BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2341


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          ASSEMBLY THIRD READING


          AB  
          2341 (Lackey)


          As Amended  April 4, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Health          |18-0 |Wood, Maienschein,    |                    |
          |                |     |Bonilla, Burke,       |                    |
          |                |     |Campos, Chiu,         |                    |
          |                |     |Dababneh, Gomez,      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |Lackey, Olsen,        |                    |
          |                |     |Patterson,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Ridley-Thomas,        |                    |
          |                |     |Rodriguez, Santiago,  |                    |
          |                |     |Steinorth, Thurmond,  |                    |
          |                |     |Waldron               |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |








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          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          SUMMARY:  Authorizes the California Department of Public Health  
          (DPH) to allow nursing facilities (NFs) and skilled nursing  
          facilities (SNFs) to provide dialysis, peritoneal, and infusion  
          services that are not defined in regulation, if certain  
          quality-of-care and other criteria are met.  Defines the minimum  
          standard for quality of care for these identified services to be  
          equivalent to, or greater than, that of current community  
          standards for quality of care for that type of service.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, costs to DPH Licensing and Certification are expected  
          to be minor and absorbable, assuming the availability of this  
          new option does not lead to a large number of facilities  
          pursuing the delivery of these services (Licensing and  
          Certification Fund).  Any costs are supported by nursing  
          facility licensure fees.


          COMMENTS:  According to the author, this bill provides nursing  
          facilities with flexibility to be innovative in their provision  
          of care to residents, and increases access to care to  
          communities. This bill will allow facilities to provide  
          additional, targeted services to individuals both inside the  
          facility and on an outpatient basis.  The author argues  
          authorizing these services in a way that explicitly does not  
          require DPH to issue regulations will enhance care without the  








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          cost and burden of the regulatory process.  This bill is  
          sponsored by Leading Age California, an advocacy organization  
          representing nonprofit senior living and care facilities.


          California's Title 22 regulations relating to optional services  
          have not been updated by DPH since the federal changes were  
          made, and specify that physical therapy, occupational therapy,  
          speech therapy, speech pathology, audiology, social work  
          services, and special treatment program services are "special,"  
          or "optional services," and as such must be listed on a  
          facilities licensing application.  The regulations also specify  
          that outpatient services that are provided for the special  
          services mentioned above must meet certain operational  
          conditions, such as ensuring that the special service units do  
          not traverse a nursing unit, and providing waiting areas with  
          sufficient space for patients.  In order to be able to provide  
          special services, all SNFs must receive approval from DPH.  DPH  
          evaluates applications and either approves or denies the request  
          on a case-by-case basis, using all relevant state and federal  
          requirements for the special service.  Additionally, DPH  
          regulations require SNFs to comply with all licensing  
          requirements.  However, these regulations also allow SNFs to use  
          alternate procedures, equipment, personnel qualifications, or  
          conduct pilot projects, as long as these additional activities  
          are carried out to the same standards of safety and care listed  
          in statute and through regulation.  These exceptions are only  
          authorized with prior written approval of DPH and must be  
          accompanied with substantiating evidence supporting the request.  
           In August of 2007, DPH published a memo stating that peritoneal  
          and hemodialysis services may be provided in SNFs, and that the  
          services will be delivered in compliance with DPH regulations on  
          optional or special services.  Neither the regulations nor the  
          memo waived the statutory requirements for the development of  
          regulations for these services to be provided by SNFs.


          The services authorized by this bill include dialysis,  
          peritoneal, and infusion services. Hemodialysis is a  








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          life-support treatment that uses a machine to filter harmful  
          wastes, salt, and excess fluid from the blood.  Peritoneal  
          dialysis is a different means to clean the blood, which can be  
          done while sleeping or going about daily activities.  Infusion  
          is a process whereby medicine, nutrients or special fluids are  
          delivered through a needle directly into the body.


          LeadingAge California, the sponsor of this bill, contends that  
          by allowing SNFs and NFs to provide special services as  
          authorized by this measure, the continuity of care for residents  
          could be enhanced.  The sponsor maintains that the inability of  
          DPH to adopt or update regulations has been a barrier to the  
          expansion of services that can be provided by SNFs and NFs to  
          residents and members of the community-at-large and forces  
          residents to obtain services outside the SNF and NF community.


          The California Advocates for Nursing Home Reform (CANHR), in  
          opposition, contends that this bill would allow SNF and NFs to  
          create special services of their own design and establish the  
          standards of care for their delivery.  CANHR also states that  
          DPH would be required to approve these special services without  
          any regulatory or statutory standards to guide its  
          determinations.  


          The California Dialysis Council, in opposition of this bill,  
          states that current law and regulations establish a robust set  
          of licensure standards for dialysis clinics which are intended  
          to ensure appropriate and safe multi-disciplinary services to  
          the dialysis patients and this bill will put dialysis patients  
          at risk.  While current law sets forth various equipment,  
          facility, personnel and care team standards, this bill makes  
          vague references to current community standards for quality of  
          care but would not require these facilities to meet current  
          requirements for licensure as a dialysis clinic.










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          Please see the policy committee analysis for full discussion of  
          this bill.  




          Analysis Prepared by:                                             
          Kristene Mapile / HEALTH / (916) 319-2097  FN: 0002762