BILL ANALYSIS Ó SB 850 Page 1 Date of Hearing: August 17, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 850 (Leno) - As Amended: June 22, 2011 Policy Committee: JudiciaryVote:7-2 Health Vote: 14-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill requires electronic health record systems or electronic medical record systems (EHR/EMR systems) to preserve the integrity of electronic medical information and automatically record and preserve any change or deletion of any electronically stored medical information, as specified. FISCAL EFFECT Negligible state fiscal impact. This bill mirrors recently released and pending federal regulations that create new minimum data integrity and consumer access standards for data stored in EHR/EMR systems. COMMENTS 1)Rationale . This bill is intended to improve the integrity of data stored in electronic medical records. The author states this bill would ensure consumers have protections in state law granting them access to information on how their records have been changed and who has made the changes. 2)Background . Many health care providers are in the process of transitioning from paper-based medical record systems to electronic systems. A survey released earlier this year indicates that approximately half of California physicians are in some stage of implementing EHRs. Monetary incentives and Medicare provider payment penalties were enacted as part of the Health Information Technology for Economic and Clinical Health (HITECH) Act, a component of the 2009 federal American Recovery Reinvestment Act (ARRA), to encourage providers to SB 850 Page 2 install EHRs. In addition to electronic record-keeping within a single health care facility, widespread use of EHRs enables real-time exchange electronic health information. Against a rapidly evolving landscape where electronic exchange and access to records is becoming more common, consumer advocates have continued to emphasize the importance of privacy, security, and integrity of health information. 3)Definitions . There is no definition of "EMR system" or "EHR system" in state law. Section 13400 of the federal HITECH Act defines EHR as "an electronic record of health-related information that is created, gathered, managed, and consulted by authorized health care clinicians and staff." 4)Recent Federal Regulations . There are two federal rules relevant to this bill. One proposed rule modifies the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy Rule's standard for accounting of disclosures of protected health information. This HIPAA Privacy Rule change augments existing privacy protections by adding a consumer's right to receive an "access report" that indicates, in an understandable way, who has accessed and/or modified their electronic health information. A second federal rule related to incentive payments for EHR implementation (referenced above) requires that providers install "certified" EHR systems that meet certain requirements in order to qualify for the incentives, and further specifies that one of the certification requirements is the ability to provide access tracking in the same manner articulated in this bill. Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081