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
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            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