Amended in Senate August 1, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2747


Introduced by Assembly Member Hadley

February 19, 2016


An act to add Section 1221.20 to the Health and Safety Code, relating to specialty clinics.

LEGISLATIVE COUNSEL’S DIGEST

AB 2747, as amended, Hadley. Chronic dialysis clinics.

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.

This bill would require the department, within 90 days after receiving an initial and complete chronic dialysis clinic application, to complete the applicationbegin delete 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.end deletebegin insert paperwork and conduct a licensure survey, if necessary. The bill would require, for certain applicants, that the departmentend insertbegin insert conduct an unannounced certification survey within 60 days after the department receives approval from the federal Centers for Medicare and Medicaid Services to conduct the certification survey.end insert 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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

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SECTION 1.  

(a) The Legislature finds and declares all of the
2following:

3(1) New dialysis facilities in California are being required to
4wait nine months or longer to be licensed by the State Department
5of Public Health and to receive Medicare certification surveys after
6they are otherwise ready to serve patients.

7(2) The prevalence of dialysis in California is increasing faster
8than the national average due to the high incidence of diabetes and
9hypertension, the two major causes of End Stage Renal Disease
10(ESRD). The growth in the ESRD patient population is causing a
11burden for patients and families, forcing patients to dialyze on
12shifts and travel to dialysis centers that are not convenient for a
13patient who is suffering from a chronic disease.

14(3) Prior to a new dialysis center being surveyed, the dialysis
15center invests significant financial resources to develop a new
16facility. In addition to the construction cost, the dialysis center
17must be equipped withbegin delete state of the artend deletebegin insert state-of-the-artend insert equipment
18to provide quality care. It also must receive a certificate of
19occupancy, ensuring that the dialysis center is constructed to meet
20all local, state, and federal regulations.

21(4) Additionally, a dialysis center must be staffed prior to
22requesting a survey, which means that the center is bearing the
23cost of staff for nine months or more before it can serve patients.

24(5) It would require less than one full-time equivalent staff
25member to eliminate the current backlog of approximately twenty
26new dialysis centers that are waiting to receive state licensure and
27a Medicare certification survey. The same is true for providing
28timely surveys of new dialysis centers on an annual basis.

29(b) It is the intent of the Legislature in enacting this act to require
30expeditious licensure and Medicare certification surveys for new
31dialysis clinics in California.

32

SEC. 2.  

Section 1221.20 is added to the Health and Safety
33Code
, immediately following Section 1221.19, to read:

34

1221.20.  

(a) Within 90 calendar days after the department
35receives an initial and complete chronic dialysis clinic application,
P3    1the department shall complete the application paperwork and
2conduct a licensure survey, if necessary, to inspect the clinic and
3evaluate the clinic’s compliance with state licensure requirements.
4The department shall forward its recommendation, if necessary,
5and all other information, to the federal Centers for Medicare and
6Medicaid Services within the same 90 calendar days.

7(b) (1) For an applicant seeking to receive reimbursement under
8the Medicare or Medi-Cal programs, the department shallbegin delete complete
9the initial application paperwork andend delete
conduct an unannounced
10certification survey, if necessary, withinbegin delete 90 days after the
11department’s receipt of a letter from the chronic dialysis clinic
12notifying the department of its readiness for the certification survey.end delete

13
begin insert 60 days after the department receives approval from the federal
14Centers for Medicare and Medicaid Services to conduct the
15certification survey.end insert

16(2) No later than 30 calendar days after the certification survey,
17the department shall forward the results of its licensure and
18certification surveys and all other information necessary for
19certification to the federal Centers for Medicare and Medicaid
20Services.



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