BILL ANALYSIS Ó
SB 1095
Page 1
Date of Hearing: August 8, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1095 (Rubio) - As Amended: August 6, 2012
Policy Committee: Business and
Professions Vote: 9-0
Health Vote: 13-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill authorizes the Board of Pharmacy to grant limited
licenses to outpatient settings and ambulatory surgical centers
(ASCs), so that they may purchase drugs at wholesale for
administering and dispensing to their patients.
FISCAL EFFECT
1)Estimated increased revenue to the Board of Pharmacy of
$180,000 in 2013, and $113,000 annually in subsequent years,
from initial and renewal limited pharmacy license fees.
2)Annual costs of $164,000 (fee-supported special fund) for one
pharmacy inspector position to handle additional inspection
workload.
COMMENTS
1)Rationale . According to the author, this bill provides
physician-owned ASCs the proper licensing necessary to
administer high quality care by allowing them to purchase
certain drugs wholesale and store them on site.
2)Background . Outpatient settings and physician-owned ASCs
operate under an individual licensed by the Medical Board of
California. In addition to operating under a Board licensee,
outpatient settings that perform procedures using a specified
level of anesthesia must be accredited by one of four private
accrediting agencies approved by the Board. Prior to 2007,
physician-owned ASCs were also licensed by the California
SB 1095
Page 2
Department of Public Health (CDPH). In 2007, a California
appellate court ruled that ASCs owned in whole or in part by
physicians were no longer eligible for licensure by CDPH.
Since the ruling, CDPH is not renewing or granting any
licenses to a surgical clinic with any degree of physician
ownership, although it continues to certify these centers for
Medicare purposes. The lack of CDPH licensure means that ASCs
may not apply for a limited license from the Board of Pharmacy
to purchase drugs at wholesale, for administration or
dispensing to patients in their care at these facilities.
This bill provides the Board of Pharmacy with narrow authority
to grant a limited pharmacy license to these facilities.
Without such a license, each physician at the facility must
procure at retail price and stock a supply of drugs.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081