BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING
          SB 177 (Strickland)
          As Amended May 25, 2011
          Majority vote

           SENATE VOTE  :33-0  
           
           HEALTH              19-0        APPROPRIATIONS      16-0        
           
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          |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           |     |                          |
          |     |                          |     |                          |
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           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:









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             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 








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          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 








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          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 


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