BILL ANALYSIS Ó SENATE COMMITTEE ON BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT Senator Jerry Hill, Chair 2015 - 2016 Regular Bill No: AB 486 Hearing Date: June 8, 2015 ----------------------------------------------------------------- |Author: |Bonilla | |----------+------------------------------------------------------| |Version: |February 23, 2015 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |Yes |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Sarah Mason | |: | | ----------------------------------------------------------------- Subject: Centralized hospital packaging pharmacies: medication labels. SUMMARY: Provides that certain information located on a medication's barcode now be displayed on a human readable label or be retrievable using a lot number or control number. Requires a medication's barcode be machine readable using a medication administration software (software) and that the software cross reference the information contained in the barcode to the electronic medical record of the patient in order to verify the correct medication, dosage, and route of administration for the patient. This is an urgency measure. Existing law: 1) Provides for the practice of pharmacy and licensing and regulation of pharmacies and pharmacists by the Board of Pharmacy (Board) and within the Department of Consumer Affairs (DCA). 2) Provides that a centralized hospital packaging pharmacy may prepare medications, by performing specialized functions, for administration only to inpatients within its own general acute care hospital and one or more general acute care hospitals if the hospitals are under common ownership and located within a 75-mile radius of each other. (Business and Professions Code (BPC) § 4128) AB 486 (Bonilla) Page 2 of ? 3) Defines "hospital pharmacy" as a pharmacy licensed by the Board, located within any licensed hospital, institution, or establishment that maintains and operates organized facilities for the diagnosis, care, and treatment of human illnesses to which persons may be admitted for overnight stay. (BPC § 4029) 4) Provides that "hospital pharmacy" also includes a pharmacy that may be located outside of the hospital, in another physical plant that is regulated under a hospital's consolidated license issued by the California Department of Corrections or California Department of Youth Authority. Specifies that the pharmacy in another physical plant shall provide pharmaceutical services only to registered hospital patients who are on the premises of the same physical plant in which the hospital is located. Specifies that the pharmacy services provided shall be directly related to the services or treatment plan administered in the physical plant. (Id.) AB 486 (Bonilla) Page 3 of ? 5) Requires any unit dose medication produced by a central hospital packaging pharmacy to display a readable barcode at the inpatients bedside. The readable barcode will display the following information: (BPC § 4128.4) a) The date the medication was prepared. b) The components used in the drug product. c) The lot number or control number. d) The expiration date. e) The National Drug Code Directory number. f) The name of the centralized hospital packaging pharmacy. 6) Requires the label for each unit dose medication produced by a centralized hospital packaging pharmacy contain the following information: (BPC § 4128.5) a) The expiration date. b) The established name of the drug. c) The quantity of the active ingredient. d) Special storage of handling requirements. This bill: 1)Defines "barcode medication administration software" as a computerized system designed to prevent medication errors in health care settings. 2)Permits a barcode medication administration software to cross reference a health care practitioner to ensure that, before a medication is administered to an inpatient, it is the right medication, for the right patient, in the right dose, and via the right route of administration. 3)Permits the software to verify that the medication satisfies AB 486 (Bonilla) Page 4 of ? these criteria by reading the barcode on the medication and comparing the information retrieved to the electronic medical record of the patient. 4)Requires any unit dose medication produced by a central hospital packaging pharmacy to display a human-readable label. 5)Specifies that the human readable label include: a) The date that the medication was prepared. b) The beyond-use date. c) The established name of the drug. d) The quantity of the active ingredient. e) Special storage or handling requirements. f) The lot number or control number assigned by the centralized hospital packaging pharmacy. g) The name of the centralized hospital packaging pharmacy. 1)Provides that for quality control and investigative purposes, a pharmacist shall be able to retrieve all of the following information using the lot number or control number as described above: a) The components used in the drug product. b) The expiration date of each of the drugs components. c) The National Drug Code Directory number by the lot number or control number. 1)Makes other technical and conforming changes. 2)Specifies that this is an urgency measure for the purpose of eliminating, at the earliest possible time, requirements that exceed the current technological capabilities of hospitals and that create overly burdensome administrative costs for the California State Board of Pharmacy. AB 486 (Bonilla) Page 5 of ? FISCAL EFFECT: This measure has been keyed "fiscal" by Legislative Counsel. According to the Assembly Appropriations Committee analysis, dated May 6, 2015, this bill will result in a negligible state fiscal effect. COMMENTS: 1. Purpose. The California Society of Health-System Pharmacists is the Sponsor of this measure. According to the Author, this bill is intended to make clarifying changes to provisions in the Pharmacy Law established by AB 377 (Solorio, Chapter 687, Statutes of 2012). That measure authorized a centralized hospital pharmacy to perform certain services for patients of a hospital pharmacy and required that specific data be contained within barcodes on centrally packaged medication labels. According to the Author, hospital technology development and procurement has not moved as quickly as anticipated and the software used by some health systems does not meet the Board's interpretation of the law. The Author states that AB 486 makes necessary changes by allowing data to be both contained within the barcode and also be available in human readable form, while also including much needed definitions that will allow the Board to continue to provide oversight and regulation in this area. 2. Background. The Board of Pharmacy was a strong proponent of AB 377, as the centralized hospital recognition makes it easier for hospitals to set up and invest in high-tech central pharmacies, utilizing the latest in technological innovations (such as robotics), effectively lowering rates of medication errors and reducing unnecessary costs. Language contained in Section 4128.4 of the Business and Professions Code, specifically the word "retrievable," has caused confusion and different interpretations between the Board and hospital chains. The intent of the word "retrievable" by the bill's Author, was not that the elements be immediately readable on the label, but instead AB 377 was to link the data elements on the barcode to a database where the elements would be present and retrievable. AB 486 (Bonilla) Page 6 of ? Recently, hospitals such as Loma Linda University Medical Center, Scripps Health San Diego, and Sharp Health Care have come to the Board of Pharmacy and highlighted limitations in their software that would prohibit full compliance with the barcode requirements specified in Section 4128.4. According to the hospitals, hospital IT vendors will have to reconfigure their systems to make all the elements listed in Section 4128.4 immediately readable upon scan. These medical groups requested that the Board interpret the meaning of the provisions more broadly to allow for ample time following licensure to fully comply with the requirements. The Board ultimately approved five-year waivers to organizations which have fallen out of compliance, allowing the requisite information elements to be physically listed on the label rather than having them in electronic, barcode format. 3. Prior Related Legislation. AB 2757 (Bocanegra of 2014) was identical to this bill. ( Status: The bill was never heard in a policy Committee of the Senate prior to the close of the 2013-14 Legislative Session.) AB 377 (Solario, Chapter 687, Statutes of 2012) authorized a centralized hospital packaging pharmacy to prepare medications, by performing specified functions for administration only to inpatients within its own general acute care hospital, or one or more general acute care hospitals under the same ownership and located within 75 miles of each other. AB 2077 (Solario) of 2010, in its final version, was virtually identical to AB 377 (Solario). The bill was vetoed by the Governor. In his veto message, the Governor expressed concern that the bill could result in "a greater likelihood of product mix-up, loss of product identity, contamination and cross-contamination, and lack of adequate control systems." AB 1370 (Solario) of 2009 was similar to AB 377 bill but created a separate licensing category for centralized hospital pharmacies. ( Status: The bill was held in the Assembly Committee on Business and Professions.) AB 486 (Bonilla) Page 7 of ? SCR 49 (Speier, Chapter 123, Statutes of 2005) created a panel to study the causes of medication errors and recommend changes in the health care system that reduces errors associated with the delivery of prescription and over the counter medication to consumers. SB 1875 (Speier, Chapter 816, Statutes of 2000) required hospitals to adopt a formal plan to eliminate or substantially reduce medication-related errors. 4. Arguments in Support. The California Hospital Association (CHA) writes in support of the bill, stating that it ensures centralized hospital packaging pharmacies can continue to operate and serve their member hospitals efficiently, providing a long-term solution while maintain the original intent of the law. SUPPORT AND OPPOSITION: Support: California Association of Joint Powers Authorities (CAJPA) California Hospital Association (CHA) Opposition: None on file as of June 2, 2015. -- END --