BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 455
          Author:   Hernandez (D)
          Amended:  4/16/13
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  7-1, 4/10/13
          AYES:  Hernandez, Anderson, Beall, De Le�n, DeSaulnier, Monning,  
            Pavley
          NOES:  Nielsen
          NO VOTE RECORDED:  Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 4/29/13
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NOES:  Walters, Gaines


           SUBJECT  :    General acute care hospitals:  patient  
          classification system

            SOURCE  :     AFSCME, AFL-CIO
                       United Nurses Associations of California/Union of  
                        Health Care Professionals


           DIGEST  :    This bill requires, under the Department of Public  
          Health (DPH), licensed health facilities to establish and  
          maintain a patient classification system for establishing  
          staffing requirements by unit, patient, and shift.  Establishes  
          a patient classification system review committee to review the  
          reliability of the patient classification system, as specified.   
          Requires the patient classification system to be reviewed at  
          least annually.
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           ANALYSIS  :    Existing law:

          1. Licenses and regulates health facilities by 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.

          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 require at least  
             half of the members of the review committee to be registered  
             nurses who provide direct patient care.

          This bill:

          1. Requires, under DPH, licensed facilities to establish and  
             maintain a patient classification system for establishing  
             staffing requirements by unit, patient, and shift. 

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          2. Establishes a patient classification system review committee  
             to review the   reliability of the patient classification  
             system. 

          3. Requires the review committee to be appointed by the  
             facility's nursing administration unless the registered  
             nurses are represented by collective bargaining unit, in  
             which case, they are required to be appointed by the  
             bargaining unit.

          4. Requires at least one-half of the membership of the review  
             committee to be composed of registered nurses who provide  
             direct patient care. 

          5. Requires the patient classification system to be reviewed at  
             least annually.

           Background
           
          Existing law requires acute care hospitals to maintain specified  
          nurse-to-patient ratios.  Regulations adopted by DPH to  
          implement nurse-to-patient ratios require hospitals to develop  
          and maintain patient classification systems, which are more  
          detailed protocols for establishing staffing levels based on the  
          care need of specific patients.  Existing law requires DPH to  
          inspect hospitals no less than every three years to review  
          compliance with these and other regulatory requirements.

           Prior legislation  .  SB 1246 (Hernandez, 2012), which was vetoed,  
          contained similar provisions to this bill, among several other  
          provisions.  In addition to the similar provisions to this bill,  
          SB 1246 also would have 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.

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

          According to the Senate Appropriations Committee, there are  
          likely one-time costs of about $70,000 for the revision of  

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          existing regulations (Licensing and Certification Program Fund).  
           Implementation of this bill will require the revision of an  
          existing regulation.

           SUPPORT  :   (Verified  4/30/13)

          AFSCME, AFL-CIO (co-source)
          United Nurses Associations of California/Union of Health Care  
            Professionals (co-source)

           OPPOSITION  :    (Verified  4/30/13)

          California Hospital Association
          California Nurses Association
          Hospital Corporation of America

           ARGUMENTS IN SUPPORT  :    A sponsor of this bill, the United  
          Nurses Associations of California/Union of Health Care  
          Professionals (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 other sponsor of this bill, AFSCME, also states that  
          hospitals need to respect the right of the collective bargaining  
          agent to appoint direct care nurses to the patient  
          classification review committees.

           ARGUMENTS IN OPPOSITION  :    The California Hospital Association  
          (CHA) is opposed to this bill unless amended to remove the  
          provision 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 changes 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  

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          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.


          JL:k  4/30/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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