BILL ANALYSIS Ó SB 177 Page 1 SENATE THIRD READING SB 177 (Strickland) As Amended May 25, 2011 Majority vote SENATE VOTE :33-0 HEALTH 19-0 APPROPRIATIONS 16-0 ----------------------------------------------------------------- |Ayes:|Monning, Logue, Ammiano, |Ayes:|Fuentes, Harkey, | | |Atkins, Bonilla, Eng, | |Blumenfield, Bradford, | | |Garrick, Gordon, Hayashi, | |Charles Calderon, Campos, | | |Roger Hernández, | |Donnelly, Gatto, Hall, | | |Bonnie Lowenthal, | |Hill, Lara, Mitchell, | | |Mansoor, Mitchell, | |Nielsen, Norby, Solorio, | | |Nestande, Pan, | |Wagner | | |V. Manuel Pérez, Silva, | | | | |Smyth, Williams | | | | | | | | ----------------------------------------------------------------- SUMMARY : Increases the bed limit for congregate living health facilities (CLHFs) that serve terminally ill patients in the County of Santa Barbara. Specifically, this bill : 1)Permits a CLHF to have up to 25 beds if the CLHF is located in the County of Santa Barbara. 2)Finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of existing law because of the unique business climate surrounding CLHFs in the County of Santa Barbara. EXISTING LAW : 1)Provides for the licensure and regulation of health facilities, including hospitals, skilled nursing facilities, and CLHFs. 2)Defines a CLHF as a residential home with a capacity of no more than 12 beds, that provides inpatient care, medical supervision, 24-hour skilled nursing and supportive care, and other services to persons who meet one of the following: SB 177 Page 2 a) Are mentally alert, have physical disabilities and may be ventilator dependent; b) Have a diagnosis of terminal illness, or life-threatening illness, or both, as defined; or, c) Are catastrophically and severely disabled, as defined. 3)Permits a CLHF that is operated by a city and county to have 59 beds. Permits a CLHF that is not operated by a city and county that serves persons who have a diagnosis of terminal illness or life-threatening illness, or both, that is located in a county of 500,000 or more persons, to have not more than 25 beds. 4)Requires the primary need of CLHF residents to be for skilled nursing care on a recurring, intermittent, extended, or continuous basis, and provides that this care is generally less intense than that provided in general acute care hospitals but more intense than that provided in skilled nursing facilities. 5)Requires the Department of Public Health (DPH) to license and regulate persons or agencies that provide hospice services in a person's home or other care setting, defined as a specialized form of interdisciplinary health care that is designed to provide palliative care, alleviate the physical, emotional, social, and spiritual discomforts of an individual diagnosed with a terminal illness, and provide supportive care to the primary caregiver and the family. FISCAL EFFECT : According to the Senate Appropriations Committee, this bill will increase CLHF capacity resulting in potentially minor to significant costs to Medi-Cal, but could also result in potentially minor to significant cost avoidance depending on the costs associated with whether the individuals receiving hospice Medi-Cal benefits select CLHF services versus receiving similar services in a skilled nursing facility. COMMENTS : According to the author, Santa Barbara County has only one licensed hospice facility, Serenity House, a six-bed facility operated by Visiting Nurses and Hospice Care of Santa Barbara (VNHC), the sponsor of this bill. The author maintains that Serenity House has struggled to meet the patient demand in SB 177 Page 3 the Santa Barbara community for many years citing that between 2008 and 2009, Serenity Houses experienced a 71% increase in the number of patients served and also a growing waiting list due to a lack of available beds for end-of-life patients. The author argues that in recognition of this critical need, local community members generously contributed to the campaign to build a new 18-bed hospice inpatient facility. The author states that without enactment of this bill the Serenity House, which recently opened their new 18-bed facility as a 12-bed facility in accordance with existing law, will have to operate interminably as a 12-bed facility. According to the author, this bill will allow the six additional beds to become operative in January 2012 and thus provide more critical hospice-bed capacity in the Santa Barbara region of the central coast. CLHFs are residential-based care facilities that provide inpatient care, medical supervision, 24-hour skilled nursing and supportive care, and other services to one of three categories of persons: 1) persons who are mentally alert who have physical disabilities, who may be ventilator dependent; 2) persons who have a diagnosis of terminal illness, or life-threatening illness, or both; or, 3) persons who are catastrophically and severely disabled. According DPH, 53 CLHFs are currently licensed in California to provide services to these populations. Of these, 12 serve terminally ill patients. CLHFs that serve terminally ill patients are sometimes referred to as CLHF-Bs, which denotes the subparagraph of the statute that refers to them. Hospice services that are provided to terminally ill patients and their families generally fall into four categories or levels of care - routine home care, continuous home care, inpatient respite care, and general inpatient care. Routine home care and continuous home care services are generally provided in the patient's home, which can include a licensed health or residential care facility that they reside in. CLHF-Bs can provide this level of care, when it is not feasible for a patient to be cared for at home. When a hospice patient needs an inpatient level of care, either to provide respite to family members or due to a need for 24-hour pain control and symptom management, hospice service providers generally must arrange to place the patient in a licensed health facility, such as a hospital, skilled nursing facility or CLHF-B. Several hospice SB 177 Page 4 service providers currently operate their own facilities to accommodate hospice patients with these higher levels of needs. One currently operates a special hospital in San Diego with 24 beds, which is operating under a pilot project that was established in 1980. Eleven hospice service providers operate CLHF-Bs to serve patients who need inpatient care. Analysis Prepared by : Tanya Robinson-Taylor / HEALTH / (916) 319-2097 FN: 0001602