BILL ANALYSIS                                                                                                                                                                                                    Ó







         ----------------------------------------------------------------------- 
        |Hearing Date:June 17, 2013         |Bill No:AB                         |
        |                                   |1288                               |
         ----------------------------------------------------------------------- 


                      SENATE COMMITTEE ON BUSINESS, PROFESSIONS 
                               AND ECONOMIC DEVELOPMENT
                              Senator Ted W. Lieu, Chair
                                           

                     Bill No:        AB 1288Author:V. Manuel Pérez
                          As Amended:June 6, 2013  Fiscal:Yes

        
        SUBJECT:  Medical Board of California and Osteopathic Medical Board of  
        California:  licensing: application processing.
        
        SUMMARY:  Requires the Medical Board of California and the Osteopathic  
        Medical Board of California 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.  

        Existing law:
        
       1)Licenses and regulates physicians and surgeons under the Medical  
          Practice Act (Medical Act) by the Medical Board of California (MBC)  
          within the Department of Consumer Affairs (DCA) and states that the  
          protection of the public is the highest priority of the MBC in  
          exercising its functions.  (Business and Professions Code (BPC) §  
          2000 et seq.)

       2)Requires each applicant for a physician's and surgeon's certificate  
          to show by official transcript or other official evidence  
          satisfactory to the Division of Licensing that he or she has  
          successfully completed a specified medical curriculum.  (BPC § 2089)

       3)Licenses and regulates osteopathic physicians and surgeons under the  
          Osteopathic Act by the Osteopathic Medical Board of California  
          (OMBC) within DCA and states that the protection of the public is  
          the highest priority of the OMBC in exercising its functions.  (BPC  
          § 2450 et seq.)

       4)Establishes a 15-member California Healthcare Workforce Policy  





                                                                        AB 1288
                                                                         Page 2



          Commission (Commission) and requires the Commission to, among other  
          things, identify specific areas of the state where unmet priority  
          needs for primary care family physicians and registered nurses  
          exist. 
       (Health and Safety Code (HSC) § 128225 (a)).

       5)Defines "medically underserved area" to mean an area defined as a  
          health professional shortage area under specified federal  
          regulations or an area of the state where unmet priority needs for  
          physicians exist as determined by the Commission.  (HSC § 128585  
          (d))

       6)Defines "medically underserved population" to mean those served by  
          the Medi-Cal program, the Healthy Families Program and uninsured  
          populations.  (HSC § 128585 (e))

       7)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 a 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)

       8)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)

        This bill:

       1)Requires the MBC and the OMBC to each develop a process to give  
          priority review status to the application for a physician and  
          surgeon's certificate or an osteopathic physician and surgeon's  
          certificate from an applicant who can demonstrate that he or she  
          intends to practice in a MUA or serve a MUP, as defined.

       2)Authorizes an applicant to demonstrate the intent to practice in a  
          MUA area 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.

        FISCAL EFFECT:  This measure has been keyed "fiscal" by Legislative  
        Counsel.  The May 15, 2013 Assembly Appropriations Committee analysis  
        indicates that "costs to MBC should be minor and absorbable to develop  
        the required review process."






                                                                        AB 1288
                                                                         Page 3



        COMMENTS:
        
       1.Purpose.  This bill is sponsored by the  California Medical  
          Association  (CMA) to require the MBC and the OMBC 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 MUA or serve a MUP.  The Author indicates that the 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.

       The Author states:  "The purpose of this bill is to ensure that  
          applicants who intend on serving in an underserved area or serve an  
          underserved population are licensed in a timely manner.  Although  
          the Board currently does not have a backlog processing license  
          applications, there have instances where the Board was backlogged  
          due to budget actions and an influx of applications."

       2.MBC License Application Process.  MBC regulations require the initial  
          review process for license applications to 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.  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.  
           The MBC indicates that it is completing the initial review of  
          applications within 45 calendar days, well under the mandated 60  
          business days.  The Board does not request any information regarding  
          where an applicant plans to work once licensed.

       During fiscal year 2011-2012, the MBC received 6,623 applications and  
          granted 5,351 licenses.  Although the MBC does not currently have a  
          licensing backlog, this bill will still require the MBC to establish  
          a priority review process in order to streamline the application  





                                                                        AB 1288
                                                                         Page 4



          process for those physician and surgeon applicants who can  
          demonstrate their commitment in writing to working in medically  
          underserved areas or serving medically underserved populations.

       3.Medically Underserved Areas (MUA), and Medically Underserved  
          Populations (MUP).  
       A MUA is 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.  

       The Sponsor states that, "Rural 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.  MUPs 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.

       4.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 MUA.

       One program offered under the Foundation is the Steven M. Thompson  
          Physician Corps Loan Repayment Program, which provides educational  
          loan repayment assistance for licensed physicians and surgeons who  
          practice in MUAs of the state.  

       The California State Loan Repayment Program 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  





                                                                        AB 1288
                                                                         Page 5



          California by 

       providing financial support to family practice residency, nurse  
          practitioner, physician assistant, and registered nurse education  
          programs throughout California.

       5.Related Legislation.   AB 1904  (Block, Chapter 399, Statutes of 2012)  
          required a board under DCA to expedite the licensure process for  
          military spouses and domestic partners of a military member who is  
          on active duty in California.

       6.Arguments in Support.  The  California Medical Association   (CMA) in  
          sponsoring the bill states:  "The problem of primary care physician  
          shortages is a complex one, and California needs to implement a  
          multi-faceted approach to reach a solution.  AB 1288 will require  
          the Medical Board of California and the Osteopathic Medical Board of  
          California 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.  AB 1288 will not change the  
          vigorous standards of the Medical Practice Act and the Osteopathic  
          Medical Practice Act, but will instead focus each Board's resources  
          on the areas and populations with the greatest need." 

       The CMA cites the New England Journal of Medicine, stating that  
          California communities with high concentrations of low income and  
          minority residents are especially likely to have physician shortages  
          and, "Without decisive action, the future erosion of the supply of  
          primary care physicians will likely disproportionately impact these  
          already disadvantaged communities." 

       The  California Optometric Association  (COA) states that there are  
          currently over 517 designated Health Professional Shortage Areas  
          with over 5.5 million people in California.  The COA believes a  
          multipronged approach is needed to address the provider gap that is  
          only expected to get worse when millions more individuals are  
          expected to obtain health coverage in 2014.  COA argues the bill  
          will expand access to health care in medically underserved areas,  
          and bring providers into these communities in an expeditious manner.  


       The  Association of California Healthcare Districts  (ACHD) supports  
          long-term solutions to increase the access of healthcare within all  
          areas of the state, and states that in many parts of California,  
          Healthcare Districts are the sole provider of health care services  
          in their communities.  The ACHD indicates that many Healthcare  





                                                                        AB 1288
                                                                         Page 6



          Districts located in rural areas have a difficult time attracting  
          physicians, and that by increasing the ease of the application  
          process, this bill would enable Healthcare Districts to offer their  
          communities increased access to care.  The ACHD further believes  
          that by streamlining the licensing application process, AB 1288  
          creates a pathway to bring qualified physicians and surgeons to  
          areas that are challenged in recruiting physicians.

        
        SUPPORT AND OPPOSITION:
        
         Support:  

        California Medical Association (sponsor)
        Association of California Healthcare Districts
        California Optometric Association

         Opposition:  

        None received as of June 12, 2013.



        Consultant:G. V. Ayers