BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1288
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          Date of Hearing:   April 30, 2013

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER  
                                     PROTECTION
                              Richard S. Gordon, Chair
               AB 1288 (V. Manuel Pérez) - As Amended:  April 11, 2013
           
          SUBJECT  :   Medical Board of California: licensing: application  
          processing.

           SUMMARY  :   Requires the Medical Board of California (Board) to  
          develop a priority review process for applicants for a  
          physician's and surgeon's certificate who demonstrate their  
          intent to practice in a medically underserved area (MUA) or  
          serve a medically underserved population (MUP), as specified.   
          Specifically,  this bill  :  

          1)Requires the Board to develop a process to give priority  
            review status to the application of an applicant for a  
            physicians or surgeon's certificate who can demonstrate that  
            he or she intends to practice in a MUA or serve a MUP, as  
            specified.

          2)Allows an applicant to demonstrate his or her intent to  
            practice in a MUA or serve a MUP by providing proper  
            documentation including, but not limited to, a letter from an  
            employer indicating that the applicant has accepted employment  
            and specifying the start date.

           EXISTING LAW  : 

          1)Establishes specified penalty provisions for any person who  
            practices or attempts to practice, or who advertises or holds  
            himself or herself out as practicing any system or mode of  
            treating the sick or afflicted in this state or who diagnoses,  
            treats, operates for or prescribes for any ailment, blemish,  
            deformity, disease, disfigurement, disorder, injury or other  
            physical or mental condition of any person without having at  
            the time of doing a valid, unrevoked, or unsuspended  
            certificate, as specified. (Business and Professions Code  
            (BPC) Section 2052)

          2)Requires each applicant for a physician's or surgeon's  
            certificate to show by official transcript or other official  
            evidence satisfactory to the Division of Licensing that he or  








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            she has successfully completed a specified medical curriculum.  
            (BPC 2089)

          3)Defines medically underserved population to mean "the persons  
            served by the Medi-Cal program, the Healthy Families Program  
            and uninsured populations." (Health and Safety Code (HSC)  
            Section 128585)

          4)Defines medically underserved area "as an area defined as a  
            health professional shortage area as specified in Title 42 of  
            the Code of Federal Regulations or an area of the state where  
            unmet priority needs for physicians exist as determined by the  
            California Healthcare Workforce Policy Commission  
            (Commission)." (HSC 128585)

          5)Requires the Commission to prioritize areas of the state that  
            are deficient in primary care services and the degree to which  
            these areas are underserved.  Requires this study to be  
            updated biennially and be the basis for notifying loan  
            recipients of areas which will satisfy the loan repayment  
            provisions of the Physician and Surgeon Incentive Pilot  
            Program as specified. (BPC 2213)

          6)Requires the Commission, in coordination with the Rural Health  
            Section of the Department of Health Care Services, to  
            designate rural areas with unmet priority needs for medical  
            services. (HSC 124765)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Purpose of the bill  .  This bill aims to increase the number of  
            newly certified physicians and surgeons practicing in MUAs or  
            serving a MUP by requiring the Board to develop a priority  
            review process for applicants for a physician's and surgeon's  
            certificate for licensure that demonstrate an intent to do so.  
             This bill is sponsored by the California Medical Association.

           2)Author's statement  .  According to the author, "The purpose of  
            this bill is to ensure that applicants who intend [to serve]  
            in an underserved area or an underserved population are  
            licensed in a timely manner.  Although the Board currently  
            does not have a backlog processing license applications, there  
            have [been] instances where the Board was backlogged due to  








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            budget actions and an influx of applications."  


           3)Licensing application process  .  The Board's initial review  
            process for license applications must be completed within 60  
            business days.  According to the Board's Web site, the entire  
            process can be lengthy and individuals are encouraged to start  
            the application process at least six to nine months before  
            they intend to practice.  

          Once a file is reviewed, the applicant is notified in writing of  
            the application status and given an itemized list of documents  
            needed to complete the file.  The missing documents requested  
            by the Board are reviewed in order of receipt.  Only about 10%  
            of applications are found to be complete at the initial  
            review.  The additional documents required for a physician and  
            surgeon certificate often must be sent directly from hospitals  
            or other entities, which may help explain the high level of  
            incompletion and the long delays.  

          If a file is complete upon initial review, the license will be  
            issued within seven to ten days, as the Board issues licenses  
            twice a week.  Currently, the Board finds that it is  
            completing an initial review of applications within 45  
            calendar days, well under the Board's mandated 60 business  
            days.  The Board does not request any information regarding  
            where an applicant plans to work once licensed.

          During fiscal year 2011-12, the Board received 6623 applications  
            and granted 5351 licenses.  Although the Board is not  
            currently experiencing a licensing backlog, this bill will  
            still require the Board to establish a priority review process  
            in order to streamline the application process for those  
            physician and surgeon applicants who can demonstrate their  
            commitment in writing to working in MUAs or serving MUPs.

           4)Medically underserved areas and populations  .  MUAs are defined  
            as a healthcare shortage area as specified in federal  
            regulations or an area of the state where unmet needs for  
            physicians exist as determined by the Commission under the  
            Office of Statewide Health Planning and Development (OSHPD).   
            The Commission reviews and designates priority geographic  
            areas in California to address the unequal distribution of  
            healthcare services where unmet medical needs persist.  









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          According to the sponsor, "[r]ural counties suffer in particular  
            from low physician practice rates and from a diminishing  
            supply of primary care physicians. In general, rural counties  
            tend to have far fewer physicians per capita than urban  
            counties, with the Central Valley and the Inland Empire  
            experiencing a particularly low supply of physicians." Among  
            the areas that are designated as MUAs are Modoc County and  
            portions of Trinity, Inyo, Riverside, Shasta, Del Note, Tulare  
            and Kings Counties.  

          MUP's are areas where persons are served by the Medi-Cal or  
            Healthy Families programs, or where there is an uninsured  
            population.  Examples of areas that are designated by OSHPD as  
            MUPs are Mendocino County and portions of Lassen, Tulare,  
            Plumas and Riverside counties. 


           5)Current programs to address physician shortages  .  Currently,  
            there are multiple programs designed to increase the number of  
            healthcare practitioners working in MUAs or serving MUPs.  The  
            Health Professions Education Foundation under OSHPD provides  
            scholarships and loan repayments to aspiring and practicing  
            health professionals who agree to practice in a medically  
            underserved area.  

          One program offered under the Foundation is the Steven M.  
            Thompson Physician Corps Loan Repayment Program (STPCLRP),  
            which provides educational loan repayment assistance for  
            licensed physicians and surgeons who practice in medically  
            underserved areas of the state.  Another such resource, the  
            California State Loan Repayment Program (CSLRP), provides  
            educational loan repayment assistance to primary healthcare  
            professionals who provide healthcare services in federally  
            designated Health Professional Shortage Areas. The Song-Brown  
            Health Care Workforce Training Act addresses the shortage of  
            physicians engaged in family practice in California by  
            providing financial support to family practice residency,  
            nurse practitioner, physician assistant, and registered nurse  
            education programs throughout California.  


           6)Question for Committee  .  This bill simply requires the Board  
            to develop a priority review process for applicants seeking  
            licensure who are committed to working in a MUA or serve a  
            MUP, but provides no deadline.  The Committee may wish to  








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            consider whether or not this bill's directive would be more  
            effective with a deadline to develop and implement the  
            priority review process, such as January 1, 2015. 

           7)Arguments in support .  The California Medical Association  
            writes, "The problem of primary care physician shortages is a  
            complex one, and California needs to implement a multi-faceted  
            approach to reach a solution. [This bill] will require the  
            Board to develop a process to give priority review status to  
            the application of an applicant who can demonstrate that he or  
            she intends to practice in a medically underserved area or  
            serve a medically underserved population. [This bill] will not  
            change the vigorous standards of the Medical Practice Act but  
            will instead focus the [Board's] resources on the areas and  
            populations with the greatest need." 

           8)Previous legislation  .  AB 589 (Perea) Chapter 339, Statutes of  
            2012, established the STPCLRP and provides that the program is  
            open to persons who agree in writing, prior to entering an  
            accredited medical or osteopathic school, to serve in an  
            eligible practice setting, as defined, for at least three  
            years.  

            AB 327 (De La Torre) Chapter 293, Statutes of 2005,  
            established a $50 voluntary donation from physicians at the  
            time of their initial licensure and biennial renewal to  
            support the Loan Repayment Program.

            AB 920 (Aghazarian) Chapter 317, Statutes of 2005, transferred  
            administration of the Loan Repayment Program from the Board to  
            a foundation.

            AB 1403 (Nunez) Chapter 367, Statutes of 2005, renamed the  
            California Physician Corps Loan Repayment Program as the Loan  
            Repayment Program.

            AB 982 (Firebaugh) Chapter 1131, Statutes of 2002, established  
            the California Physician Corps Loan Repayment Program, which  
            awards loan repayments of up to $105,000 to physicians willing  
            to practice in MUAs.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           








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          California Medical Association (sponsor)

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Elissa Silva / B.,P. & C.P. / (916)  
          319-3301