BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 386
                                                                  Page  1

          Date of Hearing:   April 26, 2011

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
                   AB 386 (Galgiani) - As Amended:  March 31, 2011
           
          SUBJECT  :  Prisons: telemedicine systems.

           SUMMARY  :  Requires the California Department of Corrections and 
          Rehabilitation (CDCR) to have an operational telemedicine 
          services program at all adult institutions, as specified, by 
          January 1, 2016.  Specifically,  this bill  :  

          1)Requires CDCR to include, within existing guidelines and by 
            January 1, 2013, protocols for determining when telemedicine 
            services are medically appropriate and in the best interest of 
            the health and safety of the inmate patient.

          2)Requires CDCR to have an operational telemedicine services 
            program at all adult institutions, by January 1, 2016, that 
            includes:

             a)   Specific goals and objectives for maintaining and 
               expanding services and encounters provided by the 
               telemedicine services program, including store and forward 
               telemedicine technology;
             b)   An information technology support infrastructure that 
               will allow telemedicine to be used at each adult prison;
             c)   Specific guidelines for determining when and where 
               telemedicine would be the preferred delivery method for 
               health care; and,
             d)   Guidelines and protocols for appropriate use and 
               expansion of store and forward telemedicine technology, as 
               defined, in state prisons.

          3)Requires CDCR to: schedule a patient for evaluation with a 
            distant physician via telemedicine if and when it is 
            determined that it is medically necessary; utilize 
            telemedicine only when it is in the best interest of the 
            health and safety of the inmate patient; and, ensure that 
            telemedicine is not used to supplant civil service physician 
            and dental positions.

          4)Permits CDCR to contract with the San Joaquin General Hospital 
            for telemedicine services.








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          5)Requires CDCR to report, each year from March 1, 2013 to March 
            1, 2018, to specified Assembly and Senate Committees:

             a)   The extent to which the objectives developed pursuant to 
               2) above were achieved, and the most significant reasons 
               for achieving or not achieving those objectives; 
             b)   The extent to which a statewide telemedicine services 
               program is being operated, as well as the most significant 
               reasons for achieving or not achieving that objective; and,
             c)   A description of planned and implemented initiatives 
               necessary to accomplish the next 12 months' objectives for 
               achieving the goals developed pursuant to 2) above.

           


          EXISTING LAW  :

          1)Establishes the Telemedicine Development Act for purposes of 
            overcoming significant barriers to access to health services 
            in medically underserved rural and urban areas and defines 
            telemedicine as the practice of health care delivery, 
            diagnosis, consultation, treatment, transfer of medical data, 
            and education using interactive, video, or data 
            communications.  

          2)Defines, in the Medical Practice Act, telemedicine as the 
            practice of health care delivery, diagnosis, consultation, 
            treatment, transfer of medical data, and education using 
            interactive audio, video or data communications.

          3)Allows the use of telemedicine in the Medi-Cal Program, when 
            those services would be otherwise covered by the program when 
            appropriate, and when the contact between the health care 
            provider and the patient is real time or near real time.

          4)Defines, for the purposes of Medi-Cal, "teleophthalmology and 
            teledermatology by store and forward" as transmission of 
            medical information to be reviewed at a later time and at a 
            distant site by a physician who is trained in ophthalmology, 
            optometry, or dermatology, where the physician at the distant 
            site reviews the medical information without the patient being 
            present in real time and allows these telemedicine services to 
            be reimbursed under the Medi-Cal Program.  Existing law 








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            provides a sunset date of January 1, 2013 for these 
            provisions.

           FISCAL EFFECT  :   This bill has not been analyzed by a fiscal 
          committee.

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  According to the author, telemedicine 
            has revolutionized the delivery of healthcare in the military, 
            the space program, at correctional institutions, and other 
            areas where difficulties exist in bringing medical providers 
            face-to-face with patients. The California Prison Health Care 
            Services uses telemedicine for medical specialty consultations 
            at all CDCR institutions and psychiatric telemedicine is 
            provided at four institutions.  The author states that use of 
            telemedicine benefits the state by: a) avoiding medical 
            guarding and transportation costs associated with transporting 
            patient-inmates off-site to receive specialist services not 
            available on-site; b) avoiding public safety risks associated 
            with transporting patient-inmates off-site to receive 
            services; and, c) improving access to care by providing a 
            broader pool of medical and psychiatric providers available to 
            treat patient-inmates.  The author further states that as the 
            use of telemedicine expands, it will further benefit the state 
            by reducing staff physician and psychiatric vacancies in 
            remote locations because these can be staffed centrally, and 
            patient-inmates at remote institutions can be treated using 
            telemedicine.  Additionally, urgent care centers at 
            institutions can be staffed after-hours using telemedicine and 
            store and forward telemedicine technology can be used to 
            reduce costs associated with diagnostic services.  The author 
            contends that  this bill will result in significant cost 
            avoidance and savings, improve public safety, and improve 
            access to care for patient-inmates. 
             
          2)BACKGROUND  .  According to the Center for Connected Health 
            Policy telehealth is the use of telecommunications, health 
            information, and videoconferencing technologies to deliver 
            medical care, health education, and public health services, by 
            connecting multiple users in separate locations.  Telehealth 
            encompasses a broad definition of technology-enabled health 
            care services.  This definition includes telemedicine, which 
            is the diagnosis and treatment of illness or injury. 
            Telehealth services consist of diagnosis, treatment, 








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            assessment, monitoring, communications, and education.  
            Telehealth medical services are delivered in three main ways: 
            video conferencing, which is used for real-time 
            patient-provider consultations, provider-to-provider 
            discussions, and language translation services; patient 
            monitoring, in which electronic devices transmit patient 
            health information to health care providers; and, "store and 
            forward" technologies, which  electronically transmit 
            pre-recorded videos and digital images, such as X-rays, video 
            clips and photos, between primary care providers and medical 
            specialists.   
                
            CDCR currently provides health care to its approximately 
            162,000 inmates in the form of primary care and specialty 
            services, which are generally provided by CDCR staff or 
            contract staff, and medical specialty care, which is provided 
            in prisons by health care staff during regularly scheduled 
            clinics.  Inmates who need other medical specialty care are 
            transported to outside facilities, which requires 
            transportation and staffing costs to escort the patients.   

          3)TELEHEALTH IN CALIFORNIA PRISONS  .  According to its "Analysis 
            of the 2006-07 Budget Bill" the Legislative Analysts' Office 
            (LAO) states that California's telemedicine (now more commonly 
            referred to as telehealth) program began in 1997, with a pilot 
            program for mental health inmates (typically inmates with 
            schizophrenia and bipolar disorder) at Pelican Bay State 
            Prison.  The pilot program improved inmates' access to mental 
            health care and CDCR later decided to expand the program to 
            other prisons.   Correctional facilities have found 
            telemedicine / telehealth to be particularly beneficial for 
            the delivery of medicine, as it enhances public safety and 
            reduces costs by allowing inmates to receive treatment inside 
            prison rather than being transported to off-site medical 
            facilities.  Additionally, telemedicine / telehealth enables 
            correctional systems to expand provider networks and lower 
            contract costs with physicians.  CDCR's telemedicine / 
            telehealth program is currently administered by the Office of 
            Telemedicine Services, which is a unit of the Division of 
            Correctional Health Care Services.  According to CDCR, this 
            program saves roughly $850 in transportation and medical 
            guarding costs for each outside medical visit that is avoided 
            because of the technology.    
             
            In its analysis, the LAO found that CDCR is not maximizing the 








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            benefits of telemedicine / telehealth.  Based on CDCR's own 
            assessments, increased use of telemedicine / telehealth could 
            further reduce the number of outside medical visits by as much 
            as 20,000 per year, which would save up to $17 million 
            annually in transportation and guarding costs.  The LAO found 
            that telemedicine / telehealth was underutilized because CDCR 
            does not require prison health care staff to utilize 
            telemedicine and it only offers a limited number of medical 
            specialties.  In order to improve the utilization of 
            telemedicine / telehealth, the LAO recommended requiring 
            prisons to use the telemedicine / telehealth program for all 
            medical consultations that are appropriate its use, and that 
            CDCR establish guidelines concerning the conditions under 
            which telemedicine / telehealth should be used.  
             
          4)FEDERAL RECEIVER FOR CDCR  .  In February 2006, the U.S. 
            District Court for Northern California appointed a Receiver to 
            control the delivery of medical services for prisoners in 
            California.  The receivership is the result of a class action 
            law suit in 2001,  Plata v. Schwarzenegger  (N.D. Cal. Oct. 3, 
            2005) No. C01-1351 THE, that found the medical care in 
            California's 33 adult prisons violates the Eighth Amendment of 
            the U.S. Constitution, which forbids cruel and unusual 
            punishment.  The court found that on average an inmate died 
            needlessly every six to seven days due to inadequate medical 
            care.  The Receiver is charged with taking over the operations 
            of the state's prison medical care system and bringing it up 
            to constitutional levels.  

          One of the Receiver's stated goals is to expand and improve 
            telemedicine/telehealth capabilities.  In its most recent 
            tri-annual progress report, dated January 15, 2011, the 
            Receiver notes that its telemedicine program continues with 
            efforts to expand the use of telemedicine and upgrade CDCR's 
            telemedicine technology infrastructure.  The Receiver 
            completed "Phase 2 of the Telemedicine Service Project," which 
            included expanding telemedicine services to six institutions 
            (North Kern State Prison, Kern Valley State Prison, Richard J. 
            Donovan Correctional Facility, Centinela State Prison, 
            California State Prison at Corcoran, and Substance Abuse 
            Treatment Facility).  The Initiative resulted in a 14% 
            increase in telemedicine services at those institutions.   

          5)PREVIOUS LEGISLATION  .  Last year, AB 1785 (Galgiani) would 
            have required CDCR to maintain a statewide telemedicine 








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            services program, requires an operational telemedicine program 
            at each institution, and expands existing telemedicine 
            services and encounters.   AB 1785 died in the Assembly 
            Appropriations Committee.

          AB 1289 (Galgiani) of 2009 would have required CDCR to establish 
            guidelines and performance targets for the prison telemedicine 
            program and to require prisons to use telemedicine for all 
            medical consultations that are appropriate for telemedicine.  
            AB 1289 died on the Assembly Appropriations Committee Suspense 
            File.  

          AB 175 (Galgiani) Chapter 175, Statutes of 2009, expands, for 
            the purposes of Medi-Cal reimbursement, until January 1, 2013, 
            the definition of "teleophthalmology and teledermatology by 
            store and forward" to include services of a licensed 
            optometrist.

           6)DOUBLE REFERRAL  .  This bill is double referred, should it pass 
            out of this committee, it will be referred to the Assembly 
            Committee on Public Safety.

           7)SUGGESTED AMENDMENTS  .  

             a)   In order to conform language to the preferred term of 
               art, delete "telemedicine" and insert "telehealth" 
               throughout the bill

             b)   Delete an unnecessary reference, on page 3, lines 35 and 
               36

             c)   To make clarifying changes, on page 4:

               (c) (1) On March 1, 2013, and each March 1 thereafter, the 
               department shall report all of the following to the Joint 
               Legislative Budget Committee, the Assembly Committee on 
               Appropriations, the Assembly Committee on Budget, the 
               Assembly Committee on Health, the Assembly Committee on 
               Public Safety, the Senate Committee on Appropriations, the 
               Senate Committee on Budget and Fiscal Review, the Senate 
               Committee on Health, and the Senate Committee on Public 
               Safety:
                  (A) The extent to which the department achieved the 
               objectives  developed pursuant to   set forth in  this section, 
               as well as the most significant reasons for achieving or 








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               not achieving those objectives.
                  (B) The extent to which the department is operating a 
               statewide telemedicine services program, as set forth in 
               this section, that provides telemedicine services to every 
               adult prison within the department, as well as the most 
               significant reasons for achieving or not achieving  that 
               objective   those objectives  .
                  (C) A description of planned and implemented initiatives 
               necessary to accomplish the next 12 months' objectives for 
               achieving the goals  developed pursuant to   set forth in  this 
               section.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Melanie Moreno / HEALTH / (916) 
          319-2097