BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 23, 2015


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                Susan Bonilla, Chair


                      SB 337(Pavley) - As Amended June 16, 2015


          SENATE VOTE:  38-0


          SUBJECT:  Physician assistants.


          SUMMARY:  Authorizes a physician supervising a physician  
          assistant (PA) to use two additional mechanisms for the general  
          supervision of a PA, authorizes a physician to use one  
          additional mechanism for the supervision of a PA that  
          administers a Schedule II controlled substance, and requires a  
          PA's patient medical records to identify the PA's supervising  
          physician. 


          EXISTING LAW:


          1)Establishes the Physician Assistant Board (PAB) within the  
            jurisdiction of the Medical Board of California (MBC) to  
            license and regulate PAs.  (Business and Professions Code  
            (BPC) § 3504)
          2)Requires a PA and the supervising physician to establish  
            written guidelines for the adequate supervision of the PA, and  
            the requirement may be satisfied by the supervising physician  
            adopting protocols for some or all of the tasks performed by  
            the PA.  (BPC § 3502 (c)(1))








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          3)Requires a supervising physician to be available in person or  
            by electronic communication at all times when the PA is caring  
            for patients.  (Title 16, California Code of Regulations (CCR)  
            § 1399.545 (a))


          4)Requires a supervising physician to delegate to a PA only the  
            tasks and procedures consistent with the supervising  
            physician's specialty or usual and customary practice and with  
            the patient's health and condition, and requires the  
            supervising physician to observe or review evidence of the  
            PA's performance of all tasks and procedures to be delegated  
            to the PA until the physician is assured of the PA's  
            competency.  (16 CCR § 1399.545 (b)(c))


          5)Requires a supervising physician to review, countersign, and  
            date a sample consisting of, at a minimum, five percent of the  
            medical records of patients treated by the PA within 30 days  
            of the date of treatment.  Requires the supervising physician  
            to select for review those cases that by diagnosis, problem,  
            treatment, or procedure represent, in his or her judgement,  
            the most significant risk to the patient.  (BPC § 3502 (c)(2))


          6)Authorizes the MBC or the PAB to establish other alternative  
            mechanisms for the adequate supervision of the PA.  (BPC §  
            3502 (c)(3))


          7)Requires a supervising physician who delegates the authority  
            to issue a drug order to a PA to first prepare and adopt a  
            formulary and protocols that specify all criteria for the use  
            of a particular drug or device, and any contraindications for  
            the selection.  Protocols for Schedule II controlled  
            substances must address the diagnosis of illness, injury, or  
            condition for which the Schedule II controlled substance is  








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            being administered, provided, or issued.  (BPC § 3502.1(a)(2))


          8)Requires a supervising physician to review and countersign  
            within seven days the record of any patient cared for by a PA  
            for whom the PA's Schedule II drug order has been issued or  
            carried out.  (BPC § 3502.1 (e))


          9)Allows a PA to administer Schedule II, III, IV and V drug  
            orders without advance approval from a supervising physician  
            if the PA has completed an education course that covers  
            controlled substances and that meets standards, including  
            pharmacological content, approved by the PAB. The education  
            course must be provided either by an accredited continuing  
            education provider or by an approved PA training program. For  
            Schedule II controlled substances, the course must contain a  
            minimum of three hours exclusively on Schedule II controlled  
            substances.  (BPC § 3502.1 (c)(2))


          10)Requires PAs who are authorized by their supervising  
            physician to issue drug orders for controlled substances to  
            register with the United States Drug Enforcement  
            Administration (DEA).  (BPC § 3502.1 (f))


          THIS BILL:


          11)Revises the definition of "medical records review meeting" to  
            mean a meeting between the supervising physician and the PA  
            during which medical records are reviewed to ensure adequate  
            supervision of the PA functioning under protocols. 


          12)Authorizes the supervising physician and PA to hold medical  
            records review meetings in person or by electronic  
            communication. 








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          13)Requires the medical record, for each episode of care for a  
            patient, to identify the physician who is responsible for the  
            supervision of the PA.


          14)Authorizes a physician to choose from two additional  
            mechanisms to supervise a PA, making a total of three  
            mechanisms:


             a)   Conduct a medical records review meeting at least once a  
               month during at least 10 months of the year-any month in  
               which a medical records review meeting occurs, the  
               supervising physician and PA must review an aggregate of at  
               least 10 medical records of patients treated by the PA.   
               Documentation of medical records reviewed during the month  
               must be jointly signed and dated by the supervising  
               physician and the PA.
             b)   Develop review methods for the review of cases involving  
               treatment by the PA.  The review methods must be identified  
               in the delegation of services agreement and include at  
               least an aggregate of 10 cases per month for at least 10  
               months of the year.  Documentation of the cases reviewed  
               during the month must be jointly signed and dated by the  
               physician and PA. 


          15)States that, in complying with the supervision requirements  
            above (number 4), the physician must select for review those  
            cases that by diagnosis, problem treatment, or procedure  
            represent, in the physician's judgment, the most significant  
            risk to the patient.  
          16)States that compliance with BPC § 3502 (numbers 3-5 above)  
            will be also considered compliance with § 1399.546 of Title 16  
            of the California Code of Regulations. 










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          17)Authorizes a physician to use an additional mechanism for the  
            supervision of a PA that prescribes a Schedule II controlled  
            substance.  The physician may review, countersign, and date,  
            within seven days, a sample consisting of the medical records  
            of at least 20 percent of the patients with the PA's Schedule  
            II prescriptions if:  


             a)   The PA has: 
               i)     Completed a controlled substances education course  
                 that meets the standards established in the PAB's  
                 regulations and is provided either by an accredited  
                 continuing education provider or by an approved physician  
                 assistant training program; or,
               ii)The PA has a certificate of completion of the course  
                 described BPC § 3502.1(c)(2); and,


             b)   The supervision is verified and documented in the manner  
               established by the PAB's regulations.    
          18)Makes other minor technical and clarifying changes.  
          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, this bill will result  
          in negligible state costs.


          COMMENTS:


          Purpose.  This bill is sponsored by the  California Academy of  
          Physician Assistants  .  According to the author, "[This bill]  
          increases options for the physician/PA team to document  
          supervision.  The options included in the bill will strengthen  
          the team-based approach by encouraging more active discussion  
          during the records review.


          The Patient Protection and Affordable Care Act has resulted in  
          millions of additional people seeking health care services in  








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          California.  This increase has created an even greater need for  
          high quality, efficient team-based care across all medical  
          settings. 


          This is especially true for the practice of physician  
          assistants, who are authorized to provide physician exams,  
          diagnose and treat illness, and prescribe medication, under the  
          supervision of a physician.  [This bill] recognizes the growing  
          changes in medical practice settings and the use of electronic  
          medical records to update methods for documentation of the  
          supervision of PAs and encourages more interactive review of  
          patient cases."


          Background.  According to the PAB, a PA is a licensed health  
          care professional, trained to provide patient evaluation,  
          education, and health care services. A PA works with a physician  
          to provide medical care and guidance needed by a patient.


          In order to become a PA, an applicant must attend a specialized  
          medical training program associated with a medical school that  
          includes classroom studies and clinical experience.  Upon  
          graduation from the program, an academic degree or certificate  
          is awarded.  Many PAs already have two or four year academic  
          degrees before entering a PA training program.  Most PA training  
          programs require prior health care experience.


          While a licensed PA is authorized to perform many of the same  
          health care services as a physician, the services the PA may  
          provide are limited to the services expressly authorized by the  
          PA's supervising physician.  The physician's written  
          authorization is known as a delegation of services agreement.   
          In the agreement, the physician is allowed to authorize only the  
          services that the physician determines the PA competent to  
          perform, consistent with the PA's education, training, and  
          experience. 








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          As of June 2013, there were about 9,000 active PA licenses in  
          California.


          General Supervision Requirements.  Existing law requires each PA  
          to be supervised by at least one physician.  The physician may  
          supervise the PA either when both are at the same location or by  
          telephone.  Further, the physician must be physically or  
          electronically available to the PA at the time of treatment.  


          The PA and the supervising physician must also establish written  
          guidelines for the adequate supervision of the PA.  The  
          requirement may be satisfied by adopting protocols for some or  
          all of the tasks performed by the PA. 


          In addition, the physician is responsible for following each  
          patient's progress and must review, countersign, and date a  
          sample of at least five percent of a PA's patient medical  
          records within 30 days of treatment.  The physician decides to  
          review cases that represent the most significant risk to the  
          patient.


          According to the author, the current five percent requirement  
          does not accommodate all care delivery models, which can lead to  
          less access to care and supervision issues. This bill seeks to  
          add two additional mechanisms to allow a supervising physician  
          more options to adequately supervise a PA:


          1)Allow the physician to conduct a medical records review  
            meeting at least once a month during at least 10 months of the  
            year.  In the months in which a medical records review meeting  
            occurs, the physician and PA must review at least 10 of the  
            PA's patient medical records.  This option would allow a  








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            physician to spread the meetings out over the year rather than  
            as the treatments occur. 


          2)Allow the physician to develop the method for reviewing cases.  
             The review methods must be identified in the delegation of  
            services agreement and include at least an aggregate of 10  
            cases per month for at least 10 months of the year.  This  
            option would allow the physician to combine several months of  
            review, for instance if the physician wants to physically  
            review the records but is only in the area six months out of  
            the year.


          Supervision of Controlled Substances.  Under the United States  
          Controlled Substances Act, the DEA classifies drugs into five  
          categories (schedules), depending upon the drug's acceptable  
          medical use and the drug's abuse or dependency potential.  As  
          the schedule number decreases, the higher the concern for  
          potential abuse-Schedule V drugs present the least potential for  
          abuse, while Schedule II drugs are considered to have a high  
          potential.  Schedule I drugs typically have no accepted medical  
          purpose.  


          Existing law allows a supervising physician to authorize a PA to  
          prescribe drugs classified as Schedule II, III, IV and V if:  


          3)The physician develops practice specific, written protocols  
            and formularies.  The protocols for Schedule II controlled  
            substances must address diagnosis of illness, injury, or  
            condition for which the drug is being prescribed;  
          4)The PA registers with the DEA; and,


          5)The PA obtains advanced approval from the physician.










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          In addition, a PA may prescribe controlled substances without  
            advanced approval by the supervising physician if the PA has  
            completed a controlled substance education course that meets  
            standards approved by the PAB.  For Schedule II controlled  
            substances, the course must spend at least three hours  
            exclusively on Schedule II controlled substances.  


          There is also an additional supervision requirement for Schedule  
            II controlled substances-the physician must reviews,  
            countersign, and date the medical record of all the PA's  
            patients within seven days of prescribing the drug.  Schedule  
            III and IV drugs do not have a countersigning requirement, but  
            the physician is still required to review the medical records  
            of the PA's patients overall.  The PAB is also required to  
            consult with the Medical Board of California and report during  
            sunset review the impacts of the exemption.  The PAB is up for  
            sunset review in 2016.   


          According to the author, the 100% countersigning requirement is  
          also prohibitive to many new care delivery models.  Because  
          existing law allows a physician to provide supervision  
          electronically, PA-lead clinics may be unable to provide  
          Schedule II drugs if the physician must be physically available  
          to countersign the medical records within seven days for every  
          prescription.  Further, there are still the general supervision  
          requirements, which may create a duplicative or overlapping  
          signing requirement for Schedule II drugs.


          The Reclassification of HCP to Schedule II.  In August of 2014,  
          the DEA published a final rule, effective October 6, 2014,  
          following recommendations from the U.S. Food and Drug  
          Administration (FDA) to reclassify hydrocodone combination  
          products (HCP) from a Schedule III controlled substance to a  
          Schedule II.  HCP products, such as Vicodin, are popular  
          alternatives to Oxycodone for pain management (due to risk of  
          addiction and side effects).  According to the author, "the new  








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          ruling restricts the ability of a practice to fully utilize the  
          PAs they employee as there is no other profession with  
          prescribing privileges that has that level of mandate for  
          documentation."   


          Other States.  The Schedule II countersigning requirements vary  
          from state-to-state. Some states have no countersigning  
          requirement and others do not permit PAs to administer Schedule  
          II drugs at all. 


          Prior Related Legislation.  SB 1069 (Pavley), Chapter 512,  
          Statutes of 2010, authorized a PA, pursuant to a delegation of  
          services agreement, to order durable medical equipment, certify  
          unemployment insurance disability, and for individuals receiving  
          home health services or personal care services, after  
          consultation with the supervising physician, approve, sign,  
          modify, or add to a plan of treatment or plan of care. The bill  
          also authorized PAs to conduct specified medical examinations  
          and sign corresponding medical certificates for various  
          individuals.


          AB 3 (Bass), Chapter 376, Statutes of 2007, created the  
          "California Team Practice Improvement Act" which deleted the  
          prohibition on the authority of a PA to issue a drug order for  
          specified classes of controlled substances if the PA has  
          completed a specified education course, required a PA and his or  
          her supervising physician to establish written supervisory  
          guidelines and protocols, increased to four the number of PAs a  
          physician may supervise, and specified that services provided by  
          a PA are included as covered benefits under the Medi-Cal  
          program.


          AB 2626 (Plescia) Chapter 452, Statutes of 2004, removed the  
          requirement for the supervising physician to review, co-sign and  
          date each prescription written by a PA and limited the  








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          co-signature requirement to each Schedule II drug order written  
          by a PA.


          ARGUMENTS IN SUPPORT: 


          The  California Academy of Physician Assistants  (sponsor) writes  
          in support, "Established over 30 years ago, existing law  
          stipulates supervision criteria between a supervising physician  
          and surgeon and the [PA].  It narrowly defines documentation of  
          this required supervision in the form of the supervising  
          physician co-signature on the medical record and prescriptions.  
          [This bill] increases the options for documenting supervision  
          between a supervising physician and PA would allow for  
          flexibility at the practice level to reflect current models of  
          team-based care. This bill will allow physicians and PA's to  
          spend more time with patients."


          ARGUMENTS IN OPPOSITION:


          The  Medical Board of California  writes in opposition, "[the MBC]  
          recognizes that the intent of this bill is to provide  
          flexibility and allow for a more team-based approach in PA  
          supervision, which the [MBC] believes is a laudable goal.  The  
          recent amendments addressed concerns raised by the [MBC]?.   
          However, the [MBC] still has concerns related to the reduced  
          physician review of Schedule II drug orders from 100 percent to  
          20 percent, as this is a significant reduction of supervising  
          physician review for types of opioid medications that are  
          prevalent for abuse." 


          REGISTERED SUPPORT:  


          California Academy of Physician Assistance (sponsor)








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          CAPG, the Voice of Accountable Physician Groups


          Pacific Pain Medicine Consultants


          Planned Parenthood


          253 PAs 


          56 M.D.s and D.O.s




          REGISTERED OPPOSITION:  
          Medical Board of California


          California Pharmacists Association




          Analysis Prepared by:Vincent Chee / B. & P. / (916) 319-3301