BILL ANALYSIS Ó AB 1288 Page 1 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 AB 1288 Page 2 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 AB 1288 Page 3 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. AB 1288 Page 4 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 AB 1288 Page 5 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 AB 1288 Page 6 California Medical Association (sponsor) Opposition None on file. Analysis Prepared by : Elissa Silva / B.,P. & C.P. / (916) 319-3301