BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: SB 275 --------------------------------------------------------------- |AUTHOR: |Hernandez | |---------------+-----------------------------------------------| |VERSION: |February 19, 2015 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |April 8, 2015 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Vince Marchand | --------------------------------------------------------------- SUBJECT : Health facility data SUMMARY : Requires the Office of Statewide Health Planning and Development to adopt a regulation that adds physician identifiers to the patient level data elements that are required to be collected and reported by hospitals and surgical clinics. Existing law: 1.Establishes the Office of Statewide Health Planning and Development (OSHPD), and designates OSHPD as the single state agency to collect specified health facility or clinic data for use by all state agencies. 2.Requires hospitals to make and file with OSHPD certain specified reports, including a Hospital Discharge Abstract Data Record that is required to include 19 specified data elements for each admission, including information on diagnoses and disposition of the patient. In addition to this discharge report, hospitals are required to file an Emergency Care Data Record for each patient encounter in a hospital emergency department, and hospitals and freestanding ambulatory surgery clinics are required to file an Ambulatory Surgery Data Record for each patient encounter during which at least one ambulatory surgery procedure is performed, with both of these data records including similar data elements to the discharge data record. 3.Permits OSHPD to make additions or deletions to the data elements required in the discharge reports, but limits OSHPD to adding no more than a net of 15 elements to each data set over any five-year period, and requires OSHPD to consider costs and benefits of data collection and other factors prior to adding or deleting any data element. SB 275 (Hernandez) Page 2 of ? 4.Requires OSHPD, commencing July 1993, and annually thereafter, to publish risk-adjusted outcome reports in accordance with a schedule that requires reports to be published on three conditions or procedures each year for three years, for a total of nine reports by July 1995, and requires reports for subsequent years to include conditions and procedures and cover periods as appropriate. Requires the procedures and conditions to be reported to be equally divided among medical, surgical and obstetric conditions or procedures, and to be selected by OSHPD in accordance with specified criteria. 5.Requires OSHPD, in addition to other established reports, beginning July 1, 2004, to publish a risk-adjusted outcome report for coronary artery bypass graft (CABG) surgery for all CABG surgeries performed in the state. Requires the reports to compare risk-adjusted outcomes by hospital in every year, and by cardiac surgeon in every other year, but permits information on individual hospitals and surgeons to be excluded from the reports based upon the recommendation of a clinical panel for statistical and technical considerations. 6.Requires OSHPD to appoint a clinical panel of nine members for each risk-adjusted outcome report that includes reporting of data by an individual physician. Specifies that for the clinical panel for the CABG report, three members are to be appointed from a list of names submitted by the California Chapter of the American College of Cardiology, three members from a list submitted by the California Medical Association, and three members from a list submitted by consumer organizations. This bill: Requires OSHPD to adopt a regulation that adds physician identifiers to the patient level data elements that are required to be collected and reported by hospitals in the Hospital Discharge Abstract Data Record and the Emergency Care Data Record, and to the data elements collected and reported by hospitals and freestanding ambulatory surgery clinics in the Ambulatory Surgery Data Record. FISCAL EFFECT : This bill has not been analyzed by a fiscal committee. COMMENTS : 1.Author's statement. According to the author, this bill would SB 275 (Hernandez) Page 3 of ? require OSHPD to adopt a regulation that would add physician identifiers to the patient level data elements that are required to be collected and reported by hospitals and surgical clinics. Information on physicians is already collected and reported for one procedure - CABG - and outcomes following this procedure have greatly improved in the decade since these outcome reports have been published. However, despite it being within the authority of OSHPD to require hospitals to begin adding physician identifiers to their required reports in order to facilitate more outcome reports at both the hospital and physician level, OSHPD has yet to publish a single report other than CABG that includes reporting at the physician level. In 2013, the RAND Corporation published a research report, sponsored by the California HealthCare Foundation, which looked at this issue, and found that California is unique among the 48 states with hospital discharge data reporting programs in that it does not collect physician identifiers. The report stated that potential benefits associated with collecting and using physician-identified data include benchmarking data for providers to use in quality improvement efforts and providing information to help consumers make informed decisions about where and from whom to receive care. 2.Background on data collection. Under existing law, OSHPD is designated as the single state agency to collect specified health facility or clinic data for use by all state agencies. All licensed acute care hospitals are required to file with OSHPD certain reports, including a Hospital Discharge Abstract Data Record that includes 19 specified data elements for each admission, including date of birth, sex, admission date, discharge date, principal diagnosis, other diagnoses, principal procedures, and disposition of the patient. In addition to this discharge report, hospitals are required to file an Emergency Care Data Record for each patient encounter in a hospital emergency department, and hospitals and freestanding ambulatory surgery clinics are required to file an Ambulatory Surgery Data Record for each patient encounter during which at least one ambulatory surgery procedure is performed. For all three reports, OSHPD is permitted to make additions or deletions to the data elements required in these reports, as long as OSHPD adds no more than a net of 15 elements to each data set over any five-year period, and as long as OSHPD considers the costs and benefits of data SB 275 (Hernandez) Page 4 of ? collection and other factors prior to adding or deleting any data element. 3.RAND report. In February of 2013, the RAND Corporation released a research paper, sponsored by the California HealthCare Foundation, entitled "Exploring the Addition of Physician Identifiers to the California Hospital Discharge Data Set." According to this report, although research studies have shown large unexplained variation in how physicians care for patients with similar medical conditions, there is an absence of routine measurement and reporting of individual physician performance. Such measurement could help: (a) providers understand how their performance compares with peers to stimulate quality improvement; (b) consumers make more informed choices about providers when they need care; (c) researchers with understanding factors associated with variations in processes of care and health outcomes; and, (d) payers with value-based purchasing efforts. The report found that of the 48 states that have hospital discharge reporting programs, all but California collect physician identifiers and do so without substantial burden to hospitals. States vary in their release policies, but those who do release that data have not reported problems. California stakeholders interviewed for the report expressed concerns related to who would have access to the data, how the data would be analyzed, and how consumers would interpret the information. According to the report, the collection of physician identifiers as part of the hospital discharge data set represents an opportunity for California to generate performance data at the physician level that could be used by many stakeholders for a variety of purposes. The authors of the report recommended that OSHPD should move forward without delay to add physician identifiers to the list of data elements it collects as part of the hospital discharge data. The report went on to recommend that, given genuine concerns about how the data will be analyzed and used once collected, stakeholders should come together to forge a blueprint for appropriate data use that could be used to guide the actions of the state and end users of the data. The report recommended that the development of the blueprint should happen in parallel with the regulatory process. SB 275 (Hernandez) Page 5 of ? 4.Risk-adjusted outcome reports and CABG. OSHPD uses the data it collects, in part, to produce required "risk-adjusted" reports of outcomes of various procedures and treatments performed at hospitals. Risk-adjustment, in this instance, means that the results are adjusted to take into account the condition of the patient. In this manner, outcomes from hospitals that treat a disproportionately high number of sick or frail patients, for instance, can be compared with hospitals treating younger or healthier patients. While the raw outcome data for the hospital with a high number of sick patients might show a relatively high number of deaths, the "risk-adjusted" report might show both hospitals have equivalent outcomes. Pursuant to SB 680 (Figueroa), Chapter 898, Statutes of 2001, OSHPD began publishing CABG risk-adjusted outcome reports for both hospitals and surgeons beginning in 2006 for data collected in 2003, and have continued publishing these reports each year. Unlike prior reports based on OSHPD discharge data, the publication of the CABG reports required establishing a clinical data registry for the collection of surgeon information. According to OSHPD, the CABG Outcomes Reporting Program is the largest public reporting program on CABG surgery outcomes in the United States. According to the most recent report, the operative mortality rate for isolated CABG surgery in California was 2.01 percent in 2011, which represents a 31 percent reduction in the operative mortality rates since 2003 (2.91percent), the first year of mandated reporting. 5.Expanding beyond CABG would require collection of physician identifiers. Under existing law, OSHPD is supposed to have been publishing a minimum of nine risk-adjusted reports in addition to the CABG report since 1995, with the procedures and conditions chosen by OSHPD and divided among medical, surgical, and obstetrical conditions or procedures. These reports were to have included reports for both hospitals and physicians, unless OSHPD determined it was not appropriate to report by individual physician. However, CABG remains the only risk-adjusted outcome report that includes physician-level reporting. 6.Prior legislation. SB 830 (Galgiani), of 2014, would have required OSHPD to include "heart valve repair and replacement surgeries" in their annual risk adjusted outcome reports for SB 275 (Hernandez) Page 6 of ? coronary artery bypass graft surgeries, and to annually publish a new risk-adjusted outcome report for all percutaneous cardiac interventions and transcatheter valve procedures performed in California. SB 830 was held in Senate Appropriations Committee SB 680 (Figueroa), Chapter 898, Statutes of 2001, required OSHPD to publish risk-adjusted outcome reports for CABG surgery, required the existing risk-adjusted outcome reports that OSHPD is required to publish to also report data by individual physician where appropriate, and made various other changes to the provisions of law required OSHPD to publish risk-adjusted outcome reports. 7.Support. Consumers Union states in support that it sponsored SB 680 (Figueroa) to require outcome reports for CABG surgeries, both by individual hospital and by surgeon. Consumers Union states that publicly reporting mortality rates with this level of specificity not only gives consumers actionable information in choosing hospitals and surgeons, it also incentivizes self-improvement by medical professionals. According to Consumers Union, the inclusion of physician identifiers as required data elements by OSHPD from hospitals and surgical clinics would provide valuable information to aid quality improvement and to assist consumers with medical decision-making. Health Access California also supports this bill, stating that the data collected by OSHPD remains one of the richest sources of public data on health facilities and health outcomes available nationally. The lack of physician identifiers has limited the usefulness of the data in health policy research aimed at improving quality, increasing patient safety, reducing patient deaths and co-morbidities while reducing costs. Health Access states that moving forward on the quadruple aim of better health, better health care, lower costs, and reduced disparities requires data on all elements of the health care system, including physicians as well as hospitals and other facilities. The California State Council of the Service Employees International Union (SEIU California), states in support that according to the RAND report, physician-linked data sets are key tracking clinical quality across payer types, and therefore, valuable in producing consumer quality report cards. SEIU California also notes in support that because this practice is so commonplace nationwide, its implementation in California would be relatively straightforward and not burdensome to hospitals or SB 275 (Hernandez) Page 7 of ? the state. 8.Oppose unless amended. The California Medical Association (CMA) states that while it agrees that accurate and reliable data is important, it is also important that any program for collecting data meet certain quality, accuracy, privacy, and review standards. According to CMA, one key method for ensuring patient privacy while processing large amounts of data is de-identification, yet adding physician identifiers to the data file may allow a user to re-identify patient-level data. CMA states that concerns related to ensuring data is reliable and privacy is properly protected is why many states that do collect this data prohibit its release. In addition, CMA notes that physician identifiers alone do not allow for an accurate evaluation of hospital care, given that a physician team and other practitioners and hospital employees are involved in the care of patients. Therefore, CMA states that all relevant practitioner identifiers would be needed to provide an accurate analysis, and that the data must be adjusted for risk as appropriate to control for differences in case mix and avoid bias in reporting differences in outcomes across providers. Finally, CMA states that review and comment periods for data requests with the creation of stakeholder panels to ensure provider involvement must be part of a reliable process, including an opportunity to review and appeal. CMA states that while it shares the goal of collecting accurate and helpful data, it requests amendments that specifically address its concerns to ensure that the goal can be met. The California Chapter of the American College of Emergency Physicians (CalACEP) also writes that it is opposed to the bill unless amended to aggregate the physician data so that it is not individually identifiable, and to risk-adjust the raw data to account for variations in the sickness of patients and variability of other factors such as age and co-morbid conditions. CalACEP states that while it supports the goal of the bill to provide greater transparency to the public about the healthcare system, it has concerns about publishing physician identifiable information. According to CalACEP, when view in isolation, outcomes can give a misleading read on provider performance. For example, CalACEP states that physicians who treat underserved or disadvantaged populations may have poorer results if their patients are less able to follow through with appointments and medications. SB 275 (Hernandez) Page 8 of ? SUPPORT AND OPPOSITION : Support: Consumers Union Health Access SEIU California Oppose: California Chapter American College of Emergency Physicians (unless amended) California Medical Association (unless amended) -- END --