BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   AJR 13|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AJR 13
          Author:   Lara (D), et al.
          Amended:  As introduced
          Vote:     21

           
           ASSEMBLY FLOOR  :  Read and adopted, 6/20/11


           SUBJECT  :    Graduate medical education

           SOURCE :     California Medical Association


           DIGEST  :    This resolution urges the President and the 
          Congress of the United States to continue to provide 
          resources to increase the supply of physicians in 
          California, in order to improve access to care, 
          particularly for Californians in rural areas and members of 
          underrepresented ethnic groups, and to consider solutions 
          that increases the number of graduate medical education 
          residency positions to keep pace with the growing numbers 
          of medical school graduates, and the growing need for 
          physicians in California.

           ANALYSIS  :    

          Resolution findings:

          1. Congress approved, and President Barack Obama signed, 
             the federal Patient Protection and Affordable Care Act 
             (PPACA) of 2010 (Public Law 111-148), to expand health 
             insurance coverage, reduce health care costs, and 
                                                           CONTINUED





                                                                AJR 13
                                                                Page 
          2

             address the growing shortage of physicians.

          2. The PPACA aims to specifically address shortages in 
             primary care through adjustments to the Medicare and 
             Medicaid fee schedules, reallotment of unused graduate 
             medical education slots, and a suite of grants, 
             scholarships, loans, and loan forgiveness programs.

          3. Forty-two of California's 58 counties fall below the 
             Council on Graduate Medical Education's recommendations 
             for minimum primary care physician supply, and of these 
             42 counties, 16 have a Latino population that exceeds 30 
             percent.

          4. The PPACA encourages more physicians to practice in 
             rural settings, where Latinos can constitute 50 percent 
             of the population, through Rural Physician Training 
             Grants for medical schools.

          5. California's rural counties suffer from particularly low 
             physician practice rates, of the rural counties with the 
             lowest number of primary care physicians, three have a 
             Latino population over 50 percent.

          6. Currently Latinos, African Americans, Samoans, 
             Cambodians, Hmong, and Laotians are underrepresented in 
             California's physician workforce. The 
             underrepresentation of Latino physicians is particularly 
             dire: Latinos represent over one-third of the state's 
             population, but account for only five percent of the 
             state's physicians.

          7. The number of physicians retiring currently outpaces the 
             number of physicians entering the workforce in 
             California, where, in the last 15 years, the number of 
             medical school graduates in California has been at a 
             plateau even though there has been a population growth 
             in the state of 20 percent.

          8. The magnitude of this physician shortage will only 
             increase the cost of public health care in the health 
             care institutions of the state given that Latinos will 
             constitute the majority of Californians by the year 
             2040. Currently, to reach parity with the non-Latino 

                                                           CONTINUED





                                                                AJR 13
                                                                Page 
          3

             patient population, there would need to be approximately 
             27,309 more Latino physicians in California.

          9. The PPACA reforms graduate medical education by 
             expanding the scope of Medicare-recognized patient care 
             settings, creating funding for community-based graduate 
             medical education training, and establishing Teaching 
             Health Centers development grants.

          10.The increase of medical school debt is one of the 
             primary factors for a student not to pursue medical 
             school because the average medical student now graduates 
             with about $150,000 in debt.  If that trend continues at 
             the average rate, medical school debt will amount to 
             $750,000 by 2033.

          11.The expansion of health insurance coverage under the 
             PPACA will further increase the need for physicians.  
             Nearly 4.7 million nonelderly adults and children who 
             were uninsured in all or part of 2009 will qualify for 
             coverage under the PPACA.

           Background
           
          A June 2009 report published by the California HealthCare 
          Foundation based on the MBC survey found that the supply of 
          MD physicians estimated in California is 17 percent lower 
          than that estimated from the American Medical Association 
          (AMA) Data File.  Of active patient care physicians in 
          California, 34 percent reported that they were in primary 
          care, 20 percent fewer than the number estimated from the 
          AMA data.  Only 16 of California's 58 counties fall within 
          the needed supply estimate for primary care physicians, and 
          in eight counties the supply is less than half this range.  
          The number of specialists per 100,000 population is well 
          above the upper range of most assessments of need, and more 
          than half of the state's 58 counties are above the bottom 
          estimated need level for specialists.  Rural counties have 
          far fewer physicians per capita than urban counties; 
          counties in the Central Valley and Inland Empire are 
          particularly likely to have a low supply of physicians, and 
          also have higher proportions of an aging physician primary 
          care workforce.


                                                           CONTINUED





                                                                AJR 13
                                                                Page 
          4

           FISCAL EFFECT  :    Fiscal Com.:  No

           SUPPORT  :   (Verified  7/12/11)

          California Medical Association (source)

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          in 2010, President Obama signed into law the Patient 
          Protection and Affordable Care Act in order to expand 
          health insurance coverage, reduce health care costs, and 
          address the growing shortage of physicians.  PPACA aims to 
          specifically address shortages in primary care through 
          adjustments to the Medicare and Medicaid fee schedules, 
          re-allotment of unused Graduate Medical Education (GME) 
          slots, and a suite of grants, scholarships, loans and loan 
          forgiveness programs.  The author's office cites findings 
          from multiple studies that suggest the supply of physicians 
          in California - especially in underserved areas serving 
          ethnic populations - is inadequate.  The author's office 
          has introduced this resolution to urge the President and 
          Congress to increase the supply of physicians and the 
          number of GME residency positions in California.


          CTW:do  7/12/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****
















                                                           CONTINUED