BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   THIRD READING 


          Bill No:  AB 1177
          Author:   Gomez (D), et al.
          Amended:  7/16/15 in Senate
          Vote:     21  

           SENATE HEALTH COMMITTEE:  7-2, 7/15/15
           AYES:  Hernandez, Hall, Mitchell, Monning, Pan, Roth, Wolk
           NOES:  Nguyen, Nielsen

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  51-28, 5/11/15 - See last page for vote

           SUBJECT:   Primary care clinics: written transfer agreements


          SOURCE:    Planned Parenthood Affiliates of California


          DIGEST:  This bill prohibits a primary care clinic,  
          notwithstanding current regulations or any other law, from being  
          required to enter into a written transfer agreement with a  
          nearby hospital as a condition of licensure.


          ANALYSIS:   


          Existing law:

          1)Licenses and regulates primary care clinics and specialty  
            clinics by the Department of Public Health (DPH). Primary care  
            clinics are either "community clinics" or "free clinics,"  








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            while specialty clinics include surgical clinics, chronic  
            dialysis clinics, rehabilitation clinics, and alternative  
            birth centers.

          2)Defines "alternative birth center" as a clinic that is not  
            part of a hospital and that provides comprehensive perinatal  
            services and delivery care to pregnant women who remain less  
            than 24 hours at the facility. Alternative birth centers can  
            be specifically licensed as a specialty clinic, or can be  
            provided as a permitted service by a licensed primary care  
            clinic.

          3)Prohibits physicians from performing procedures in an  
            outpatient setting using anesthesia, except local anesthesia  
            or peripheral nerve blocks, or both, complying with the  
            community standard of practice, in doses that, when  
            administered, have the probability of placing a patient at  
            risk for loss of the patient's life-preserving protective  
            reflexes, unless in one of the following outpatient settings:

             a)   An ambulatory surgical center that is certified by the  
               federal Centers for Medicare and Medicaid Services;
             b)   A tribal clinic, as specified;
             c)   A clinic operated directly by the United States or any  
               of its departments;
             d)   A clinic licensed by DPH;
             e)   A health facility licensed as a general acute care  
               hospital;
             f)   A dental office using anesthesia pursuant to specified  
               provisions of law; or,
             g)   An outpatient setting that has been accredited by an  
               accreditation agency that is approved to issue certificates  
               of accreditation to outpatient settings by the Medical  
               Board of California (MBC).

          4)Requires MBC to adopt standards for accreditation and, in  
            approving accrediting agencies to perform accreditation of  
            outpatient settings, to ensure that the certification program,  
            at a minimum, includes specified standards, including  
            requiring the accredited outpatient setting to do one of the  
            following:

             a)   Have a written transfer agreement with a local hospital;








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             b)   Permit surgery only by a licensee who has admitting  
               privileges at a local hospital, with the exception that  
               licensees who may be precluded from having admitting  
               privileges by their professional classification are  
               required to have a written transfer agreement with  
               licensees who have admitting privileges at a local  
               hospital; or

             c)   Submit for approval by an accrediting agency a detailed  
               procedural plan for handling medical emergencies that is  
               required to be reviewed at the time of accreditation, and  
               prohibits any reasonable plan from being disapproved by the  
               accrediting agency.

          5)Defines "conscious sedation," in the Dental Practice Act, as a  
            minimally depressed level of consciousness produced by a  
            pharmacologic or nonpharmacologic method, or a combination  
            thereof, that retains the patient's ability to maintain  
            independently and continuously an airway, and respond  
            appropriately to physical stimulation or verbal command.

          Existing Title 22 regulations: 

          1)Requires primary care clinics to maintain written transfer  
            agreements, which include provisions for communication and  
            transportation, with one or more nearby hospitals and other  
            inpatient health facilities as appropriate to meet medical  
            emergencies. Requires essential personal, health and medical  
            information to either accompany the patient upon transfer or  
            be transmitted immediately by telephone to the receiving  
            facility.

          2)Permits primary care clinics, except for those providing  
            abortion or birthing services, to request that DPH waive the  
            written transfer agreement requirement above. Requires the  
            clinic to demonstrate to DPH that all nearby hospitals and  
            other inpatient health facilities, as appropriate to meet  
            medical emergencies have refused to enter into transfer  
            agreements.

          This bill:

          1)Prohibits primary care clinics, notwithstanding a current  
            regulation or any other law, from being required to enter into  







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            a written transfer agreement with a nearby hospital as a  
            condition of licensure, except as provided in 2) below.

          2)Requires a primary care clinic where anesthesia is used in  
            compliance with the community standard of practice, in doses  
            that, when administered, have the probability of placing a  
            patient at risk for loss of the patient's life-preserving  
            protective reflexes, to have a written transfer agreement with  
            a local hospital.

          3)Exempts a primary care clinic from the requirement in 2) above  
            if it submits to DPH any competent evidence that documents its  
            attempt to obtain a transfer agreement from at least two local  
            hospitals that elected to not enter into a transfer agreement  
            with that primary care clinic. Specifies that if there are not  
            two hospitals that are reasonably accessible, then the primary  
            care clinic is only required to attempt to obtain a transfer  
            agreement from one local hospital.

          4)Defines "competent evidence," for purposes of 3) above, as  
            evidence that is relevant and of such a nature that it can be  
            received by a court of law, and includes an affidavit of  
            someone with the legal authority to bind the clinic operation.

          5)Requires an alternative birth center that is licensed as a  
            primary care clinic to be required to maintain a written  
            transfer agreement with a local hospital, and requires this  
            transfer agreement to include provisions for communication and  
            transportation to meet medical emergencies. Requires essential  
            personal and medical information to either accompany the  
            patient upon transfer or be transmitted immediately by  
            telephone to the receiving facility.

          6)Specifies that primary care clinics are not required to have a  
            hospital transfer agreement with a local hospital, if that  
            clinic provides only the following types of analgesia and  
            sedation services: 

             a)   Local anesthesia;
             b)   Peripheral nerve blocks;
             c)   A combination of both local anesthesia and peripheral  
               nerve blocks; or,
             d)   Conscious sedation, as defined in existing law.








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          7)Requires DPH to repeal, no later than July 1, 2016, specified  
            Title 22 regulations that require primary care clinics to have  
            a written transfer agreement with a hospital.

          Comments
          
          1)Author's statement.  According to the author, under current  
            California law, clinics are obliged to obtain a hospital  
            transfer agreement (HTA) from a nearby hospital as a condition  
            of licensure in order to begin performing services.  DPH  
            regulations allow clinics who cannot get an HTA from a nearby  
            hospital to apply for a waiver to this requirement. However,  
            clinics that provide abortions or birthing services are not  
            allowed to apply for a waiver, even if a local hospital won't  
            agree to enter into an HTA.  The author states that this  
            effectively allows a hospital that does not want to enter into  
            an HTA to prevent an abortion clinic from opening.  The author  
            notes that if this bill is enacted, this regulation will be  
            repealed and unenforceable, and will give Californians equal  
            access to reproductive services and the ability to choose. 
          
          2)Hospital transfer agreements.  The requirement for a written  
            transfer agreement between primary care clinics and a local  
            hospital, which is the subject of this bill, is contained in  
            the Title 22 regulations governing primary care clinics. There  
            are also a handful of places where written transfer agreements  
            are statutorily required, and would not be affected by this  
            bill. For example, a rural general acute care hospital that  
            does not provide surgical and anesthesia services is required  
            to maintain a written transfer agreement with one or more  
            general acute care hospitals that provide surgical and  
            anesthesia services. A mobile health care services unit  
            (generally speaking, a bus outfitted as a mobile clinic that  
            is operated by a licensed clinic or hospital) is required to  
            maintain written transfer agreements that include provisions  
            for communication with, and transportation to, one or more  
            nearby hospitals as needed to meet medical emergencies.  
            Finally, as discussed in existing law above, an accredited  
            outpatient surgical setting, which uses general anesthesia, is  
            required to either have a written transfer agreement with a  
            hospital, only permit surgery by physicians who have admitting  
            privileges at a hospital, or have a "detailed procedural plan  
            for handling medical emergencies" that is approved by the  
            accrediting agency.







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            While written transfer agreements can vary by hospital, DPH  
            provides on its website an example of a transfer agreement  
            that meets its requirements. This form is two pages long, with  
            11 itemized requirements, such as a requirement that  
            transferring institutions send with the patient forms that  
            include information on the medical course of treatment  
            followed by the transferring institution and other pertinent  
            medical, administrative, and social information. Other  
            requirements include ensuring that the hospital make available  
            its diagnostic and therapeutic services, and to be accountable  
            for the recognition of need for social services. The form also  
            specifies that charges for services performed are to be  
            collected by the institution rendering services, and that  
            neither facility has any liability to the other for such  
            charges.
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified8/19/15)


          Planned Parenthood Affiliates of California (source)
          California Family Health Council
           Community Action Fund of Planned Parenthood Orange and San  
            Bernardino Counties
           Community Clinic Association of Los Angeles County
           Planned Parenthood Action Fund of Santa Barbara, Ventura, and  
            San Luis Obispo Counties
           Planned Parenthood Action Fund of the Pacific Southwest
          Planned Parenthood Advocacy Project Los Angeles County
          Planned Parenthood Mar Monte
          Planned Parenthood Northern California Action Fund
          Planned Parenthood Pasadena and San Gabriel Valley







          OPPOSITION:   (Verified8/19/15)







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          California Chapter of the American College of Emergency  
          Physicians  
           California Medical Association   
          California Right to Life Committee
          Concerned Women for America of California


          ARGUMENTS IN SUPPORT:     This bill is sponsored by Planned  
          Parenthood Affiliates of California (PPAC), which states that  
          this bill deletes an obsolete regulation that restricts abortion  
          clinics from obtaining an exemption if they cannot enter into a  
          transfer agreement with a local hospital. PPAC states that the  
          Legislature vested DPH with the authority to regulate and  
          license clinics, but by requiring hospital transfer agreements  
          as a condition of licensure, DPH has essentially delegated some  
          of its licensure authority to the hospitals. PPAC states that  
          any hospital corporation with either a moral objection or a  
          desire to secure a competitive edge can refuse to sign a  
          transfer agreement and bring a clinic's license application to a  
          halt. PPAC states that the existing regulations around the  
          hospital transfer agreement acts like a targeted restriction on  
          abortion providers, or a TRAP law. Community clinics that  
          provide abortion services, like Planned Parenthood, are  
          singled-out and in this case are unable to file for an exemption  
          from the hospital transfer agreement requirement. According to  
          PPAC, although California's laws and regulations tend to be  
          progressive around abortion and comprehensive reproductive  
          health care, this bill will address some of the last remaining  
          policies that single out abortion providers. 


          The California Family Health Council also supports this bill,  
          stating that this bill expands access to essential sexual and  
          reproductive health care by removing barriers to primary clinics  
          from getting licenses to operate. 


          The Community Clinic Association of Los Angeles County states in  
          support that the decision of whether to grant a license to a  
          clinic should rest exclusively with  the state and should not  
          hinge upon securing an agreement with an independent entity  
          that, for a variety of reasons, may or may not be cooperative.







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          ARGUMENTS IN OPPOSITION:     This bill is opposed by Concerned  
          Women for America of California (CWA), which states that  
          operators of abortion clinics would benefit from the passage of  
          this bill since abortion facilities would be able to open  
          without the requirement of having to get a transfer agreement  
          with a local hospital. CWA states that in El Centro, a Planned  
          Parenthood recently opened, and that after months of public  
          outcry by thousands of Imperial County residents to dissolve a  
          transfer agreement between El Centro Regional Medical Center,  
          suddenly this bill makes its way through the California  
          Legislature. CWA states that women will be endangered further if  
          abortion facilities are not required to have a transfer  
          agreement with a local hospital, and that loosening the reins on  
          abortion clinics will lead to serious injury and death for  
          women. The California Right to Life Committee (CRLC) also  
          opposes this bill, stating that primary care clinics are a  
          benefit to their communities, so one would assume that the  
          medical personnel would want to include transfer agreements as  
          an important and valid component of licensure. CRLC states that  
          it has read about serious situations developing when such  
          facilities have not had such transfer agreements.


          The California Chapter of the American College of Emergency  
          Physicians (California ACEP) states that they are opposed unless  
          amended to make all clinics equal by allowing community clinics  
          providing birthing or abortion services to apply for an  
          exemption from the written transfer agreement requirement.  
          According to California ACEP, while it supports the goal of  
          removing barriers to licensing for clinics offering reproductive  
          services, it is opposed to the solution offered in this bill of  
          eliminating transfer agreements with a local hospital for all  
          community clinics as a condition of licensure. California ACEP  
          states that transfer agreements between community clinics and  
          one or more nearby hospitals are important to ensuring that  
          clinics can adequately coordinate care for patients facing  
          medical emergencies. California ACEP states that while it is of  
          course true that a patient can always be transported to an  
          emergency department by ambulance without accompanying medical  
          information, it is always better for the patient if the treating  
          emergency physician has access to personal, health, and medical  
          information. California ACEP notes that under current law,  







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          clinics may ask DPH to waive the transfer agreement requirement,  
          as long as those clinics do not provide birthing or abortion  
          services. Rather than eliminate transfer agreements for all  
          community clinics, California ACEP states that this bill should  
          be amended to make all clinics equal by allowing community  
          clinics providing birthing or abortion services to apply for an  
          exemption. 


          The California Medical Association also opposes this bill unless  
          amended with the same amendment requested by California ACEP.

          ASSEMBLY FLOOR:  51-28, 5/11/15
          AYES:  Alejo, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,  
            Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd,  
            Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández,  
            Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low, Maienschein,  
            McCarty, Medina, Mullin, Nazarian, O'Donnell, Perea, Quirk,  
            Rendon, Ridley-Thomas, Rodriguez, Santiago, Mark Stone,  
            Thurmond, Ting, Weber, Williams, Wood
          NOES:  Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,  
            Chávez, Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper,  
            Jones, Kim, Lackey, Linder, Mathis, Mayes, Melendez,  
            Obernolte, Olsen, Patterson, Salas, Steinorth, Wagner,  
            Waldron, Wilk
          NO VOTE RECORDED:  Atkins

          Prepared by:Vince Marchand / HEALTH / 
          8/19/15 20:34:32


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