BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: SB 289 AUTHOR: Hernandez AMENDED: August 23, 2012 HEARING DATE: August 29, 2012 CONSULTANT: Rubin PURSUANT TO SENATE RULE 29.10 SUBJECT : Clinical laboratory techniques: training and instruction. SUMMARY : Specifies the type of organization that may be approved by the Department of Public Health (DPH) to provide clinical laboratory scientist (CLS) programs, and permits DPH-approved CLS programs to use multiple clinical laboratories to provide training, as specified. Existing law: 1.Establishes Laboratory Field Services within DPH to provide for licensing and registration services for clinical laboratories and clinical laboratory licensees, as specified. 2.Authorizes DPH to approve schools seeking to provide instruction in clinical laboratory technique, which in the judgment of DPH will provide instruction adequate to prepare individuals to meet the requirements for licensure or performance of duties, as specified. Requires DPH to establish by regulation the ratio of licensed clinical scientists to licensed trainees on the staff of the laboratory approved as a school and the minimum requirements for training in any specialty or in the entire field of clinical laboratory science or practice. Requires that applications for approval be made on forms provided by DPH. 3.Provides that it is unlawful for any person to operate a school or conduct any course for the purpose of training or preparing persons to perform duties, as specified, without first having secured the approval of the DPH. 4.Establishes in federal law, the Clinical Laboratory Improvement Amendments of 1988 (CLIA), to regulate laboratories that perform testing on human specimens, including the provision of laboratory standards for Continued--- SB 289 | Page 2 proficiency testing, facility administration, personnel qualifications, and quality control. Applies standards to all settings, including commercial, hospital, or physician office laboratories. This bill: 1.Permits DPH to approve the following entities to provide instruction in clinical laboratory technique, as specified: a. A California licensed clinical laboratory; b. An accredited college or university in the United States (U.S.); c. A U.S. military medical laboratory specialist program of at least 52 weeks duration; and, d. A laboratory owned and operated by the U.S. government. 2.Permits CLS programs, upon approval by DPH, to use multiple clinical laboratories to provide training in clinical laboratory technique, provided: a. The program is permitted to apportion the clinical training among multiple clinical laboratories in any percentage as long as the total training meets the requirements established by DPH. b. Each clinical laboratory has been approved by DPH as part of the program in accordance with regulations. The program notifies DPH in writing within 30 days of a change in clinical laboratories used by the program to provide training. c. The director of the approved program is responsible for notifying DPH in advance of the start and end date of training for each trainee. The program coordinates with DPH in meeting established requirements. d. The director of the approved program ensures that all of DPH's requirements for training and affiliation are met. e. The program has submitted an application on forms provided by DPH for approval. 1.Revises and reorganizes existing definitions and makes other technical, non-substantive, and conforming changes. FISCAL EFFECT : According to the Assembly Appropriations Committee analysis, negligible state fiscal effect. PRIOR ACTIONS : Assembly Business, Professions and Consumer Protection:8-0 Assembly Health: 16-0 Assembly Appropriations: 17-0 SB 289 | Page 3 Assembly Floor: 80-0 COMMENTS : 1.Author's statement. SB 289 would clarify that an institution can coordinate the 50-week CLS training period among different clinical sites. Historically, the 50-week course has been completed at one site, and regulations governing this area are frustratingly vague. This bill allows flexibility among participating laboratories, and a more equitable sharing of costs associated with the CLS training program, resulting in more CLSs in the workplace. 2.The CLS profession. According to an April 2007 report by the Health Workforce Tracking Collaborative, clinical laboratory science refers to a range of complex laboratory tests and procedures that involve knowledge of chemistry, biology, microbiology, molecular biology, hematology, immunology, toxicology, histology, and cytogenetics. The CLS is a generalist, qualified to conduct necessary tests and procedures across this entire range of specialized areas. A February 2011 report by the California Hospital Association, (CHA) titled Critical Roles: California's Allied Health Workforce (CHA Report), describes CLSs as an integral part of the health care team whose diagnostic assessments help physicians determine treatment plans. 3.CLS training program approval. DPH has the authority to approve schools seeking to provide instruction in clinical laboratory technique, and has issued regulations specifying criteria that schools must meet to gain approval. The regulations specify that a training school must have a minimum of two full-time actively employed persons licensed as a CLT, clinical laboratory bioanalyst, physician and surgeon, or appropriate laboratory specialty; and a ratio of clinical laboratory personnel to trainees of 2-to-1 or greater. Furthermore, the minimum requirements for approval of laboratories to employ CLS trainees include: adequate space and necessary equipment; workload requirements; and 52 weeks of training apportioned among biochemistry, hematology, pretransfusion procedures, urinalysis, bacteriology, serology, parasitology, miscellaneous topics, and review. Colleges or universities accredited by the Western College Association or the Northwest Association of Secondary and Higher Schools or an essentially equivalent accrediting agency conducting CLS training courses are considered approved by DPH, although SB 289 | Page 4 specific approval is required when training is carried out in cooperation with laboratories that do not meet these accrediting criteria. 4.CLS shortage and impact. According to the CHA Report, a survey of CHA-member hospitals conducted in 2010 revealed that the top long-term concern of respondents was the aging workforce. Of the 14 occupations included in the survey, CLS had the highest average employee age and the greatest number of employees eligible for retirement. According to the CHA Report, 844 CLSs were projected to be eligible for retirement between 2010 and 2015, representing nearly one-third of the number of CLS full-time equivalents reported by respondents. In comparison, California currently only graduates approximately 125 CLSs annually. The Health Workforce Development Council (HWDC), a Sub-Committee of the California Workforce Investment Board, assessed the future need for CLAs and the impact of CLA shortages in its September 2011 Final Report (HWDC Report). According to the report, the current and projected future shortage of CLSs has wide-ranging impacts on the delivery of primary care. In particular, the shortage results in decreased in-house capacity which leads to increased costs for hospitals. These higher costs manifest in many ways, including: increased costs for recruitment of new CLSs; the costs of sending tests to external laboratories when demand exceeds in-house processing capacity; testing delays; increased errors such as mislabeling of specimens and conducting incorrect tests; and, increased cost for California as lab work is sent to out-of-state processing centers. 5.Education and training capacity for CLSs. The HWDC Report assessed the educational capacity for CLSs in California to be of significant concern. The HWDC Report identified 13 programs operating in California: four based in academic institutions and nine in hospitals. In comparison, Texas has a population that is two-thirds the size of California's, but has twice as many training programs that produce five times as many graduates; Michigan has half the population of California but has 12 training programs that produce three times as many graduates. The HWDC Report cites as reasons for the paucity of training sites: long approval time from the state; program requirements that are so prescriptive that the application is a deterrent for sites to consider offering spaces to students; staffs stretched thin even when training is just for the SB 289 | Page 5 clinical portion; substantial cost to the organization to train CLSs; and the inability of many smaller labs to offer training programs because they offer a limited scope of services, thus rendering them unqualified to offer training slots even for those services they do provide. According to the author, each CLS trainee costs between $55,000 and $110,000 a year. 6.Related legislation. AB 2214 (Monning), among other provisions, would have required clinical laboratory licensees, as specified, to report practice status to DPH upon issuance and renewal of license. AB 2214 was held on suspense in the Senate Appropriations Committee. 7.Support. CHA states that the shortage of CLSs is one of the most pressing workforce issues currently facing hospitals and other certified clinical laboratories, and that the number of CLSs pending retirement in California indicates and immediate risk in the next three years. According to CHA, smaller labs, especially in rural areas, may be inclined to train CLS students, but do not have the resources to take on obligations of being an approved "training entity" under current law. Giving DPH the authority to approve CLS training programs that use a consortium model, but do not require one site to take on the majority of the training, will allow multiple hospitals to work together to provide portions of clinical experience, thereby sharing the responsibility and significant costs of training. The Blood Centers of California (BCC) indicates that it has been affected by the shortage of various licensed health care providers in California, but particularly hard hit by the shortage of CLSs over the last five or more years. BCC adds that CLSs hired by blood centers have to meet a high standard because of the high complexity and sophisticated testing required to assure the safety of the blood supply. 8.Support if amended. The California Clinical Laboratory Association (CCLA) proposes an amendment that, if taken and in the event that California is granted exemption from CLIA, would allow qualified non-doctoral persons to serve as directors of clinical and public health laboratories performing high complexity testing, as categorized under CLIA, if they are licensed to direct those laboratories under California law. CCLA states that this amendment would, among other effects, help to decrease health care spending, ensure adequate local public health laboratory support for response SB 289 | Page 6 to communicable disease events, and ensure an adequate supply of local public health laboratory directors. SUPPORT AND OPPOSITION : Support: Blood Centers of California California Hospital Association Oppose: None received. -- END --