BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 1208
          Author:   Pan (D)
          Amended:  7/2/13 in Assembly
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  8-1, 6/26/13
          AYES:  Hernandez, Anderson, Beall, De León, DeSaulnier, Monning,  
            Pavley, Wolk
          NOES:  Nielsen

           ASSEMBLY FLOOR  :  62-12, 5/13/13 - See last page for vote


           SUBJECT  :    Medical homes

            SOURCE  :     California Academy of Family Physicians
                       California Academy of Physician Assistants 
                       California Medical Association


           DIGEST  :    This bill establishes the Patient Centered Medical  
          Home Act of 2013, which defines medical home and patient  
          centered medical home (PCMH) 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.

           ANALYSIS  :    

          Existing law:
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          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;

             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:


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          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" 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/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/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/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  
             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.


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          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,

             F.    Patients and families or representatives participate  

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                in quality improvement activities at the practice  
                level.

             G.    Patients in a PCMH are provided with enhanced access  
                to health care.

          12.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.    Applying to the LIHP, 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.

           Background
           
           ACA  .  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)  

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          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.

           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.

           Prior Legislation
           
          AB 2266 (Mitchell of 2012) would have required the Department of  
          Health Care Services (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 Governor Brown.  In  
          his veto message, Governor Brown stated that he commended the  
          author for trying to improve the delivery of health care by  
          encouraging the greater use of "PCMH," 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  

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          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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  7/2/13)

           California Academy of Family Physicians (co-source)
          California Academy of Physician Assistants (co-source)
          California Medical Association (co-source)
          100% Campaign
          Alzheimer's Association
          American Osteopathic Association
          California Association of Physician Groups
          California Black Health Network
          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

           OPPOSITION  :    (Verified  7/2/13)


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          California Right to Life Committee, Inc.

           ARGUMENTS IN 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.  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  
          ensure that all of a patient's care needs are effectively  
          addressed and coordinated.  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.

           ARGUMENTS IN 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  

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          the individual.  
           
           ASSEMBLY FLOOR  :  62-12, 5/13/13
          AYES:  Achadjian, Alejo, Atkins, Bigelow, Bloom, Blumenfield,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Garcia,  
            Gatto, Gomez, Gordon, Gorell, Gray, Hall, Roger Hernández,  
            Jones-Sawyer, Levine, Linder, Maienschein, Medina, Mitchell,  
            Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea, V.  
            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,  
            Stone, Ting, Torres, Weber, Wieckowski, Wilk, Williams,  
            Yamada, John A. Pérez
          NOES:  Donnelly, Beth Gaines, Grove, Hagman, Harkey, Jones,  
            Logue, Mansoor, Melendez, Morrell, Wagner, Waldron
          NO VOTE RECORDED:  Allen, Ammiano, Holden, Lowenthal, Patterson,  
            Vacancy


          JL:d  7/2/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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