BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 323|
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                                   THIRD READING 


          Bill No:  SB 323
          Author:   Hernandez (D), et al.
          Amended:  4/22/15  
          Vote:     21  

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  7-0, 4/20/15
           AYES:  Hill, Block, Galgiani, Hernandez, Jackson, Mendoza,  
            Wieckowski
           NO VOTE RECORDED:  Bates, Berryhill

           SENATE APPROPRIATIONS COMMITTEE:  5-0, 5/4/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NO VOTE RECORDED:  Bates, Nielsen

           SUBJECT:   Nurse practitioners: scope of practice.


          SOURCE:    Author


          DIGEST:  This bill authorizes a nurse practitioner (NP) who  
          holds a national certification to practice without physician  
          supervision in specified settings.


          ANALYSIS:   


          Existing law:

          1)Requires that for initial qualification or certification  
            as a NP, an individual must meet specified requirements  
            including having a valid and active Registered Nurse (RN)  








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            license, possess a master's degree in nursing or graduate  
            degree in nursing and satisfactorily complete a NP  
            program approved by the Board of Registered Nursing  
            (BRN).  (BPC § 2835.5) 

          2)Provides that standardized procedures may be implemented  
            to authorize a NP to do the following:  order durable  
            medical equipment as specified; certify disability after  
            performance of a physical examination by the NP and  
            collaboration with a physician and surgeon; and approve,  
            sign, modify, or add to a plan of treatment or a plan of  
            care for individuals receiving home health services or  
            personal care services after consultation with the  
            treating physician and surgeon.  (BPC § 2835.7)

          3)Provides that a NP may furnish or order drugs or devices  
            if specified conditions are met and are done in  
            accordance with standardized procedures or protocols and  
            the drugs or devices ordered are consistent with the NPs  
            educational preparation or for which clinical competency  
            has been established and maintained.  (BPC § 2836.1 (a))

          4)Requires one physician to supervise every four  
            prescribing NPs. (BPC § 2836.1 (e))

          This bill:

         1)Makes legislative findings and declarations as to the  
            importance of NPs providing safe and accessible primary care.

         2)Authorizes a NP who holds a national certification from a  
            national certifying body recognized by the BRN (certified NP)  
            to practice without the supervision of a physician if the  
            certified NP practices in one of the following settings:

             a)   A clinic.

             b)   Specified health facilities, including a general acute  
               care hospital, acute psychiatric hospital, skilled nursing  
               facility, intermediate care facility, correctional  
               treatment center, and hospice facility, as specified.

             c)   A county medical facility.








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             d)   An accountable care organization.

             e)   A group practice, including a professional medical  
               corporation, another form of corporation controlled by  
               physicians, a medical partnership, a medical foundation  
               exempt from licensure, or another lawfully organized group  
               of physicians that delivers, furnishes, or otherwise  
               arranges for or provides health care services.

             f)   A medical group, independent practice association, or  
               any similar association.

         3)Provides that in addition to any other practice authorized in  
            statute or regulation, a certified NP practicing in specified  
            settings may do all of the following without physician  
            supervision, unless collaboration is specified:

             a)   Order durable medical equipment. 

             b)   Certify disability for purposes of unemployment after  
               performance of a physical examination by the certified NP  
               and collaboration, if necessary, with a physician.

             c)   Approve, sign, modify, or add to a plan of treatment or  
               plan of care for individuals receiving home health services  
               or personal care services after consultation, if necessary,  
               with the treating physician and surgeon. 

             d)   Assess patients, synthesize and analyze data, and apply  
               principles of health care.

             e)   Manage the physical and psychosocial health status of  
               patients.

             f)   Analyze multiple sources of data, identify a  
               differential diagnosis, and select, implement, and evaluate  
               appropriate treatment.

             g)   Establish a diagnosis by client history, physical  
               examination, and other criteria, consistent with this  
               section, for a plan of care.

             h)   Order, furnish, prescribe, or procure drugs or devices.








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             i)   Delegate tasks to a medical assistant pursuant to  
               standardized procedures and protocols developed by the NP  
               and medical assistant that are within the medical  
               assistant's scope of practice.

             j)   Order hospice care, as appropriate.

             aa)       Order and interpret diagnostic procedures.

             bb)       Perform additional acts that require education and  
               training and that are recognized by the nursing profession  
               as appropriate to be performed by a NP.

         4)Requires a certified NP to refer a patient to a physician or  
            other licensed health care provider if a situation or  
            condition of the patient is beyond the scope of the education  
            and training of the NP.

         5)Requires a certified NP to maintain professional liability  
            insurance appropriate for the practice setting.

          Background

          Nurse practitioner training and educational requirements.  A NP  
          is a registered nurse who possesses additional preparation and  
          skills in physical diagnosis, psycho-social assessment, and  
          management of health-illness needs in primary health care, and  
          who has completed a NP program that conforms to BRN standards.   
          NP programs are required to include 12 semester units or 18  
          quarter units of clinical practice.  NPs are required to have a  
          master's degree, and many further pursue a doctorate in nursing.  
           As of September 2013, the BRN reported 18,541 active, licensed  
          NPs.  

          Standardized procedures and protocols.  The NP scope of practice  
          is currently determined by standardized procedures, which are  
          the legal mechanism for NPs to perform functions which would  
          otherwise be considered the practice of medicine.  The Medical  
          Practice Act authorizes physicians to diagnose mental and  
          physical conditions, to use drugs in or upon human beings, to  
          sever or penetrate tissue, and to use other methods in the  
          treatment of diseases, injuries, deformities, or other physical  
          or mental conditions.  As a general rule, the performance of any  
          of these functions by a NP requires a standardized procedure.  A  







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          NP may perform standardized procedure functions only under the  
          conditions specified in a health care system's standardized  
          procedures, and must provide the system with satisfactory  
          evidence that he or she meets its experience, training, and  
          education requirements.  Protocols are a part of standardized  
          procedures and are designed to describe the steps of medical  
          care for given patient situations.  Protocols are developed in  
          consultation with a supervising physician.   

          Prescribing authority.  NPs may furnish drugs by obtaining a  
          number from the United States Drug Enforcement Agency (DEA) to  
          prescribe Schedule II-V drugs pursuant to a protocol and  
          standardized procedures.  The DEA considers a NP to be a  
          "prescriber," but NPs who write prescriptions are considered a  
          "furnishing" NP under California law.  Furnishing is the  
          delegated authority to write prescriptions, and is done in  
          accordance with approved standardized procedures and protocols.   
          Physician supervision is required and the physician must be  
          available, at least by telephone, at the time the NP examines  
          the patient.  Furnishing NPs are required to be supervised by a  
          physician, but non-furnishing NPs are not.  A physician may  
          supervise up to four furnishing NPs.  

          Nurse practitioner as a primary care provider.  The Institute of  
          Medicine (IOM), an independent nonprofit organization which is  
          part of the National Academy of Sciences, published a report in  
          2011, in which it concluded that NPs deliver the same quality of  
          primary care as physicians.  

          The IOM report acknowledges that some argue NPs should not be  
          allowed to be independent primary care practitioners because  
          physicians are more qualified due to their extensive academic  
          and clinical training, and unique cognitive and technical  
          skills.  However, the IOM report noted that the contention that  
          NPs are less able than physicians to deliver care that is safe,  
          effective, and efficient is not supported by research.  Further,  
          NPs are trained to refer out when conditions rise beyond their  
          competencies and have the ability to coordinate care between  
          providers.  

          NPs have been slowly granted practice autonomy in other states  
          over the last decade.  According to information provided by the  
          American Association of Nurse Practitioners, 21 states allow NPs  
          to evaluate patients, diagnose, order and interpret diagnostic  







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          tests, and initiate and manage treatment under the exclusive  
          license authority of the state board of nursing.  Today, NPs  
          (which make up slightly less than a quarter of all primary care  
          professionals), together with physicians and physician  
          assistants, provide most of the primary care in the United  
          States.  The demand for a larger primary care workforce will  
          grow as access to coverage, service settings, and services  
          increases under the federal Affordable Care Act (ACA). 

          Primary care access and Medi-Cal.  The ACA was passed in March  
          2010 to provide quality, affordable healthcare for all Americans  
          and improve the quality and efficiency of that care.  California  
          was an early adopter of the ACA and has been a leader in  
          enrolling eligible residents.   Primary care providers will be  
          responsible for health promotion, disease prevention, early  
          diagnosis, and the coordination of care with other providers for  
          these new entrants to the market.    

          Permitting independent practice by NPs will allow greater access  
          to primary care for Medi-Cal and Medicare populations.  Medi-Cal  
          is the state's Medicaid health insurance program, funded by both  
          the federal and state government for low-income families and  
          children, people with disabilities, pregnant women, and seniors.  
           Medicare is the federal government health insurance program for  
          seniors and persons with disabilities.    
                
           The California HealthCare Foundation reports that presently,  
          adults with Medi-Cal are nearly twice as likely to report  
          difficulty getting a doctor appointment than other insured  
          adults in California.  According to the Centers for Medicare and  
          Medicaid Services, fewer American doctors are treating patients  
          enrolled in the Medicare health program, reflecting physician  
          frustration with its payment rates and rules.  The number of  
          doctors who opted out of Medicare last year nearly tripled from  
          three years earlier.  Other doctors are limiting the number of  
          Medicare patients they treat even if they don't formally opt out  
          of the system.  NPs are limited in their ability to be  
          reimbursed for care covered by Medi-Cal due to physician  
          supervision constraints.       

          NPs in California may currently only treat Medicare patients if  
          their supervising physician is a Medicare provider.  According  
          to an article in the medical journal Health Affairs, Medicare,  
          Medicaid, and private insurers typically reimburse NPs at rates  







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          that are just 75-85% of what they pay physicians for the same  
          services.  NPs generally have less overhead than physicians and  
          are therefore more likely to work for a lower reimbursement.  

          Accountability provisions.  Presently, supervising physicians  
          are partially accountable for an NP's practice and a physician's  
          license is at stake for unprofessional conduct by a supervised  
          NP.  Independence will require that the NP be wholly accountable  
          for his or her actions, and the liability insurance required in  
          this bill will help protect consumers in the event of a  
          malpractice action.   

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          According to the Senate Appropriations Committee:

           One-time costs, likely about $75,000, to update existing  
            regulations (BRN Fund).

           Likely minor ongoing costs for enforcement (BRN Fund).  The  
            BRN indicates that there may be increased need for enforcement  
            activity under this bill, but that those costs are not  
            anticipated to be significant.


          SUPPORT:   (Verified5/5/15)


          AARP
          Alliance of Catholic Health Care
          AltaMed Health Services Corporation
          Alzheimer's Association
          American Nurses Association\California 
          Anthem Blue Cross
          Association of California Healthcare Districts
          Association of California Nurse Leaders
          Bay Area Council
          Blue Shield of California 
          California Association for Nurse Practitioners 
          California Association of Nurse Anesthetists 
          California Association of Physician Groups 
          California Association of Public Hospitals and Health Systems 
          California Commission on Aging







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          California Council of Community Mental Health Agencies
          California Family Health Council 
          California Health & Wellness 
          California Hospital Association 
          California Naturopathic Doctors Association 
          California Pharmacists Association
          California Primary Care Association 
          California Senior Legislature
          California Society of Health-System Pharmacists
          Congress of California Seniors 
          Johns Hopkins University Division of Occupational and  
          Environment Medicine
          Maxim Healthcare Services, Inc.
          MemorialCare Health System
          Pacific Clinics
          Private Essential Access Community Hospitals 
          Providence Health & Services
          Sharp HealthCare
          Small Business Majority
          Stanford Health Care 
          St. Joseph Health
          United Nurses Associations of California/Union of Health Care  
          Professionals 
          University of California 
          Western University of Health Sciences
          Several individuals 


          OPPOSITION:   (Verified5/5/15)


          American Medical Association 
          American Osteopathic Association 
          California Academy of Family Physicians 
          California Chapter of the American College of Cardiology 
          California Chapter of the American College of Emergency  
          Physicians 
          California Medical Association
          California Society of Anesthesiologists 
          California Society of Plastic Surgeons 
          Union of American Physicians and Dentists 
          Numerous individuals

          ARGUMENTS IN SUPPORT:  Supporters of this bill include patient  







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          and employer representatives, healthcare systems, insurers,  
          nursing organizations, pharmacists, naturopaths, and academic  
          institutions.  Supporters recognize the extensive training and  
          certification of NPs ensure patient safety and believe passage  
          of this bill will increase both healthcare access and provider  
          participation in Medi-Cal.

          The California Association of Physician Groups writes that since  
          the implementation of ACA, "?California has added 5 million  
          newly insured patients to the healthcare system.  Recently,  
          newly insured patients tried to find doctors once they had  
          obtained coverage but found that many practitioners had closed  
          their practices to new patients ?. California has an aging  
          primary care physician and osteopathic workforce.  Other states  
          have proven that NPs with full practice authority function well  
          in that role, and there is a wealth of national studies that  
          have analyzed the environments in which full practice authority  
          has been legislated and all have concluded that it is a safe and  
          effective means to increase access to quality care.  While there  
          is a wealth of studies that support this concept, there is  
          little or no evidence to refute it." 

          ARGUMENTS IN OPPOSITION:  Opponents are physician organizations  
          and individuals who are concerned that NPs are insufficiently  
          qualified to practice without supervision and limiting their  
          independent practice to specific settings, as defined in the  
          bill, does not guarantee interdependent practice teams. 

          The California Chapter of the American College of Cardiology  
          (CA-ACC) writes, "CA-AAC worries this bill would fracture health  
          care teams comprised of multiple health care providers working  
          together to provide coordinated care.  Nurse practitioners are  
          an important part of these health care delivery teams working in  
          conjunction with supervising physicians.  Nurse practitioners  
          however, do not have sufficient education and training to  
          examine and diagnose completely independent of physicians and  
          such a practice puts patients at risk."


          Prepared by:Sarah Huchel / B., P. & E.D. / (916) 651-4104
          5/6/15 16:49:43
                                   ****  END  ****









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