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.








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           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
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            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