BILL ANALYSIS Ó AB 941 Page 1 ASSEMBLY THIRD READING AB 941 (Wood) As Introduced February 26, 2015 Majority vote ---------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+---------------------+------------------| |Health |19-0 |Bonta, Maienschein, | | | | |Bonilla, Burke, | | | | |Chávez, Chiu, Gomez, | | | | |Gonzalez, Roger | | | | |Hernández, Lackey, | | | | |Nazarian, Patterson, | | | | | | | | | | | | | | | | | | | |Ridley-Thomas, | | | | |Rodriguez, Santiago, | | | | |Steinorth, Thurmond, | | | | |Waldron, Wood | | | | | | | |----------------+------+---------------------+------------------| |Appropriations |16-0 |Gomez, Bigelow, | | | | |Bloom, Bonta, | | | | |Calderon, Chang, | | | | |Daly, Eggman, | | | | |Eduardo Garcia, | | | | |Holden, Jones, | | AB 941 Page 2 | | |Quirk, Rendon, | | | | |Wagner, Weber, Wood | | | | | | | | | | | | ---------------------------------------------------------------- SUMMARY: Exempts clinics operated by a tribe or tribal organization, regardless of location, from obtaining a license from the Department of Public Health (DPH), and requires, to qualify for the exemption, the clinic operate under a contract with the United States pursuant to the Indian Self Determination and Education Assistance Act. FISCAL EFFECT: According to the Assembly Appropriations Committee, minor annual revenue loss to DPH, to the extent tribal clinics no longer pay approximately $700 per facility in licensing fees. DPH oversight workload will be reduced commensurately with any reduction in licensure fees. COMMENTS: According to the author, the majority of California tribal health clinics (tribal clinics) are located in rural areas of the state and oftentimes, it is challenging to meet unmet needs when providing healthcare services over large geographic areas. Tribal clinics cannot always establish new clinics on Indian land, as oftentimes, the Indian land in question is not available in an area where many tribal clinic patients may reside. This results in opening new tribal clinics on non-Indian land in order to provide adequate access of care to patients. The author notes, tribal clinics may only place new sites within the federal statutorily defined service areas based on the population of the tribal communities they serve. The federal, tribal, and state standards requirements have to be met in order to create a new tribal clinic; and these standards are comprehensive and coherent. When abiding by the federal, tribal, and state standards, the administrative process becomes very duplicative when applying for a license to operate a tribal clinic on non-Indian land. The author concludes, this bill will streamline the state clinic licensing exemptions and exempt tribal clinics on non-Indian land AB 941 Page 3 from DPH's state facility license. Background. There are approximately 1,000 primary care clinics currently licensed in California. In order to obtain a license, a primary care clinic must submit an application and fee to DPH and pass an initial licensure survey conducted by DPH. Clinics exempt from state licensing do have to apply to the Department of Health Care Services (DHCS) if they want to enroll as a Medi-Cal provider. DHCS has a specific application process for exempt clinics, including obtaining a certification by DPH or a specified nonprofit entity that inspects the clinics and ensures they meet minimum requirements. Tribal Health Services. The Indian Health Service (IHS) oversees health programs over portions of the state. By federal law, the area is limited to the 38 counties with American Indian trust lands, generally meaning a reservation or rancheria. Within the included counties there is a service population of approximately 130,000 eligible American Indians. The IHS divides their service area in California into smaller administrative units called services units. These services units have responsibility for planning, managing, and evaluating the health programs in its jurisdiction. They are focused on a specific geographic area and are usually centered on a single federal reservation. It is within these services units that a tribe or consortium of tribes can operate clinics under contract with the federal government. Although the clinics are established to provide services to specified American Indians they are open to all. The proportion of non-Indians using these clinics varies dramatically. In some smaller rural areas without many health care facilities, the proportion of non-Indians can be quite significant accounting for about half the patients seen. In other clinics, Indians comprise the overwhelming majority. According to the California Rural Indian Health Board, of the 30 existing tribal health clinics in the state, this bill will apply to approximately five. All IHS-funded health care is tied to American Indian and Alaska Native user populations. In California there are eight urban AB 941 Page 4 Indian clinics in cities. The exemption proposed by this bill would not apply to them, and their funding and federal statutory authority is distinct and separate from the funding and authority for tribal health programs. Support. The California Rural Indian Health Board, Inc., numerous Tribes and Rancherias, and the California Pan-Ethnic Health Network support this bill stating it will create a much needed single standard for clinic licensure for federal Tribal Health Programs (THP). Supporter's note, regardless of where a THP is located, it is required to adhere to all federal IHS operating requirements in order to maintain its status as a federal contractor. Supporters also contend the THPs' governing bodies have established compliance services that detect, prevent, and appropriately respond to violations of law or company policy, and many THPs are accredited by the Accreditation Association for Ambulatory Health Care or the Joint Commission on Accreditation of Health Care Organizations. Opposition. The California Nurses Association (CNA) is opposed to this bill because it will exclude Tribal Health Clinics from California licensing and safety provisions outside of federally designated tribal lands. CNA notes, without licensing, clinics would not have to comply with state building or state professional standards which assure minimal protections for employees working in clinics who may or may not be tribal members. CNA concludes the exemption proposed by this bill does not assure any state minimum standards of care for tribal clinics operating within California but not on tribal land. Analysis Prepared by: Lara Flynn / HEALTH / (916) 319-2097 FN: 0000355 AB 941 Page 5