BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
270 (Alquist)
Hearing Date: 5/18/2009 Amended: 5/5/2009
Consultant: Katie Johnson Policy Vote: Health 9-0
_________________________________________________________________
____
BILL SUMMARY: SB 270 would create a health information
technology advisory panel to advise the Governor and the
Legislature on health information technology in California.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Advisory panel staff $50 - 150 $100 -
300$100 - 300 General
_________________________________________________________________
____
STAFF COMMENTS: This bill meets the criteria for referral to
the Suspense File.
This bill would create a health information technology advisory
panel that would consist of 22 members, as specified, to make
recommendations to maximize the state's eligibility and award of
funds made available by the American Recovery and Reinvestment
Act of 2009 (ARRA). The ARRA would provide for a $36 billion
over several years, mostly for Medi-Cal and Medicare provider
incentives to adopt electronic medical record systems, with $2
billion set aside for competitive grant funding, subject to
further guidance from the Centers for Medicare and Medicaid
Services (CMS). To be eligible for provider payments, a provider
must demonstrate a "meaningful use" of health information
technology.
It is estimated that this advisory panel would need between 1 to
3 staff to facilitate its duties annually, which would include
making recommendations to maximize the state's eligibility for
ARRA awards, to ensure that safety net providers have access to
ARRA funds, to the Governor and the Legislature on a mechanism
for designating a nonstate entity that would execute tasks
related to accessing federal funds and whether such an entity is
necessary, for working with higher education to integrate health
information technology into its curriculum and clinical
education, to appropriate federal entities for standards and
certification, on qualifications for centers in the state that
may provide technical assistance and best practices on health
information technology, to ensure providers have access to ARRA
incentive payments, and to ensure that providers understand the
meaning of "meaningful use" as defined in federal law.
This bill would require that the panel meet at least monthly for
the first year, and then as deemed necessary by the chair of the
panel. This bill would require the panel to make a
recommendation in 2014 whether there would be a need for the
advisory panel to exist beyond 2016. This bill would provide
that although members would serve without compensation, they
would be reimbursed for travel expenses and that consumer
representatives could receive a per diem compensation if they
would otherwise be unable to attend for economic reasons.
Page 2
SB 270 (Alquist)
There are currently several public and private initiatives
underway in California to respond to the health information
technology provisions of the ARRA, including an April 2009 CHHS
time-limited collaborative to aid in determining whether the
state should play the lead role in providing technical services
related to health information technology or if that role would
be better suited for a state designated entity (SDE), as
provided for in the ARRA. This collaborative is funded primarily
with foundation moneys and is expected to complete its task and
issue a final report in August of 2009. Also, in April 2009, the
Governor appointed a deputy secretary of health information
technology in the CHHS. It is unknown whether or not current
initiatives could fulfill the role of the advisory board set
forth in this bill.