BILL ANALYSIS SB 606 Page 1 SENATE THIRD READING SB 606 (Ducheny) As Amended June 18, 2009 Majority vote SENATE VOTE :34-1 BUSINESS & PROFESSIONS 11-0 APPROPRIATIONS 16-0 ----------------------------------------------------------------- |Ayes:|Hayashi, Emmerson, |Ayes:|De Leon, Conway, Ammiano, | | |Conway, Eng, | | | | |Hernandez, Nava, Niello, | |Charles Calderon, Coto, | | |John A. Perez, Ruskin, | |Davis, Duvall, Fuentes, | | |Smyth, Monning | |Hall, Harkey, | | | | |John A. Perez, Skinner, | | | | |Solorio, Audra | | | | |Strickland, Torlakson, | | | | |Hill | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Requires the Osteopathic Medical Board of California (OMBC) to charge a fee to osteopathic physicians and surgeons (D.O.s) for the Steven M. Thompson Physician Corps Loan Repayment Program (STLRP), and allows them to participate in the STLRP. Specifically, this bill : 1)Requires the OMBC to charge $25 in addition to the license fee for the STLRP. 2)Requires the OMBC to transfer all funds collected pursuant to this bill, on a monthly basis, to the Medically Underserved Account for Physicians (MUAP) for the STLRP, and prohibits the funds collected in the MUAP from being used to fund the Physician Volunteer Program (PVP). 3)Includes D.O.s in the Health Professions Education Foundation (HPEF), which includes the STLRP and PVP. EXISTING LAW : 1)Establishes the MUAP within the HPEF to provide funding for the STLRP, which provides loan repayment assistance to SB 606 Page 2 physicians and surgeons who agree to practice in a medically underserved community. 2)Establishes the Osteopathic Act of 1922, by voter initiative, to regulate the practice of osteopathic medicine. Establishes the OMBC to license, regulate and discipline D.O.s. Specifies that the policy of the state of California is that holders of medical doctor (M.D.) degrees and D.O. degrees are to be accorded equal professional status and privileges as licensed physicians and surgeons. 3)Establishes a schedule of fees for D.O.s, including fees for certificates and renewal of license. Requires the OMBC to assess up to $400 for each applicant for an original or reciprocity certificates, and up to $400 for a biennial license fee. 4)Establishes the Medical Board of California (MBC) to license, regulate, and discipline physicians and surgeons, and specifies that the protection of the public is the highest priority of the MBC. 5)Requires the MBC to assess a $25 licensure fee on physicians and surgeons for the purpose of the STLRP. FISCAL EFFECT : According to the Assembly Appropriations Committee, annual increased special fund fee collections from OMBC licensees to support the loan program of $50,000 to $70,000. COMMENTS : The Osteopathic Initiative Act of 1922 created the OMBC to license and regulate the practice of osteopathic medicine in California. Existing law accords holders of medical degrees and osteopathic degrees equal professional status and privileges. However, according to the OPMC's website, D.O.s are slightly different from M.D.s in that they put special emphasis on the role of the bones, muscles and joints in the healthy functioning of the human body. D.O.s are physicians who may be certified to specialize in family medicine, obstetrics/gynecology, pediatrics, surgery, internal medicine, and all other medical specialties and subspecialties. Currently, there are over 5,000 D.O.s licensed and regulated by the OMBC. SB 606 Page 3 The STLRP is a grant program for licensed physicians and surgeons that offers up to $105,000 to repay educational debt in exchange for a three-year commitment to practice in a medically underserved area (MUA) of the state. According to the United States Health Resources and Services Administration (HRSA), MUAs and medically underserved populations are defined by their shortages of primary medical care, dental or mental health providers. They may be designated based on geographic (a county or service area) or demographic (low income, Medicaid-eligible populations, cultural and/or linguistic access barriers to primary medical care services) criteria. According to HRSA, there are over 160 MUAs in 47 California counties. According to information supplied by the author's office, practice opportunities in underserved communities often provide less compensation for new doctors than other areas of the state. Unfortunately, financial considerations make it difficult for young physicians repaying medical student loans to practice in these areas. Twenty-five percent of medical students have debt exceeding $150,000, and many physicians finish their residency programs with debt of over $350,000. STLRP recipients work in a variety of underserved areas throughout the state; eligible practice settings include community health centers, migrant health centers, and public housing centers. Current law requires that most participants be selected from the specialty areas of family practice, internal medicine, pediatrics, and obstetrics/gynecology, however, up to 20% of the participants may be selected from other specialties. Recipients must also speak at least one Medi-Cal threshold language, in addition to English. Analysis Prepared by : Sarah Huchel / B. & P. / (916) 319-3301 FN: 0002277