BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 442| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 442 Author: Ducheny (D), et al Amended: 8/12/10 Vote: 21 SENATE HEALTH COMMITTEE : 11-0, 4/22/09 AYES: Alquist, Strickland, Aanestad, Cedillo, Cox, DeSaulnier, Leno, Maldonado, Negrete McLeod, Pavley, Wolk SENATE APPROPRIATIONS COMMITTEE : 9-0, 1/21/10 AYES: Kehoe, Cox, Corbett, Denham, Leno, Liu, Price, Walters, Yee SENATE FLOOR : 35-0, 1/28/10 AYES: Aanestad, Ashburn, Calderon, Cedillo, Cogdill, Corbett, Correa, Cox, Denham, DeSaulnier, Ducheny, Dutton, Florez, Hancock, Harman, Hollingsworth, Kehoe, Leno, Liu, Lowenthal, Maldonado, Negrete McLeod, Oropeza, Padilla, Pavley, Price, Romero, Simitian, Steinberg, Strickland, Wiggins, Wolk, Wright, Wyland, Yee NO VOTE RECORDED: Alquist, Huff, Runner, Walters, Vacancy ASSEMBLY FLOOR : 74-0, 8/16/10 - See last page for vote SUBJECT : Clinic corporation: licensing SOURCE : California Family Health Council California Primary Care Association Planned Parenthood Affiliates of California CONTINUED SB 442 Page 2 DIGEST : This bill streamlines administrative processes for community clinics to apply for affiliate clinic licensure from the Department of Public Health. Assembly Amendments delete permissive language and require an affiliate clinic application to be signed by an officer of the clinic corporation's board of directors or the clinic corporation's chief executive officer or executive director. ANALYSIS : Existing law: 1. Provides for the licensing and regulation of health clinics, including community and free clinics, by the Department of Public Health (DPH). 2. Provides for a fee to be paid for an initial and annual renewal license, as specified. Estimated fees are published every February 1 by DPH. 3. Permits a primary care clinic that has held a valid, unrevoked, and unsuspended license for at least the preceding five years to apply to establish another primary care clinic at an additional site, which is referred to as an affiliate clinic. 4. Provides that the DPH license an affiliate clinic without the necessity of first conducting an initial onsite survey if specified conditions are met and within 30 days of receipt of a completed application or within seven days of approving it. This bill: 1. Requires the affiliate clinic application be contained in a simple form and specifies the contents of the application form. 2. Establishes related definitions for terms such as "clinic corporation". 3. Requires a clinic corporation to act as the SB 442 Page 3 administrative headquarters for communications with DPH. 4. Requires DPH to retain information related to clinic corporations maintaining affiliate clinic licenses. Specifies the information DPH is required to maintain. Specifies a clinic corporation will not be required to resubmit information maintained by DPH about clinic corporations when applying for affiliate licensure. 5. Requires a clinic corporation to submit a single report of change of governance for the clinic corporation and a single payment for all clinic licensure renewal fees. Comments According to the Senate Appropriations Committee analysis: "CDPH [California Department of Public Health] currently uses a system of 14 regional offices and a contract with Los Angeles County and a database that tracks licensees to oversee all of the health facilities, including clinics that it licenses and certifies. The department would likely need to modify the way in which it oversees clinics since clinics and mobile health care units on a single consolidated license would no longer be tracked by an individual license number. Depending on the workload at a given regional office, an additional program technician could be needed to oversee a single consolidated license and to facilitate communication amongst the regional office that oversees the single consolidated license and the other regional offices that will directly oversee each of the clinics on the license. If each of the offices and LA County needed to hire an extra full-time staff member, costs could be up to $600,000 in FY 2010-2011 and $1,000,000 in FY 2011-2012 and ongoing. "This bill would state that regulations would not be necessary to implement these provisions. However, it is likely that the CDPH would need to promulgate regulations to implement these provisions where the language is not explicit in its directions to the department, clinics, mobile health care units, and clinic corporations. If SB 442 Page 4 CDPH promulgates regulations, it would need approximately $75,000 in FY 2010-2011 and $125,000 in FY 2011-2012. "This bill would require the CDPH to annually set the fee for a single consolidated license. It is estimated that the CDPH would require an additional Fee Development Analyst at $60,000 in FY 2009-2010 and $100,000 ongoing to set the fee annually. Additionally, the CDPH would need an additional information technology staff person to modify the department's data systems to include this new licensure category and create a system that would accommodate the new way of tracking clinics at $60,000 in FY 2010-2011 and $110,000 in FY 2011-2012. "In total, depending on department workload, costs for regulations, ongoing district office administration, and database management and clinic tracking would be up to approximately $800,000 in FY 2010-2011 and $1,300,000 FY 2011-2012, and $1,200,000 ongoing. All costs would be offset by initial and annual single consolidated license fees." FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee: Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund DPH administration up to $800 up to $1,300up to $1,200 Special* Initial clinic licensing/ unknown, but likely to provide sufficient Special* annual renewal fee revenue funds to cover ongoing program costs * DPH Licensing and Certification Program Fund SUPPORT : (Verified 1/25/10) (Unable to reverify) California Family Health Council (co-source) SB 442 Page 5 California Primary Care Association (co-source) Planned Parenthood Affiliates of California (co-source) Alliance Medical Center Alliance for Rural Community Health Alta Med Health Services Anderson Valley Health Center Central Valley Health Network Chinatown Service Center Clinicas del Camino Real, Incorporated Clinica de Salud del Valle de Salinas Clinica Sierra Vista Community Clinic Association of Los Angeles County East Community Health Center, Inc. Eisner Pediatric and Family Medical Center Family HealthCare Network Family Health Centers of San Diego Imperial Beach Health Center LifeLong Medical Care Long Valley Health Center MayView Community Health Center Mendocino Coast Clinics, Inc. Mendocino Community Health Clinics, Inc. Neighborhood Healthcare North Coast Clinics Network North County Health Services Northeast Valley Health Corporation Open Door Community Health Centers Petaluma Health Center Planned Parenthood Mar Monte Planned Parenthood of San Diego and Riverside Counties Planned Parenthood of Santa Barbara, Ventura and San Luis Obispo Planned Parenthood: Shasta-Diablo Potter Valley Community Health Center Redwood Coast Medical Services Saban Free Clinic Salud Para La Gente Shasta Community Health Center Shasta Consortium of Community Health Centers Shingletown Medical Center Six Rivers Planned Parenthood Southern Trinity Health Services UMMA Community Clinic Venice Family Clinic SB 442 Page 6 West County Health Centers, Inc. ARGUMENTS IN SUPPORT : The California Primary Care Association (CPCA) states that this bill eliminates unnecessary administrative barriers to increasing access to care by allowing primary care clinics to operate multiple sites under one consolidated license. CPCA states that moving to a consolidated licensure will streamline the licensing process, reduce duplication, and promote administrative efficiency, and thereby maximize the ability of safety net providers to meet the growing health care needs of individuals and families in their communities. Planned Parenthood Affiliates of California (PPAC) states that each time a clinic corporation applies for a new clinic, numerous documents must be submitted to DPH, many of which are duplications of paperwork already filed with the department. PPAC states that significant time and money is expended on these cumbersome licensing activities that take away from the critical services clinic staff should be providing. PPAC states that this bill streamlines and modernizes the current overly burdensome processes and eliminate duplication. ASSEMBLY FLOOR : AYES: Adams, Ammiano, Anderson, Arambula, Beall, Tom Berryhill, Block, Blumenfield, Bradford, Brownley, Buchanan, Caballero, Carter, Chesbro, Conway, Cook, Coto, De La Torre, De Leon, DeVore, Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick, Gatto, Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande, Niello, Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, John A. Perez NO VOTE RECORDED: Bass, Bill Berryhill, Blakeslee, Charles Calderon, Davis, Vacancy SB 442 Page 7 CTW:mw 8/17/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****