BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 486| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: AB 486 Page 2 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 AB 486 Page 3 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 AB 486 Page 4 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. AB 486 Page 5 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. AB 486 Page 6 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 **** END ****