BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2079


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          ASSEMBLY THIRD READING


          AB  
          2079 (Calderon)


          As Amended  May 31, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Health          |12-6 |Wood, Burke, Campos,  |Maienschein,        |
          |                |     |Chiu, Dababneh,       |Bonilla, Lackey,    |
          |                |     |Gomez,                |Olsen, Patterson,   |
          |                |     |                      |Steinorth           |
          |                |     |                      |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Ridley-Thomas,        |                    |
          |                |     |Rodriguez, Santiago,  |                    |
          |                |     |Thurmond, Waldron     |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |12-7 |Gonzalez, Bloom,      |Bigelow, Bonilla,   |
          |                |     |Bonta, Calderon,      |Chang, Gallagher,   |
          |                |     |Eggman,               |Jones, Obernolte,   |
          |                |     |                      |Wagner              |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |                      |                    |








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          |                |     |                      |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |Holden, Quirk,        |                    |
          |                |     |Santiago, Weber, Wood |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Provides for an incremental increase in the equivalent  
          direct care service hours in freestanding skilled nursing  
          facilities (SNFs), as specified.  Specifically, this bill:  


          1)Requires the Department of Public Health (DPH) to adopt  
            regulations requiring SNFs, except those that are distinct  
            part of a general acute care facility or state hospital, to  
            increase their equivalent direct care service hours  
            incrementally, as specified below:


             a)   Commencing January 1, 2018, these SNFs must have a  
               minimum number of equivalent direct care service hours of  
               3.5 per patient day, with 2.4 hours per patient day for  
               certified nurse assistants (CNAs) and 1.1 hours per patient  
               day for licensed nurses, as specified;


             b)   Commencing January 1, 2019, these SNFs must have a  
               minimum number of equivalent direct care service hours of  
               3.8 per patient day, with 2.6 hours per patient day for  
               CNAs and 1.2 hours per patient day for licensed nurses;  
               and, 


             c)   Commencing January 1, 2020, these SNFs must have a  
               minimum number of equivalent direct care service hours of  
               4.1 per patient day, with 2.8 hours per patient day for  
               CNAs and 1.3 hours per patient day for licensed nurses, as  








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               specified.


          2)Includes in the existing definition of direct caregiver:  a) a  
            nurse assistant in an approved training program, as specified;  
            and, b) a licensed nurse serving as a minimum data set  
            coordinator.  Excludes from this definition the director of  
            nursing services in a facility with 60 or more licensed beds.


          3)Revises the existing requirement for DPH to consult with  
            consumers and other stakeholders every five years to determine  
            the sufficiency of the SNF staffing standards no later than  
            January 1, 2019.


          4)Requires SNFs to post information about resident census, which  
            includes an accurate report of the number of direct care staff  
            working during the current shift, including a report of the  
            number of registered nurses (RNs), licensed vocational nurses  
            (LVNs), psychiatric technicians, and CNAs.  Requires  
            information on the posting to be on paper that is at least 8.5  
            inches by 14 inches and printed in at least 16 point font.   
            Requires this information to be posted daily, at a minimum in  
            the following locations:


             a)   An area readily accessible to members of the public;


             b)   An area used for employee breaks; and, 


             c)   An area used by residents for communal functions,  
               including dining, resident council meetings, or activities.


          5)Requires each SNF, upon oral or written request, to make  
            direct caregiver staffing data available to the public for  








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            review at a reasonable cost within 15 days after receiving a  
            request.  Defines "reasonable cost" to include a $0.10 per  
            page fee for standard reproduction of documents that are 8.5  
            inches by 14 inches or smaller or a retrieval or processing  
            fee not exceeding $60 if the requested data is provided on a  
            digital or other electronic medium and the requestor requests  
            delivery of the data in a digital or other electronic medium,  
            including electronic mail.


          6)Deletes existing references to direct care service hours and  
            replaces it with equivalent direct care service hours.


          7)Makes other, technical and conforming changes.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:   


          1)Significant costs for additional Medi-Cal payments to skilled  
            nursing facilities (General Fund (GF)and federal funds).   
            Under current law, the Department of Health Care Services  
            (DHCS) pays SNFs that care for Medi-Cal beneficiaries on a  
            cost-based system.  Under current law, DHCS is required to  
            increase reimbursement rates to skilled nursing facilities to  
            offset any additional costs mandated by the state or federal  
            government.  Currently, the average nursing hours is about 3.8  
            per patient day, comprised of 0.42 RN, 0.78 LVN, and 2.45 CNA  
            hours per day.  It is not clear whether current law will  
            require DHCS to offset the increased cost to go from 3.8 to  
            4.1 hours, or whether DHCS will be required to pay for the  
            costs to go from the currently required 3.2 hours to 4.1  
            hours. 


            Assuming DHCS will increase payments to a SNF based on the  
            cost to increase staffing levels from current practice to the  








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            newly mandated hours requirement, DHCS estimates costs of $140  
            million ($70 million GF) for full implementation of the 4.1  
            hours ratio.  It is unclear whether this estimate accounts for  
            planned increases in the minimum wage.  This estimate is based  
            on a 14.2% increase in CNA hours, from 2.45 to 2.8. 


            Assuming current law requires DHCS to increase payments to  
            facilities to pay the full costs of increasing staffing levels  
            from the currently mandated level to the level mandated in  
            this bill, the California Association of Health Facilities,  
            based on their facility-specific model which accounts for  
            planned minimum wage increases, projects annual Medi-Cal costs  
            for increased reimbursement to SNFs of $126 million in 2018  
            ($63 million GF), $266 million ($133 million GF) in 2019, and  
            increasing annually until 2022 and thereafter when costs are  
            projected at $462 million annually ($231 million GF). 


          2)One-time costs in the range of $100,000 to adopt regulations  
            and modify internal tracking systems by the California  
            Department of Public Health (DPH) (Licensing and Certification  
            Fund).


          3)Minor additional ongoing enforcement costs to DPH (Licensing  
            and Certification Fund).  DPH already licenses SNFs, including  
            compliance with existing nursing hours requirements, and the  
            increased workload is not expected to be significant.


          COMMENTS:  According to the author, the current minimum of 3.2  
          hours per patient per day staffing requirements for SNFs does  
          not meet the direct care needs of nursing home residents.  This  
          chronic understaffing of CNAs in SNFs creates unsafe living  
          conditions for the residents.  Nursing home residents are among  
          the most vulnerable populations that include individuals who  
          have limited ability to care for themselves due to physical,  
          cognitive, or chronic health conditions.  Additionally, although  








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          SNFs are required to report their compliance with the 3.2 hours  
          staffing requirement, facility workers continue to report  
          chronic understaffing of direct care providers, creating unsafe,  
          stressful, and at times unpleasant living conditions for  
          residents.  


          The current staffing requirement of 3.2 nursing hours per  
          resident per day was adopted in 2000.  Prior to this date, the  
          requirement was for 2.9 hours.  In 2001, legislation was passed  
          requiring DPH to convert the 3.2 nursing hour requirement into  
          staff ratios by 2003.  However, DPH did not meet this deadline  
          and subsequent litigation required DPH to complete the  
          regulations.  Under these regulations, the ratios must be based  
          on the anticipated individual patient needs for the activities  
          of each shift and are required to be distributed throughout the  
          day to achieve a minimum of 3.2 nursing hours per resident per  
          day.  SNFs are required to employ and schedule additional staff  
          to ensure patients receive nursing care based on their needs.   
          These regulations require SNFs to use the following ratios, with  
          "direct caregiver" defined as RNs, LVNs, psychiatric  
          technicians, CNAs, or nursing assistants in an approved training  
          program:  1) on the day shift, at least one direct caregiver for  
          every five patients or fraction thereof; 2) on the evening  
          shift, at least one direct caregiver for every eight patients or  
          fraction thereof; and, 3) on the night shift, at least one  
          direct caregiver for every 13 patients or fraction thereof.


          As part of these ratios, there is a requirement that there be  
          one licensed nurse (either an RN or a LVN) for every eight or  
          fewer patients, which can be counted toward the above shift  
          ratios.  Beyond this requirement, these existing ratios do not  
          differentiate between types of direct caregivers.  This bill,  
          however, requires specific ratios for both CNAs and licensed  
          nurses, and includes specified minimum ratios for CNAs.











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          Analysis Prepared by:                                             
                          Rosielyn Pulmano / HEALTH / (916) 319-2097  FN:  
          0003285