BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                       CONSENT


          Bill No:  AB 1812
          Author:   Pan (D)
          Amended:  6/17/14 in Senate
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  9-0, 6/11/14
          AYES:  Hernandez, Morrell, Beall, De León, DeSaulnier, Evans,  
            Monning, Nielsen, Wolk

          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  75-0, 4/24/14 (Consent) - See last page for  
            vote


           SUBJECT  :    Health facilities:  information:  disclosure

           SOURCE  :     Author


           DIGEST  :    This bill expands the list of entities to which the  
          Office of Statewide Health Planning and Development (OSHPD) is  
          required to disclose information it collects to include any  
          subsidiary of the United States Department of Health and Human  
          Services, for the purposes of conducting a statutorily  
          authorized activity.

           ANALYSIS  :    

          Existing law:

          1. Establishes the OSHPD, and designates OSHPD as the single  
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             state agency to collect specified health facility or clinic  
             data for use by all state agencies.

          2. Requires hospitals to make and file with OSHPD certain  
             specified reports, including a Hospital Discharge Abstract  
             Data Record, an Emergency Care Data Record, and an Ambulatory  
             Surgery Data Record, which are required to include specified  
             data elements for each admission or patient encounter,  
             including information on age, sex, ethnicity, ZIP code,  
             diagnoses and disposition of the patient.

          3. Requires OSHPD to compile and publish summaries of individual  
             facility and aggregate data that do not contain  
             patient-specific information for the purposes of public  
             disclosure.

          4. Requires OSHPD to disclose patient-level data collected  
             pursuant to 2) above to any California hospital and any local  
             health department or local health officer, and to the  
             National Center for Health Statistics or any other unit of  
             the Centers for Disease Control and Prevention (CDC), or the  
             Agency for Healthcare Research and Quality of the United  
             States Department of Health and Human Services, for the  
             purposes of conducting a statutorily authorized activity.

          5. Establishes, under federal law, the Health Insurance  
             Portability and Accountability Act of 1996 (HIPAA), which  
             among various provisions, mandates industry-wide standards  
             for health care information on electronic billing and other  
             processes; and, requires the protection and confidential  
             handling of protected health information.

          This bill expands the list of entities to which OSHPD is  
          required to disclose information it collects through its  
          Hospital Discharge Abstract Data Record, Emergency Care Data  
          Record, and Ambulatory Surgery Data Record, to include any  
          subsidiary of the United States Department of Health and Human  
          Services, including the Centers for Medicare and Medicaid  
          Services, the Health Resources and Services Administration, the  
          Indian Health Service, the Tribal Epidemiology Centers, the  
          National Institutes of Health, or the National Cancer Institute,  
          as well as the Veterans Health Care Administration within the  
          United States Department of Veterans Affairs, for the purposes  
          of conducting a statutorily authorized activity.

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           Background
           
           HIPAA  .  HIPAA became law in 1996 and was intended to expand  
          health coverage by improving the portability and continuity of  
          health insurance coverage in both group and individual markets.   
          It is also designed to combat waste in health service delivery,  
          and simplify the administration of health insurance.  Public  
          agencies are not exempt from HIPAA rules if they meet the HIPAA  
          criteria as covered entities, with limited exemptions.  HIPAA  
          includes a Privacy Rule which provides federal protections for  
          individually identifiable health information held by covered  
          entities (health care providers and others) and their business  
          associates and gives patients an array of rights with respect to  
          that information. 

          Under the HIPAA Privacy Rule, health information that does not  
          identify an individual, and there is no reasonable basis to  
          believe that the information can be used to identify an  
          individual, is not individually identifiable health information.  
           In order to ensure that health information is not individually  
          identifiable, certain actions must be taken, including removing  
          information about age and geographic location, including zip  
          code.  However, the HIPAA Privacy Rule does permit covered  
          entities to use or disclose a "limited data set," which permits  
          additional information such as age and geographic location to be  
          included, if the covered entity enters into a data use agreement  
          with the limited data set recipient. The provisions of law that  
          this bill is amending require "all disclosures to be consistent  
          with the standards and limitations applicable to the disclosure  
          of limited data sets" as provided in the HIPAA Privacy Rule.

           Comments
           
          According to the author's office, OSHPD hospital inpatient,  
          outpatient, and emergency department patient-level data is a  
          primary source of information on population health, utilization  
          of healthcare services, and disease surveillance.  Authorizing  
          OSHPD to release confidential hospital patient-level data to the  
          additional federal entities will allow them to better assess  
          population health needs in allocating federal funds, publicly  
          reporting geographic, demographic, or other variations in  
          healthcare and in developing interventions to improve population  
          heath.  This bill authorizes OSHPD to release confidential  

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          hospital patient-level data to the specified federal entities  
          only under specific data use agreements that are used under  
          current state law for release of confidential data to University  
          of California and other non-profit educational institutions,  
          California local public health officers and two federal agencies  
          - the Agency for Healthcare Research and Quality (AHRQ), and the  
          CDC.  Under existing law, with the exception of the AHRQ and  
          CDC, other federal agencies cannot access this data directly  
          from OSHPD.

           Prior legislation
           
          AB 2876 (Frommer, Chapter 434, Statutes of 2004) requires OSHPD,  
          upon request, to disclose patient encounter and discharge data  
          to hospitals and local health departments or local health  
          officers, and to any unit of the CDC or AHRQ of the United  
          States Department of Health and Human Services for the purposes  
          of conducting a statutorily authorized activity.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


           ASSEMBLY FLOOR  :  75-0, 4/24/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Grove, Hagman, Hall, Roger Hernández, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Medina, Melendez, Mullin, Muratsuchi, Nestande, Olsen, Pan,  
            Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.  
            Pérez
          NO VOTE RECORDED:  Gray, Harkey, Mansoor, Nazarian, Vacancy


          JL:d:n  6/25/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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