Amended in Assembly May 5, 2015

Amended in Assembly April 14, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1223


Introduced by Assembly Member O'Donnell

February 27, 2015


An actbegin delete to amend Sections 1797.98a, 1797.98e, and 1797.220 of, andend delete to addbegin delete Sectionend deletebegin insert Sectionsend insert 1797.120begin delete to,end deletebegin insert and 1797.225 toend insert the Health and Safety Code, relating to emergency medical services.

LEGISLATIVE COUNSEL’S DIGEST

AB 1223, as amended, O'Donnell. Emergency medical services:begin delete noncritical cases.end deletebegin insert ambulance transportation.end insert

begin delete

Existing law establishes the Maddy Emergency Medical Services (EMS) Fund, and authorizes each county to establish an emergency medical services fund for reimbursement of costs related to emergency medical services. Existing law limits payments made from the fund to claims for care rendered by physicians to patients who are initially medically screened, evaluated, treated, or stabilized in specified facilities, including a site that was approved by a county prior to January 1, 1990, as a paramedic receiving station for the treatment of emergency patients.

end delete
begin delete

This bill would expand those specified facilities to include any licensed clinic or mental health facility, and any site approved by a county as a paramedic receiving station for the treatment of emergency patients. This bill would make conforming changes.

end delete

Existingbegin insert law establishes the Emergency Medical Services Authority, and requires it to adopt regulations that further the purpose of establishing a statewide system for emergency medical services. Existingend insert law, the Emergency Medical Services System and the Prehospital Emergency Medical Care Personnel Act, authorizes each county to develop an emergency medical services program. The act further authorizes a local emergency medical services (EMS) agency to develop and submit a plan to the Emergency Medical Services Authority for an emergency medical services system, and requires the local EMS agency, using state minimum standards, to establish policies and procedures to assure medical control of the emergency medical services system that may require basic life support emergency medical transportation services to meet any medical control requirements, including dispatch, patient destination policies, patient care guidelines, and quality assurance requirements.

This bill wouldbegin delete requireend deletebegin insert authorizeend insert a local EMS agency tobegin delete include in thoseend deletebegin insert adoptend insert policies and proceduresbegin delete specified policies, including the establishment and enforcement of criteriaend delete relating to ambulance patient offload time, asbegin delete defined, and for the transport of a patient to an alternate emergency department or facility under specified circumstances.end deletebegin insert defined.end insert The bill would require the authority to develop a statewide standard methodology for the calculation and reporting by a local EMS agency of ambulance patient offload time.

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

begin delete
P2    1

SECTION 1.  

Section 1797.98a of the Health and Safety Code
2 is amended to read:

3

1797.98a.  

(a) The fund provided for in this chapter shall be
4known as the Maddy Emergency Medical Services (EMS) Fund.

5(b) (1) Each county may establish an emergency medical
6services fund, upon the adoption of a resolution by the board of
7supervisors. The moneys in the fund shall be available for the
8reimbursements required by this chapter. The fund shall be
9administered by each county, except that a county electing to have
10the state administer its medically indigent services program may
11also elect to have its emergency medical services fund administered
12by the state.

13(2) Costs of administering the fund shall be reimbursed by the
14fund in an amount that does not exceed the actual administrative
P3    1costs or 10 percent of the amount of the fund, whichever amount
2is lower.

3(3) All interest earned on moneys in the fund shall be deposited
4in the fund for disbursement as specified in this section.

5(4) Each administering agency may maintain a reserve of up to
615 percent of the amount in the portions of the fund reimbursable
7to physicians and surgeons, pursuant to subparagraph (A) of, and
8to hospitals, pursuant to subparagraph (B) of, paragraph (5). Each
9administering agency may maintain a reserve of any amount in
10the portion of the fund that is distributed for other emergency
11medical services purposes as determined by each county, pursuant
12to subparagraph (C) of paragraph (5).

13(5) The amount in the fund, reduced by the amount for
14administration and the reserve, shall be utilized to reimburse
15physicians and surgeons and hospitals for patients who do not
16make payment for emergency medical services and for other
17emergency medical services purposes as determined by each county
18according to the following schedule:

19(A) Fifty-eight percent of the balance of the fund shall be
20distributed to physicians and surgeons for emergency services
21provided by all physicians and surgeons, except those physicians
22and surgeons employed by county hospitals, in general acute care
23hospitals that provide basic, comprehensive, or standby emergency
24services pursuant to paragraph (4) or (6) of subdivision (f) of
25Section 1797.98e up to the time the patient is stabilized.

26(B) Twenty-five percent of the fund shall be distributed only to
27hospitals providing disproportionate trauma and emergency medical
28care services.

29(C) Seventeen percent of the fund shall be distributed for other
30emergency medical services purposes as determined by each
31county, including, but not limited to, the funding of regional poison
32control centers. Funding may be used for purchasing equipment
33and for capital projects only to the extent that these expenditures
34support the provision of emergency services and are consistent
35with the intent of this chapter.

36(c) The source of the moneys in the fund shall be the penalty
37assessment made for this purpose, as provided in Section 76000
38of the Government Code.

39(d) Any physician and surgeon may be reimbursed for up to 50
40percent of the amount claimed pursuant to subdivision (a) of
P4    1Section 1797.98c for the initial cycle of reimbursements made by
2the administering agency in a given year, pursuant to Section
31797.98e. All funds remaining at the end of the fiscal year in excess
4of any reserve held and rolled over to the next year pursuant to
5paragraph (4) of subdivision (b) shall be distributed proportionally,
6based on the dollar amount of claims submitted and paid to all
7physicians and surgeons who submitted qualifying claims during
8that year.

9(e) Of the money deposited into the fund pursuant to Section
1076000.5 of the Government Code, 15 percent shall be utilized to
11provide funding for all pediatric trauma centers throughout the
12county, both publicly and privately owned and operated. The
13expenditure of money shall be limited to reimbursement to
14physicians and surgeons, and to hospitals for patients who do not
15make payment for emergency care services in hospitals up to the
16point of stabilization, or to hospitals for expanding the services
17provided to pediatric trauma patients at trauma centers and other
18hospitals providing care to pediatric trauma patients, or at pediatric
19trauma centers, including the purchase of equipment. Local
20emergency medical services (EMS) agencies may conduct a needs
21assessment of pediatric trauma services in the county to allocate
22these expenditures. Counties that do not maintain a pediatric trauma
23center shall utilize the money deposited into the fund pursuant to
24Section 76000.5 of the Government Code to improve access to,
25and coordination of, pediatric trauma and emergency services in
26the county, with preference for funding given to hospitals that
27specialize in services to children, and physicians and surgeons
28who provide emergency care for children. Funds spent for the
29purposes of this section, shall be known as Richie’s Fund. This
30subdivision shall remain in effect until January 1, 2017, and shall
31have no force or effect on or after that date, unless a later enacted
32statute, that is chaptered before January 1, 2017, deletes or extends
33that date.

34(f) Costs of administering money deposited into the fund
35pursuant to Section 76000.5 of the Government Code shall be
36reimbursed from the money collected in an amount that does not
37exceed the actual administrative costs or 10 percent of the money
38collected, whichever amount is lower. This subdivision shall remain
39in effect until January 1, 2017, and shall have no force or effect
P5    1on or after that date, unless a later enacted statute, that is chaptered
2before January 1, 2017, deletes or extends that date.

3

SEC. 2.  

Section 1797.98e of the Health and Safety Code is
4amended to read:

5

1797.98e.  

(a) It is the intent of the Legislature that a simplified,
6cost-efficient system of administration of this chapter be developed
7so that the maximum amount of funds may be utilized to reimburse
8physicians and surgeons and for other emergency medical services
9purposes. The administering agency shall select an administering
10officer and shall establish procedures and time schedules for the
11submission and processing of proposed reimbursement requests
12submitted by physicians and surgeons. The schedule shall provide
13for disbursements of moneys in the Emergency Medical Services
14Fund on at least a quarterly basis to applicants who have submitted
15accurate and complete data for payment. When the administering
16agency determines that claims for payment for physician and
17surgeon services are of sufficient numbers and amounts that, if
18paid, the claims would exceed the total amount of funds available
19for payment, the administering agency shall fairly prorate, without
20preference, payments to each claimant at a level less than the
21maximum payment level. Each administering agency may
22encumber sufficient funds during one fiscal year to reimburse
23claimants for losses incurred during that fiscal year for which
24claims will not be received until after the fiscal year. The
25administering agency may, as necessary, request records and
26documentation to support the amounts of reimbursement requested
27by physicians and surgeons and the administering agency may
28review and audit the records for accuracy. Reimbursements
29requested and reimbursements made that are not supported by
30records may be denied to, and recouped from, physicians and
31surgeons. Physicians and surgeons found to submit requests for
32reimbursement that are inaccurate or unsupported by records may
33be excluded from submitting future requests for reimbursement.
34The administering officer shall not give preferential treatment to
35any facility, physician and surgeon, or category of physician and
36surgeon and shall not engage in practices that constitute a conflict
37of interest by favoring a facility or physician and surgeon with
38which the administering officer has an operational or financial
39relationship. A hospital administrator of a hospital owned or
40operated by a county of a population of 250,000 or more as of
P6    1January 1, 1991, or a person under the direct supervision of that
2person, shall not be the administering officer. The board of
3supervisors of a county or any other county agency may serve as
4the administering officer. The administering officer shall solicit
5input from physicians and surgeons and hospitals to review
6payment distribution methodologies to ensure fair and timely
7payments. This requirement may be fulfilled through the
8establishment of an advisory committee with representatives
9comprised of local physicians and surgeons and hospital
10 administrators. In order to reduce the county’s administrative
11burden, the administering officer may instead request an existing
12board, commission, or local medical society, or physicians and
13surgeons and hospital administrators, representative of the local
14community, to provide input and make recommendations on
15payment distribution methodologies.

16(b) Each provider of health services that receives payment under
17this chapter shall keep and maintain records of the services
18rendered, the person to whom rendered, the date, and any additional
19information the administering agency may, by regulation, require,
20for a period of three years from the date the service was provided.
21The administering agency shall not require any additional
22information from a physician and surgeon providing emergency
23medical services that is not available in the patient record
24maintained by the entity listed in subdivision (f) where the
25emergency medical services are provided, nor shall the
26administering agency require a physician and surgeon to make
27eligibility determinations.

28(c) During normal working hours, the administering agency
29may make any inspection and examination of a hospital’s or
30physician and surgeon’s books and records needed to carry out
31this chapter. A provider who has knowingly submitted a false
32request for reimbursement shall be guilty of civil fraud.

33(d) Nothing in this chapter shall prevent a physician and surgeon
34from utilizing an agent who furnishes billing and collection services
35to the physician and surgeon to submit claims or receive payment
36for claims.

37(e) All payments from the fund pursuant to Section 1797.98c
38to physicians and surgeons shall be limited to physicians and
39surgeons who, in person, provide onsite services in a clinical
P7    1setting, including, but not limited to, radiology and pathology
2settings.

3(f) All payments from the fund shall be limited to claims for
4care rendered by physicians and surgeons to patients who are
5initially medically screened, evaluated, treated, or stabilized in
6any of the following:

7(1) A basic or comprehensive emergency department of a
8licensed general acute care hospital.

9(2) A licensed clinic or mental health facility.

10(3) A site that is approved by a county as a paramedic receiving
11station for the treatment of emergency patients.

12(4) A standby emergency department that was in existence on
13January 1, 1989, in a hospital specified in Section 124840.

14(5) For the 1991-92 fiscal year and each fiscal year thereafter,
15a facility which contracted prior to January 1, 1990, with the
16National Park Service to provide emergency medical services.

17(6) A standby emergency room in existence on January 1, 2007,
18in a hospital located in Los Angeles County that meets all of the
19following requirements:

20(A) The requirements of subdivision (m) of Section 70413 and
21Sections 70415 and 70417 of Title 22 of the California Code of
22Regulations.

23(B) Reported at least 18,000 emergency department patient
24encounters to the Office of Statewide Health Planning and
25Development in 2007 and continues to report at least 18,000
26emergency department patient encounters to the Office of Statewide
27Health Planning and Development in each year thereafter.

28(C) A hospital with a standby emergency department meeting
29the requirements of this paragraph shall do both of the following:

30(i) Annually provide the State Department of Public Health and
31the local emergency medical services agency with certification
32that it meets the requirements of subparagraph (A). The department
33shall confirm the hospital’s compliance with subparagraph (A).

34(ii) Annually provide to the State Department of Public Health
35and the local emergency medical services agency the emergency
36department patient encounters it reports to the Office of Statewide
37Health Planning and Development to establish that it meets the
38requirement of subparagraph (B).

39(g) Payments shall be made only for emergency medical services
40provided on the calendar day on which emergency medical services
P8    1are first provided and on the immediately following two calendar
2days.

3(h) Notwithstanding subdivision (g), if it is necessary to transfer
4the patient to a second facility providing a higher level of care for
5the treatment of the emergency condition, reimbursement shall be
6available for services provided at the facility to which the patient
7was transferred on the calendar day of transfer and on the
8immediately following two calendar days.

9(i) Payment shall be made for medical screening examinations
10required by law to determine whether an emergency condition
11exists, notwithstanding the determination after the examination
12that a medical emergency does not exist. Payment shall not be
13denied solely because a patient was not admitted to an acute care
14facility. Payment shall be made for services to an inpatient only
15when the inpatient has been admitted to a hospital from an entity
16specified in subdivision (f).

17(j) The administering agency shall compile a quarterly and
18yearend summary of reimbursements paid to facilities and
19physicians and surgeons. The summary shall include, but shall not
20be limited to, the total number of claims submitted by physicians
21and surgeons in aggregate from each facility and the amount paid
22to each physician and surgeon. The administering agency shall
23provide copies of the summary and forms and instructions relating
24to making claims for reimbursement to the public, and may charge
25a fee not to exceed the reasonable costs of duplication.

26(k) Each county shall establish an equitable and efficient
27mechanism for resolving disputes relating to claims for
28 reimbursements from the fund. The mechanism shall include a
29requirement that disputes be submitted either to binding arbitration
30conducted pursuant to arbitration procedures set forth in Chapter
313 (commencing with Section 1282) and Chapter 4 (commencing
32with Section 1285) of Part 3 of Title 9 of the Code of Civil
33Procedure, or to a local medical society for resolution by neutral
34parties.

35(l) Physicians and surgeons shall be eligible to receive payment
36for patient care services provided by, or in conjunction with, a
37properly credentialed nurse practitioner or physician’s assistant
38for care rendered under the direct supervision of a physician and
39surgeon who is present in the facility where the patient is being
40treated and who is available for immediate consultation. Payment
P9    1shall be limited to those claims that are substantiated by a medical
2record and that have been reviewed and countersigned by the
3supervising physician and surgeon in accordance with regulations
4established for the supervision of nurse practitioners and physician
5assistants in California.

end delete
6

begin deleteSEC. 3.end delete
7begin insertSECTION 1.end insert  

Section 1797.120 is added to the Health and Safety
8Code
, to read:

9

1797.120.  

begin insert(a)end insertbegin insertend insert The authority shallbegin delete developend deletebegin insert develop, using input
10from stakeholders, including, but not limited to, hospitals, local
11EMS agencies, and public and private EMS service providers,end insert
a
12statewide standard methodology for the calculation and reporting
13by a local EMS agency of ambulance patient offload time.

begin insert

14(b) For the purposes of this section, “ambulance patient offload
15time” is defined as the interval between the arrival of an
16ambulance patient transported by a local EMS agency at an
17emergency department and the time that the emergency department
18assumes responsibility for care of the patient following the transfer
19of the patient to a stretcher utilized by the emergency department.

end insert
begin delete
20

SEC. 4.  

Section 1797.220 of the Health and Safety Code is
21amended to read:

22

1797.220.  

(a) The local EMS agency, using state minimum
23standards, shall establish policies and procedures approved by the
24medical director of the local EMS agency to assure medical control
25of the EMS system. The policies and procedures approved by the
26medical director may require basic life support emergency medical
27transportation services to meet any medical control requirements,
28including dispatch, patient destination policies, patient care
29guidelines, and quality assurance requirements.

30(b) The policies and procedures adopted pursuant to subdivision
31(a) shall include the following:

32(1) A policy that uses the authority’s standard methodology for
33calculating ambulance patient offload time to establish and enforce
34compliance with criteria for the offloading of a patient transported
35by ambulance.

36(2) Criteria for the reporting of and quality assurance followup
37for a “never event,” as defined in subdivision (c).

38(3) A policy that allows a patient the right to request transport
39to another emergency department if the patient is subject to
40extended ambulance patient offload time.

P10   1(4) A policy that allows a patient with a minor medical injury
2or illness to be transported, as approved by a licensed physician
3under direct medical control of the patient, to a county-approved
4or state-approved receiving facility, including a clinic, stand-alone
5emergency department, mental health facility, or sobering center.

6(c) For the purposes of this section, a “never event” occurs when
7the ambulance patient offload time for a patient exceeds one hour.

8(d) For the purposes of this section, “ambulance patient offload
9time” is defined as the interval between the arrival of an ambulance
10patient transported by the local EMS agency at an emergency
11department and the time that the emergency department assumes
12responsibility for care of the patient following the transfer of the
13patient to a stretcher utilized by the emergency department.

end delete
14begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1797.225 is added to the end insertbegin insertHealth and Safety
15Code
end insert
begin insert, to read:end insert

begin insert
16

begin insert1797.225.end insert  

(a) A local EMS agency may adopt policies and
17procedures for calculating and reporting ambulance patient offload
18time, as defined in subdivision (b) of Section 1797.120.

19(b) A local EMS agency that adopts policies and procedures
20for calculating and reporting ambulance patient offload time
21pursuant to subdivision (a) shall do all of the following:

22(1) Use the statewide standard methodology for calculating and
23reporting ambulance patient offload time developed by the
24authority pursuant to Section 1797.120.

25(2) Establish criteria for the reporting of, and quality assurance
26followup for, a “never event,” as defined in subdivision (c).

27(c) For the purposes of this section, a “never event” occurs
28when the ambulance patient offload time for a patient exceeds a
29period of time designated in the criteria established by the local
30EMS agency pursuant to paragraph (2) of subdivision (b).

end insert


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