BILL ANALYSIS Ó
AB 81
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Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
81 (Wood) - As Introduced January 5, 2015
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Urgency: Yes State Mandated Local Program: NoReimbursable: No
SUMMARY:
SUMMARY:
This bill adds hospitals in the City of Willits to a list of
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hospitals eligible for an additional extension, until September
1, 2015, of the deadline for compliance with seismic safety
regulations.
FISCAL EFFECT:
Costs to the Office of Statewide Health Planning and Development
(OSHPD) to oversee this delay are minor and absorbable.
COMMENTS:
1)Purpose. This bill is intended to allow Frank R. Howard
Memorial Hospital (HMH) in the city of Willits to request an
additional extension of the hospital's deadline for compliance
with seismic safety regulations. HMH was already granted an
extension to January 1, 2015, pursuant to SB 1661 (Cox),
Chapter 679, Statutes of 2006, which allowed extensions of
compliance deadlines if specified criteria were met. HMH
contends that since 2009, they have been working closely with
their contractor to ensure the new facility under construction
was seismically compliant and would be ready for occupancy on
or before the January 1, 2015 deadline. However, HMH
indicates in mid-September 2014, citing unanticipated
construction delays, the contractor provided HMH with a new
schedule reflecting completion of construction in the spring
of 2015. HMH indicates without this extension, they could
lose their license and jeopardize their ability to participate
in Medicare and Medicaid, which is about 80% of their
inpatient payer mix.
2)Background. Following the 1994 Northridge earthquake, seismic
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requirements for hospitals were strengthened. SB 1953 (Chapter
740, Statutes of 1994) established a schedule for California
hospitals to meet seismic safety goals. It established
Structural Performance Categories (SPC) to measure a hospital
building's risk of collapse, and instituting deadlines for
retrofitting and/or reconstruction. OSHPD works closely with
hospitals to monitor plans for seismic compliance.
Subsequent legislation has provided for additional seismic
compliance extensions. The final date by which all hospitals
must comply is January 1, 2020. In order to grant an
extension to the hospital, OSHPD must consider the structural
integrity of the building, the loss of essential healthcare
services to the community should the hospital be closed, and
the financial hardship that the hospital may have experienced.
SPC-1 buildings are at the highest risk of collapse and are
considered a threat to public safety, while those categorized
as SPC-5 are expected to maintain services even in the case of
a severe earthquake. Most HMH buildings are categorized as
SPC-1.
3)Prior Legislation. AB 2557 (Pan), Chapter 821, Statutes of
2014, authorized compliance delays similar to the one in this
bill. AB 2557 allowed OSHPD to grant five hospitals who had
already received an extension of the January 1, 2008, seismic
safety deadline, an additional extension until September 1,
2015.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081
AB 81
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