BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2053 (Gonzalez) - Primary care clinics ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 31, 2016 |Policy Vote: HEALTH 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 2053 would require the Department of Public Health to issue a single, consolidated license to a primary care clinic that includes more than one physical plant. Fiscal Impact: One-time costs of $110,000 to adopt regulations by the Department of Public Health (Licensing and Certification Fund). Background: Under current law, the Department of Public Health licenses and regulates health facilities, including primary care clinics. Generally, primary care clinics are licensed by location. A clinic may have multiple locations and operate under as a single administrative entity, but under current law each physical location must be separately licensed. Proposed Law: AB 2053 (Gonzalez) Page 1 of ? AB 2053 would require the Department of Public Health to issue a consolidated license to a primary care clinic that includes more than one physical plant. Specific provisions of the bill would: Require the Department to issue a single, consolidated license to a primary care clinic that operates more than one physical plant, upon written notification that the primary care clinic meets the criteria for licensure; Permit a primary care clinic that is issued a consolidated license to use a single National Provider Identification number for all the licensed physical plants or individual National Provider Identification numbers for each physical plant; Specify the criteria for a clinic to qualify for a consolidated license; Exempt a primary care clinic that adds an additional physical plant from the requirement to seek licensure for the additional physical plant, but requires notification to the Department. Staff Comments: Under current law, certain primary care clinics that provide services to Medi-Cal beneficiaries are reimbursed using the prospective payment system (PPS) which is a cost-based system for calculating reimbursement rates. Under current law, PPS rates are site specific. Therefore, whether a clinic seeks to consolidate more than one clinic under a consolidated license will not impact the rates that the Medi-Cal program pays for services. The only costs that may be incurred by a local agency relate to crimes and infractions. Under the California Constitution, such costs are not reimbursable by the state. -- END --