BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2079 (Calderon) - Skilled nursing facilities: staffing
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|Version: June 13, 2016 |Policy Vote: HEALTH 6 - 2 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 11, 2016 |Consultant: Brendan McCarthy |
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*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 11, 2016
Bill
Summary: AB 2079 would incrementally increases the number of
required nursing hours per patient in a skilled nursing
facility, from 3.2 hours per day to 4.1 hours per day, over
several years.
Fiscal
Impact:
Annual costs of $52 million per year in 2018-19 rising to $310
million per year by 2021-22 for additional Medi-Cal payments
to skilled nursing facilities (General Fund and federal
funds). Under current law, the Department of Health Care
Services pays skilled nursing facilities that care for
AB 2079 (Calderon) Page 1 of
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Medi-Cal beneficiaries on a cost-based system. Under current
law, the Department is required to increase reimbursement
rates to skilled nursing facilities to offset any additional
costs mandated by the state or federal government. Currently,
while the statutory minimum number of hours per day is 3.2,
the average nursing hours is about 3.6 per patient day. The
Department indicates that because skilled nursing facilities
are generally paid based on their costs, current rates already
cover most of the cost of providing 3.6 hours per day, on
average. Therefore, the state would have to pay for the cost
increase caused by increasing the hours provided form the
current average of 3.6 hours per patient per day to 4.1 hours
per patient per day.
Staff notes that the California Association of Health
Facilities (which is in opposition to the bill) projects
annual costs to the Medi-Cal program could be as high as $440
million per year by 2021.
One-time costs, less than $150,000 to adopt regulations and
modify internal tracking systems by the Department of Health
Care Services (General Fund and federal funds).
Minor additional ongoing enforcement costs to the Department
of Public Health (Licensing and Certification Fund). Because
the Department already licenses skilled nursing facilities,
including compliance with existing nursing hours requirements,
there is no anticipated additional cost to enforce the
requirements of this bill as part of the ongoing licensing
program.
Author
Amendments: Specify the requirements for direct care services
hours and authorize a process for providing a short-term waiver
of the bill's requirements if certain conditions are met.
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