BILL ANALYSIS Ó AB 2679 Page 1 Date of Hearing: April 29, 2014 ASSEMBLY COMMITTEE ON HEALTH Richard Pan, Chair AB 2679 (Logue) - As Introduced: February 21, 2014 SUBJECT : County mental health services: baseline reports. SUMMARY : Requires the Department of Health Care Services (DHCS) to develop a baseline report of system quality and access to services in each county's mental health plan. Specifically, this bill : 1)Requires DHCS, in cooperation with county mental health directors and appropriate state and county officials, to develop a baseline report of system quality and access to services in each county's mental health plan. Requires the baseline report to include documentation of services funded by all revenue sources, including county overmatch and any other sources. 2)Requires, on or before July 1, 2015, the state to issue requirements for each county to establish a baseline report on its county mental health plan. Requires these reports to include specified data, including number of clients served, service priorities, staff-to-client ratios, a description of certain programs, data about county jail populations, suicide rates, and law enforcement involvement, and use of funds towards treatment in locked facilities. 3)Requires each county to submit a baseline report on the efficacy of the county's mental health care plan, including county-operated programs and county-contracted services, and requires DHCS to report to the Legislature. Requires reports in 2016 and 2020. EXISTING LAW : 1)Makes DHCS responsible for administration of law governing the state's community mental health systems and for all statewide mental health planning, research, evaluation and quality assurance functions. Includes among these functions implementation of a system of required performance reporting by local mental health programs. AB 2679 Page 2 2)Establishes the Mental Health Services Act (MHSA), which imposes a 1% income tax on personal income in excess of $1 million to provide for local mental health services. 3)Establishes the Mental Health Services Oversight and Accountability Commission to oversee various mental health programs. Among many other duties, authorizes the Commission to obtain data and information from DHCS, the Office of Statewide Health Planning and Development, or other state or local entities that receive MHSA funds, for oversight, review, training and technical assistance, accountability, and evaluation of projects and programs supported with MHSA funds. 4)Requires counties to annually adopt and submit to DHCS a proposed annual performance contract for mental health services in the county. 5)Provides for appointment of local mental health boards by county boards of supervisors. Requires each local mental health board to submit an annual report to the county on the needs and performance of the county's mental health system. 6)Creates the California Mental Health Planning Council for purposes of fulfilling mental health planning requirements mandated by federal law. 7)Requires each local mental health board to review and comment on the county's performance outcome data and communicate its findings to the California Mental Health Planning Council. 8)Requires DHCS to establish a Performance Outcome Committee and consult with the Committee, the California Mental Health Planning Council, the Mental Health Services Oversight and Accountability Commission, and the California Health and Human Services Agency, to develop uniform definitions and formats for a statewide, nonduplicative client-based information system that meets federal mental health grant requirements and state and federal Medicaid reporting requirements, as well as any other state requirements established by law. 9)Requires the data system to include performance measures for evaluating client outcomes and cost effectiveness of mental health services, including a consideration of outcome measures in the following areas: AB 2679 Page 3 a) Numbers of persons in identified target populations served; b) Estimated number of persons in identified target populations in need of services; c) Treatment plan development for members of the target population served; d) Treatment plan goals met; e) Stabilization of living arrangements; f) Reduction of law enforcement involvement and jail bookings; g) Increase in employment or education activities; h) Percentage of resources used to serve children and older adults; i) Number of patients' rights advocates and their duties; j) Quality assurance activities for services, including peer review and medication management; and, aa) Identification of special projects, incentives, and prevention programs. 10)Requires counties to annually report data on these performance measures to the local mental health board and to DHCS. 11)Requires DHCS to annually make available to the Legislature, no later than March 15, data on county performance. 12)Requires DHCS to consult with the Quality Improvement Committee, which includes representatives of the California Mental Health Planning Council, local mental health departments, consumers and families of consumers, and other stakeholders, to establish and measure indicators of access and quality for the purpose of continuously improving California's public mental health system. Requires inclusion of indicators for structure, access, appropriateness, and cost effectiveness of care, and outcomes. 13)Requires the California Mental Health Planning Council to annually review performance outcome data as follows: a) review and approve the performance outcome measures; b) review mental health program performance based on performance outcome data and other reports from the State Department of Health Care Services and other sources; c) report findings and recommendations on programs' performance annually to the Legislature and DHCS; and d) identify successful and failing AB 2679 Page 4 programs. 14)Requires county mental health systems, in consultation with the California Mental Health Directors Association, DHCS, the Mental Health Services Oversight and Accountability Commission, the California Mental Health Planning Council, and the California Health and Human Services Agency, to provide reports and data to meet the information needs of the state. 15)Requires a county, whenever it makes a substantial change in its allocation of mental health funds among services, facilities, programs, and providers, to document that it based its decision on the most cost-effective use of available resources to maximize overall client outcomes, and provide this documentation to DHCS. FISCAL EFFECT : This bill has not yet been analyzed by a fiscal committee. COMMENTS : 1)PURPOSE OF THIS BILL . This bill was introduced in response to a 2013 audit by the Bureau of State Audits (BSA) entitled "Mental Health Services Act: The State's Oversight Has Provided Little Assurance of the Act's Effectiveness, and Some Counties Can Improve Measurement of Their Program Performance." The author of this bill notes the audit found that, although the MHSA funded many programs and served numerous individuals, the Department of Mental Health (DMH) and the Mental Health Services Oversight and Accountability Commission did not provide the oversight needed to demonstrate whether the MHSA is effective. This bill seeks to provide the necessary oversight to ensure that the funds generated through the MHSA are being used effectively. 2)BACKGROUND . California has a decentralized public mental health system with most direct services provided through the county mental health system. Counties have the primary funding and programmatic responsibility for the majority of local mental health programs. Specifically, counties are responsible for: a) all mental health treatment services provided to low-income, uninsured individuals with severe mental illness; b) Medi-Cal Specialty Mental Health Services for adults and children; c) mental health treatment services for individuals enrolled in other programs, including special AB 2679 Page 5 education and CalWORKs; and d) programs specifically associated with the MHSA. a) Medi-Cal Specialty Mental Health Services Program. California provides Medi-Cal specialty mental health services under a waiver that includes outpatient specialty mental health services, such as clinic outpatient providers, psychiatrists, psychologists, some nursing services, and psychiatric inpatient hospital services. Children's specialty mental health services are provided under the federal requirements of the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) benefit for persons under age 21. County mental health plans are the responsible entity that ensures specialty mental health services are provided, and Medi-Cal enrollees must obtain their specialty mental health services through the county. b) MHSA. Proposition 63 of 2004 enacted the MHSA, which imposes a 1% income tax on personal income in excess of $1 million. The purpose of the MHSA is to expand mental health services to children, youth, adults and older adults who have severe mental illnesses or severe mental health disorders and whose service needs are not being met through other funding sources. Under MHSA, counties that receive funds must have a three-year plan developed with significant local stakeholder input and involvement. The MHSA requires each plan to cover the following five components: a) Community Services and Supports for Adults and Children's System of Care; b) Prevention and Early Intervention; c) Innovation; d) Workforce Education and Training; and, e) Capital Facilities and Technological Needs. MHSA revenues for Fiscal Year 2014-15 are projected to be about $1.6 billion. 3)BSA AUDIT . In its audit of the state's oversight of MHSA activities, BSA found that DMH, which was responsible for administering law related to community mental health programs through June 2012, made poor use of the statutory protections that ensure transparency and accountability of spending in the state's public mental health system. The audit report found that DMH did not base its monitoring of county MHSA programs on performance contracts, but instead used an agreement that offered little specificity as to the steps a county should take to assure compliance with the MHSA. The audit further AB 2679 Page 6 found that DMH did not provide clear and consistent guidance to counties on how to evaluate and assess the outcomes of their MHSA activities. The audit made several recommendations, mostly focused on urging DHCS and counties to use performance contracts to achieve effective oversight and accountability. The audit report made one recommendation to the Legislature, which is to clarify that DHCS can withhold certain funds from a noncompliant county. 4)SUPPORT . The California Chapter of the American College of Emergency Physicians (California ACEP) argues that this bill, by establishing baseline measures for county mental health programs, will help increase access to mental health services. California ACEP states emergency physicians know firsthand the difficulties facing patients in need of psychiatric care, and those patients without access to adequate mental health services often find themselves in the emergency department. 5)SUPPORT IF AMENDED . The California Mental Health Directors Association (CMHDA) with a position of "support if amended," writes that while it supports transparency and accountability in the public mental health system, amendments are needed to ensure that meaningful information without excessive regulation or bureaucracy is reported. CMHDA asserts counties already report vast amounts of information to the state and suggests that this bill creates duplicative requirements. CMHDA requests that this bill be amended to require DHCS to publish a report that makes use of the extensive information already reported and collected, with the aim of achieving a transformative, transparent, and useful measuring tool that empowers policy makers and the public. 6)RELATED LEGISLATION . a) SB 82 (Committee on Budget), Chapter 20, Statutes of 2013, the Investment in Mental Health Wellness Act of 2013, was a trailer bill for the 2013-14 Budget Act. SB 82 includes, among its other provisions, $206 million ($142 million General Fund one-time) for a major investment in mental health services, including additional residential treatment capacity, crisis treatment teams, and triage personnel. AB 2679 Page 7 b) SB 585 (Steinberg) clarifies that MHSA funds and various County Realignment accounts may be used to provide mental health services under the Assisted Outpatient Treatment Demonstration Project Act of 2002, or Laura's Law, and allows counties to opt to implement Laura's Law through the county budget process. SB 585 is pending in the Assembly Appropriations Committee. 7)PREVIOUS LEGISLATION . a) SB 1006 (Committee on Budget and Fiscal Review), Chapter 34, Statutes of 2012, provides for a comprehensive restructuring of community-based mental health services at both the state and local levels and makes changes necessary to effectuate the 2011 Realignment. Among other changes, requires DHCS to create a plan for a performance outcome system for EPSDT mental health services provided to eligible Medi-Cal beneficiaries under the age of 21. b) AB 1288 (Bronzan and McCorquodale), Chapter 89, Statutes of 1991, realigned financial responsibility for various state programs, including the state's mental health programs, to local governments. 8)SUGGESTED AMENDMENT . Given the already extensive requirements for counties and the state to report performance data, the additional reporting requirements in this bill may unnecessarily divert needed resources from the provision of needed mental health services. Instead, to achieve the author's stated goal and to make the currently reported information more useful, the author may wish to remove the new reporting requirements in this bill and instead: a) require DHCS's currently required annual report to the Legislature on county mental health performance data to be posted on the DHCS Website; and b) require the California Mental Health Planning Council's annual report to review mental health program performance in each county and be posted on the web. REGISTERED SUPPORT / OPPOSITION : Support California Chapter of the American College of Emergency Physicians AB 2679 Page 8 Opposition None on file. Analysis Prepared by : Ben Russell / HEALTH / (916) 319-2097