BILL NUMBER: AB 1952	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Pan

                        FEBRUARY 19, 2014

   An act to add Article 1.5 (commencing with Section 127447.10) to
Chapter 2.5 of Part 2 of Division 107 of the Health and Safety Code,
relating to health facilities, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1952, as introduced, Pan. Charity care and Wellness Trust Fund.

   Existing law establishes the State Department of Public Health and
sets forth its powers and duties, including, but not limited to, the
licensing and regulation of health facilities. Existing law
establishes the Offices of Statewide Health Planning and Development
and sets forth its powers and duties, including, but not limited to,
health planning and research development.
   Existing law requires specified hospitals to maintain an
understandable discount policy and charity care policy, and makes
uninsured patients with high medical costs who are at or below 350%
of the federal poverty level eligible to apply for participation.
   This bill would require a general acute care hospital to annually
provide charity care or monetary contributions, or a combination, an
amount equaling at least of 5% of the hospital's net patient revenue.
The bill would establish the Wellness Trust Fund, would require the
revenues collected pursuant to these provisions to be deposited into
the fund, and would continuously appropriate the fund for the support
of the Medi-Cal program.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 1.5 (commencing with Section 127447.10) is
added to Chapter 2.5 of Part 2 of Division 107 of the Health and
Safety Code, to read:

      Article 1.5.  Charity Care and Wellness Trust Fund


   127447.10.  (a) Commencing January 1, 2015, a hospital shall
annually provide, for each fiscal year, an appropriate level of
charity care or appropriate contributions to the Wellness Trust Fund
of an amount equal to at least 5 percent of the hospital's net
patient revenue by providing any of the following:
   (1) Charity care.
   (2) Monetary contributions to the fund.
   (3) A combination of charity care and contributions to the fund.
   (b) For purposes of satisfying subdivision (a), a hospital shall
not change its existing fiscal year unless the hospital changes its
ownership or corporate structure as a result of a sale or merger.
   (c) A determination of the amount of charity care and
contributions to the fund provided by a hospital shall be based on
the most recently completed fiscal year of the hospital.
   (d) If a hospital reasonably determines that providing charity
care or contributions to the fund in accordance with this article in
a given fiscal year would result in the hospital having an annual
operating margin of less than 1 percent, the hospital may petition
the office to be excused in whole or in part from complying with
subdivision (a) in that fiscal year. The director may excuse
compliance if he or she concurs with the hospital's conclusion that
compliance with subdivision (a) would result in the hospital having
an operating margin of less than 1 percent in the fiscal year at
issue.
   (e) This section shall not apply to a hospital that is part of an
integrated nonprofit health system.
   (f) Nothing in this article shall invalidate an ordinance of, nor
be construed to prohibit the adoption of an ordinance by, a city,
county, or city and county, unless simultaneous compliance with this
article and the ordinance is impossible.
   127447.15.  As used in this article, the following terms have the
following meanings:
   (a) "Fund" means the Wellness Trust Fund established pursuant to
Section 127447.20.
   (b) "Office" means the Office of Statewide Health Planning and
Development.
   (c) "Director" means the Director of the Office of Statewide
Health Planning and Development.
   (d) "Hospital" means any health facility licensed pursuant to
subdivision (a) of Section 1250.
   127447.20.  (a) The Wellness Trust Fund is hereby established
within the General Fund. Revenues derived from contributions from
hospitals pursuant to this article shall be deposited into the fund
for the purposes of supporting health care for needy individuals as
set forth in this article. Notwithstanding Section 16305.7 of the
Government Code, any interest and dividends earned on deposits in the
fund shall be retained in the fund for purposes set forth in this
article.
   (b) All moneys in the fund are hereby continuously appropriated
for the support of the Medi-Cal program.
   (c) It is the intent of the Legislature that moneys in the fund be
used to supplement, and not displace, existing funding for the
Medi-Cal program.
   (d) For purposes of this section, "existing funding for the
Medi-Cal program" means the total amount expended from appropriations
by the Legislature for the Medi-Cal program in the fiscal year in
which this section is enacted, or in any subsequent fiscal year,
whichever is greater. "Existing funding for the Medi-Cal program"
does not include any amount appropriated from the fund pursuant to
subdivision (b).