BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1357
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          Date of Hearing:  April 23, 2013

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
                AB 1357 (Roger Hernández) - As Amended:  April 8, 2013
           
          SUBJECT  :  Emergency departments: diversion of patients.

           SUMMARY  :  Requires funds, collected by the County of Los Angeles  
          (LA) through a voter approved initiative for emergency rooms  
          from properties within the San Gabriel Valley, to remain within  
          that geographic region of the county.  Requires the funds to be  
          used for the purposes intended by the voter initiative, within  
          that geographic area, to reduce ambulance diversion.   
          Establishes a task force consisting of the Director of the  
          Emergency Medical Services Authority (EMSA), the Director of the  
          State Department of Public Health (DPH), the California State  
          Auditor, and a representative of a local hospital task force to  
          be selected by the other members.  Requires the task force to  
          study and audit the funds collected from properties in the San  
          Gabriel Valley since the passage of the local voter initiative  
          to gain an understanding as to how the moneys have been  
          allocated and to gauge what improvements, if any, have been  
          made.  Requires the task force to report its findings to the  
          Legislature by January 1, 2015. 

           EXISTING LAW  :  

          1)Establishes EMSA, which is responsible for the coordination  
            and integration of all state activities concerning emergency  
            medical services (EMS), including the establishment of minimum  
            standards, policies, and procedures.  

          2)Authorizes counties to develop an EMS program and designate a  
            Local Emergency Medical Services Agency (LEMSA) responsible  
            for planning and implementing an EMS system, which includes  
            day-to-day EMS system operations.

          3)Requires a LEMSA that elects to implement a trauma care system  
            to develop and submit a plan to the EMSA according to the  
            regulations established prior to the implementation.

          4)Permits each county to establish an EMS Fund, known as the  
            Maddy Fund, and specifies how these funds are to be used,  
            including limiting administrative costs to no more than 10% of  








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            the amount in the fund, with 58% of the balance of the fund  
            distributed to physicians for emergency services in hospitals,  
            25% distributed only to hospitals providing disproportionate  
            trauma and emergency medical care services, and 17%  
            distributed for other emergency medical services as determined  
            by each county, including funding regional poison control  
            centers.  

          5)Assesses additional penalties on every fine and penalty  
            imposed and collected by the courts for all criminal offenses,  
            including all offenses involving a violation of the Vehicle  
            Code, and requires funds from these additional penalties to be  
            deposited into a county Maddy Fund, if the county has  
            established a Maddy Fund, to pay for emergency medical  
            services as specified

           FISCAL EFFECT  :  This bill has not been analyzed by a fiscal  
          committee. 

           
          COMMENTS :

           1)PURPOSE OF THIS BILL  .  According to the author, currently LA  
            County collets funds from property taxes to fund emergency  
            departments (EDs) and trauma centers.  The author states that  
            in the San Gabriel Valley, the eastern most part of LA County,  
            there are not sufficient funds for EDs and trauma centers even  
            though this tax is being collected.  According to the author,  
            the problem is that the taxes being collected are not being  
            allocated evenly throughout the county.  The author states  
            that this bill is needed to mitigate ambulance diversion and  
            emergency room overcrowding in the San Gabriel Valley. 

           2)BACKGROUND  .  According to the County of LA, in November 2002,  
            the voters of LA County approved Measure B, which authorizes  
            the County to levy a special tax on structural improvements  
            located within the County to provide funding for the  
            Countywide System of Trauma Centers, Emergency Medical  
            Services and Bioterrorism Response.  As approved by the  
            voters, Measure B established a tax rate of $0.03 per square  
            foot of structural improvements.  The measure authorized the  
            Board of Supervisors to approve upward adjustments to the rate  
            limited to changes in the medical component of the Consumer  
            Price Index.  The current rate of the tax levy is $0.0424 per  
            improved square foot. 








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          The County of LA further reports that on December 18, 2012, the  
            Auditor-Controller reported a total of $256.1 million in  
            Measure B revenues for the Fiscal Year ending on June 30,  
            2012.  This revenue was allocated to the LA County Department  
            of Health Services (DHS) hospitals for trauma and emergency  
            care, 12 non-County trauma hospitals to provide for trauma and  
            emergency care services to eligible indigent patients, and to  
            provide reimbursement for the Physicians Services for Indigent  
            Program.  The County's Department of Public Health uses  
            Measure B funds for bioterrorism preparedness and for response  
            activities, including disease and health event surveillance,  
            laboratory detection and investigation response related to  
            potential acts of biological, chemical and radiological  
            terrorism.  Measure B revenues also provide resources to  
            expand access to trauma services for patients in underserved  
            areas of the County through: a) the County Fire Department,  
            Helicopter Lease/Trauma Air Transport and Paramedic Air Squad  
            in the East San Gabriel Valley; b) the Sheriff's Department  
            Air Search and Rescue in the Antelope Valley; and, c) the LA  
            City Fire Department Trauma Air Transport in the San Fernando  
            Valley. 

           3)California's EMS system  .  California operates on a two-tiered  
            EMS system.  EMSA is the lead agency and centralized resource  
            to oversee emergency and disaster medical services.  EMSA is  
            charged with providing leadership in developing and  
            implementing local EMS systems throughout California, and in  
            setting standards for the training and scope of practice of  
            various levels of EMS personnel.  California has 32 local EMS  
            systems that provide EMS for California's 58 counties. (Seven  
            regional EMS systems comprised of 33 counties and 25  
            single-county agencies provide the services.)  Regional  
            systems are usually comprised of small, rural, less-populated  
            counties, and single-county systems generally exist in the  
            larger and more urban counties.  

              a)   LEMSAs  .  LEMSAs are responsible for planning,  
               implementing, and managing local trauma care systems,  
               including assessing needs, developing the system design,  
               designating trauma care centers, collecting trauma care  
               data, and providing quality assurance.

              b)   Trauma planning  .  EMS  provides statewide coordination  
               and leadership for the planning, development and  








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               implementation of local trauma care systems.  EMSA  
               responsibilities include the development of statewide  
               standards for trauma care systems and trauma centers, the  
               provision of technical assistance to local agencies  
               developing, implementing, or evaluating components of a  
               trauma care system, and the review and approval of local  
               trauma care system plans to ensure compliance with the  
               minimum standards set by the Authority. 

              c)   Trauma Center Designation  .  According EMSA, all trauma  
               centers are licensed hospitals, designated by the LEMSA in  
               accordance with state law and regulations.  Designations  
               include levels I through IV and Level I and II Pediatric  
               (pediatric specific facilities).  The American College of  
               Surgeons (ACS) has developed a verification process for  
               trauma hospitals.  The criteria developed by the ACS are  
               similar but not identical to the California Code of  
               Regulations Trauma Center.  Some LEMSAs utilize ACS  
               verification as part of the designation process; however,  
               ACS verification does not equate to LEMSA designation.   
               Trauma care systems and trauma center designations are part  
               of the local trauma system as detailed in the LEMSA trauma  
               plan approved by the EMSA.  In LA County the trauma centers  
               are as follows: 

               i)     Ronald Reagan UCLA Medical Center is designated as a  
                 Level I Trauma Center and a Level I Pediatric Trauma  
                 Center; 
               ii)    Cedars-Sinai, Harbor UCLA, and LA County +  
                 University of Southern California (LAC+USC) Medical  
                 Centers are designated Level I and Level II Pediatric; 
               iii)   Antelope Valley Hospital, California Hospital  
                 Medical Center, Providence Holy Cross Medical Center  
                 (Mission Hills), St. Francis Medical Center, St. Mary  
                 Medical Center, Henry Mayo Newhall Memorial Hospital and  
                 Huntington Memorial (in Pasadena) are Level II Trauma  
                 Centers; 
               iv)    Long Beach Memorial + Miller Children's and  
                 Northridge Hospital Medical Centers are Level II Trauma  
                 and Level II Pediatric; and,
               v)     Children's Hospital of LA is a Level I Pediatric.  

              d)   LEMSA diversion policy  .  Each LEMSA, using state minimum  
               standards, establishes policies and procedures, approved by  
               the medical director to assure medical control of the EMS  








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               system and submits them to the EMSA.  The policies and  
               procedures approved by the medical director may require  
               basic life support emergency medical transportation  
               services to meet any medical control requirements including  
               dispatch, patient destination policies, patient care  
               guidelines, and quality assurance requirements.  Pursuant  
               to this authority, LA LEMSA has established an ambulance  
               diversion policy that generally requires the patient to be  
               transported to the most accessible receiving facility,  
               which may or may not be the closest facility  
               geographically.  Transport personnel shall take into  
               consideration traffic, weather conditions or other similar  
               factors which may influence transport time when identifying  
               which hospital is most accessible.  According to the  
               information supplied to the EMSA, final authority for  
               patient destinations rests with the base hospital handling  
               the call.  Whether diversion request will be honored  
               depends on available system resources.  Further guidance is  
               spelled out with regard to transport to trauma or other  
               specialty care centers.  

           4)ST-Elevation Myocardial Infarction (STEMI) Receiving Center  
            Program  .  In 2006, the LA County EMS Agency began the  
            implementation of a regionalized approach to providing cardiac  
            care to patients experiencing STEMI (an indication of a heart  
            attack).  According to the County, the decision was based on  
            published literature that rapid provision of Percutaneous  
            Coronary Intervention (PCI) (balloon or stent angioplasty) is  
            the optimum level of care for patients experiencing STEMI.   
            According to the County of LA, the regionalized approach to  
            STEMI care was strongly supported by medical directors of the  
            various EMS constituents (provider agencies, paramedic base  
            hospitals) as well as the cardiologists.  These standards were  
            developed to ensure that patients transported by the 9-1-1  
            system in LA County who exhibit STEMI on a paramedic unit's  
            12-lead electrocardiogram (ECG) are transported to a hospital  
            appropriate to their needs.  With the initiation of 12-lead  
            ECG by paramedics and rapid transport to a STEMI Receiving  
            Center (SRC), patients now receive earlier definitive  
            diagnosis and treatment resulting in improved outcomes.  The  
            SRC Program started in late 2006 with the designation of the  
            first three SRCs and has grown to 31 centers county-wide and  
            three out-of-county LA designated Centers.  A system-wide  
            quality improvement program and data collection system has  
            been established and oversight is provided by the EMS Agency.   








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            Each center is required to review the care to its STEMI  
            patients and the SRC Advisory and Quality Improvement  
            Committees meets regularly to address prehospital, patient  
            care, system, and inter-facility transfer issues.  System data  
            show that the LA County SRC Program exceeds the minimum  
            American Heart Association time standards.  Participating  
            hospitals in or near the San Gabriel Valley region are  
            Methodist Hospital of Southern California, Huntington Memorial  
            Hospital and Garfield Medical Center, and Citrus Valley  
            Medical Center-Intercommunity Campus. 

           5)OPPOSITION  .  The County of LA, in opposition to this bill,  
            states that this bill could potentially fragment the County's  
            EMS system.  The County states that by statute, it is  
            responsible for the coordination and oversight of the EMS  
            system, including prehospital care and hospital ED  
            designations.  Reallocating a portion of the Measure B funds  
            to be controlled and distributed by an entity other than the  
            LA County Board of Supervisors would undermine and fragment  
            the oversight, system design, planning and legal  
            responsibility of the EMS Agency.  The County further states  
            that Measure B funds are currently expended in the San Gabriel  
            Valley to maintain EMS and trauma care.  These expenditures  
            include:

             a)   Funds allocated for the County's Fire Department and for  
               the Sheriff's Department helicopter service to transport  
               critical trauma patients from the San Gabriel Valley to the  
               LAC+USC Medical Center;

             b)   Funds allocated to LAC+USC Medical Center which provides  
               a significant percentage of trauma and emergency care to  
               residents of the San Gabriel Valley; and,

             c)   Support of Huntington Memorial's designation as a trauma  
               center and payment for trauma and emergency care to  
               residents within the San Gabriel Valley.

            The county also opposes this bill because it poses legal  
            problems.  The County states, as noted by County Counsel, it  
            conflicts with the authority granted to charter counties and  
            would undermine the authority of the Board to allocate Measure  
            B revenues to best meet the needs of LA County's residents.   
            In addition this bill states that Measure B funds retained in  
            the San Gabriel Valley region be used "to reduce ambulance  








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            diversion" and omits other uses expressly provided for in  
            Measure B, including bioterrorism response.  

            Finally, the County points out that although this bill does  
            not define the area of the San Gabriel Valley region from  
            which Measure B funds must be retained, the County's DHS based  
            on a speculative assumption of what is intended, estimates  
            that approximately 17% of Measure B revenue is collected from  
            the San Gabriel Valley region and would result in a loss of  
            approximately $47 million for critical trauma care and  
            emergency services.  

           6)RELATED LEGISLATION  .  SB 191 (Padilla) deletes the January 1,  
            2014, sunset date on provisions of existing law authorizing  
            counties to assess an additional $2 on every $10 of certain  
            fines and penalties, including vehicle code violations, to  
            supplement revenues for county Maddy Funds, and that require  
            15% of these additional funds to be used for pediatric trauma  
            care.

           7)PREVIOUS LEGISLATION  .  

             a)   SB 1236 (Padilla), Chapter 60, Statutes of 2008, extends  
               the sunset dates, from January 1, 2009, to January 1, 2014,  
               on provisions of law authorizing counties to assess an  
               additional $2 on every $10 in fines to supplement Maddy  
               Funds, with 15% of these additional funds allocated to  
               pediatric trauma care. These are the sunset dates that this  
               bill is proposing to delete.

             b)   AB 1988, Chapter 333, Statutes of 2002, requires EMSA to  
               convene a task force to study the delivery and provision of  
               EMS.  Requires the task force, among other things, to  
               develop a plan to ensure that all Californians are served  
               by appropriate coverage areas for emergency and trauma  
               services and that sufficient numbers of EDs and trauma  
               centers exist to serve each area's population.

           8)POLICY COMMENTS  .

              a)   Local Control  .  Measure B funds are raised pursuant to a  
               Local County initiative and allocated by the County Board  
               of Supervisors.  It is unclear why it is appropriate for  
               the state to intervene.  The funds are raised and  
               distributed locally by the Board of Supervisors.  The San  








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               Gabriel Valley, depending on the definition, is represented  
               by up to three members of the Board of Supervisors.  There  
               is no evidence that the community has brought this issue to  
               the attention of the members of the Board, the local EMSA,  
               or requested a different allocation due to ambulance  
               diversion or lack of trauma access. 
              
              b)   Task Force  . This bill requires a task force consisting  
               of the Director of EMSA, the Director of DPH, the  
               California State Auditor, and a representative of a local  
               hospital task force to be selected by the other members.   
               It requires the task force to study and audit the funds  
               collected from properties in the San Gabriel Valley since  
               the passage of the local voter initiative to gain an  
               understanding as to how the moneys have been allocated and  
               to gauge what improvements, if any, have been made.  This  
               charge seems overly broad and it is not clear what could be  
               determined beyond what the EMSA already does in reviewing  
               and approving the local EMS plan.  There are no resources  
               for this task force and the direction is vague.  

              c)   Definition of San Gabriel Valley  .  There is no uniformly  
               recognized geographic area that could be definitively  
               identified as the San Gabriel Valley.  The San Gabriel  
               Valley Council of Governments (SGVCOG) is made up of  
               35-member public agencies, comprised of 31 member cities, 3  
               LA County Supervisorial Districts (1, 4, and 5), and the  
               San Gabriel Valley Water Districts.  The area is described  
               as having 31 incorporated cities including Altadena and the  
               City of Pasadena (one of only three cities in California to  
               operate a Public Health Department independent from the  
               county).  The LA Times has a mapping website resource and  
               according to this map, neither Pasadena nor Altadena are  
               included in the San Gabriel Valley.  This website describes  
               the Valley as 284.13 square miles, divided into 47  
               neighborhoods, whereas the SGVCOG describes the Valley as a  
               400 square mile area.  It is nearly impossible to fulfill  
               the requirements of this bill without an accepted  
               definition of the area affected or an agreed upon map of  
               the geographic region. 

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           








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          None on file.

           Opposition 
           
          County of Los Angeles

           Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916)  
          319-2097