BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 700
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                                Felipe Fuentes, Chair

             SB 700 (Negrete McLeod) - As Introduced:  January 26, 2010 

          Policy Committee:                             Business &  
          Professions  Vote:                            11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:

          This bill modifies disciplinary reporting and peer review  
          policies and procedures related to professionals under the  
          jurisdiction of the Medical Board of California (MBC), the  
          Osteopathic Medical Board of California (OMBC), and the  
          California Board of Podiatric Medicine (CPBM) (boards).  
          Specifically, this bill: 

          1)Increases the amount of information available in a board's  
            central file. Requires specified information to be disclosed  
            to the public about a former licensee. Specifies that  
            information will not be disclosed if a court finds that a peer  
            process was conducted in bad faith.

          2)Expands the definition of peer review to include a process in  
            which information is reviewed to determine whether a  
            licentiate may practice and to determine parameters of that  

          3)Requires the chief of staff of a medical or professional  
            staff, a chief executive officer, medical director, or other  
            administrator of a peer review body, to file a report  
            following a formal investigation within 15 days after a peer  
            review final determination that specified acts may have  
            occurred, including gross negligence, substance abuse, and  
            excessive prescribing of controlled substances.   

           FISCAL EFFECT  

          No direct fiscal impact to the healing arts boards addressed by  
          this bill to continue oversight of medical professionals in  


                                                                  SB 700
                                                                  Page  2



           1)Rationale  . This bill addresses peer review processes and "805  
            reports" and is similar to SB 820 (Negrete McLeod) in 2009.  
            Section 805 of the Business & Professions Code details the  
            peer review process and reporting related to disciplinary  
            investigations and conclusions related to alleged physician  
            misconduct.  SB 820 was vetoed due to concerns about the  
            definition of "serious" cases of incompetence and perceived  
            misalignment with national accreditation requirements that  
            hospitals adopt a zero tolerance policy toward disruptive  
            physician behavior. According to the author, subsequent  
            discussions with the Administration have reduced these  

           2)Background  . The term peer review generally refers to when a  
            group of medical professionals review their colleagues'  
            performance. Peer reviews are conducted in many health care  
            settings, including hospitals, clinics, health plans, and  
            medical groups. Peer reviews are not always related to  
            performance concerns, but may also be used in a routine review  
            of a physician's practices. The methods of peer review can  
            vary widely. Under state law, when peer review involves  
            disciplinary action, the review and outcomes must be reported  
            to the respective boards, including the MBC. 

           3)Medical Board 805 Reports  . In 2007-08, the MBC received 138  
            Section 805 reports regarding the approximately 100,000  
            physicians practicing in California and licensed by the MBC.  
            The number of 805 reports varies from year to year but  
            population-adjusted data show a reduction in the number of  
            reports year-over. Pursuant to Section 805, the information  
            reported to the MBC is confidential. Section 805 also  
            specifies that willful failure to file an 805 report is  
            punishable by a maximum fine of $100,000 per violation and any  
            failure to file an 805 report is punishable by a fine of  

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081