BILL ANALYSIS Ó AB 2051 Page 1 Date of Hearing: May 7, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 2051 (Gonzalez) - As Amended: April 29, 2014 Policy Committee: HealthVote:19-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill requires the Department of Health Care Services (DHCS) to process applications within 15 days of receiving an application from an affiliate primary care clinic applying to be a Medi-Cal provider, and deems applications approved on the 16th day after receiving the application. FISCAL EFFECT Minor costs for DHCS to identify and expedite affiliate primary care clinic applications. COMMENTS 1)Purpose . According to the author, legislation enacted several years ago provides DPH must approve a clinic license within 30 days. Unfortunately, the streamlined licensure process did not specifically address the timelines by which the DHCS must complete the affiliate clinic's enrollment into Medi-Cal. The author notes as a consequence, affiliate clinics are entitled to receive their license, open their doors, and provide services to patients within 30 days of submitting an application to DPH, however, they often cannot get paid for providing those services until their enrollment in Medi-Cal is complete, which can several months. 2)Background . Certain non-profit corporations that operate multiple primary care clinics are entitled to use a streamlined application process that allows qualifying primary care clinics, known as affiliated primary care clinics, to receive a DPH license within 30 days of submitting a completed application. This streamlined licensure process, in place as AB 2051 Page 2 of 2011 pursuant to SB 442 (Ducheny), Chapter 502, Statutes of 2010, has eliminated unnecessary paperwork, eased administrative burdens, and significantly sped up the licensing process for these affiliated clinics. Current law allows clinics to claim retroactive reimbursement for services provided to Medi-Cal eligible beneficiaries before the provider enrollment is complete. Thus, this bill does not increase net costs for Medi-Cal services. However, clinics may not have the resources to cover the cost of several months of services while waiting for DHCS approval . This bill will allow them to be reimbursed for services much more quickly after opening their doors. 3)Staff Comment . The author may wish to clarify the bill is relevant to enrollment as a Medi-Cal provider, not certification as a Medi-Cal provider, to better reflect intent. Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081