BILL ANALYSIS Ó AB 2079 Page 1 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, | | | | | | | AB 2079 Page 2 | | | | | | | |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 AB 2079 Page 3 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 AB 2079 Page 4 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 AB 2079 Page 5 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 AB 2079 Page 6 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. AB 2079 Page 7 Analysis Prepared by: Rosielyn Pulmano / HEALTH / (916) 319-2097 FN: 0003285