BILL ANALYSIS �
SENATE COMMITTEE ON HEALTH
Senator Ed Hernandez, O.D., Chair
BILL NO: AB 297
AUTHOR: Chesbro
AMENDED: April 29, 2013
HEARING DATE: June 26, 2013
CONSULTANT: Marchand
SUBJECT : Primary care clinics.
SUMMARY : Permits licensed primary care clinics to submit
certification from the Accreditation Association for Ambulatory
Health Care to the Department of Public Health for purposes of
data collection and extraction for fee calculations, in addition
to the existing ability to submit certification from the Joint
Commission on the Accreditation of Healthcare Organizations.
Existing law:
1.Licenses and regulates various types of clinics, including
primary care clinics, by the Department of Public Health
(DPH).
2.Permits primary care clinics to submit to DPH verification of
certification from the Joint Commission on Accreditation of
Healthcare Organizations (Joint Commission) for entry into the
electronic Licensing Management System for purposes of data
collection and extraction for licensing and certification fee
calculations.
This bill: Permits primary care clinics to submit verification
of certification from the Accreditation Association for
Ambulatory Health Care (AAAHC), in addition to the existing
ability to submit verification of Joint Commission
certification, to DPH for entry into the electronic Licensing
Management System for purposes of data collection and extraction
for licensing and certification fee calculations.
FISCAL EFFECT : This bill has been keyed non-fiscal.
PRIOR VOTES :
Assembly Health: 18- 0
Assembly Floor: 75- 0
COMMENTS :
1.Author's statement. This bill is a technical, cleanup bill
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that would update obsolete language to reflect the current
practice in which DPH accepts certification from AAAHC as well
as that of the Joint Commission. Adopting verification from
these entities in lieu of DPH site inspections expedites the
process and reduces state costs that otherwise would be
required for the site inspections and data collection. The
fees are collected annually, and re-inspection is required
every three years.
2.Background. According to DPH, the section of law this bill is
amending authorizes primary care clinics to submit
certification of accreditation for entry into the Electronic
Licensing Management System (ELMS), which is the electronic
database DPH uses to store information about licensed health
facilities. DPH states that there is no requirement for a
clinic to be certified by an accrediting organization, and
accreditation information is not factored into the calculation
of licensure fees. However, DPH waives the periodic licensing
inspection requirements for those clinics that are accredited
by a recognized accrediting organization. DPH states that it
does not approve accrediting organizations, but recognizes
those organizations that are approved by the federal Centers
for Medicare and Medicaid Services (CMS) as national
accreditation organizations. The list of CMS-approved
accrediting organizations includes the Joint Commission, as
well as AAAHC.
3.Request for amendments. The American Osteopathic Association
(AOA) requests that this bill be amended to include AOA's
Healthcare Facilities Accreditation Program (AOA/HFAP). AOA
states that AOA/HFAP is a nationally recognized accreditation
organization conducting accreditation surveys for more than 65
years, and that it meets or exceeds all standards required by
CMS to provide accreditation to hospitals and ambulatory
care/surgical facilities, and has maintained its deeming
authority continuously since the inception of CMS. AOA states
that excluding an accrediting organization equipped to
accredit an ambulatory care program is providing a disservice
to health care facilities within California.
4.Support. This bill is sponsored by the California Primary Care
Association (CPCA). This bill is a technical clean-up bill
that would update obsolete language to reflect the current
practice in which DPH accepts certification from AAAHC, as
well as that of the Joint Commission. The Association of
California Healthcare Districts states in support that
AB 297 | Page
3
adopting verification from these accrediting entities in lieu
of DPH site inspections expedites the licensing and
certification processes and reduces state costs that otherwise
would be required for the site inspections and data
collection.
5.Suggested amendment. There is a section of existing law,
related to the section being amended by this bill, which, in
relevant part, exempts a primary care clinic from DPH
inspection requirements if the clinic is "accredited by the
Joint Commission on Accreditation of Healthcare Organizations
(JCAHO), the Accreditation Association for Ambulatory Health
Care (AAAHC), or any other accrediting organization recognized
by the department." The author may wish to amend this bill
with similar language, so that a clinic could submit
certification information from any accrediting organization
recognized by DPH. This would reflect current practice by
DPH, and may accommodate the request for amendments by AOA.
Additionally, the reference in existing law to the "Joint
Commission on Accreditation of Healthcare Organizations" is
outdated; in 2007, it changed its name to "Joint Commission."
While this was not added by this bill, the author may wish to
consider an amendment to update this provision of law.
SUPPORT AND OPPOSITION :
Support: California Primary Care Association (sponsor)
Association of California Healthcare Districts
Oppose:None received.
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