BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 386
                                                                  Page  1

          Date of Hearing:   May 18, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 386 (Galgiani) - As Amended:  May 11, 2011 

          Policy Committee:                              HealthVote:15-3
                        Public Safety                           5-2
                        

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill requires the CA Department of Corrections and 
          Rehabilitation (CDCR) to establish a telehealth program at all 
          state prisons by January 1, 2016. Specifically, CDCR: 

          1)Must include guidelines for determining when and where 
            telehealth is preferable.

          2)Must be used only in the best interest of the patient.

          3)Must ensure telehealth does not supplant civil service 
            physician and dental positions.

          4)Must annually report to the Legislature regarding telehealth 
            objectives and performance.

           FISCAL EFFECT  

          No new net costs or savings as this bill essentially codifies 
          current CDCR/federal medical receivership practice and planning. 
          The receivership estimates continued implementation of the 
          existing telehealth program could result in annual GF savings in 
          the range of $10 million. Telehealth is a significant component 
          of the receiver's ongoing prison health care "turn-around plan" 
          as well as the governor's proposal to reduce correctional health 
          care spending.   

           COMMENTS  

           1)Rationale  . According to the receivership, the sponsor of this 








                                                                  AB 386
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            measure, while this bill is not necessary for implementation 
            of the ongoing telehealth program, it is important to "to 
            ensure the sustainability of a cost-effective prison health 
            care system once the Receivership has returned control of 
            prison health care back to some State entity. By codifying 
            these nationally recognized standards of effective medicine, 
            the legislature will establish some oversight of the State 
            prison health care system in order to ensure that it does not 
            once again backslide to an unconstitutional level in the 
            future."


           2)Telehealth  , or telemedicine,  provides interactive healthcare 
            via telecommunication technology. Telehealth allows patients 
            to visit with physicians live over video for immediate care, 
            or via recorded video/still images, patient data is stored and 
            sent to physicians for diagnosis and follow-up treatment at a 
            later time. 
           3)The CDCR telehealth problem, as stated by the receivership in 
            its October 2009 Utilization Management Project Charter, is 
            "the absence of strong leadership to nurture the program, as 
            well as insufficient expanded telemedicine infrastructure to 
            support a significantly expanded telemedicine program. The 
            Receiver will put in place strong leadership within the 
            telemedicine program with a direction to upgrade CDCR's 
            telemedicine technologies, assess and expand staffing as 
            appropriate and engage with the UC system and others to 
            establish a vastly expanded telemedicine program."  

            According to the receivership in its April 2010 Cost 
            Containment Report, telehealth will result in significant 
            savings in contract medical and medical custody transportation 
            and guarding as well as protecting public safety by having 
            fewer inmates in transit.  

           4)Background - The California Prison Health Care Receivership  is 
            a non-profit organization created to house the activities of 
            the federal Receiver. The Receivership was established by U.S. 
            District Court Judge Thelton E. Henderson as the result of a 
            2001 class action law suit (Plata v. Schwarzenegger) over the 
            quality of medical care in the state's 33 prisons. The court 
            found that the care violated the Eighth Amendment of the U.S. 
            Constitution, which forbids cruel and unusual punishment of 
            the incarcerated.  









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            In 2006, the court appointed the receiver to oversee the 
            delivery of inmate medical care within CDCR. According to the 
            Department of Finance (DOF) in a 2010-11 budget change 
            proposal, since 2006 the receiver has significantly increased 
            the number of clinical staff, clinician pay, access to CDCR 
            clinicians, and referrals to specialists and contracted 
            providers, which has resulted in the cost of inmate medical 
            services increasing from $883 million in 2005-06 to $2 billion 
            in 2008-09 with a moderate  reduction in expenditures 
            anticipated in recent years.  

           5)Prior Legislation  .

            AB 1785 (Galgiani), 2010, was similar to AB 386 and was held 
            in this committee.   

            AB 1289 (Galgiani), 2009, which required CDCR to establish 
            guidelines and performance targets for prison telemedicine, 
            was held on this committee's Suspense File.  

           
          Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081