BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 395
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          Date of Hearing:  April 9, 2013

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
                   AB 395 (Fox) - As Introduced:  February 15, 2013
           
          SUBJECT  :  Alcoholism and drug abuse treatment facilities.

           SUMMARY  :  Expands the types of facilities licensed by the  
          Department of Alcohol and Drug Programs (DADP) to include any  
          facility that does not require a health facility license and has  
          a nationally accredited program that uses a multidisciplinary  
          team to provide 24-hour residential medical services to adults  
          recovering from alcohol and drug abuse problems.   

           EXISTING LAW  :  

          1)Establishes DADP to license residential treatment facilities  
            that provide a broad range of services in a supportive  
            environment to adults who are addicted to alcohol or drugs.

          2)Defines a treatment facility as any premise, place, or  
            building that provides 24-hour residential non-medical  
            services to adults who are recovering from problems related to  
            alcohol, drug, or alcohol and drug misuse or abuse, and who  
            need alcohol, drug, or alcohol and drug recovery treatment or  
            detoxification services.

          3)Defines residential nonmedical services provided by a licensed  
            treatment facility to mean recovery services, treatment  
            services, and detoxification services.

           FISCAL EFFECT  :  This bill has not yet been analyzed by a fiscal  
          committee.

           COMMENTS  :

           1)PURPOSE OF THIS BILL  .  The author states that, currently, DADP  
            lacks statutory authority to license and regulate treatment  
            facilities that have a physician available on site to provide  
            medical services relating to addiction treatment.  According  
            to the author, the current ban on the provision of medical  
            services in treatment facilities is outdated because it  
            ignores evidence-based principles of patient-centered  
            addiction treatment, which call for addressing all needs of a  








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            patient, such as care for his or her medical and psychiatric  
            problems, in addition to providing medication-assisted  
            detoxification services.  The author also maintains that  
            alcoholics and drug addicts often have greater immediate  
            medical needs than their sober counterparts because of the  
            toxic effect of alcohol and drugs, the failure of addicts to  
            recognize their own health problems, and the risky behaviors  
            in which many engage.  The author points out that because of  
            the ban on providing medical services in these facilities,  
            patients with health problems must be sent to a doctor's  
            office or to the emergency department for treatment that is  
            inefficient and costly.  The author asserts that this bill is  
            intended to extend DADP's licensing authority to facilities  
            with nationally accredited programs that include physicians on  
            site to provide care to patients when and where they need it.   
             

           2)DADP LICENSING AUTHORITY  .  DADP licenses residential treatment  
            facilities to provide nonmedical services to individuals who  
            are working to overcome their addiction to alcohol or other  
            drugs.  According to DADP, these services include education,  
            group, or individual sessions; recovery or treatment planning;  
            and, detoxification services.  In addition, a licensed  
            treatment facility may offer individualized services, such as  
            vocational and employment search training, community volunteer  
            opportunities, new skills training, peer support, social and  
            recreational activities, and information about and referral to  
            appropriate community services.  This bill would require DADP  
            to license facilities that use a multidisciplinary team, led  
            by a physician, to provide residential medical services that  
            do not require it to obtain a separate health facility  
            license.  

          According to DADP, since current law only authorizes it to  
            license nonmedical services, many larger licensed facilities  
            enter into contracting arrangements with physicians to provide  
            medical services on-site, such as treatment of medical  
            symptoms associated with addiction, including post withdrawal  
            hypertension, seizure prevention, and impaired liver function.  
             Residents of smaller facilities (six beds or less) that  
            provide detoxification services are currently required to  
            obtain medical clearance from a physician off-site before  
            participating in a detoxification program.  This bill would  
            enable DADP to license treatment facilities with nationally  
            accredited programs that include physicians on site to provide  








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            medical clearance and other routine medical services, such as  
            physicals, communicable disease screening, vital sign  
            assessment, and the prescribing, administering, and dispensing  
            of medications for withdrawal symptoms.

           3)RECENT SENATE REPORT  .  A September 2012 investigative report  
            by the Senate Office of Oversight and Outcomes (SOOO)  
            identified gaps in DADP's regulation of residential programs,  
            including failure to pursue evidence of problems, slow  
            investigative responses to deaths and other serious incidents,  
            and reluctance to use the full spectrum of its statutory  
            powers to shut down programs that pose a danger to the public.  
             The report also documents widespread flouting of the state's  
            prohibition against residential programs providing medical  
            care.  

          The report points out that DADP interprets state law to mean  
            that medical professionals who operate in residential  
            treatment settings must maintain a separate relationship with  
            clients and not receive payments from the program.  However,  
            SOOO surveyed websites, press releases, and non-profit tax  
            returns, and identified 34 programs that made claims that  
            appeared to violate state law and regulations barring medical  
            care.  Additionally, program directors interviewed for the  
            report asserted that they must twist themselves into knots to  
            comply with the state ban while also satisfying insurers and  
            accrediting agencies that often require the involvement of  
            medical professionals.

          The report notes that California is unusual among populous  
            states in prohibiting medical care in residential treatment  
            programs.  SOOO contacted nine other states and found that all  
            but one of them allowed physicians and other medical  
            professionals to work in such settings.  Several, according to  
            the report, required the involvement of physicians in programs  
            providing detoxification.  

          Among the recommendations in the report is for the Legislature  
            to consider approving a bill allowing medical care in  
            residential treatment facilities, given that many experts  
            believe that medical care is an integral part of successful  
            treatment.  However, the report adds that it would not be  
            enough to simply lift the ban and the state may have to  
            strengthen other laws and regulations to make sure that  
            medical care is safe and effective, for instance, and address  








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            the question of whether the involvement of doctors would  
            violate a law prohibiting the corporate practice of medicine.

           4)NATIONAL ACCREDITING ORGANIZATIONS  .  According to DADP,  
            accreditation by two national organizations, the Joint  
            Commission and the Commission on Accreditation of  
            Rehabilitation Facilities (CARF) is currently available for  
            such behavioral health care services as addiction treatment,  
            opioid treatment and maintenance programs, crisis  
            stabilization, case management and care coordination,  
            employment services, and vocational rehabilitation.  The Joint  
            Commission and CARF each require a facility to demonstrate  
            that its program meets their respective quality standards in  
            order to obtain accreditation.  These quality standards  
            evaluate important functions relating to client care and  
            program management, including administrative requirements,  
            financial management, personnel qualifications, client  
            services, performance outcomes, client safety, and information  
            privacy and security.  Accreditation from either the Joint  
            Commission or CARF is valid for three years.

          The SOOO report notes that accreditation surveys represent a  
            snapshot in time and, while they may consider the track record  
            of a program, they are more focused on present activities.  If  
            a program has had problems in the past, accreditation agencies  
            like CARF want to see that it is taking steps to remedy them.   
            The report points out that accreditation is not a substitute  
            for government oversight and should be viewed as a tool that  
            government entities can use in performing oversight.  
           
           5)PRIOR LEGISLATION  .

             a)   AB 972 (Butler) of 2011 would have included provisions  
               substantially similar to this bill but these provisions  
               were subsequently deleted and the bill was amended to  
               address a different subject.

             b)   AB 2221 (Beall) of 2010, which was substantively similar  
               to this bill, died on the Senate Appropriations Committee  
               Suspense File.

             c)   AB 1055 (Chesbro) of 2009, which contained provisions  
               substantially similar to this bill, died on the Assembly  
               Appropriations Committee Suspense File.     
              








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           6)SUPPORT  .  The sponsor of this bill, the California Society of  
            Addiction Medicine, states in support that the underlying  
            California statute that guides DADP in the regulation of  
            residential treatment facilities was written at a time when  
            substance abuse treatment programs stressed self-help and peer  
            support but our understanding of the medical side of addiction  
            and treatment has since advanced while the underlying law has  
            remained the same.  The sponsor maintains that this bill takes  
            a modest first step toward solving this problem by updating  
            the law to match the actual practice in the field by allowing  
            residential treatment facilities to provide limited medical  
            services under state supervision.  Elements Behavioral Health  
            writes in support that this bill will greatly improve the  
            quality of care offered to people in residential treatment  
            facilities by clarifying that providing competently  
            administered medical care is consistent with the state's  
            interest in supporting these facilities without jeopardizing  
            the residential nature of their services.

           7)AUTHOR'S AMENDMENT  .  The author will be offering the following  
            amendment in committee to clarify that the multidisciplinary  
            teams used in medical treatment programs allowed under this  
            bill must include a physician certified in addiction medicine:

          On page 2, line 12, after "team" insert "  ,which includes a  
            physician certified in addiction medicine,  "

           8)POLICY COMMENT  .  SB 1014, Chapter 36, Statutes of 2012,  
            transfers DADP's functions to other state departments  
            effective July 1, 2013, including the transfer of its  
            licensing functions to the Department of Health Care Services  
            and requires DADP to consult with stakeholders to ensure a  
            smooth transition.  The author may wish to address, from a  
            policy perspective, how the requirements of this bill interact  
            with the transfer of DADP's licensing functions to its  
            successor agency, should this bill become law.

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          California Society of Addiction Medicine (sponsor)
          Elements Behavioral Health

           Opposition 








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          None on file.
          
          Analysis Prepared by  :    Cassie Royce / HEALTH / (916) 319-2097