BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1310
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 1310 (Brown) - As Introduced:  February 22, 2013 

          Policy Committee:                              HealthVote:19-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill revises the Medi-Cal pediatric subacute care program  
          by raising the eligibility age from 21 to 22, changing the  
          definition of pediatric subacute to include a person who  
          requires treatment for one or more active complex medical  
          conditions, or requires the administration of one or more  
          technically complex treatments, and adding specified conditions  
          to the ways in which medical necessity for pediatric subacute  
          services may be substantiated.

           FISCAL EFFECT  

          Unknown, potentially significant costs in excess of $200,000.   
          Variables include the extent to which the increase in the  
          eligibility age results in an increase in the number of people  
          occupying more pediatric subacute care beds.

           COMMENTS  

           1)Rationale  .  This bill seeks to address an unintended  
            consequence of the medical necessity definition that keeps  
            some children in acute care hospitals unnecessarily.  The  
            author also argues the age range for pediatric subacute care  
            should correspond with state law for children receiving school  
            services, since the integration and continuity of these  
            services is beneficial.  In addition, the current law is  
            interpreted in such a restrictive way that children, who could  
            benefit from subacute services outside of the acute care  
            hospital setting, must remain in the hospital at a cost much  
            higher than the cost of a subacute pediatric care facility.

           2)Background  .  AB 667 (Mitchell), Chapter 294, Statutes of 2011,  








                                                                  AB 1310
                                                                  Page  2

            codified and updated the criteria used to evaluate and  
            authorize admission into Medi-Cal pediatric subacute  
            facilities.  Until then, the criteria were in regulations  
            adopted in 1989 and included a limited number of specific  
            qualifying conditions.  According to DHCS, these regulations  
            had never been updated to reflect enhanced and improved  
            technology.  Devices now commonly used as an alternative to a  
            tracheotomy require careful supervision by skilled clinical  
            staff - particularly for young children with serious  
            respiratory issues.  

          Established on July 1, 1983 by DHCS, the Medi-Cal subacute care  
            program makes provisions for patients in facilities who meet  
            subacute care criteria.  Specific reimbursement rates have  
            been developed for providers of subacute care who have been  
            licensed and certified.  Pediatric subacute care is a level of  
            care needed by a person less than 21 years of age who uses a  
            medical technology that compensates for the loss of a vital  
            bodily function.   
            Pediatric subacute care units must employ sufficient subacute  
            staff, as required by subacute regulation.  Staff-to-patient  
            ratios are a minimum daily average of 5.0 unduplicated  
            licensed nursing hours per patient day, and 4.0 certified  
            nurse assistant hours per patient day.
              

           Analysis Prepared by  :    Debra Roth / APPR. / (916) 319-2081