BILL ANALYSIS Ó
AB 1008
Page 1
Date of Hearing: September 9, 2013
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
AB 1008 (Buchanan) - As Amended: September 4, 2013
SUBJECT : Alameda County Medical Center hospital authority.
SUMMARY : Prohibits the Alameda Health System (AHS) from
privatizing services provided by physicians and surgeons, as
specified, and establishes eligibility for retirement benefits
for employees of a facility that is acquired or merged into AHS.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Prohibit AHS, before January 1, 2024, from entering into a
contract with any private person or entity to replace services
being provided by physicians and surgeons who are employed by
AHS and in a recognized collective bargaining unit as of March
31, 2013, with services provided by a private person or entity
without clear and convincing evidence that the needed medical
care can only be delivered cost-effectively by a private
contractor.
2)Require AHS, prior to entering into a contract for any of
those services, to negotiate with the representative of the
recognized collective bargaining unit of its physician and
surgeon employees over the decision to privatize and, if
unable to resolve any dispute through negotiations, to submit
the matter to final binding arbitration.
3)Prohibit specified AHS employees from automatically becoming
members of the Alameda County Employees' Retirement
Association (ACERA), and establish, on or after the effective
date of this bill, the eligibility of an AHS employee to
participate in ACERA, as follows:
a) Prohibit a person who is an employee of a facility on
the date that the facility is acquired or who later becomes
an employee of the facility, who is not currently an ACERA
member, and who is not subject to an memorandum of
understanding (MOU), from becoming a member of ACERA.
Require the employee to instead become a participant in one
or more retirement plans adopted by AHS on November 27,
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2012, or subsequently amended;
b) Allow a person who is an employee of the facility on the
date that the facility is acquired or who later becomes an
employee of the facility, who is not currently an ACERA
member, and is subject to an MOU, to become a member of
ACERA or one or more of the retirement plans adopted by AHS
on November 27, 2012, or subsequently amended, or in a
pension trust sponsored by a third party, dependent on the
collective bargaining agreement;
c) Prohibit, upon adoption of a resolution by AHS, a person
who is hired by AHS on or after the effective date of this
bill and the resolution, who is not an ACERA member, and
who is not subject to an MOU from becoming a member of
ACERA. Require the employee to instead participate in one
or more retirements plans adopted by AHS on November 27,
2012, or subsequently amended; and,
d) Prohibit a person who is employed by AHS on or before
the effective date of this bill, and who is not qualified
for ACERA membership at that time from becoming qualified
for membership as a result of subsequent employment with
AHS. Require the employee to instead participate in one or
more retirement plans adopted by AHS on November 27, 2012,
or subsequently amended.
4)Include an urgency clause allowing this bill to take effect
immediately upon enactment.
5)Make findings and declarations about an agreement that has
been reached between Sutter Health, operators of San Leandro
Hospital, and AHS transferring ownership of San Leandro
Hospital to AHS as of October 31, 2012.
6)Make findings and declarations that this bill is necessary to
prevent the closure of the San Leandro Hospital in order to
ensure the continuation of employment and benefits for the
employees of San Leandro Hospital and continuation of care for
the residents of Alameda County.
EXISTING LAW :
1)Authorizes the Alameda County Board of Supervisors to
establish a hospital authority separate and apart from the
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county to manage, administer and control the Alameda County
Medical Center.
2)Requires the hospital authority to be governed by a board
appointed by the Alameda County Board of Supervisors.
3)Establishes the following powers for the hospital authority:
a) To acquire and possess real or personal property;
b) To sue or be sued;
c) To employ personnel; and,
d) To contract for services required to meet its
obligations.
4)Provides that a hospital authority to which the maintenance,
operation, management of the medical center is transferred
shall be a "district" pursuant to the County Employees
Retirement Law of 1937 which governs 20 independent county
retirement systems.
5)States that employees of the authority are eligible to
participate in the County Employees Retirement System to the
extent permitted by law.
6)Establishes requirements for a personnel transition plan, as
specified.
7)Provides that the hospital authority is bound by the terms of
the MOU executed by and between the county and healthcare and
management employee organizations that is in effect at the
time of the creation of the authority.
8)Provides the hospital authority, upon expiration of the MOU at
the time the hospital authority was created, with sole
authority to negotiate subsequent memorandums of understanding
with appropriate employee organizations.
9)Requires that the MOU to be approved by the hospital
authority.
AS PASSED BY THE ASSEMBLY this bill clarified that a clerk of
the superior court must attend every session of the superior
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court and upon judges in chambers when requested.
FISCAL EFFECT : None
COMMENTS :
1)Following the passage of AB 2374 (Bates) of 1996, the Alameda
County Board of Supervisors appointed a board of trustees to
separately manage, administer and control the Alameda County
Medical Center, now known as the Alameda Health System (AHS).
According to AHS, their integrated public health care system
employs more than 3,000 people including 500 physicians
throughout Alameda County. In the 1990s the Highland
Hospital, a regional trauma center and teaching hospital, John
George Psychiatric Hospital, an acute and emergency care
facility, Fairmont Hospital, an acute rehabilitation hospital
and skilled nursing facility, and the community wellness
centers, in Highland, Newark, Eastmont, and Hayward
consolidated as the Alameda County Medical Center.
Current law authorizes AHS to employ personnel, to contract
for services, and to negotiate MOUs with the appropriate
employee organizations. Current law also authorizes AHS
employees to participate in the County Employee Retirement
System, the Alameda County Employees' Retirement Association
(ACERA).
2)This bill makes two changes to the special act governing AHS.
First, the bill prohibits AHS from privatizing any work
performed as of March 31, 2013, by physicians and surgeons
employed by AHS without clear and convincing evidence that the
needed medical care can only be delivered cost-effectively by
a private contractor. This bill requires, before those
services are privatized, that AHS must negotiate with the
representative of its physician and surgeon employees over the
decision to privatize. If any dispute cannot be resolved
through negotiations, this bill requires AHS to submit the
matter to final binding arbitration.
According to the author, "AHS is exploring a move to a
Physician Operating Model with a separate governance
structure. This would impact the jobs of the employed
physicians at AHS."
Second, this bill prohibits specified employees, including
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those who are employees of a facility that is acquired by or
merged into AHS, from automatically becoming members of ACERA.
This bill limits the eligibility of an employee to
participate in ACERA, and instead requires that employees
participate in a retirement plan adopted by AHS or in a
pension trust sponsored by a third party depending on several
characteristics which include a person's employment with the
acquired or merged facility or AHS, current membership in
ACERA, and whether their employment is subject to an MOU.
According to the author, AHS has reached an agreement to take
over San Leandro Hospital, which is currently operated by
Sutter Health. AHS is also planning to acquire Alameda
Hospital, currently operated by the City of Alameda. The
Committee may wish to note that absent a definition for
"facility" the bill applies to all employees of a facility
that is acquired by or merged into AHS going forward.
This bill is an urgency measure and sponsored by AHS, the
American Federation of State, County, and Municipal Employees
(AFSCME), and the Union of American Physicians and Dentists.
3)Support arguments : Supporters argue that this bill will allow
AHS to protect existing levels of retirement benefits earned
by represented employees and ensure access to healthcare for
the residents of Alameda County.
Opposition arguments : Opposition could argue that some of the
provisions of this bill could be negotiated at the local
level.
REGISTERED SUPPORT / OPPOSITION :
Support
Alameda Health Systems (Alameda County Medical Center) [SPONSOR]
American Federation of State, County and Municipal Employees
[SPONSOR]
Union of American Physicians and Dentists [SPONSOR]
California Nurses Association
International Union of Operating Engineers
Local 29, Office & Professional Employees International Union
AFL-CIO
National Nurses United
Service Employees International Union (SEIU)
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Warehouse Union Local 6, International Longshoreman's &
Warehousemen's Union
Opposition
None
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958