Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2747

Introduced by Assembly Member Hadley

February 19, 2016

An act to begin delete amend Section 1569 of end delete begin insert add Section 1221.20 to end insert the Health and Safety Code, relating to begin delete care facilities. end delete begin insert specialty clinics. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2747, as amended, Hadley. begin delete Residential care facilities. end delete begin insert Chronic dialysis clinics. end insert

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Existing law provides for the licensure and regulation of clinics by the State Department of Public Health. Existing law provides that certain types of specialty clinics, including chronic dialysis clinics, as defined, are eligible for licensure.

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This bill would require the department, within 90 days after receiving an initial and complete chronic dialysis clinic application, to complete the application paperwork, to conduct a licensure survey, if necessary, and in certain circumstances, to conduct an unannounced certification survey in accordance with a specified timeline, as provided. The bill would require the department to forward the results of the certification survey to the federal Centers for Medicare and Medicaid Services, as specified.

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Under existing law, the California Residential Care Facilities for the Elderly Act, the State Department of Social Services licenses and regulates residential care facilities for the elderly. Under the act, the Legislature finds and declares that, due to a greater demand for residences for the elderly that provide care and supervision, residential care facilities for the elderly are licensed as a separate category from community care facilities. Under the act, no residential care facility for the elderly can accept a person needing care beyond the level of care for which that facility is licensed.

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This bill would make technical, nonsubstantive changes to those provisions.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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(a) The Legislature finds and declares all of the
following:

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(1) New dialysis facilities in California are being required to
wait nine months or longer to be licensed by the State Department
of Public Health and to receive Medicare certification surveys
after they are otherwise ready to serve patients.

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(2) The prevalence of dialysis in California is increasing faster
than the national average due to the high incidence of diabetes
and hypertension, the two major causes of End Stage Renal Disease
(ESRD). The growth in the ESRD patient population is causing a
burden for patients and families, forcing patients to dialyze on
shifts and travel to dialysis centers that are not convenient for a
patient who is suffering from a chronic disease.

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(3) Prior to a new dialysis center being surveyed, the dialysis
center invests significant financial resources to develop a new
facility. In addition to the construction cost, the dialysis center
must be equipped with state of the art equipment to provide quality
care. It also must receive a certificate of occupancy, ensuring that
the dialysis center is constructed to meet all local, state, and
federal regulations.

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(4) Additionally, a dialysis center must be staffed prior to
requesting a survey, which means that the center is bearing the
cost of staff for nine months or more before it can serve patients.

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(5) It would require less than one full-time equivalent staff
member to eliminate the current backlog of approximately twenty
new dialysis centers that are waiting to receive state licensure and
a Medicare certification survey. The same is true for providing
timely surveys of new dialysis centers on an annual basis.

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(b) It is the intent of the Legislature in enacting this act to
require expeditious licensure and Medicare certification surveys
for new dialysis clinics in California.

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begin insert SEC. 2. end insert   

end insert

begin insert Section 1221.20 is added to the end insert begin insert Health and Safety
Code end insert begin insert , end insert immediately following Section 1221.19 begin insert , to read: end insert

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begin insert 1221.20. end insert   

(a) Within 90 calendar days after the department
receives an initial and complete chronic dialysis clinic application,
the department shall complete the application paperwork and
conduct a licensure survey, if necessary, to inspect the clinic and
evaluate the clinic’s compliance with state licensure requirements.
The department shall forward its recommendation, if necessary,
and all other information, to the federal Centers for Medicare and
Medicaid Services within the same 90 calendar days.

(b) (1) For an applicant seeking to receive reimbursement
under the Medicare or Medi-Cal programs, the department shall
complete the initial application paperwork and conduct an
unannounced certification survey, if necessary, within 90 days
after the department’s receipt of a letter from the chronic dialysis
clinic notifying the department of its readiness for the certification
survey.

(2) No later than 30 calendar days after the certification survey,
the department shall forward the results of its licensure and
certification surveys and all other information necessary for
certification to the federal Centers for Medicare and Medicaid
Services.

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SECTION 1.  

Section 1569 of the Health and Safety Code is
amended to read:

1569.  

This chapter shall be known, and may be cited, as the
California Residential Care Facilities for the Elderly Act.

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