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 --