BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       AB 1208
          AUTHOR:        Pan
          AMENDED:       May 9, 2013
          HEARING DATE:  June 26, 2013
          CONSULTANT:    Marchand

           SUBJECT :  Medical homes.
           
          SUMMARY  :  Establishes the Patient Centered Medical Home Act of  
          2013, which defines "medical home" and "patient centered medical  
          home" as a health care delivery model in which a patient  
          establishes a relationship with a licensed health care provider  
          in a physician-led practice team to provide comprehensive,  
          accessible, and continuous primary and preventive care, and to  
          coordinate the patient's health care needs across the health  
          care system.

          Existing law:
          1.Establishes the "Bridge to Reform Demonstration Project,"  
            under which coverage is expanded to eligible low income adults  
            through the Low Income Health Program (LIHP).

          2.Requires one of the elements of a LIHP participating in the  
            above demonstration project to be the assignment of eligible  
            individuals to a medical home.  A "medical home," for purposes  
            of this demonstration project, is defined as a single  
            provider, facility, or health care team that maintains an  
            individual's medical information, and coordinates health care  
            services for enrolled individuals.  Requires the medical home  
            to provide certain specified elements, including the  
            following:

                  a.        A primary health care contact who facilitates  
                    the enrollee's access to preventive, primary,  
                    specialty, mental health, or chronic illness  
                    treatment, as appropriate;
                  b.        An intake assessment of each new enrollee's  
                    general health status;
                  c.        Referrals to qualified professionals,  
                    community resources, or other agencies;
                  d.        Care coordination for the enrollees across the  
                    service delivery system, as agreed to between the  
                    medical home and the LIHP;
                                                         Continued---



          AB 1208 | Page 2




                  e.        Use of clinical guidelines and other  
                    evidence-based medicine when applicable for treatment  
                    of the enrollee's health care issues and timing of  
                    clinical preventive services;
                  f.        Focus on continuous improvement in quality of  
                    care; and,
                  g.        Health information, education, and support to  
                    beneficiaries and, where appropriate, their families,  
                    if and when needed, in a culturally competent manner.

          This bill:
          1.Establishes the Patient Centered Medical Home Act of 2013, and  
            requires medical homes to include various specified  
            requirements unless otherwise provided by statute.

          2.Defines "medical home" and "patient centered medical home"  
            (PCMH) as a health care delivery model in which a patient  
            establishes an ongoing relationship with a personal primary  
            care physician or other licensed health care provider acting  
            within the scope of his or her practice. 
          3.Specifies that the personal provider works in a physician-led  
            practice team to provide comprehensive, accessible, and  
            continuous evidence-based primary and preventative care, and  
            to coordinate the patient's health care needs across the  
            health care system in order to improve quality and health  
            outcomes in a cost-effective manner.

          4.Requires a PCMH to stress a team approach to providing  
            comprehensive health care that fosters a partnership among the  
            patient, the licensed health care provider acting within his  
            or her scope of practice, other health care professionals,  
            and, if appropriate, the patient's family or the patient's  
            representative, upon the consent of the patient.

          5.Requires individual patients in a PCMH to have an ongoing  
            relationship with a physician or other licensed health care  
            provider acting within his or her scope of practice, who is  
            trained to provide first contact and continuous and  
            comprehensive care, or if appropriate, provide referrals to  
            health care professionals that provide continuous and  
            comprehensive care.

          6.Requires a provider in a PCMH, working in concert with a  
            multidisciplinary team of individuals at the practice level,  
            to take responsibility for the ongoing health care of  
            patients, including appropriately arranging health care by  




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            other qualified health care professionals and making  
            appropriate referrals.

          7.Requires care in a PCMH to be coordinated and integrated  
            across all elements of the complex health care system,  
            including mental health and substance use disorder care, and  
            the patient's community.

          8.Requires care in a PCMH to be facilitated by health  
            information technology, such as electronic medical records,  
            electronic patient portals, health information exchanges, and  
            other means, to ensure that patients receive the indicated  
            care when and where they need and want this care, in a  
            culturally and linguistically appropriate manner.

          9.Requires the PCMH payment structure to be designed to reward  
            the provision of the right care in the right setting, and to  
            discourage the delivery of too much or too little care.

          10.Requires the PCMH payment structure to encourage appropriate  
            management of complex medical cases, increased access to care,  
            the measurement of patient outcomes, continuous improvement of  
            care quality, and comprehensive integration and coordination  
            across all stages and settings of a patient's care.

          11.Requires all of the following quality and safety components  
            to be incorporated into the PCMH:

               a.     Advocacy for patients to support the attainment of  
                 optimal patient-centered outcomes that are defined by a  
                 care planning process driven by a compassionate, robust  
                 partnership between providers, the patient, and the  
                 patient's family or representative;
               b.     Evidence-based medicine and clinical decision  
                 support tools to guide decision-making;
               c.     The licensed health care providers in the practice  
                 accept accountability for continuous quality improvement  
                 through voluntary engagement in performance measurement  
                 and improvement;
               d.     Active patient participation in decision-making,  
                 with feedback sought to ensure that the patient's  
                 expectations are being met;
               e.     Information technology is utilized appropriately to  
                 support optimal patient care, performance measurement,  
                 patient education, and enhanced communication; and,




          AB 1208 | Page 4




               f.     Patients and families or representatives participate  
                 in quality improvement activities at the practice level.

          12.Requires patients in a PCMH to be provided with enhanced  
            access to health care that meets the requirements of a  
            nationally recognized, independent medical home accreditation  
            agency.

          13.Prohibits anything in this bill from being construed to do  
            any of the following:

               a.     Permit a PCMH to engage in or otherwise aid and abet  
                 in the unlicensed practice of medicine, either directly  
                 or indirectly;
               b.     Change the scope of practice of physician, nurse  
                 practitioners, or other health providers;
               c.     Affect the ability of a nurse to operate under  
                 standardized procedures, as specified;
               d.     Require adherence to the Low Income Health Program,  
                 as specified, including the program's provider network  
                 and service delivery system, or to activities conducted  
                 as part of a demonstration project developed under the  
                 Health Care Coordination, Improvement, and Long-Term Cost  
                 Containment Waiver; or
               e.     Prevent or limit participation in activities  
                 authorized by specified provisions of the federal Patient  
                 Protection and Affordable Care Act (ACA), if the  
                 participation is consistent with state law pertaining to  
                 scope of practice.

           FISCAL EFFECT  :  This bill has been keyed non-fiscal.

           PRIOR VOTES  :  
          Assembly Health:    17- 2
          Assembly Floor:     62- 12
           
          COMMENTS  :  
           1.Author's statement.  According to a May 2013 Policy Brief by  
            the UCLA Center for Health Policy Research, the success of  
            health care reform implementation in 2014 partly depends on  
            more efficient delivery of care to the millions of California  
            residents eligible to gain insurance. The Policy Brief  
            indicates that there is evidence that the medical home model  
            improves health outcomes and reduces costs. By adding a PCMH  
            definition, this bill ensures uniform standards of quality and  
            access, encourages health care providers to work as a team to  




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            provide patient-centered care and promotes a more efficient  
            delivery of care. Additionally, adding a PCMH definition sends  
            an important signal to health care providers and patients that  
            California supports: a) care that is patient-centered,  
            cost-efficient, continuous, focused on prevention, and based  
            on sound, evidence-based medicine rather than episodic,  
            illness-oriented "siloed" care; and b) a health care team  
            (doctors, nurses, physician assistants, medical assistants,  
            mental health providers, community health workers, social  
            workers, etc.) working in partnership with one another, their  
            patients and their patients' families to coordinate care,  
            navigate the complex and often confusing health care system  
            and ensure that patients receive the right care at the right  
            time.

          2.Affordable Care Act.  The ACA contained several provisions to  
            support and advance the medical home model of care.  One of  
            these was entitled, "Establishing Community Health Teams to  
            Support the Patient-Centered Medical Home." This is a grant  
            program to help establish community-based interdisciplinary,  
            interprofessional teams to support primary care practices, and  
            requires grants to be used to establish health teams to  
            provide support services to primary care providers and provide  
            capitated payments to primary care providers. Under this  
            program, patient-centered medical home is defined as a model  
            of care that includes the following: 1) personal physicians;  
            2) whole person orientation; 3) coordinated and integrated  
            care; 4) safe and high-quality care through evidence-informed  
            medicine, appropriate use of health information technology,  
            and continuous quality improvements; 5) expanded access to  
            care; and, 6) payment that recognizes added value from  
            additional components of patient-centered care.

          Another provision of the ACA, entitled "State Option to Provide  
            Health Homes for Enrollees with Chronic Conditions,"  
            established a waiver program to give states the option of  
            enrolling Medicaid beneficiaries with chronic conditions into  
            a health home. "Health home," for purposes of this program, is  
            defined as "a designated provider (including a provider that  
            operates in coordination with a team of health care  
            professionals) or a health team selected by an eligible  
            individual with chronic conditions to provide health home  
            services." The term "designated provider" is defined as a  
            physician, clinical practice or clinical group practice, rural  
            clinic, community health center, community mental health  




          AB 1208 | Page 6




            center, home health agency, or any other entity or provider  
            (including pediatricians, gynecologists, and obstetricians)  
            that is determined by the State and approved by the Secretary  
            to be qualified to be a health home for eligible individuals  
            with chronic conditions." This waiver program would provide a  
            90 percent federal match for the first two years. States are  
            permitted to tier payments to reflect a team of health care  
            professionals operating with a designated provider, as well as  
            the severity or number of individual's with chronic conditions  
            or the specific capabilities of the designated provider and  
            health team. "Health home services" is defined as  
            comprehensive and timely high-quality services that are  
            provided by a designated provider or a team of health care  
            professionals operating with a designated provider and  
            include: 1) comprehensive care management; 2) care  
            coordination and health promotion; 3) comprehensive  
            transitional care, including appropriate follow-up, from  
            inpatient to other settings; 4) patient and family support; 5)  
            referral to community and social support services; and 6) use  
            of health information technology to link services.

          3.Background on the medical home model. According to a September  
            2012 brief prepared by the National Conference of State  
            Legislatures (NCSL), the medical home model of care offers one  
            method of transforming the health care delivery system.   
            Medical homes can reduce costs while improving quality and  
            efficiency through an innovative approach to delivering  
            comprehensive patient-centered preventive and primary care.  
            Also known as the PCMH, this model is designed around patient  
            needs and aims to improve access to care (e.g. through  
            extended office hours and increased communication between  
            providers and patients via email and telephone), increase care  
            coordination and enhance overall quality, while simultaneously  
            reducing costs. The medical home relies on a team of  
            providers-such as physicians, nurses, nutritionists,  
            pharmacists, and social workers-to meet a patient's health  
            care needs. Studies have shown that the medical home model's  
            attention to the whole-person and integration of all aspects  
            of health care offer potential to improve physical health,  
            behavioral health, access to community-based social services  
            and management of chronic conditions.

          NCSL notes that although general agreement exists about the  
            basic tenets of the medical home, the model is still evolving.  
             Not all medical homes look alike or use the same strategies  
            to reduce costs, improve quality and coordinate care.   




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            Accreditation offers formal recognition and a stamp of  
            approval to those that successfully meet specific standards  
            and requirements, facilitating payment from both public and  
            private payers.  Medical home accreditation is available from  
            national accreditation organizations, as well as a few states  
            that have developed their own standards.  Although certain  
            health care providers already embody many elements of the  
            PCMH, many are seeking formal recognition, due in part to the  
            fact that medical practices that participate in medical home  
            pilot programs often qualify for enhanced reimbursement rates,  
            or receive other financial incentives for coordinating care.

          According to NCSL, as of January 2012, 41 states had policies  
            promoting the medical home model for certain Medicaid or  
            Children's Health Insurance Program beneficiaries. States have  
            created pilot projects, reformed payment structures, invested  
            in health information technology, restructured Medicaid  
            provider systems, and included the medical home model in  
            service delivery.

          4.Related legislation. AB 361 (Mitchell) authorizes the  
            Department of Health Care Services (DHCS) to submit State Plan  
            Amendments to the federal Centers for Medicare and Medicaid  
            Services for approval to create a California Health Home  
            Program to provide health home services to adults and children  
            in the Medi-Cal program. AB 361 defines a "health home" as a  
            provider or team of providers that meets federal guidelines  
            and that offers a whole person approach and offers services in  
            a range of settings.  AB 361 permits DHCS to require a lead  
            provider to be a physician, a community clinic, a mental  
            health plan, a community-based nonprofit organization, a  
            county health system, a substance use disorder treatment  
            professional or facility, or a hospital. AB 361 is scheduled  
            to be heard in this committee on July 3.

          5.Prior legislation. AB 2266 (Mitchell) of 2012, would have  
            required DHCS to establish a program to provide specified  
            health home services, with the intent of reducing avoidable  
            hospitalization or use of emergency medical services.  AB 2266  
            died on the Senate Inactive File.

          SB 393 (Ed Hernandez) would have enacted the PCMH Act of 2012  
            and established a definition for a medical home based upon  
            specified standards.  SB 393 was vetoed by the Governor. In  
            his veto message, the Governor stated that he commended the  




          AB 1208 | Page 8




            author for trying to improve the delivery of health care by  
            encouraging the greater use of "patient-centered medical  
            homes," but because the concept is still evolving, he thought  
            more work was needed before the definition was codified.

          AB 1542 (Jones) of 2010, would have defined a PCMH to mean, in  
            part, a health care delivery model in which a patient  
            establishes an ongoing relationship with a physician or other  
            licensed health care provider, working in a physician-directed  
            practice team to provide comprehensive, accessible, and  
            continuous evidence-based primary care and coordinate the  
            patient's health care needs across the health care system.  AB  
            1542 died on the Assembly Floor. 

          SB 1738 (Steinberg) of 2008, would have required DHCS to  
            establish a three-year pilot program to provide intensive  
            multidisciplinary services to 2,500 Medi-Cal beneficiaries  
            identified as frequent users of health care.  SB 1738 was  
            vetoed by Governor Schwarzenegger.

          6.Support.  This bill is co-sponsored by the California Academy  
            of Family Physicians (CAFP), the California Medical  
            Association (CMA), and the California Academy of Physician  
            Assistants (CAPA), and supported by numerous other provider  
            organizations and other groups.  CAFP states that the goal of  
            the medical home is to provide a patient with a broad spectrum  
            of coordinated care. More than 40 states have adopted medical  
            home legislation, but CAFP states that California has been  
            slow to act. With the number of Americans with one or more  
            chronic diseases projected to increase from 125 million in  
            2000 to 157 million in 2020, CAFP asserts that it is more  
            important than ever to ensure adequate management of these  
            conditions. CMA states that this bill is a critical piece of  
            California's effort to move into the future of healthcare  
            delivery. According to CMA, in the years to come, as federal  
            health reform is implemented and states work on ways to  
            deliver higher quality, more efficient care to patients,  
            better care coordination will be key. CMA states that while  
            establishing PCMH's is a primary means of streamlining the  
            system and improving individual health outcomes, not all  
            "medical homes" are created equal and this bill will help to  
            provide necessary parameters by defining "medical home" in  
            state law.  CMA states that medical home models have proven  
            successful only when they operate with the involvement of a  
            patient's entire care team, and that physicians play a  
            fundamental role in successful medical homes and help to  




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            ensure that all of a patient's care needs are effectively  
            addressed and coordinated.  CAPA states that this bill will  
            encourage health care providers and patients to partner in a  
            PCMH that promotes access to high-quality, comprehensive and  
            coordinated care.  According to CAPA, developing a standard  
            definition for PCMH's could help reduce disparities, rein in  
            costs and improve quality and outcomes in health care.

          7.Opposition.  The California Right to Life Committee (CRLC)  
            states in opposition that it is concerned that in the course  
            of years, usage of the term "medical home" includes school  
            based clinics. According to CRLC, there are school districts  
            in California which have school- based clinics and offer  
            family planning and abortion referrals to minors without  
            parental consent. With school-based clinics or "wellness  
            centers" under the domain of "medical homes," students would  
            be vulnerable to suggestions or requests to accept family  
            planning and abortion referrals, without parental involvement.  
             CRLC also states that this bill appears to be a California  
            measure to mesh with the federal ACA and to have the medical  
            profession participate in a centralized government record  
            keeping on every individual's health, nutrition and exercise,  
            using community care standards instead of what may be best for  
            the individual.

          8.Author's amendment to remove accreditation language.  One of  
            the provisions of this bill requires patients in a PCMH to be  
            provided with enhanced access to health care that "meets the  
            requirements of a nationally recognized, independent medical  
            home accreditation agency."  The author intends to offer  
            amendments in committee to delete the language referencing  
            accreditation, so that this provision will just require  
            patients to be provided with enhanced access to health care.

          9.Drafting concern. One of the provisions in this bill specifies  
            that nothing should be construed as "requiring adherence to  
            the Low Income Health Program" (LIHP), as specified, "or to  
            activities conducted as part of a demonstration project  
            developed under the Health Care Coordination, Improvement, and  
            Long-Term Cost Containment Waiver." The author indicates that  
            this provision is intended to exempt LIHP's and the specified  
            demonstration project activities from having to comply with  
            the requirements of this bill, but that is not the way this  
            provision is drafted.  To reflect the author's intent, this  
            provision should be amended so that nothing in this bill shall  




          AB 1208 | Page 10




            be construed to "apply to" the LIHP and specified  
            demonstration project activities.





           SUPPORT AND OPPOSITION  :
          Support:  California Academy of Physician Assistants  
                    (co-sponsor)
                    California Academy of Family Physicians (co-sponsor)
                    Alzheimer's Association
                    American Osteopathic Association
                                                                                             California Black Health Network
                    California Association of Physician Groups
                    California Chiropractic Association
                    California Council of Community Mental Health Agencies
                    California Coverage and Healthcare Initiatives
                    California Optometric Association
                    California Primary Care Association
                    California Society of Health-System Pharmacists
                    Children Now
                    Children's Defense Fund California
                    Children's Partnership
                    Children's Specialty Care Coalition
                    Mental Health America of California
                    Osteopathic Physicians and Surgeons of California
                    PICO California
                    United Ways of California
                    100% Campaign

          Oppose:   California Right to Life Committee, Inc.



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