BILL ANALYSIS Ó AB 848 Page 1 ASSEMBLY THIRD READING AB 848 (Mark Stone) As Amended June 1, 2015 Majority vote ------------------------------------------------------------------ |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+--------------------+---------------------| |Business & |12-2 |Bonilla, Jones, |Gatto, Wilk | |Professions | |Baker, Bloom, | | | | |Campos, Chang, | | | | |Dodd, Eggman, | | | | |Holden, Mullin, | | | | |Ting, Wood | | | | | | | |----------------+------+--------------------+---------------------| |Health |19-0 |Bonta, Maienschein, | | | | |Bonilla, Burke, | | | | |Chávez, Chiu, | | | | |Gomez, Gonzalez, | | | | | | | | | | | | | | |Roger Hernández, | | | | |Lackey, Nazarian, | | | | |Patterson, | | | | | | | | | | | | | | |Ridley-Thomas, | | | | |Rodriguez, | | AB 848 Page 2 | | |Santiago, | | | | |Steinorth, | | | | |Thurmond, Waldron, | | | | |Wood | | | | | | | |----------------+------+--------------------+---------------------| |Appropriations |12-0 |Gomez, Bonta, | | | | |Calderon, Daly, | | | | |Eggman, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Quirk, Rendon, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Authorizes alcoholism and drug treatment facilities to allow a licensed physician, or other health care practitioner, to provide incidental medical services to a resident of the facility and requires the Department of Health Care Services (DHCS) to conduct an evaluation of the program on or before January 1, 2019, and to report the results of the evaluation to the appropriate fiscal and policy committees of the Legislature. Specifically, this bill: 1)Specifies that a health care practitioner should submit a signed certification form to a facility licensed by the DHCS where they plan to provide alcoholism or drug abuse recovery or treatment services. 2)Defines "health care practitioner" as a healing arts professional, licensed under Business and Professions Code Section 500, and who is acting within the scope of practice of AB 848 Page 3 his or her license or certificate. 3)Specifies that the DHCS shall develop a standard certification form, for use by a health care practitioner, that: a) Describes the alcoholism and drug abuse recovery or treatment services provided, and b) Certifies that the health condition or medical or psychiatric history of the applicant does not require a level of care that is higher than the level of care that may legally be provided by a licensed facility. 4)Defines "incidental medical services" as services to address the physical and mental health issues associated with either detoxification from alcohol or drugs or the provisions of alcoholism or drug abuse recovery or treatment services, that in the opinion of a physician are not required to be performed in a licensed clinic or health facility. 5)Specifies that a facility may permit incidental medical services to be provided to a resident at the facility by one or more independent physicians and surgeons licensed by the Medical Board of California or the Osteopathic Medical Board who are knowledgeable about addiction medicine, or one or more other health care practitioners acting within the scope of practice of his or her license and under the direction of a physician and surgeon, and are also knowledgeable about addiction medicine. 6)States that the facility must comply with all other applicable laws and regulations to meet the needs of a resident receiving incidental medical services from a physician. AB 848 Page 4 7)Specifies that the physician and surgeon and any other health care practitioner has signed an acknowledgment on a form provided by the DHCS that he or she has been advised of and understands the statutory and regulatory limitations on the services that may legally be provided by the facility, and the statutory and regulatory requirements and limitations for the physician and surgeon or other health care professional and for the facility. 8)Requires that there is an agreed-upon written protocol between the physician and surgeon and the facility signed by the physician and surgeon and the licensee. 9)Specifies that the facility, in its admissions agreement with a client, shall clearly identify the individual financially responsible for incidental medical services that are provided. 10)States there should be ongoing communication between the physician and the facility about the services provided to the resident by the physician and surgeon and the frequency and duration of incidental medical services to be provided. 11)Requires initial and ongoing communication between the physician and surgeon or other health care practitioner and the resident's health plan or health insurer prior to the provision of incidental medical services to ensure coordination of care. 12)Specifies that the facility will not provide incidental medical services and will not assist with or interfere with the physician and surgeon or other health care practitioner providing incidental medical services. AB 848 Page 5 13)States that the resident must be authorized by the physician and surgeon as medically appropriate to receive the incidental medical services at the facility. 14)Requires that before a facility resident receives incidental medical services, the resident has signed an acknowledgment and consent to receive those services on a form provided by the DHCS. 15)Specifies that once incidental medical services are initiated for a resident, the physician and surgeon, and the facility shall continuously monitor the resident to ensure that the services remain appropriate for the resident. 16)Requires the facility to maintain in its files a copy of the physician's and surgeon's license or other written evidence of licensure to practice medicine in the state. 17)Requires the facility to report, in a timely manner, to the DHCS, any violation or suspected violation by the physician and surgeon of the regulations relating to providing incidental medical services. 18)Indicates that the DHCS shall not evaluate or have any responsibility or liability with respect to evaluating incidental medical services provided. 19)States that a facility licensed and approved by the DHCS to allow for the provision of incidental medical services shall not be considered a clinic or health facility. 20)Specifies that, other than incidental medical services, minor AB 848 Page 6 first aid, or in the case of a life threatening emergency, provision of medical or health care services or services that require a higher level of care than the care that is permitted to be provided at a facility, is not permitted at a facility. 21)Indicates that if an applicant for facility licensure intends to permit incidental medical services, the applicant shall submit a copy of a valid license of the physician and surgeon who will provide those services, and any other information the DHCS deems appropriate, including, but not limited to, a copy of the facility's accreditation by a nationally recognized accrediting organization. 22)Allows the DHCS to establish and collect an additional licensure fee for an application that includes a request for a facility to provide detoxification services. 23)Further specifies that the fee shall be set at an amount sufficient to cover the department's reasonable costs of regulating the provision of those services. 24)Permits the director of DHCS to temporarily suspend any license prior to any hearing when, in the opinion of the director, the action is necessary to protect residents of the facility from physical or mental abuse, abandonment, or any other substantial threat to health or safety. 25)Makes other findings and declarations. FISCAL EFFECT: According to the Assembly Appropriations Committee: AB 848 Page 7 1)Costs to adopt regulations, likely in the range of $200,000 over two years (licensing fees and Substance Abuse Prevention and Treatment Block Grant). 2)Unknown ongoing costs to oversee this new requirement as a component of licensure, possibly in the range of $100,000 annually (licensing fees). COMMENTS: Purpose. This bill is co-sponsored by the California Society of Addiction Medicine, Elements Behavioral Health and JANUS of Santa Cruz. According to the author, "AB 848 protects the physical and mental health of people seeking alcohol and drug rehabilitation services in residential treatment facilities. Under AB 848, physicians and other appropriate medical personnel can be available on-site to provide 24-hour medical services related to clients' addictions. Clients of these facilities often have a variety of medical needs related to their addictions. Because clients' medical needs can affect and even interfere with their recovery, they may have better recovery outcomes when they have on-site access to medical care including vital sign monitoring, seizure risk assessment, medication management, and psychiatric therapy?The measure requires that facilities seeking licensure adhere to protocol that protect client privacy, notify clients of financial responsibility for medical care, and clearly define the level of medical care to be provided. The measure requires DHCS to promulgate final regulations by July 1, 2017, to implement the policy. Additionally, the measure requires that DHCS perform an evaluation of the law's effectiveness by 2019." Background. Alcoholism or drug abuse recovery or treatment facilities provide 24-hour non-medical care and specialize in providing services to chemically dependent adults who do not require treatment in an acute-care medical facility on an AB 848 Page 8 inpatient, intensive outpatient, outpatient, and partial hospitalization basis. These facilities range in size from six-bed facilities in residential neighborhoods to centers that accommodate more than 100 beds (California Senate Office of Oversight and Outcomes report, Rogue Rehabs: State failed to police drug and alcohol homes, with deadly results, September 2012). The basic services provided by facilities include group, individual and educational sessions, alcoholism or drug abuse recovery and treatment planning. Detoxification services are also provided and are defined by the DHCS as, "? a service to support and to assist and individual in the alcohol and/or drug withdrawal process and to explore plans for continued service." These services can be provided by a variety of health care providers such as alcohol and drug counselors, mental health therapists, social workers, psychologists, nurses and physicians. Currently, the only medical care that facilities are allowed to provide to clients is first aid and emergency care. If a patient requires medical care, they must leave the facility to receive care from a medical professional and the patient must pay the medical professional directly for services. Facility Licensing and Oversight. Prior to July 1, 2013, the Department of Alcohol and Drug Programs (ADP) was responsible for oversight of alcoholism or drug abuse recovery or treatment facilities. Effective with the passage of the 2013-2014 Budget Act and associated legislation, all ADP programs and staff, except the Office of Problem Gambling, transferred to the DHCS. Now, the DHCS is responsible for oversight. The DHCS licenses the facilities and conducts reviews of their operations every two years. As part of the review process, the DHCS checks for compliance with a variety of requirements including, whether staff has passed tuberculosis tests, that residents have completed health questionnaires and if at least one staff member is AB 848 Page 9 certified in first aid and cardiopulmonary resuscitation (CPR). The DHCS's Substance Use Disorder (SUD) Compliance Division investigates complaints against facilities. The SUD Compliance Division also investigates violations of the code of conduct of registered or certified alcohol and drug counselors. Additionally, facilities licensed or certified by DHCS are required to report counselor misconduct to DHCS within 24 hours of the violation. Facilities that do not comply with existing requirements are subject to civil penalties and license suspension or revocation. Facility Accreditation. Two national organizations, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) and the Joint Commission on Accreditation of Rehabilitation Facilities (CARF), accredit facilities that provide behavioral health care services such as addiction treatment, opioid treatment and maintenance programs, crisis stabilization, case management and care coordination, employment services and vocational rehabilitation. JCAHO and CARF each require facilities to demonstrate that their programs meet the accrediting organizations' quality standards in order to obtain accreditation. These quality standards evaluate functions relating to client care and program management, including administrative requirements, financial management, personnel qualifications, client services, performance outcomes, client safety and information privacy and security. JCAHO requires accredited organizations to reapply for accreditation every three years while CARF accreditation ranges from one to five years, depending on the type of facility. Senate Office of Oversight and Outcomes Report. In 2012, the Senate Office of Oversight and Outcomes (SOOO) published a report, Rogue Rehabs: State failed to police drug and alcohol homes, with AB 848 Page 10 deadly results. The report focused on "gaps" in the ADP's regulation of residential programs as well as a review of the state's ban on medical care at residential drug and alcohol programs. The SOOO advised that state law be changed to "better reflect current treatment practices?[there is a] mismatch between the department's regulation and the industry's prevalent practices. " The SOOO recommended, "?lifting the ban on medical care as long as it is accompanied with more extensive oversight." Other States. As part of the SOOO's aforementioned investigation in 2012, it contacted nine other highly populous states. The SOOO found, "California is unusual among populous states in prohibiting medical care." All but one of the nine states allowed physicians and other medical professionals to work in residential rehabilitation facilities. Implementation Issues: As indicated above, there have been a number of bills that have attempted to address the issue of removing the ban on provision of medical services at alcoholism or drug abuse recovery or treatment facilities. While there have been recent changes to these facilities, e.g. the licensing and oversight of these facilities was transferred to the DHCS in 2013, the Legislature may wish to consider requiring additional implementation safeguards should this bill pass. As noted in the SOOO report, it is recommended that the DHCS, the facility and/or the accrediting organization implement regulations requiring that the credentials and malpractice insurance for medical professionals providing medical treatment be checked before they contract with the facility. It may also be beneficial to set up a system to require a yearly review of the medical professional's credentials and insurance to assure ongoing AB 848 Page 11 compliance and patient protection. As is consistent with practices in other states, it may also be beneficial for programs that offer any type of medical detoxification to hire a medical director to oversee the administration of this treatment. To safeguard against the state's prohibition against the corporate practice of medicine, physicians should contract with the facilities instead of working directly for them. This would necessitate that the employment contract specify that the program cannot control or interfere with the physician's practice and that the physician retains the ability to make decisions. The contract should also clearly state that the physician is not paid for the types or amount of services provided. Analysis Prepared by: Le Ondra Clark Harvey / B. & P. / (916) 319-3301 FN: 0000802