BILL ANALYSIS                                                                                                                                                                                                    Ó






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

          BILL NO:       SB 588                                      
          AUTHOR:        Emmerson
          AMENDED:       April 8, 2013
          HEARING DATE:  April 17, 2013
          CONSULTANT:    Marchand

           SUBJECT  :  Medical records: reproduction fees.
           
          SUMMARY  :  Revises provisions of law governing disclosure of  
          medical records to attorneys prior to the filing of any action  
          by (1) increasing the fees that may be charged for copying these  
          records, including distinguishing costs for paper and electronic  
          medical records; (2) deleting the prohibition on medical  
          providers performing the copying when the attorney has employed  
          a professional copier; and (3) only permitting the attorney to  
          employ a professional photocopying service when the records are  
          in paper form.

          Existing law:
          1.Requires health care providers to make a patient's medical  
            records available for inspection and copying by an attorney or  
            his or her representative whenever, prior to the filing of any  
            action or the appearance of a defendant in an action, the  
            attorney presents a written authorization from a patient or  
            patient's representative.

          2.Prohibits copying from being performed by any medical  
            provider, or by an agent of the health care provider, when the  
            requesting attorney has employed a professional photocopier or  
            anyone exempt from being required to register as a  
            professional photocopier, as specified.

          3.Permits all reasonable costs incurred by a health care  
            provider in making patient records available to be charged  
            against the person whose written authorization required the  
            availability of the records.

          4.Defines "reasonable cost" as including, but not limited to,  
            $0.10 per page for standard sized documents, $0.20 per page  
            for microfilm, actual costs for oversize documents or the  
            reproduction of documents requiring special processing, and  
            $16 per hour per person for clerical costs incurred in  
            locating and making the records available.
                                                         Continued---



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          5.Limits the fees, where the records are delivered to the  
            attorney for inspection or photocopying at the record  
            custodian's place of business, to $15, plus actual costs, if  
            any, charged to the record custodian by a third party for  
            retrieval and return of the records held offsite by the third  
            party.

          6.Specifies reasonable costs that may be charged against a party  
            serving a subpoena for evidence, including $0.10 per page for  
            standard size documents; $0.20 for microfilm; actual costs for  
            the reproduction of oversize documents or those requiring  
            special processing; and up to $24 per hour per person for  
            clerical costs incurred in locating and making the records  
            available.
          
          This bill:
          1.Revises provisions of law governing disclosure of medical  
            records to attorneys prior to the filing of any action or the  
            appearance of a defendant in an action by deleting a provision  
            that prohibits any copying to be performed by the medical  
            provider, as defined, or by an agent of the provider, when the  
            requesting attorney has employed a professional photocopier or  
            any person or entity who is exempted from having to register  
            as a professional photocopier under specified provisions of  
            law.  

          2.Permits an attorney to employ a professional photocopier to  
            obtain or review the medical records, but only those that are  
            stored on paper, and maintains the existing fee of $15, plus  
            actual costs charged to the custodian for retrieval and return  
            of any paper records held offsite by a third party.

          3.Limits the provision of law that subjects a health provider to  
            liability for failure to make records available within five  
            business days to only records stored on paper.

          4.Deletes provisions of law specifying what costs can be charged  
            by the medical provider for making records available,  
            including deleting limitations of $0.10 per page for standard  
            size reproduction, $0.20 per page for microfilm, actual costs  
            for oversize documents, and up to $16 per hour per person for  
            clerical costs in locating and making the records available.

          5.Specifies that if any portion of a patient's medical records  
            is stored in an electronic health record that is inaccessible  




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            for inspection or copying, the health care provider, in its  
            sole discretion, is permitted to elect to provide a paper copy  
            of the electronic records for inspection or copying, and  
            permits the health care provider to charge a search and  
            retrieval fee of $30, plus a fee of $0.50 per page for the  
            first 25 pages, and $0.25 for each additional page for labor  
            involved in ensuring compliance with the federal Health  
            Insurance Portability and Accountability Act of 1996 (HIPAA).

          6.Permits an attorney, before the filing of an action or the  
            appearance of a defendant in an action, to request a health  
            care provider to provide paper or electronic copies of the  
            patient's medical records pursuant to a written authorization  
            form, as follows:
             a.   Requires electronic copies of the patient's medical  
               records that are stored electronically to be provided if  
               the entire request can be reproduced from an electronic  
               health record, the medical record is specifically requested  
               to be delivered in electronic format, and the medical  
               record is able to be delivered electronically.
             b.   Requires the health care provider to charge a fee for  
               the providing of paper or electronic copies of a patient's  
               medical records as follows: a search and retrieval fee of  
               $30, plus $0.50 per page for the first 25 pages and $0.25  
               for each additional page; $0.50 per page for reproduction  
               of oversize documents diagnostic test results, or documents  
               stored on microfilm; actual postage charges, if any; and  
               actual costs, if any, charged to the record custodian by a  
               third party for retrieval and return of records held  
               offsite by that third party.
             c.   Specifies that failure to provide copies of the  
               patient's medical record within 30 days after the  
               presentation of the written authorization and request for  
               copies, or within 60 days if the records are stored  
               offsite, may subject the health care provider to liability  
               for all reasonable expenses, including attorney's fees,  
               incurred in any proceeding to enforce this requirement.

          7.Requires medical records requested pursuant to provisions of  
            existing law governing subpoenas to be subject to the fees  
            described in this bill, and not subject to the reasonable  
            costs described in the provision of existing law governing  
            subpoenas.

          8.Requires the Director of the California Department of Health  




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            Care Services (DHCS) to examine the need to increase or  
            decrease the fees described in this bill by making a  
            calculation based on the Consumer Price Index for All Urban  
            Consumers, as specified. Permits the Director of DHCS, in his  
            or her sole discretion, to elect to increase or decrease the  
            fees in this bill based on this calculation.

          9.Prohibits fees in this bill from remaining unchanged for three  
            consecutive years unless the Consumer Price Index does not  
            change for those three consecutive years.

           FISCAL EFFECT  :  This bill has not been analyzed by a fiscal  
          committee.

           COMMENTS  :  
           1.Author's statement.  In 1986, specific fees were established  
            for the production of paper medical records to an attorney or  
            their agent before the filing of a lawsuit under two  
            circumstances: (1) where the attorney or attorney's agent was  
            going to inspect and copy the medical records, and (2) where  
            the attorney or attorney's agent requested a physical copy of  
            the medical records.  However, these provisions of law did not  
            in any way contemplate the production of electronic health  
            records, which are quickly becoming ubiquitous in the medical  
            community.  SB 588 attempts to address these issues by adding  
            language regarding electronic health records and the  
            appropriate fees, and increasing the ten cents per page  
            existing fee for the production of medical records.  It is  
            important to note that these provisions of law only address  
            medical records requested by attorneys or attorneys' agents  
            and does not affect rates for patients requesting their own  
            medical records.  Additionally, section, a separate provision  
            of law sets fees for the production of records produced in  
            response to a subpoena.  However, the rates in this provision  
            of law do not take into account HIPAA requirements or the  
            requisite training, expense and work involved in maintaining  
            patient confidentiality while still producing the requested  
            medical records.  SB 588 also addresses the subpoenaed records  
            provision by providing that any medical records produced in  
            response to a subpoena under that provision of law shall be  
            produced for the same fees governing the copying and  
            inspection of medical records prior to the filing of a  
            lawsuit.  Of particular importance is that SB 588 does not  
            interfere with the attorney or attorney's agent inspecting a  
            medical record before the filing of a lawsuit.  The bill does,  
            however, acknowledge the cost of maintaining HIPAA required  




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            patient confidentiality while providing attorneys and their  
            agents a reasonable manner in which to access medical records.

          2.Double referral.  This bill is double referred.  Should it  
            pass out of this committee, it will be referred to the Senate  
            Judiciary Committee.
            
          3.Prior legislation. This bill is substantially similar to SB  
            1543 (Emmerson) of 2012, though SB 1543 entirely eliminated  
            the ability of attorneys or their agents to make their own  
            copies, while this bill would still allow attorney's or their  
            agents to make their own copies of paper records. SB 1543 was  
            never heard in a committee.

          4.Support.  This bill is sponsored by HealthPort, which  
            describes itself as a nationwide release-of-information  
            company.  HealthPort states that in the last 30 years,  
            medicine, law and technology have all evolved to allow us to  
            create, store and transmit medical records electronically.   
            However, the law governing the disclosure of medical records  
            to attorneys has not been amended since 1987, and therefore  
            fails to address how electronic health records are to be  
            treated despite federal mandates that medical records be  
            stored and transmitted electronically.  HealthPort states that  
            one problem is that current law requires attorneys and their  
            agents to have the ability to inspect medical records and make  
            their own copies, yet electronic health records are stored in  
            systems on computers and in clouds with vast amounts of data  
            not relevant to the attorney's request or authorization.   
            Mandating a medical provider allow direct access to a  
            hospital's health records could open up confidentiality issues  
            under HIPAA and related laws.  HealthPort also points out that  
            confidentiality laws require security for electronic records,  
            which come with a cost, and therefore a price increase for  
            copying records and for providing access is warranted.   
            HealthPort also supports the amendment of the law governing  
            subpoenaed records.  HealthPort states that while California  
            treats all records subject to subpoena equally, medical  
            records require confidentiality that other records do not, yet  
            the fees in law are the same.  HealthPort asserts that now is  
            the time to bring these provisions of law current with the  
            practice of medical records disclosure.

          5.Opposition.  The California Association of Legal Support  
            Professionals (CALSPro) states in opposition that this bill  




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            amends the statutes in the Evidence Code relating to the  
            copying of medical records, usually in the litigation context.  
             The members of CALSPro perform this function, on behalf of  
            lawyers who subpoena records.  CALSPro states that existing  
            law clearly prohibits medical providers, or their agents, from  
            copying records if a registered photocopier has been retained  
            by a lawyer to copy them.  This ensures that a disinterested  
            third party can copy the records, to protect litigants who  
            need accurate, complete records.  According to CALSPro, in  
            spite of the clear language in the statute, its members are  
            routinely denied access to records by health care providers or  
            their agents, which frustrates the public policy of the law.   
            CALSPro states that this bill proposes to preserve the  
            disinterested third party system for paper records only, while  
            permitting health facilities and their agents to copy records  
            if any portion of those records is electronic.  CALSPro states  
            that the bill also provides a very significant fee increase  
            for providers or their agents to copy records, which it  
            believes may have the unintended consequence of encouraging  
            providers to deny access to records.

          The Western Center on Law and Poverty (WCLP) also opposes this  
            bill, stating that this bill seeks to raise fees for retrieval  
            of medical records if any portion of the patient's medical  
            records is stored electronically to an initial fee of $30,  
            plus $0.50 per page for the first 25 pages, and $0.25 for each  
            additional page.  WCLP states that legal services advocates  
            who work with low-income clients on cases involving the  
            Medi-Cal program would be unduly harmed by an increase in  
            costs.  Other affect programs for which patients might need  
            records include Supplemental Security Income and Social  
            Security Disability Insurance, which serve low-income  
            Californians, many who survive on less than $850 per month.   
            If enacted, this bill would require legal aid attorneys and  
            their clients to pay significant more to prove their cases or  
            appeal decisions against them.
          




           SUPPORT AND OPPOSITION  :
          Support:  HealthPort (sponsor)
                    BACTES
                    Trackstar





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          Oppose:   California Association of Legal Support Professionals 
                    Western Center on Law and Poverty
                    

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