BILL ANALYSIS AB 1303 Page 1 ASSEMBLY THIRD READING AB 1303 (Hall) As Amended June 1, 2009 Majority vote HEALTH 17-0 APPROPRIATIONS 13-4 ----------------------------------------------------------------- |Ayes:|Jones, Fletcher, Adams, |Ayes:|De Leon, Ammiano, | | |Ammiano, Block, Carter, | |Charles Calderon, Davis, | | |Conway, De Leon, | |Fuentes, Hall, John A. | | |Emmerson, Hall, Hayashi, | |Perez, Price, Skinner, | | |Hernandez, Bonnie | |Solorio, Audra | | |Lowenthal, Nava, V. | |Strickland, Torlakson, | | |Manuel Perez, Salas, | |Krekorian | | |Audra Strickland | | | |-----+--------------------------+-----+--------------------------| | | |Nays:|Nielsen, Duvall, Harkey, | | | | |Miller | ----------------------------------------------------------------- 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: clarification of the respective roles of Los Angeles County (County) and the Regents; selection of a suitable nonprofit entity to manage the hospital; secure appropriate funding; and, develop an MLK Hospital teaching component. 3)Requires the working group to prepare a report of its findings and recommendations and specifies that no General Funds be expended to support the working group. FISCAL EFFECT : The Assembly Appropriations Committee analysis found no costs associated with this bill. AB 1303 Page 2 COMMENTS : 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 UC and County, notes the author, has yet to be fully developed, and an additional venue for discussion might help resolve the complex arrangements remaining before reopening this critical facility. 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 however, as reported in the Los Angeles Times (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, again 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. 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. UC reports that the County and UC have agreed the re-opened hospital will: 1) serve as a safety net hospital treating a high volume of Medi-Cal and uninsured patients; 2) integrate hospital inpatient services with the County's existing network of clinics; and, 3) 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 an 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 AB 1303 Page 3 non-profit operator, according to the Times, has not yet been selected. Analysis Prepared by : John D. Miller / HEALTH / (916) 319-2097 FN: 0001273