BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       SB 455                                      
          AUTHOR:        Hernandez
          INTRODUCED:    February 21, 2013
          HEARING DATE:  April 10, 2013
          CONSULTANT:    Marchand

           SUBJECT  :  General acute care hospitals: patient classification  
          system.
           
            SUMMARY  :  Codifies existing regulations requiring hospitals to  
          maintain, and annually update, a patient classification system,  
          including regulations requiring the annual updating to be done  
          by a review committee appointed by the nursing administration,  
          at least one-half of which is required to be registered nurses  
          who provide direct patient care. Additionally, requires the  
          direct care nurses who are appointed to the hospital committee  
          which reviews the patient classification system to be selected  
          by the collective bargaining agent, if any.

          Existing law:
          1.Licenses and regulates health facilities by the Department of  
            Public Health (DPH).

          2.Requires DPH to adopt regulations that establish minimum,  
            specific, and numerical licensed nurse-to-patient ratios, by  
            licensed nurse classification and by hospital unit, for  
            hospitals.

          3.Requires the ratios adopted by regulation to constitute the  
            minimum number of registered and licensed nurses that must be  
            allocated. Requires additional staff to be assigned in  
            accordance with a documented patient classification system for  
            determining nursing care requirements, including the severity  
            of the illness, the need for specialized equipment and  
            technology, the complexity of clinical judgment needed to  
            design, implement, and evaluate the patient care plan and the  
            ability for self-care, and the licensure of the personnel  
            required for care.

          Existing regulations:
          1.Define "patient classification system," in part, as a method  
            for establishing staffing requirements by unit, patient, and  
            shift.
                                                         Continued---



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          2.Require a hospital's administrator of nursing service to  
            develop a written staffing plan based on patient care needs  
            determined by the patient classification system.

          3.Require the reliability of the patient classification system  
            for validating staffing requirements to be reviewed at least  
            annually by a committee appointed by the nursing administrator  
            to determine whether or not the system accurately measure  
            patient care needs, and requires at least half of the members  
            of the review committee to be registered nurses who provide  
            direct patient care.

          This bill:
          1.Requires DPH to adopt regulations that require hospitals to  
            establish and maintain a patient classification system  
            designed to accurately measure patient's care needs, and to  
            establish a patient classification system review committee to  
            review and approve the reliability of the patient  
            classification system, as follows:
               a.     Requires at least one-half of the membership of the  
                 review committee to be composed of registered nurses who  
                 provide direct patient care; and,
               b.     Requires the review committee to be appointed by the  
                 nursing administration of the facility unless the  
                 registered nurses are represented by a collective  
                 bargaining agent, in which case the registered nurses are  
                 required to be appointed by the bargaining agent.

          2.Requires the patient classification system to be reviewed and  
            updated at least annually.

          3.Requires DPH to periodically review and update its regulations  
            as needed.
           
          FISCAL EFFECT  :  This bill has not been analyzed by a fiscal  
          committee.

           COMMENTS  :  
           1.Author's statement.  This bill codifies existing regulations  
            relating to patient classification systems, and adds a  
            requirement that the collective bargaining agent, if any,  
            appoint the direct care nurses to the committee that reviews  
            the patient classification system annually.  Existing  
            regulations already require hospitals to establish a patient  
            classification review committee, and already require that at  




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            least half of the membership of this committee be composed of  
            direct care registered nurses. This bill simply requires that  
            the collective bargaining agent selects the registered nurses  
            that get appointed to this important committee, when the  
            registered nurses are already represented by a collective  
            bargaining agent.  

          2.Nurse to patient ratios and patient classification systems.   
            In 2004, regulations implementing nurse-to-patient ratios in  
            California hospitals pursuant to AB 394 (Kuehl), Chapter 945,  
            Statutes of 1999, went into effect.  However, long before  
            California had specific nurse-to-patient ratios, hospitals  
            were required by regulation to establish a patient  
            classification system. This patient classification system is a  
            method by which hospitals establish staffing requirements by  
            unit, patient, and shift, and includes a method by which the  
            amount of nursing care needed for each category of patient is  
            validated for each unit.

          The regulations implementing the AB 394 nurse-to-patient ratios  
            law set the minimum ratio of nurses to patient by unit,  
            including one-to-one in operating rooms, one-to-two in  
            intensive care units, and one-to-five in general  
            medical-surgical units. These regulations also incorporated  
            the patient classification system requirement. In essence, the  
            specific nurse-to-patient ratios establish the minimum number  
            of nurses by unit, while the patient classification system  
            determines whether there needs to be a higher level of  
            staffing beyond the minimum ratio after taking into  
            consideration factors such as the severity of the illness, the  
            need for specialized equipment and technology, and the  
            complexity of clinical judgment needed to evaluate the patient  
            care plan, among other factors. The nurse-to-patient ratio  
            regulations require that the minimum ratios must be met at all  
            times.

          Finally, the regulations require the reliability of the patient  
            classification system for validating staffing requirements to  
            be reviewed at least annually by a committee appointed by the  
            nursing administrator to determine whether the system  
            accurately measures patient care needs. At least half of the  
            members of this committee are required to be registered nurses  
            who provide direct patient care.
          3.Prior legislation. SB 1246 (Hernandez) of 2012, contained very  
            similar provisions to this bill, among several other  




          SB 455 | Page 4




            provisions. In addition to the provisions that are similar to  
            this bill, SB 1246 also required periodic inspections by DPH  
            to include a review of compliance with nurse staffing ratios  
            and patient classification systems, and eliminated a  
            requirement that DPH promulgate regulations further defining  
            the criteria for assessing administrative penalties, thereby  
            allowing existing fine authority to go into effect. SB 1246  
            was vetoed by  Governor Brown.
            
            AB 394 (Kuehl), Chapter 945, Statutes of 1999, requires DPH to  
            adopt regulations specifying nurse-to-patient ratios, by unit,  
            for general acute care hospitals, acute psychiatric hospitals  
            and special hospitals. Additionally, requires hospitals to  
            adopt written policies and procedures for nursing staff  
            training. Provided that the ratios shall constitute the  
            minimum number of registered and licensed nurses that must be  
            provided; requires hospitals to assign additional staff in  
            accordance with a documented patient classification system.

          4.Support.  This bill is sponsored by the United Nurses  
            Associations of California/Union of Health Care Professionals  
            (UNAC/UHCP), which states that every hospital is required to  
            have a patient classification system that provides for  
            staffing in addition to those required under the nurse ratios.  
            UNAC/UHCP states that existing regulations require a committee  
            to annually review the patient classification system and that  
            half the committee be made up of direct care registered nurses  
            who provide care in the hospital. This bill adds a requirement  
            that the direct care nurses by appointed by the collective  
            bargaining agent, if any. UNAC/UHCP points out that many laws  
            incorporate protections that could be subject to collective  
            bargaining, including the minimum wage, the eight hour day,  
            and the nurse ratios themselves. California law provides  
            minimum standards for these areas of law, and that appointment  
            of nurses to the patient classification review committee by a  
            collective bargaining agent, if any, should be another such  
            instance.

          The American Federation of State, County and Municipal Employees  
            also supports this bill, stating that hospitals need to  
            respect the right of the collective bargaining agent to  
            appoint direct care nurses to the patient classification  
            review committees.

          5.Opposition.  The California Hospital Association (CHA) is  
            opposed to this bill unless amended to remove the provision  




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            giving a third-party labor union the right to appoint specific  
            members to the patient classification review committee,  
            arguing that this is an inappropriate infringement on the  
            hospital's ultimate responsibility for patient care. Under  
            current regulations, CHA states that the members of the  
            patient classification committee are appointed by the hospital  
            nursing administrator, and this bill would change that  
            process.  CHA states that the hospital has ultimate  
            responsibility for ensuring quality patient care, and given  
            this responsibility, it is inappropriate to delegate a major  
            component of its assessment tool to a third party. For  
            example, CHA states that the hospital may want to have  
            particular units represented on the committee, while the union  
            may appoint individuals based on their own priorities such as  
            leadership development or other factors.  Further, CHA states  
            that the hospital must maintain the prerogative to appoint  
            staff in good standing who are eligible and qualified to  
            perform the duties vested in the review committee.  The  
            bargaining agent is not a hospital representative and cannot  
            determine performance eligibility requirements.

          The California Nurses Association (CNA) is also opposed to this  
            bill, stating that it is strongly concerned about the  
            potential for this bill to weaken existing hospital  
            regulations governing patient classification systems by  
            requiring DPH to adopt and review patient classification  
            system regulations that already exist. CNA states that  
            regulations that have been vetted through the Administrative  
            Procedures Act for clarity, authority, reference and  
            necessity, and that have been refined though public comments  
            during rulemaking, as well as tested through the court of law,  
            should not be replaced by vague legislative language. CNA  
            states that opening up existing language could result in the  
            dilution of many important mandates established through prior  
            rulemaking. CNA states that while the language of this bill is  
            redundant of some current regulations, it leaves out critical  
            elements set forth in current regulations, and is concerned  
            about preservation of these provisions should this bill be  
            enacted and require DPH to adopt new regulations on the  
            subject. Finally, CNA states that this bill is unnecessary as  
            union participation in patient classification review  
            committees can be achieved through collective bargaining. CNA  
            states that it has successfully achieved similar provisions in  
            countless collective bargaining contracts with hospitals, and  
            for that reason, does not find the need for such a provision  




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            in statute compelling enough to put out current staffing  
            regulations at risk.

          6.Amendments. To address some of the concerns expressed by the  
            California Nurses Association, the author is proposing to  
            amend the bill to do the following (see attached mock-up):
               a.     Delete the requirement that DPH adopt regulations,  
                 and specify that no new regulations are required or  
                 authorized by this bill;
               b.     Revise language describing the patient  
                 classification system to more closely mirror the  
                 definition in existing regulations;
               c.     Delete language requiring the patient classification  
                 system to be approved by the review committee, and delete  
                 the requirement that the patient classification system be  
                 updated annually, as these provisions do not mirror the  
                 language used in existing regulations.

           SUPPORT AND OPPOSITION  :
          Support:  United Nurses Associations of California/Union of  
                    Health Care Professionals (sponsor)
                    American Federation of State, County and Municipal  
                              Employees, AFL-CIO (co-sponsor)

          Oppose:   California Hospital Association
                    California Nurses Association
                    Hospital Corporation of America













          BILL NUMBER: SB 455INTRODUCED
                BILL TEXT



          INTRODUCED BY   Senator Hernandez




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          7


          


                                  FEBRUARY 21, 2013

             An act to add Section 1276.35 to the Health and Safety Code,
          relating to health facilities.


                LEGISLATIVE COUNSEL'S DIGEST


             SB 455, as introduced, Hernandez. General acute care  
          hospitals:
          patient classification system.


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

            SECTION 1.  Section 1276.35 is added to the Health and Safety  
          Code,
          immediately following Section 1276.3, to read:
             1276.35.  (a) The State Department of Public Health shall  
            adopt
          regulations that   require every health facility licensed pursuant  
          to
          subdivision (a) of Section 1250 to do all of the following: 
             (1) Establish and maintain a patient classification system
            designed to accurately measure a patient's care needs  for  
          establishing staffing requirements by unit, patient, and shift. 
             (2) Establish a patient classification system review  
          committee to
          review   and approve   the reliability of the patient classification
          system, as follows:
             (A) The review committee shall be appointed by the nursing
          administration of the facility, except as set forth in  
          subparagraph
          (C).
             (B) At least one-half of the membership of the review  
          committee
          shall be composed of registered nurses who provide direct  
          patient
          care.
             (C) If the registered nurses are represented by a collective
          bargaining agent, the registered nurses shall be appointed by  
          the
          bargaining agent.




          SB 455 | Page 8




             (3) The patient classification system shall be reviewed   and
          updated  at least annually.
             (b)   The department shall periodically review and update its
          regulations, as needed.   No new regulations are required or  
          authorized for implementation of this section. 
            SEC. 2.  No reimbursement is required by this act pursuant to
          Section 6 of Article XIII B of the California Constitution  
          because
          the only costs that may be incurred by a local agency or school
          district will be incurred because this act creates a new crime  
          or
          infraction, eliminates a crime or infraction, or changes the  
          penalty
          for a crime or infraction, within the meaning of Section 17556  
          of the
          Government Code, or changes the definition of a crime within the
          meaning of Section 6 of Article XIII B of the California
          Constitution.                              
                                                               
                                      -- END --