BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2053


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2053 (Gonzalez and Gray)


          As Amended  August 18, 2016


          Majority vote


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          Original Committee Reference:  HEALTH


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


          1)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 or affiliate clinic is licensed  
            in good standing and meets all necessary requirements.


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










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          3)Allows a PCC or an affiliate clinic that is issued a  
            consolidated license to operate under a single National  
            Provider Identification (NPI) number, or separate NPI's for  
            one or more of the facilities subject to the consolidated  
            license.


          4)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.


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


          The Senate amendments expand the provisions of this bill to  
          include affiliate clinics.


          FISCAL EFFECT:  According to the Senate Appropriations Committee  
          one-time costs of $110,000 to adopt regulations by DPH  
          (Licensing and Certification Fund).









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


          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. 


          Under existing law, a licensed primary care clinic is permitted  
          to operate an off-site clinic, for up to 30 hours per week,  
          without obtaining a separate license for these off-site  
          locations.  While there are a little more than 1,000 licensed  
          primary care clinics, because no license is required for these  
          off-site locations, DPH has historically not tracked the number  
          of intermittent clinics.  There are no regulations specific to  
          intermittent clinics, and under California statute, these  
          clinics are only required to meet fire and life safety  
          requirements of law, which are established by the State Fire  
          Marshall.  Primary care clinics use these satellite locations to  
          offer services in communities that might not otherwise support a  
          full-time licensed clinic, such as school-based health centers,  
          or in rural or underserved communities.









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          In 2009, SB 442 (Ducheny), Chapter 502, Statutes of 2010, was  
          introduced with provisions similar in concept to this bill to  
          allow for a primary care clinic to be issued a consolidated  
          license to operate facilities at separate locations.  However,  
          it was later amended to streamline provisions related to primary  
          care clinic affiliate licensure.  Under existing law, as amended  
          by SB 442, a primary care clinic that has held a license for  
          five years with no history of repeated or uncorrected violations  
          can apply for an "affiliate clinic" license to establish a  
          primary care clinic at an additional site.  An affiliate license  
          application does not require an initial onsite survey, and is a  
          more simplified and streamlined process than applying for a new  
          stand-alone license.  Additionally, primary care clinics  
          operating under a single corporation utilizing the affiliate  
          licensing option are entitled to consolidate certain  
          administrative functions such as billing and related financial  
          functions, purchasing functions, and offsite storage and  
          maintenance of certain patient and personnel records.


          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 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. 


          There is no opposition to this bill.


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








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