of Hearing: April 28, 2009 ASSEMBLY COMMITTEE ON HEALTH Dave Jones, Chair AB 1303 (Hall) - As Amended: April 14, 2009 SUBJECT : Martin Luther King, Jr. Hospital: reopening plan: working group. SUMMARY : Directs the Department of Public Health (DPH) to convene a working group of stakeholders to assist in the reopening of Martin Luther King, Jr. (MLK) Hospital in Los Angeles. Specifically, this bill : 1)Specifies that the working group include, but not be limited to: representatives of DPH, the Los Angeles Board of Supervisors, the Regents of the University of California (UC) and other parties deemed necessary to facilitate the reopening plan. 2)Directs the working group to review and examine issues relating to the MLK hospital reopening including consideration of the following: a) Clarification of the respective roles of Los Angeles County (County) and the Regents; b) Selection of a suitable nonprofit entity to manage day-to-day operations of the hospital, pursuant to a contract with UC and Los Angeles County; c) Secure appropriate funding, including making recommendations to the Legislature for necessary statutory changes; and, d) Develop a MLK hospital teaching component. 3)Requires the working group to prepare a report of its findings and recommendations. 4)States the findings and declarations of the Legislature concerning the need for special legislation. EXISTING LAW provides for the licensure of health facilities, including acute care hospitals and special hospitals by DPH. AB 1303 Page 2 FISCAL EFFECT : This bill has not yet been reviewed by a fiscal committee. COMMENTS : 1)PURPOSE OF THE BILL. According to the author, a stakeholder board as proposed in this bill may provide valuable assistance and support for the re-establishment of MLK Hospital. The tentative agreement recently announced by the UC and the County, notes the author, has yet to be fully developed, and an additional venue for discussion might help resolve the very complex and difficult arrangements yet remaining before reopening this critical facility. 2)BACKGROUND . The County and the UC recently announced they have made considerable progress on a tentative agreement which could lead to the reopening of MLK hospital in the Willowbrook/Watts area of Los Angeles. For over 35 years, according to the author, MLK Hospital provided trauma, surgery, emergency, and obstetric care to the 1.6 million residents of South Central Los Angeles. The hospital served as one of the largest public and teaching hospitals in the state, providing both critical medical care and physician training programs through the Charles Drew University of Medicine. Inpatient services at the hospital, as reported in the Los Angeles Times, were shut down in August of 2007 after years of high profile cases of inadequate care, including errors causing multiple deaths. For almost two years, according to the Times , the community of South Central Los Angeles has been without a Tier I Trauma center which has required trauma patients to be transported long distances and state and county officials to expend more than $100 million for surrounding hospitals treating South Central residents. The Times further notes that the South Central community is severely medically underserved. South Central has one hospital bed per 1,000 residents while the national average is three beds per 1,000 residents. In South Central, more people die of lung cancer, stroke, diabetes, and heart disease than in any other place in Los Angeles County. UC reports that the County and UC have agreed the re-opened hospital will: a) Serve as a safety net hospital treating a high volume of Medi-Cal and uninsured patients; b) Integrate hospital inpatient services with the County's existing network AB 1303 Page 3 of clinics; and, c) Optimize both public and private funding resources. As described by UC, the new facility will have only about one half the beds (120) of the former hospital (233) but would provide emergency services. The hospital will be operated by a new and independent private non-profit organization which will hold the hospital license and manage day to day operations. UC has stated that it expects to enter a contractual agreement with the non-profit operator to provide medical quality assurance and physician services. The reorganized hospital is expected to open in 2012 using only a portion of the existing campus. The non-profit operator, according to the Times, has not yet been selected. REGISTERED SUPPORT / OPPOSITION : Support None on file. Opposition None on file. Analysis Prepared by : John D. Miller / HEALTH / (916) 319-2097