BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:   March 29, 2016


                            ASSEMBLY COMMITTEE ON HEALTH


                                   Jim Wood, Chair


          AB 2053  
          (Gonzalez) - As Introduced February 17, 2016


          SUBJECT:  Primary care clinics.


          SUMMARY:  Requires the Department of Public Health (DPH), upon  
          written notification by a licensed primary care clinic (PCC)  
          that it is adding an additional physical plant maintained and  
          operated on separate premises, to issue a single consolidated  
          license to the PCC.  Specifically, this bill:  


          1)Requires DPH, upon written notification by a PCC, to issue a  
            single consolidated license that includes more than one  
            physical plant maintained and operated on separate premises.  


          2)Requires the written notification to be provided no less than  
            60 days prior to adding the additional physical plant, and to  
            include evidence that the PCC is licensed in good standing and  
            meets all necessary requirements.


          3)Requires DPH, when issuing the license to specify the location  
            of each physical plant.


          4)Allows a PCC that is issued a consolidated license to operate  








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            under a single National Provider Identification (NPI) number,  
            or separate NPI's for one or more of the facilities subject to  
            the consolidated license.


          5)Requires the issuance of a consolidated license to be based on  
            all of the following criteria:


             a)   There is a single governing body for all the facilities  
               maintained and operated by the licensee;


             b)   There is a single administration for all the facilities  
               maintained and operated by the licensee;


             c)   There is a single medical director for all the  
               facilities maintained and operated by the licensee, with a  
               single set of bylaws, rules, and regulations; and, 


             d)   Separate physical plants maintained and operated by the  
               licensee covered by a single consolidated license are  
               located not more than 15 miles apart.


          6)Exempts from existing application requirements a PCC that  
            modifies or adds a physical plant maintained and operated on  
            separate premises.


          7)Applies existing notification and building permit requirements  
            to a PCC that modifies or adds an additional physical plant.


          EXISTING LAW:  










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          1)Licenses and regulates clinics, including primary care clinics  
            and specialty clinics, by DPH.
          2)Requires a person, firm, association, partnership, or  
            corporation desiring a license for a clinic or a special  
            permit for special services, to file an application with DPH  
            on forms furnished by DPH which contain, among other things:


             a)    Evidence satisfactory to DPH that the applicant is of  
               reputable and responsible character, and has the ability to  
               comply with rules and regulations promulgated by DPH;


             b)   The class of clinic to be operated, the character and  
               scope of advice and treatment to be provided, and a  
               complete description of the building, its location,  
               facilities, equipment, apparatus, and appliances to be  
               furnished and used in the operation of the clinic;


             c)   The name and address of the professional licentiate  
               responsible for the professional activities of the clinic  
               and the licentiate's license number and professional  
               experience; and,


             d)   The initial license fee to be charged and any other  
               information DPH deems necessary, including, but not limited  
               to, evidence that the clinic has a written policy relating  
               to the dissemination of information to patients regarding  
               current laws requiring child passenger restraint systems.


          3)Specifies that no application is required where a PCC adds a  
            service that is not a special service, or remodels an existing  
            PCC site.  Requires a clinic to notify DPH in writing of a  
            change in service or physical plant no less than 60 days prior  
            to adding the service or remodeling an existing PCC site.









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          4)Requires, when city, county or state law obligates a PCC to  
            obtain a building permit with respect to remodeling or  
            modification of a PCC, that the PCC must provide DPH a signed  
            certificate or statement from a licensed architect or a  
            written statement from a local building department that the  
            applicable construction, remodeling, alteration, or  
            modification of the physical plant is in compliance with  
            required standards.


          5)Specifies that nothing in existing law limits DPH's authority  
            to conduct an inspection at any time in order to ensure  
            compliance with, or to prevent a violation of PCC licensing  
            requirements.


          6)Requires all clinics to maintain compliance with licensing  
            provisions, and also specifies that licensing requirements  
            must not prohibit the use of alternate concepts, methods,  
            procedures, techniques, space, equipment, personnel  
            qualifications, or the conducting of pilot projects, provided  
            these exceptions are carried out with provision for safe and  
            adequate patient care and with prior written approval from  
            DPH.


          FISCAL EFFECT:  This bill has not yet been analyzed by a fiscal  
          committee.


          1)PURPOSE OF THIS BILL.  According to the author, the Patient  
            Protection and Affordable Care Act and California's expansion  
            of Medi-Cal provide a great opportunity for health coverage,  
            but more work must be done to ensure access for communities of  
            color and the working poor throughout our state.  The author  
            states this bill offers health centers a streamlined option to  
            consolidate multiple facilities, or open new space near an  
            existing facility, under one license.  The author concludes,  








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            this is a commonsense way to help health centers increase  
            access, which is essential to the successful implementation of  
            increased health coverage. 
          2)BACKGROUND.  


          
             a)   Community clinics.  Community clinics and health centers  
               are nonprofit, tax-exempt clinics that are licensed as  
               community or free clinics, and provide services to patients  
               on a sliding fee scale basis or, in the case of free  
               clinics, at no charge to the patients.  These include  
               federally designated community health centers, migrant  
               health centers, rural health centers, and frontier health  
               centers.  California is home to nearly 1,000 community  
               clinics serving more than 5.6 million patients (or one in  
               seven Californians) annually through over 17 million  
               patient encounters.  More than 50% of these patients are  
               Hispanic and 43% speak a primary language other than  
               English. 

             b)   Clinic licensing requirements.  Clinic licensing  
               requirements vary widely in California depending on the  
               type of clinic and contain many exceptions.  Examples of  
               some of the types of clinics exempt from licensure by DPH  
               include:



               i)     Any establishment that is owned and operated as a  
                 clinic by one or more licensed health care practitioners  
                 and used as an office for the practice of their  
                 profession, with the exception of surgical clinics and  
                 specialty clinics;

               ii)    Clinics operated as outpatient departments of  
                 hospitals;










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               iii)   A clinic operated by, or affiliated with, any  
                 institution of learning that teaches a recognized healing  
                 art and is approved by the state board or commission  
                 vested with responsibility for regulation of the practice  
                 of that healing art;



               iv)    An intermittent clinic that is open for no more than  
                 20 hours per week, and that is operated by a licensed  
                 primary care clinic; and,



               v)     Student health centers operated by public  
                 institutions of higher education.





               Clinics exempt from licensure must comply with all local  
               building and fire safety standards.





             c)   DPH program flexibility.  The DPH Licensing and  
               Certification Program (L&C) has no authority to waive laws  
               and regulations, regardless of whether or not they are  
               outdated or obsolete as a result of changes in technology,  
               or procedures.  However, in order to serve patients in  
               health care facilities, L&C has a statutorily authorized  
               concept called Program Flexibility, which recognizes that  
               regulations cannot keep pace with modern technology and  
               that often new alternatives, approaches, and techniques  
               which meet the intent of the regulation is preferable to  








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               strict compliance.  Program flexibility allows DPH to  
               provide an exception to regulation upon request and  
               supportive documentation.  
             
             d)   Waivers granted and denied.  The proponents of this bill  
               have provided Committee staff with three examples of  
               instances where DPH has approved clinics' requests for  
               waivers similar to what would be allowed under this bill.   
               For example, in 2008 Shasta Community Health Center  in  
               Redding was granted a waiver and allowed to operate in  
               additional space across the street under one consolidated  
               license.  However, in 2015, Open Door clinic in Fortuna was  
               denied a consolidated license for facilities that are  
               housed in the same shopping center.  The clinic was told  
               that it could not have one license cover three separate  
               buildings, and DPH did not suggest they apply for Program  
               Flexibility. 





               It appears that there is no statewide policy on how to  
               approach requests for Program Flexibility with regard to  
               licensing clinics.  In some regions, local DPH offices are  
               allowing consolidated licenses with buildings on separate  
               sites, and others are not.  According to DPH, Program  
               Flexibility requests are unique and considered on a  
               case-by-case basis by each District Office. 


          


          3)SUPPORT.  The California Primary Care Association (CPCA) is  
            the sponsor of this bill, and writes that, today, if a  
            licensed health center wants to expand the services it  
            provides and decides to open an additional facility that is  
            located next door, around the corner, or a few stops down the  








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            bus line, it is required to obtain a separate license to  
            operate the additional facility.  CPCA notes because the new  
            facility is independently licensed, it must operate  
            independently, creating challenges related to patient  
            satisfaction, continuity of care, data analytics, billing,  
            supply management, logistics, and more.  CPCA states this bill  
            will provide surety and guidance to DPH and its field offices  
            by allowing for a streamlined and consistent process for both  
            DPH and health centers to add facilities under the provisions  
            of this bill. 


          
          Planned Parenthood Affiliates of California supports this bill  
            stating it will help community health centers expand primary  
            care services and more easily adopt integrated care models by  
            allowing multiple facilities to operate on a single  
            consolidated license.
          4)RELATED LEGISLATION.  AB 1947 (Chiu) requires the centralized  
            application unit of L&C to publish current checklists and  
            instructions on how to complete an application for a new  
            affiliate clinic license, and how to report changes to an  
            existing affiliate clinic, on the DPH Website.  AB 1947 is set  
            to be heard in this Committee on March 29, 2016.  


          5)PREVIOUS LEGISLATION.  


             a)   AB 941 (Wood), Chapter 502, Statutes of 2015, expands  
               the exemption from DPH licensure to certain clinics  
               operated by a federally recognized tribe or tribal  
               organization.

             b)   AB 1130 (Gray) Chapter 412, Statutes of 2015, extends  
               the limit on the hours of operation for an intermittent  
               primary care community or free clinic, from 20 hours a week  
               to 30 hours a week;  requires licensed clinics, as part of  
               their biennial license renewal, to report to DPH as to  








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               whether they are currently operating any intermittent  
               clinics, the location of these clinics, and the estimated  
               hours of operation.





             c)   AB 1177 (Gomez), Chapter 704, Statutes of 2015,  
               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, and requires DPH to repeal the  
               regulation requiring primary care clinics to enter into  
               transfer agreements, no later than July 1, 2016.  

             d)   SB 937 (Ducheny), Chapter 602, Statutes of 2003, revises  
               provisions relating to the licensure and operation of  
               primary care clinics.  Permits a primary care clinic to add  
               a service or remodel a site without first having to apply  
               for a new license from DPH.  Authorizes a primary care  
               clinic with more than one site to consolidate certain  
               administrative functions.  Requires DPH to issue a license  
               to a primary care clinic to allow it to open a clinic at an  
               additional site, under specified conditions.



          6)TECHNICAL AMENDMENT.  In order to correct a drafting error,  
            the bill should be amended as follows:


               On page 4, line 26, strike "or that has multiple licenses  
               for a single health facility on the same premises"


          REGISTERED SUPPORT / OPPOSITION:










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          Support


          AIDS Project Los Angeles Health & Wellness


          AltaMed Health Services Corporation


          California Primary Care Association (CPCA)


          Capital Impact Partners


          Community Clinic Association of Los Angeles County


          Community Clinic Consortium


          Family Healthcare Network


          Mendocino Coast Clinics 


          North Coast Clinics Network 


          Omni Family Health


          Open Door Community Health Centers 


          Planned Parenthood Action Fund of the Pacific Southwest








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          Planned Parenthood Advocacy Project Los Angeles County 


          Planned Parenthood Affiliates of California 


          Planned Parenthood Northern California Action Fund


          Planned Parenthood of Mar Monte


          Ravenswood Family Health Center


          Redwoods Rural Health Center 


          Santa Cruz Community Health Centers





          Opposition
          


          None on file.
















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          Analysis Prepared by:Lara Flynn / HEALTH / (916) 319-2097