BILL ANALYSIS Ó
AB 565
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CONCURRENCE IN SENATE AMENDMENTS
AB 565 (Salas)
As Amended September 3, 2013
Majority vote
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|ASSEMBLY: |70-0 |(May 16, 2013) |SENATE: |39-0 |(September 9, |
| | | | | |2013) |
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Original Committee Reference: HEALTH
SUMMARY : Revises the definition of a practice setting for
purposes of the Steven M. Thompson Physician Corps Loan
Repayment Program (STLRP) to include a physician owned and
operated medical practice setting that provides primary care
located in a medically underserved area (MUA), as specified.
Revises the criteria of the STLRP to require that an applicant
have three years providing health care services to medically
underserved populations (MUPs) or in a MUA and to give priority
consideration to applicants from rural communities who agree to
practice in a physician owned and operated practice setting, as
specified. Deletes the STLRP guideline that seeks to place the
most qualified applicants in the areas with the greatest need
and replaces it with the requirement that the STLRP gives
preference to applicants who agree to practice in a federally
designated health professional shortage area (HPSA) or MUA and
who agree to serve a MUP.
The Senate amendments delete the provisions lowering the
percentage (30%) of patients who are enrolled in public
programs, as specified, that a practice setting must serve to
apply for the STLRP, and reverts to existing law requirements
(50%).
EXISTING LAW :
1)Establishes the Health Professions Education Foundation (HPEF)
within the Office of Statewide Health Planning and Development
(OSHPD) to, among other functions, develop criteria for
evaluating applicants for various scholarships or loans.
2)Establishes the California Physician Corps Program, which
consists of the STLRP and the Physician Volunteer Program,
administered by HPEF.
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3)Requires STLRP to provide financial incentives, as specified,
to applicants who possess a current valid medical or
osteopathic license who practice in medically underserved
communities, as specified. Allows up to 20% of the available
positions to be awarded to applicants from specialties outside
of primary care. Requires up to 15% of funds to be dedicated
to loan assistance for physician and surgeons who agree to
practice in geriatric settings.
4)Defines MUA as consistent with the federal definition of a
HPSA or an area of the state where unmet priority needs for
physicians exist as determined by the California Healthcare
Workforce Policy Commission.
5)Defines MUP as Medi-Cal program and Healthy Families program
recipients and uninsured populations.
6)Defines practice setting for purposes of the STLRP as either:
a) A community clinic as defined, a clinic owned or
operated by a public hospital and health system, or a
clinic owned and operated by a hospital that maintains the
primary contract with a county government to fulfill the
county's role to serve indigent population, which is
located in a MUA and at least 50% of whose patients are
from a MUP; or,
b) A medical practice located in a MUA and at least 50% of
whose patients are from a MUP.
AS PASSED BY THE ASSEMBLY , this bill lowered the percentage from
50% to 30% the number of patients that a practice setting must
serve to qualify for the STLRP, as specified.
FISCAL EFFECT : According to the Senate Appropriations
Committee, minor, and absorbable costs.
COMMENTS : The STLRP was established in 2003 to encourage
recently licensed physicians to practice in HPSAs in California.
STLRP authorizes a plan for repaying up to $105,000 in
educational loans in exchange for full-time service for a
minimum of three years. STLRP guidelines include giving
priority consideration to applicants that are best suited to
meet the cultural and linguistic needs and demands of patients
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from MUPs; giving preference to applicants who have completed a
three-year residency in a primary specialty (family practice,
internal medicine, pediatrics, or obstetrics/gynecology); and,
placing the most qualified applicants in areas with the greatest
need.
In 2012, the Office of Statewide Health Planning and Development
submitted its annual STLRP report to the Legislature. According
to the report, since inception, the STLRP has awarded $17
million to 223 individuals. In 2011, HPEF awarded more than
$4.1 million to 76 physicians (out of 185 applicants requesting
approximately $17.6 million in loan repayments). Award
recipients include individuals practicing at federally qualified
health centers or look-alikes, community health centers, rural
health centers, migrant health centers, public housing health
centers, correctional facilities, and Indian health clinics.
The report indicates that performance reviews of STLRP
participants are conducted by HPEF through mandatory biannual
reports which are completed and submitted by supervisors, clinic
directors, or other appropriate managers of the practice
settings where the participants are serving their service
obligation.
The report indicates that throughout the spring of 2011, HPEF
developed a partnership with the Healthcare Workforce
Development Council to leverage STLRP awards with matching funds
from the Federal American Recovery and Reinvestment Act of 2009,
and these matching funds were awarded to 61 of the 76 physicians
selected.
Analysis Prepared by : Rosielyn Pulmano / HEALTH / (916)
319-2097
FN:
0002297