BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 493
                                                                  Page  1

          Date of Hearing:   August 30, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  SB 493 (Hernández) - As Amended:  August 19, 2013 

          Policy Committee:                             Business and  
          Professions  Vote:                            14-0
                       Health                           Vote: 18-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

          SUMMARY  

          This bill expands the scope of practice of pharmacists,  
          establishes an advance practice pharmacist (APP) recognition,  
          and allow pharmacists recognized as APPs to perform specified  
          activities.  Specifically, this bill:

          1)Allows pharmacists to provide patient education about drug  
            therapy, disease management, and disease prevention; furnish  
            specified drugs, including hormonal contraceptives, smoking  
            cessation drugs, and travel-related drugs; order and interpret  
            drug therapy-related tests; and initiate and furnish  
            recommended immunizations.

          2)Allows APPs to perform patient assessments, refer patients to  
            other health care providers, participate in the evaluation and  
            management of diseases and health conditions in collaboration  
            with other health care providers, and initiate, adjust, or  
            discontinue drug therapy.  Establishes education and  
            experience credentials for APPs, and establishes biennial  
            review of recognition status.

          3)Provides authority for the Board of Pharmacy (BOP) to  
            establish a fee for the issuance and renewal of APP  
            recognition at the reasonable cost of regulating APPs, and  
            limits maximum fees to $300.

           FISCAL EFFECT  

          1)One-time costs to BOP of $100,000 for regulations establishing  
            APP recognition process, rules, and fees.  In addition,  
            one-time costs of $20,000 to modify IT systems to accommodate  







                                                                  SB 493
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            a new licensure type (Pharmacy Board Contingent Fund).

          2)Ongoing costs of approximately $300,000 annually for licensing  
            and regulation of APPs (Pharmacy Board Contingent Fund). 

          3)Potential fee revenues of approximately $300,000 annually  
            (Pharmacy Board Contingent Fund).  

          4)Unknown potential increase in enforcement costs (Pharmacy  
            Board Contingent Fund). Since the activities permitted under  
            this bill are newly allowed for pharmacists outside the  
            supervision of a physician, it is unclear whether or how many  
            increased complaints may occur. The Department of Justice  
            (DOJ) and/or the BOP may experience increased enforcement  
            costs; any DOJ costs would be reimbursed by the Pharmacy Board  
            Contingent Fund.

          5)The net effect on health care costs from expanding the role of  
            pharmacists in delivery of care is unclear.  Increased access  
            to care may result in increased costs due to greater  
            utilization, which could be counterbalanced by cost savings  
            related to improved medication adherence, reduced hospital  
            readmissions, and other benefits stemming from provision of  
            care pharmacists would provide.   

           COMMENTS  

           1)Rationale  .  The author indicates this bill will better utilize  
            pharmacists, who are highly trained and skilled, to provide  
            targeted preventative and primary care services.  There is a  
            well-documented shortage of primary care providers, and the  
            federal Patient Protection and Affordable Care (ACA) will add  
            millions to the ranks of the insured beginning next year. The  
            author states California has a robust network of pharmacists  
            who are well-trained, evenly distributed throughout the state,  
            and well positioned to pay particular attention to currently  
            underserved areas.

           2)Background  . The BOP regulates over 40,000 pharmacists in  
            California. Current law authorizes pharmacists to perform  
            certain health care functions, such as dispensing medications  
            upon the prescription of a physician and administer  
            immunizations pursuant to a protocol with a prescriber (such  
            as a physician). In addition, pharmacists can perform certain  
            tasks in specified settings, such as ordering tests and  
            administering drugs, under protocols developed with a  







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            physician. This bill allows pharmacists to perform certain  
            tasks independently, and additionally allows an APP-recognized  
            pharmacist to assess patients and initiate drug therapy.  
            According to the BOP, functions and services that an APP may  
            perform under this bill are not new; pharmacists can currently  
            perform these types of functions and services in certain  
            settings under certain conditions.

           3)Related Legislation  .  SB 491 (Hernandez) and SB 492  
            (Hernandez) expand the scope of practice for nurse  
            practitioners and optometrists, respectively. SB 491 is  
            pending on the Suspense File of this committee, and SB 492 is  
            pending in Assembly Business and Professions. 

           4)Support  . The University of California and pharmacy schools,  
            health plans, hospitals and clinics, the Board of Pharmacy,  
            the Medical Board, business groups, pharmacists, and retailers  
            support this bill.  Supporters indicate the bill will improve  
            workforce capacity, improve access to care, more fully  
            integrate the pharmacy profession into the health care team,  
            and potentially offer much-needed costs savings to California.  
                
                
            5)Opposition  .  Numerous physician groups were opposed to a  
            previous version of this bill, citing patient safety concerns.  
            Most physician groups, including the California Medical  
            Association and the California Academy of Family Physicians  
            removed their opposition and now have a neutral position on  
            this bill. Several organizations concerned with the provision  
            of contraceptives remain opposed.  

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081