BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 973
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 973 (Quirk-Silva) - As Amended:  April 25, 2013 

          Policy Committee:                              HealthVote:12-6

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the Department of Public Health (DPH) to use  
          specified funds from the state and federal Health Facilities  
          Citation Penalty Accounts to contract with a nonprofit  
          organization that meets specified criteria to promote culture  
          change and person-centered care in long-term care (LTC)  
          facilities.   

           FISCAL EFFECT  

          1)Costs of up to $150,000 from the State Health Facilities  
            Citation Penalties Account (State Account) for the general  
            promotion of culture change and person-centered care.

          2)Costs of up to $250,000 from the Federal Health Facilities  
            Citation Penalties Account (Federal Account) for projects  
            directed by the federal government, including the promotion of  
            person-centered care and culture change.

          3)This bill contains an appropriation by changing the  
            disbursement of funds in the State Account from legislative  
            appropriation to continuous appropriation.

           COMMENTS  

           1)Rationale  .  The California Culture Change Coalition is  
            sponsoring this bill to promote the values and practices of  
            culture change in long-term care (LTC).  Nearly all states are  
            working on pragmatic ways to encourage nursing homes to adopt  
            these values.  According to the coalition, additional funding  
            is needed to sustain these efforts and the funding is  
            imperative in California in particular, because it is a large,  








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            geographically and culturally diverse state with over 1,200  
            nursing homes, all of which are in need of funds to enhance  
            the quality of life for those who live in them.  Additional  
            supporters include the Alzheimer's Association, Congress of  
            California Seniors, and California Association of Health  
            Facilities.

           2)Culture change  .  According to the Commonwealth Fund, the  
            culture change movement is intended to empower LTC facilities  
            to move from institutional care to individualized care.   
            Proponents of culture change do not recommend a specific model  
            or set of practices.  Instead, they support principles  
            governing resident care practices; organizational and human  
            resource practices; and the design of the physical facility.   
            According to these principles, an ideal culture change  
            facility would feature the following elements:
                

              a)   Resident direction.  Residents should be offered choices  
               and encouraged to make their own decision about personal  
               issues like what to wear or when to go to bed.

             b)   Home-like atmosphere.  Practices and structures should  
               be more homelike and less institutional.  For instance,  
               larger nursing units with 40 or more residents would be  
               replaced with smaller households of 10 to 15 residents.   
               Residents would have access to refrigerators for snacks,  
               and overhead public address systems would be eliminated.

             c)   Consistent assignment leading to closer relationships.   
               To foster strong bonds, the same nurse should always  
               provide care to a resident so the nurse is able to observe  
               both the resident's personal and medical needs over time.

             d)   Staff empowerment.  Staff should have the authority, and  
               the necessary training, to respond on their own to  
               residents' needs.  The use of care teams should also be  
               encouraged.

             e)   Collaborative decision-making.  The traditional  
               management hierarchy should be flattened, with frontline  
               staff given the authority to make decisions regarding  
               residents' care.

             f)   Quality improvement processes.  Culture change should be  








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               treated as an ongoing process of overall performance  
               improvement, not just as a superficial change or provision  
               of amenities.

            According to the California HealthCare Foundation (CHCF),  
            recent literature shows that nursing homes embracing culture  
            change have improved quality outcomes and offer preliminary  
            evidence of positive business impacts.  However, CHCF  
            indicates California has lagged behind other states in  
            implementing culture change.    
                
            1)Penalty Accounts  .  Under existing law, funds in the state and  
            federal penalty accounts must be used, upon appropriation by  
            the Legislature, in accordance with state and federal law for  
            the protection of health or property of residents of LTC  
            facilities, including, but not limited to, relocation if a  
            facility closes, maintenance pending deficiency corrections,  
            reimbursement to residence for personal funds lost, and  
            support for the LTC Ombudsman Program.  As of September 2012,  
            the state penalty account had a balance of over $11 million.

           2)Opposition  .  California Advocates for Nursing Home Reform  
            (CANHR) objects to diverting funds from the state and federal  
            penalty accounts to pay for culture change.  CANHR argues if  
            skilled nursing facilities were truly interested in culture  
            change, they would fund it on their own.  CANHR supports  
            culture change practices in nursing homes, including  
            consistent staffing, reduction of psychotropic drugs, and  
            patient-centered care, but asserts it is not appropriate to  
            use funds paid by facilities with serious violations of the  
            law to provide those same facilities with culture change  
            services.  

            Disability Rights California is also opposed to this bill.
           

           Analysis Prepared by  :    Debra Roth / APPR. / (916) 319-2081