BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 486|
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                                   THIRD READING 


          Bill No:  AB 486
          Author:   Bonilla (D)
          Introduced:2/23/15  
          Vote:     27  - Urgency

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  9-0, 6/8/15
           AYES:  Hill, Bates, Berryhill, Block, Galgiani, Hernandez,  
            Jackson, Mendoza, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  78-0, 5/14/15 (Consent) - See last page for  
            vote

           SUBJECT:   Centralized hospital packaging pharmacies:  
                     medication labels


          SOURCE:    California Society of Health-System Pharmacists

          DIGEST:   This bill provides that certain information located on  
          a medications 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.
          
          ANALYSIS: 

          Existing law:








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          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)

          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 and Rehabilitation 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.)

          5)Requires any unit dose medication produced by a central  
            hospital packaging pharmacy to display a readable barcode at  
            the inpatients bedside that displays the date the medication  
            was prepared, the components used in the drug product, the lot  
            or control number, the expiration date, the National Drug Code  
            Directory number, the name of the centralized hospital  
            packaging pharmacy.   (BPC § 4128.4)

          6)Requires the label for each unit dose medication produced by a  
            centralized hospital packaging pharmacy to contain the  







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            expiration date, established name of the drug, quantity of the  
            active ingredient and special storage or handling requirements  
             (BPC § 4128.5)

          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  
            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.

          6)Provides that for quality control and investigative purposes,  
            a pharmacist shall be able to retrieve all of the following  







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            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. 

          7)Makes other technical and conforming changes. 

          8)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  
            Board.

          Background
          
          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 bill proponents, 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 Board 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.  







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          Recently, hospitals such as Loma Linda University Medical  
          Center, Scripps Health San Diego, and Sharp Health Care have  
          come to the Board 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.  This bill would  
          clarify the requirements on labels to allow health systems to  
          use barcode technology, eliminating the need for Board waivers.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          SUPPORT:    (Verified  6/22/15)

          California Society of Health System Pharmacists (source)
          California Association of Joint Powers Authorities 
          California Council for the Advancement of Pharmacy
          California Hospital Association
          California Pharmacists Association
          California State Board of Pharmacy
          Providence Health & Services

          OPPOSITION:  (Verified  6/22/15)

          None received

          ARGUMENTS IN SUPPORT:  Supporters state that this bill clarifies  
          existing law in a way that ensures centralized hospital  
          packaging pharmacies have the ability to work with existing  
          technology and add that it creates an effective system for  
          barcoding medication while clarifying that this technology can  
          be used for multiple purposes in order to reduce the rates of  
          medication errors and improve patient safety.







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          ASSEMBLY FLOOR:  78-0, 5/14/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
          Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
          Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
          Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,  
          Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray,  
          Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
          Jones-Sawyer, Kim, Lackey, Levine, Lopez, Low, Maienschein,  
          Mathis, Mayes, McCarty, Melendez, Mullin, Nazarian, Obernolte,  
          O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon,  
          Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
          Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,  
          Wood, Atkins
          NO VOTE RECORDED:  Linder, Medina

          Prepared by:Sarah Mason / B., P. & E.D. / (916) 651-4104
          6/23/15 10:23:18


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