BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 30, 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 (SGV), 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 SGV 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 collects funds from property taxes to fund emergency  
            departments (EDs) and trauma centers.  The author states that  
            in SGV, 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 SGV. 

           2)BACKGROUND  .  According to the County of LA, in November 2002,  
            the voters of LA County approved Measure B, which authorizes  
            LA County to levy a special tax on structural improvements  
            located within LA 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.  LA County's DPH 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 LA County  
            through: a) LA County Fire Department, Helicopter Lease/Trauma  
            Air Transport and Paramedic Air Squad in the East SGV; 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)SGV MEASURE B DISTRIBUTION FOR TRAUMA CARE  .  According to a  
            September 16, 2004 report by the Executive Director of the  
            (San Gabriel Valley Council of Governments SGVCG) to the  
            Governing Board, the LA County Board of Supervisors determined  
            that the majority ($140 million) of Measure B funds would be  
            allocated to LA County's Hospitals as follows: Harbor/UCLA  
            Medical Center ($29.6 Million); Martin Luther King Jr./Charles  
            Drew Medical Center ($21.6 Million); USC Medical Center ($68.0  
            Million); Olive View Medical Center ($20.9 Million) ( Olive  
            View did not have a trauma center).  The LA County Board of  
            Supervisors has determined that $18.6 million or 10.9% of the  
            Trauma Tax will be allocated to support the delivery of trauma  
            care at 10 private hospitals in LA County.  These hospitals  
            include: Cedars Sinai Medical Center - West LA; Children's  
            Hospital of LA - Central LA; Henry Mayo Newhall Memorial  
            Hospital-Santa Clarita; Huntington Memorial Hospital-Pasadena;  
            Long Beach Memorial Medical Center- Long Beach; Northridge  
            Hospital Medical Center-Roscoe Campus-San Fernando Valley;  
            Providence Holy Cross Medical Center-San Fernando Valley; St.  
            Francis Medical Center-Lynwood; St. Mary Medical Center-Long  
            Beach; and, UCLA Medical Center-West LA.  
          According to the report, of the 20 private hospitals in SGV,  
            only Huntington Memorial Hospital in Pasadena is currently  








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            designated to receive Measure B funds.  During this last year,  
            reports show that SGV residents and businesses contributed  
            19.8% ($33.7 million) of all Measure B funds countywide, which  
            is proportional to the Valley's share of LA County's  
            population.  The report further states that the cities of La  
            Canada Flintridge, Pasadena, Sierra Madre, Arcadia, Monrovia,  
            San Gabriel, Alhambra, San Marino, and South Pasadena are  
            intended to be served by the trauma center at Huntington  
            Memorial Hospital.  The cities of Temple City, Rosemead,  
            Montebello, and Monterey Park are intended to be served by the  
            trauma center at USC/LAC Medical Center.  However, 18 of the  
            remaining cities and the unincorporated communities in SGV,  
            essentially those bordering and to the east of the 605  
            freeway, representing more than 1.2 million residents, have no  
            designated trauma center within easy access.  Victims  
            requiring assistance are to be transported to other open  
            trauma centers in the County on a rotating and available  
            basis.  

          The report concludes that analysis of the allocation of Measure  
            B revenues raises several significant public policy issues  
            regarding LA County's trauma care including: funding, its  
            service delivery system, and SGV's residents' ability to  
            access and receive their "fair share" of resources for these  
            critical services.  The report further states that the East LA  
            County area (SGV) is the largest urban portion (1.2 million  
            residents) of the County not served by any particular trauma  
            center.  In the cases where trauma care is needed, EMS will  
            transport victims to an open trauma center within the County  
            along with the attendant delays that may jeopardize healthcare  
            and safety of the victim.  The report concludes that over the  
            last several years, many private hospitals throughout LA  
            County, including several in SGV, have closed their trauma  
            centers due to the inadequate available funding.  According to  
            the report, the issue of adequate resources to fund trauma  
            care in SGV and LA County appears to be more a function of  
            adopted County policies and priorities rather than actual cost  
            of service and financial limitations.

          According to a 2007 article, supplied by the author, in the San  
            Gabriel Valley Tribune, a LA County DHS analysis of SGV  
            residents showed that only 0.5% of SGV residents used the  
            county's ED compared to 2.8% countywide.  This lack of  
            utilization of LA County EMS is directly tied with the lack of  
            availability of a county hospital in close proximity.  The  








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            article argues that the lack of a Level I trauma center east  
            of the San Gabriel Freeway necessitates that county  
            helicopters airlift patients to Huntington Hospital in  
            Pasadena or LA County-USC Medical Center.  A 1988 article by  
            The Los Angeles Times identifies Huntington Hospital as the  
            only trauma center in SGV after seven of LA County's original  
            network of 23 trauma centers have closed during a period from  
            1985 to 1988.  According to a 2006 op-ed by Carol Herrera,  
            former Mayor of Diamond Bar, California, in the Pasadena Star  
            News, SGV is home to almost two million residents living in 31  
            cities.  According to Herrera, the limited access to trauma  
            and emergency room care for these communities can prove  
            critical for residents in the event of life threatening  
            injuries or serious medical incidents.

           4)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 .  EMSA provides statewide coordination  
               and leadership for the planning, development, and  
               implementation of local trauma care systems.  EMSA's  
               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 EMSA. 








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              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 regulations.   
               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  
               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  
               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,  








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               which may or may not be the closest facility  
               geographically.  Transport personnel 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 a 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.  

           5)ST-Elevation Myocardial Infarction (STEMI) Receiving Center  
            Program  .  In 2006, the LA LEMSA began the implementation of a  
            regionalized approach to providing cardiac care to patients  
            experiencing STEMI (an indication of a heart attack).   
            According to LA County, the decision was based on published  
            literature that rapid provision of Percutaneous Coronary  
            Intervention (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 LA LEMSA   
            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 SGV region are Methodist Hospital of  
            Southern California, Huntington Memorial Hospital and Garfield  
            Medical Center, and Citrus Valley Medical  








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            Center-Intercommunity Campus. 

           6)OPPOSITION  .  The County of LA, in opposition to this bill,  
            states that this bill could potentially fragment the County's  
            EMS system.  LA 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 LA LEMSA.  LA County further states that  
            Measure B funds are currently expended in SGV to maintain EMS  
            and trauma care.  These expenditures include:

             a)   Funds allocated for LA County's Fire Department and for  
               the Sheriff's Department helicopter service to transport  
               critical trauma patients from SGV 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 SGV; and,

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

            LA County also opposes this bill because it poses legal  
            problems.  LA County states, as noted by County Counsel, it  
            conflicts with the authority granted to charter counties and  
            would undermine the authority of the Board of Supervisors 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 SGV region be used "to reduce  
            ambulance diversion" and omits other uses expressly provided  
            for in Measure B, including bioterrorism response.  

            Finally, LA County points out that although this bill does not  
            define the area of the SGV 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 SGV region and  
            would result in a loss of approximately $47 million for  
            critical trauma care and emergency services.  








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           7)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.

           8)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 (Diaz), 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.

           9)POLICY QUESTIONS  .

              a)   Local Control  .  Measure B funds are raised pursuant to a  
               Local County initiative and allocated by the County Board  
               of Supervisors.  Is it appropriate for the state to  
               intervene in this local matter?  The funds are raised and  
               distributed locally by the Board of Supervisors.  The SGV,  
               depending on the definition, is represented by up to three  
               out of the five members of the Board of Supervisors.   
               Although the area has raised concerns about the funding  
               allocation, the only trauma center in the area is  
               Huntington Hospital in Pasadena.  Seeking a trauma  
               designation is a major undertaking which none of the local  
                                                              hospitals in the area have sought to date.  In fact two  
               area hospitals closed their trauma centers in the  
               1980's-Methodist Hospital in Arcadia and Queen of the  
               Valley Hospital in West Covina.  Merely diverting Measure B  
               funds would not address this.  








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              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 SGV 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 LEMSA plan.  There are no resources for this  
               task force and the direction is vague.  

              c)   Definition of  SGV.  There is no uniformly recognized  
               geographic area that could be definitively identified as  
               SGV.  SGVCG is made up of 35-member public agencies,  
               comprised of 31 member cities, three LA County  
               Supervisorial Districts (1, 4, and 5), and the SGV 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 Los Angeles  
               Times has a mapping Website resource and according to this  
               map, neither Pasadena nor Altadena is included in SGV.   
               This Website describes the SGV as 284.13 square miles,  
               divided into 47 neighborhoods, whereas the SGVCG describes  
               the SGV 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 
           
          Citrus Valley Health Partners
          City of Glendora

           Opposition 
           
          County of Los Angeles

           Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916)  








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          319-2097