BILL ANALYSIS                                                                                                                                                                                                    Ó






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                           2013-2014 Regular Session
                                        

          BILL NO:       SB 841
          AUTHOR:        Cannella
          INTRODUCED:    January 7, 2014
          FISCAL COMM:   Yes            HEARING DATE:  March 19, 2014
          URGENCY:       No             CONSULTANT:    Daniel Alvarez

           SUBJECT  :  University of California: medical education.
          
           SUMMARY  

          This bill appropriates from the State General Fund to  
          Regents of the University of California (1) $1.86 million,  
          commencing with the 2015-16 fiscal year to support the  
          expansion of the San Joaquin Valley PRIME program; and (2)  
          $1 million during the 2014-15 fiscal year to support a  
          two-year planning effort geared toward the establishment of  
          a separate traditional medical school at the UC Merced  
          campus.

           BACKGROUND  

          UC operates six Schools of Medicine (at Davis, Irvine, Los  
          Angeles, Riverside, San Diego, and San Francisco). In  
          2012-13, total enrollment in these programs was  
          approximately 3,000 medical students (roughly two-thirds of  
          the State's total) and more than 4,000 medical residents  
          and fellows (nearly half in the State).

          Programs in Medical Education (PRIME). UC PRIME is an  
          innovative training program focused on meeting the needs of  
          California's underserved populations in both rural  
          communities and urban areas by combining specialized  
          coursework, structured clinical experiences, advanced  
          independent study and mentoring. These activities are  
          organized and structured to prepare highly motivated,  
          socially conscious students as future clinicians, leaders  
          and policymakers.  Each new program has an area of focus  
          that is selected based upon faculty expertise, the  
          populations served by each school and its medical center,  
          and other local considerations.  Each continues to develop  
          and improve its guidelines for admission and recruitment of  




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          students and its new curriculum designed to educate and  
          train future physician leaders, researchers and advocates  
          for the communities they will serve.  

           ANALYSIS
           
          This bill appropriates from the State General Fund to  
          Regents of the University of California (1) $1.86 million,  
          commencing with the 2015-16 fiscal year to support the  
          expansion of the San Joaquin Valley PRIME program; and (2)  
          $1 million during the 2014-15 fiscal year to support a  
          two-year planning effort geared toward the establishment of  
          a separate traditional medical school at the UC Merced  
          campus.  More specifically, this bill:

          1)   Makes findings and declarations in support of the  
               proposed appropriations.

          2)   Appropriates $1.855 million from the General Fund to  
               the UC Regents each fiscal year, commencing in 2015-16  
               for allocation to support expansion of the San Joaquin  
               Valley PRIME program to admit up to 12 students per  
               year and operate the program with up to 48 student  
               participants over the four-year curriculum annually.

          3)   Appropriates $1 million General Fund for allocation to  
               support a two-year planning effort geared toward the  
               establishment of a separate traditional medical school  
               at UC Merced.  

          4)   Requires the medical school planning effort to include  
               determination of the necessary program components such  
               as basic and clinical science courses, curriculum,  
               capital needs, one-time and ongoing operational  
               funding, student support services, and other necessary  
               components.

          5)   Requires the UC to report to the appropriate policy  
               and fiscal committees of the Legislature by March 1,  
               2016, summarizing its medical school planning efforts  
               and providing recommendations and estimates for the  
               infrastructure, personnel, and funding, and time  
               necessary to establish and maintain such a program.

           STAFF COMMENTS  





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           1)   According to the author  , California faces a shortage  
               in the number of physicians available to serve its  
               residents, and the San Joaquin Valley (SJV) is  
               disproportionately affected by this shortage, access  
               to health care in the SJV which extends from Stockton  
               to Bakersfield is already 31 percent lower than in the  
               rest of California.  The state's physician shortage  
               trends will be exacerbated when the federal Affordable  
               Care Act expands health insurance coverage in 2014. 

           2)   California Postsecondary Education Commission (CPEC)  .   
               Prior to 2011, CPEC was charged, among other things,  
               with reviewing proposals for new academic and  
               vocational programs at California's public colleges  
               and universities and with making recommendations to  
               the Legislature and Governor.  In 1999, the CPEC found  
               that the University of California at Merced be  
               approved as the tenth campus of the University of  
               California system; however, at that time CPEC's  
               analysis ended with the projections on enrollment and  
               capital outlay through 2010-11.  CPEC typically  
               reviewed new programs through, at a minimum, the prism  
               of societal need, student demand, existing programs,  
               total costs of the program, and appropriateness to the  
               institution and system mission.  Since the de-funding  
               of CPEC in 2011, no additional state program reviews  
               have occurred.  The Legislature is now placed in the  
               position of examining and reviewing the academic,  
               programmatic, and fiscal implications of "new"  
               programs, a function that the Legislature is  
               ill-equipped for.  

           3)   UC Merced in a Broader Context  .  In 2005, the tenth UC  
               campus in Merced opened with 875 students and 60  
               faculty.  In 2012-13, enrollment at the Merced campus  
               reached approximately 5,900 full-time students.  The  
               Office of the President has been providing interim  
               supplemental support for the campus; given its size,  
               the campus is not yet able to realize economies of  
               scale required to absorb growth and instructional  
               needs without continued support for enrollment growth.  
               The campus is faced with a growing gap between strong  
               student demand for admission and the campus' limited  
               capacity to provide capital facilities and  
               infrastructure needed to support that demand.  The  
               need to fund the infrastructure necessary for the  




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               future success of the overall campus and its  
               priorities for various academic, research and public  
               service initiatives is critical.

               The UC has moved forward with a multi-year plan for  
               the development of future health sciences programs;  
               resources that must include those necessary to support  
               the basic sciences (e.g., laboratories for both  
               research and instruction in the basic sciences, which  
               are core requirements for medical education) for the  
               Merced campus.  It is critical that the underlying  
               infrastructure (both programmatically and capital  
               outlay) for basic sciences is secured and functional. 
           
                Devoting limited state General Fund resources for the  
               long-term planning necessary for a medical school,  
               though admirable, seems premature and will likely  
               divert energy and resources (budgetary and academic)  
               from the development of the core infrastructure  
               necessary for the overall campus to grow and excel,  
               particularly health science programs.
           
                The UC Merced campus is still growing and maturing as  
               a comprehensive undergraduate and graduate  
               institution, and has yet to achieve its goal of having  
               10,000 full-time students, be self-sustaining, and  
               being fully weaned from any supplemental funding.   
               Therefore, staff recommends amendments that eliminate  
               the $1 million appropriation and accompanying language  
               in the findings and declaration section of the measure  
               in support of planning for a medical school.

          4)   Immediate Benefits from San Joaquin Valley PRIME  .   
               Building on the success of the PRIME program at all UC  
               medical schools and its medical education programs  
               throughout the state, the UC Regents approved the UC  
               Merced San Joaquin Valley PRIME (SJV PRIME) program in  
               September 2010 to help provide a unique solution to  
               the healthcare issues of the central valley. 

               The newest addition to the systemwide program is  
               collaboration between UC Davis, UC Merced and the UCSF  
               Fresno Medical Education Program to strengthen the  
               recruitment and retention of new physicians in the San  
               Joaquin Valley - one of California's most medically  
               underserved areas. 




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               Recognizing the population health problems in the  
               valley, the program will partner with communities to  
               reverse long-standing health inequities and to address  
               the social determinants of health disparities.  The  
               new program will also actively promote inter-  
               professional education as a pathway toward improved  
               health and health care.  The program is expected to be  
               fully enrolled with a total of approximately 20  
               students in 2014-15.  The first five students  
               matriculated in the fall of 2011.

           5)   Related legislation  .  Chapter 203, 2014 (SB 21, Roth)  
               requested the School of Medicine at the University of  
               California, Riverside to develop a program, consistent  
               with its mission, in conjunction with the health  
               facilities of its medical residency programs, to  
               identify eligible medical residents and to assist  
               those medical residents to apply for physician  
               retention programs, as specified.   
                
                The 2013 Budget Act approved trailer bill language  
               that requires UC to allocate $15 million for planning  
               and startup costs associated with academic programs to  
               be offered by the School of Medicine at the University  
               of California, Riverside, and trailer bill language  
               that requires regular reporting on a variety of  
               metrics, including funding, recruitment, hiring, and  
               outcomes, as well as operating and capital budgets  
               detailed by fund source. 

           6)   Past legislation  .  AB 1309 (Miller, 2012) would have  
               appropriated $15 million, from an expected settlement,  
               to the UC for the UCR School of Medicine.  This  
               measure was held in the Senate Appropriations  
               Committee.

           SUPPORT  

          AFSCME - American Federation of State, County and Municipal  
          Employees
          Association of California Healthcare Districts
          California Medical Association
          Golden Valley Health Centers
          Merced County Board of Supervisors





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           OPPOSITION

           None on file.