BILL ANALYSIS Ó AB 2053 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2053 (Gonzalez and Gray) As Amended August 18, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |79-0 |(April 21, |SENATE: |39-0 |(August 23, | | | |2016) | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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. AB 2053 Page 2 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). AB 2053 Page 3 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. AB 2053 Page 4 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: AB 2053 Page 5 0004722