BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: SB 586 --------------------------------------------------------------- |AUTHOR: |Hernandez | |---------------+-----------------------------------------------| |VERSION: |February 26, 2015 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |April 22, 2015 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Scott Bain | --------------------------------------------------------------- SUBJECT : Children's services SUMMARY : Requires the Department of Health Care Services (DHCS) to enter into contracts with one or more Kids Integrated Delivery System (KIDS) authorized by this bill to provide the full range of California Children's Services Program (CCS) and Medi-Cal services to children eligible for the CCS and Medi-Cal. Allows an individual on Medi-Cal who is up to 26 years of age who was previously treated for a CCS-eligible condition in the twelve months prior to his or her 21st birthday to remain in a KIDS plan that accepts individuals up to age 26 under its contract with DHCS. Makes permanent, the CCS "carve out" of CCS services from Medi-Cal managed care, except for existing counties and for the newly created KIDS established by this bill. Existing law: 1.Establishes the Medi-Cal Program, administered by DHCS, which provides comprehensive health benefits to low-income children up to 266 percent of the federal poverty level (FPL), parents and adults up to 138 percent of the FPL, pregnant women, and elderly, blind or disabled persons, who meet specified eligibility criteria. 2.Establishes the CCS Program to provide specified medical care and therapy services to children with eligible conditions. 3.Authorizes the state to contract for comprehensive managed health care services for Medi-Cal beneficiaries, and to require mandatory enrollment of Medi-Cal beneficiaries in specified eligibility categories into managed care plans. 4.Prohibits CCS covered services from being be incorporated into any Medi-Cal managed care contract entered into after August SB 586 (Hernandez) Page 2 of ? 1, 1994 until January 1, 2016, except for contracts entered into for county organized health systems or Regional Health Authority in the Counties of San Mateo, Santa Barbara, Solano, Yolo, Marin, and Napa. This is known as the CCS "carve out." 5.Requires the Director of DHCS to establish, by January 1, 2012, organized health care delivery models for CCS-eligible children. Requires these models to be chosen from the following: a. An enhanced primary care case management program; b. A provider-based accountable care organization; c. A specialty health care plan; or, d. A Medi-Cal managed care plan that includes payment and coverage for CCS-eligible conditions. This bill: 1.Permanently extends the CCS "carve out" from Medi-Cal managed care except for either or both of the following: a. Contracts entered into for county organized health systems or Regional Health Authority in San Mateo, Santa Barbara, Solano, Yolo, Marin, and Napa counties; or, b. Contracts entered into under this bill establishing a KIDS. 2.Requires, no later than January 1, 2018, in counties or regions where there is no CCS demonstration project, DHCS to select and enter into contracts with one or more Kids Integrated Delivery System (KIDS), to provide comprehensive health care services to eligible children. 3.Defines a "KIDS" as an entity selected by DHCS to coordinate and manage the provision of Medi-Cal and CCS services for eligible children, on a county or regional basis, consistent with managed care principles, techniques, and practices, to ensure access to cost-effective, quality care for enrolled children. Permits KIDS plan to include either of the following organizational models: a. An entity coordinated through a children's SB 586 (Hernandez) Page 3 of ? hospital with a shared governance structure comprised of providers who are held jointly accountable for achieving measured quality improvements and reductions in the rate of spending growth for Medi-Cal services for enrolled children; or, b. An entity coordinated by a CCS-approved provider with a shared governance structure comprised of providers, including participation by at least one children's hospital, who are held jointly accountable for achieving measured quality improvements and reductions in the rate of spending growth for Medi-Cal services for enrolled children. 4.Defines an "eligible child" for the purposes of KIDS to mean either of the following: a. A minor child under 21 years of age, who is eligible for both Medi-Cal and CCS, except for those children eligible under CCS for neonatal intensive care services; and, b. An individual up to 26 years of age, if the individual was previously treated for a CCS-eligible condition in the twelve months prior to his or her 21st birthday, is eligible for full-scope Medi-Cal services, and voluntarily chooses to remain in a KIDS plan that accepts individuals up to age 26 under its contract with DHCS. 5.Requires a KIDS plan to contract with DHCS to coordinate, integrate, and provide or arrange for the full range of Medi-Cal and CCS services to eligible children enrolled in the KIDS plan. 6.Requires a KIDS plan contract to exclude, at a minimum, specialty mental health services provided by county mental health plans and neonatal intensive care (NICU) services. Permits a KIDS contract to exclude other Medi-Cal services, as determined by DHCS, including, but not limited to, long-term care, transplantation, and dental services; 7.Permits benefits of the CCS Medical Therapy Program to be provided or coordinated by a KIDS plan, in collaboration and SB 586 (Hernandez) Page 4 of ? consultation with the designated county CCS agency or agencies in the KIDS plan service area; 8.Requires a KIDS plan to: a. Provide services to enrollees through a team-based, patient-centered health home model, ensure that enrolled children receive services in the most appropriate and least restrictive setting, and adopt effective strategies to manage and coordinate care and services for enrolled children; b. Report and comply with quality measures, including, but not limited to, Medi-Cal Healthcare Effectiveness Data and Information Set (HEDIS) measures appropriate for enrolled children, the national Pediatric Quality Measurement System for children's hospitals, and other quality measures developed by DHCS in consultation with stakeholders; c. Participate in a nationally recognized pediatric patient safety organization; d. Comply with readiness criteria, network adequacy standards, and other appropriate standards applicable to Medi-Cal managed care plans, as determined by DHCS in consultation with stakeholders, and any terms of the federal approvals obtained by DHCS; and, e. Establish and maintain a family advisory council composed of families of eligible children and convene the advisory council at least quarterly. 9.Requires DHCS to give special consideration in the KIDS selection process to entities that meet specified criteria, including an entity that demonstrates experience in effectively serving eligible children and providing services in compliance with CCS program standards and requirements, that includes in the plan a sufficient number of CCS-paneled providers to ensure continuity of care and timely access to quality services, that develops the KIDS plan through a local collaborative stakeholder process, and that incorporates specific strategies to actively engage families as partners in decisions affecting the health care and well-being of children enrolled in the KIDS plan. 10.Permits contracts with KIDS plans to include opportunities to share in the risk of providing services to KIDS enrollees SB 586 (Hernandez) Page 5 of ? under an agreement between DHCS and the KIDS plan. Requires any shared savings that result from these arrangements to be reinvested in services provided to children enrolled in the KIDS plan. 11.Prohibits DHCS from entering into risk-sharing arrangements with a KIDS plan for specific covered services unless the KIDS plan is responsible for the management and authorization of those services. 12.Requires payments to a KIDS plan that agrees to accept risk-sharing to be actuarially sound. 13.Requires eligibility for enrollment in a KIDS plan to be determined in accordance with all of the following: a. Requires children to be deemed eligible for enrollment in a KIDS plan based on eligibility for the CCS program, except a child receiving NICU services is be eligible for enrollment until the child is discharged from the NICU and meets other requirements; and, b. Requires eligible children to be enrolled on a mandatory basis, to the extent that DHCS obtains federal approval to require eligible children to enroll in an available KIDS plan in order to receive Medi-Cal and CCS services. 14.Requires enrollment in a KIDS plan to be, at a minimum, for the period of a child's CCS eligibility plus an additional six months, provided that the child remains eligible for Medi-Cal. 15.Allows KIDS plan enrollees who continue to remain eligible for Medi-Cal to remain in the KIDS plan for up to 12 months following the termination of CCS eligibility if the KIDS program and the parent, guardian or person responsible for care of the child agree that it is in the best interests of the child. 16.Requires the child to be enrolled in the available KIDS plan, if a KIDS plan becomes newly available in a service area, or if a child becomes newly eligible for a KIDS plan. 17.Requires DHCS to determine, in consultation with counties, SB 586 (Hernandez) Page 6 of ? KIDS plans, local KIDS family advisory councils, and existing Medi-Cal managed care plans in the service area, the timing and process for enrollment in KIDS plans to ensure a smooth transition for eligible children. 18.Permits the parent, guardian, or person responsible for the care of the eligible child to select the KIDS plan in which the child will be enrolled if there is more than one KIDS plan in the county or region in which the child lives. Requires the child to be assigned to a KIDS plan in a manner that ensures the least disruption in existing patient-provider relationships if the family does not select a KIDS plan. 19.Requires, upon enrollment of an eligible child in a KIDS plan, the parent, guardian, or person responsible for the care of the child to be informed that the child may choose to continue an established patient-provider relationship if his or her treating provider is a primary care provider or clinic contracting with the KIDS, has the available capacity, and agrees to continue to treat that eligible child. Requires KIDS plans to comply with a continuity of care requirement applicable to health plans. 20.Requires, within 30 days of notice that a child is no longer eligible for a KIDS plan, a child who continues to be eligible for Medi-Cal to be enrolled in the Medi-Cal delivery system in the county in which he or she resides. Requires DHCS to ensure that families receive information about the Medi-Cal delivery systems available in their county and the process for enrolling in and selecting among the available options. 21.Requires, when children are disenrolling from a KIDS plan because they are no longer eligible, children to be enrolled in Medi-Cal delivery systems as follows: a. Requires the child to be enrolled in the Medi-Cal managed care plan if there is a Medi-Cal managed care plan in the county of the child's residence; b. Requires, if the family does not choose a plan for the child within 30 days of notice of disenrollment from the KIDS in counties where there is more than one Medi-Cal managed care plan, the child to be enrolled into the Medi-Cal managed care health plan that contains his or her primary care provider. SB 586 (Hernandez) Page 7 of ? Requires the child to be assigned to one of the health plans containing his or her primary care provider in accordance with the assignment process applicable in the county if the primary care provider participates in more than one managed care health plan in the county; and, c. Requires, in a county that is not a managed care county, children no longer eligible for KIDS to be provided services under the Medi-Cal fee-for-service (FFS) delivery system. 22.Requires DHCS to instruct KIDS plans, counties, and managed care plans, by means of all-county and all-plan letters or similar instruction, as to the processes to be used to enroll and disenroll children in KIDS plans and to re-enroll eligible children in local Medi-Cal coverage options, to ensure each child experiences a smooth transition among coverage types with no gap in coverage or care. 23.Requires that a child who is enrolled in a KIDS plan to retain all rights to CCS program appeals and fair hearings of denials of medical eligibility or of service authorizations. 24.Requires DHCS to seek all necessary federal approvals to ensure federal financial participation in expenditures under this section. Prohibits the KIDS provisions of this bill from being implemented until necessary federal approvals have been obtained. 25.Permits DHCS to seek federal approval to require all eligible children to enroll in an available KIDS plan during the length of their eligibility for CCS plus an additional six months. Permits a child to voluntarily remain in the KIDS for up to 12 months following termination of CCS eligibility if the child remains Medi-Cal-eligible. 26.Makes legislative findings and declarations regarding CCS, and states legislative intent to modernize the CCS program through development of specialized integrated delivery systems focused on the unique needs of CCS-eligible children, and to protect the unique access to pediatric specialty services provided by CCS while promoting modern organized delivery systems to meet the medical care needs of eligible children. FISCAL SB 586 (Hernandez) Page 8 of ? EFFECT : This bill has not been analyzed by a fiscal committee. COMMENTS : 1.Author's statement. According to the author, this bill authorizes the creation of KIDS to improve and modernize the CCS program. CCS provides diagnosis, treatment, and case management to approximately 180,000 medically fragile children under the age of 21 with complex medical needs who meet certain eligibility criteria. CCS has been carved out of Medi-Cal managed care since 1993 because the Legislature recognized this population required a unique approach. In the twenty-three years since that time, the carve-out has been extended numerous times, and the state has engaged in periodic, unsuccessful, efforts to modernize the program. December 31, 2015 marks the end of the current carve-out and the Administration has clearly signaled that they will support an extension of the carve-out only if it is accompanied by a plan for a more organized delivery system. This bill provides that system. This bill extends the carve-out, preserves the CCS standards of care, and creates networks responsible for providing or coordinating all medical care services to CCS children through a patient-centered medical home, thus improving coordination between primary and specialty care services for beneficiaries. Additionally, the bill requires CCS providers to work collaboratively with each other and families, in order to ensure CCS children continue to receive access to the highest quality care. 2.CCS. The CCS program provides diagnostic and treatment services, medical case management, and physical and occupational therapy health care services to children under 21 years of age with CCS-eligible conditions (e.g., severe genetic diseases, chronic medical conditions, infectious diseases producing major sequelae, and traumatic injuries) from families unable to afford catastrophic health care costs. A child eligible for CCS must be a resident of California, have a CCS-eligible condition, and be in a family with an adjusted gross income of $40,000 or less in the most recent tax year. Children in families with higher incomes may still be eligible for CCS if the estimated cost of care to the family in one year is expected to exceed 20 percent of the family's adjusted gross income. The CCS program is administered as a partnership between county SB 586 (Hernandez) Page 9 of ? health departments and DHCS. In counties with populations greater than 200,000 (independent counties), county staff perform all case management activities for eligible children residing within their county. This includes determining all phases of program eligibility, evaluating needs for specific services, determining the appropriate provider(s), and authorizing for medically necessary care. For counties with populations under 200,000 (dependent counties), the Children's Medical Services Branch of DHCS provides medical case management and eligibility and benefits determination through its regional offices. CCS authorizes and pays for specific medical services and equipment provided by CCS-approved specialists. CCS rates for physician services provided under CCS are reimbursed at rates which are 39.7 percent greater than applicable Medi-Cal rate. CCS hospital inpatient rates are the same as those in Medi-Cal. As of January, 2010, there were 178,530 children enrolled in CCS. According to DHCS, 90 percent of CCS enrollees are also eligible for Medi-Cal and 10 percent were CCS-only or were covered by other insurance. 3.Medi-Cal managed care and the CCS carve out. Most Medi-Cal beneficiaries, including children, are required to enroll in Medi-Cal managed care plans. However, for children who are enrolled in both Medi-Cal and CCS, CCS services were carved out of Medi-Cal managed care pursuant to SB 1371 (Bergeson), Chapter 917, Statutes of 1994. Under the carve out, CCS-covered services for CCS-eligible children are not incorporated into Medi-Cal managed care, and are instead provided and paid for on a FFS basis through the CCS Program. The initial carve out under SB 1371 was for three years. The CCS carve out has been extended repeatedly since then, usually for three or four year periods. The first extension allowed the COHS in the counties of San Mateo, Santa Barbara, Solano, and Napa to include CCS services. Later extensions also allowed Yolo and Marin counties to include CCS services. DHCS indicates the division of payment and care between CCS and the primary Medi-Cal managed care plan has posed challenges, including delays in care for children, fragmentation and a lack of coordination, and increased cost to the state. 4.Medi-Cal Waiver and CCS pilots. SB 208 (Steinberg), Chapter SB 586 (Hernandez) Page 10 of ? 714, Statutes of 2010, was one of two bills in 2010 implementing the 2010 Medi-Cal waiver renewal. One provision of SB 208 was a requirement that the DHCS director establish, by January 1, 2012, organized health care delivery models for CCS-eligible children, from four specified models. Five demonstration applicants (San Mateo Health Plan, Alameda County, LA Care, Children's Hospital Orange County, and Rady Children's Hospital in San Diego) were approved in 2011, but only the San Mateo Health Plan pilot has been implemented. The Rady Children's Hospital in San Diego is for a subset of CCS-eligible children with specified conditions but it has not been implemented. 5.CCS Redesign Stakeholder Advisory Board. DHCS has implemented a stakeholder process to investigate potential improvements or changes to the CCS program in partnership with the UCLA Center for Health Policy Research. A CCS Redesign Stakeholder Advisory Board (RSAB) composed of individuals from various organizations and backgrounds with expertise in both the CCS program and care for children and youth with special health care needs, was assembled in September of 2014 to lead this process. According to DHCS, the CCS RSAB goals are to: a. Implement Patient and Family Centered Approach: provide comprehensive treatment, and focus on the whole-child rather than only their CCS eligible conditions. b. Improve Care Coordination through an Organized Delivery System: provide enhanced care coordination among primary, specialty, inpatient, outpatient, mental health, and behavioral health services through an organized delivery system that improves the care experience of the patient and family. c. Maintain Quality: ensure providers and organized delivery systems meet quality standards and outcome measures specific to the CCS population. d. Streamline Care Delivery: improve the efficiency and effectiveness of the CCS health care delivery system. e. Build on Lessons Learned: consider lessons learned from current pilots and prior reform efforts, as well as delivery system changes for other Medi-Cal populations. SB 586 (Hernandez) Page 11 of ? f. Cost-Effective: ensure costs are no more than the projected cost that would otherwise occur for CCS children, including all state-funded delivery systems. Consider simplification of the funding structure and value-based payments, to support a coordinated service delivery approach. 1.Related legislation. AB 187 (Bonta), would extend the CCS carve out until DHCS has completed evaluations of the CCS pilot programs established under SB 208. 2.Prior legislation. a. AB 301 (Pan), Chapter 460, Statutes of 2011, extended the CCS carve out sunset date from January 1, 2012, to January 1, 2016. b. SB 208 (Steinberg), Chapter 714, Statutes of 2010, implemented the new 2010 Medi-Cal Section 1115 Waiver, and required DHCS to establish a pilot project and seek proposals to test four models exploring potential options to redesign the CCS Program. c. AB 2379 (Chan), Chapter 333, Statutes of 2007, extended the CCS carve out sunset date from August 1, 2008, to January 1, 2012. d. SB 1103 (Committee on Budget and Fiscal Review), Chapter 228, Statutes of 2004, extended the sunset on the carve-out from August 1, 2005 to September 1, 2008. e. AB 3049 (Committee on Health), Chapter 536, Statutes of 2002, extended the CCS carve out sunset on the carve-out from August 1, 2003 to August 1, 2005 and added COHS in Yolo and Marin counties to the list of exceptions to the carve-out. f. AB 1107 (Cedillo), Chapter 146, Statutes of 1999, extended the CCS carve out sunset date until August 1, 2003. g. AB 469 (Papan) of 1999 would have allowed Medi-Cal beneficiaries in the CCS Program to disenroll from mandatory managed care if certain conditions are met. AB 469 was vetoed by then Governor Davis. SB 586 (Hernandez) Page 12 of ? h. SB 391 (Solis), Chapter 294, Statutes of 1997, extended the CCS carve-out until August 1, 2000, except for contracts entered into for COHS in the counties of San Mateo, Santa Barbara, Solano, and Napa. i. SB 1371 (Bergeson), Chapter 917, Statutes of 1994, required that CCS-eligible services be carved out of any Medi-Cal managed care contract until three years after the effective date of the contract. 3.Support. This bill is sponsored by the California Children's Hospital Association (CCHA), which argues this bill would protect CCS and create KIDS to modernize the delivery system. CCHA argues the KIDS networks will use a whole child approach to health care, improving coordination between primary and specialty care services while retaining the high quality health care available through CCS because the CCS program will only remain statutorily carved out of Medi-Cal managed care until the end of 2015. CCHA argues this bill is a thoughtful, provider driven, patient-centered approach that preserves the positive aspects of the CCS program while creating a delivery system tailored to the needs of children with complex medical needs and their families. CCHA states KIDS networks would be responsible for providing primary and specialty medical care services to enrolled children through a team-based, patient-centered health home model in the least restrictive, most appropriate setting. CCHA argues this bill would ensure that CCS standards are retained to ensure pediatric expertise, preserve access to high quality providers, and ensure that families are involved in decisions around the medical care provided to their children, CCS providers would be required to work together in order to improve care coordination and health outcomes, and the regional system of care comprised of CCS hospitals, physicians, and special care centers benefit not only those children who receive services through CCS as these same providers form the regional backbone for all pediatric specialty care in California for children who are privately insured as well as those receiving government-subsidized care. Western Center on Law & Poverty (WCLP) writes in support that it hopes that coordinating the care of these vulnerable children with existing CCS providers and requirements for coordinating, integrating and arranging for both Medi-Cal and SB 586 (Hernandez) Page 13 of ? CCS services will provide better care than the current bifurcated system. WCLP argues the provision of the bill which allows an individual to continue to receive services through a KIDS plan up to the age of 26 is very important as when CCS-eligible children turn 21, they have a very difficult transition off of the program and difficulty forming an appropriate network of specialty providers. WCLP writes that this bill allows KIDS plans to have the opportunity to share in the risk of providing the services, and whether plans decide to assume risk or not, WCLP urges that the plans be subject to Knox-Keene requirements, preferably through licensure but at a minimum through contract. WCLP states Knox-Keene includes innumerable consumer protections from required benefits to grievance, appeal and Independent Medical Review procedures. WCLP also writes that it supports the request by Disability Rights California to ensure that Medi-Cal due process rights apply and it appreciates the author's willingness to add language to that effect. 9.Support if Amended. Disability Rights California (DRC) writes it supports the provisions of this bill having all services delivered through a managed care plan consisting of CCS-paneled physicians and special care centers, continuing CCS eligibility up to age 26 as this option addresses the unique and very difficult transition problems faced by children "aging out" of CCS, and the provisions providing for continuing coverage through a KIDS. DRC argues Medi-Cal due process and fair hearing rights under the Medi-Cal program should apply, including Medicaid managed care regulations. DRC also urges any initial period of managed care not be at risk and be used as a means of establishing actuarial data. DRC concludes that if the KIDS are not Knox-Keene licensed, then relevant Knox-Keene consumer protections be incorporated into any contract. 10.Opposition. The American Academy of Pediatrics, California (AAPC) writes in opposition that children with CCS-eligible conditions are among the most vulnerable in the state, and the state should not decide upon a specific model for redesign of this essential system of care in advance of data currently being collected and a robust stakeholder process that is underway. AAPC argues that changing to a new model requires policies/elements that cannot be fully understood until the pilots and stakeholder process are complete and recommendations are available to those involved. SB 586 (Hernandez) Page 14 of ? The California Association for Health Services at Home (CAHSAH) argues that it is concerned about the impact of managed care expansions on home and community-based services, especially given the problems that have already occurred with the Coordinated Care Initiative (CCI). CAHSAH argues managed care entities do not understand the home health services of this unique population, and they have experienced denials of care and delayed authorizations that were approved under Medi-Cal FFS. CAHSAH argues managed care delivery systems reimbursement rates must take into account the acuity level differences in this population, the need for a long-term guarantee of coverage to beneficiaries, timely authorizations of care, that managed care case managers understand the full nature of services available under Medi-Cal, and that the managed care delivery system address provider grievances and resolution of those grievances using the same medically necessity criteria used FFS Medi-Cal. 11.Oppose unless amended. The California Medical Associations (CMA) states it believes that any redesign of CCS should be informed by both the state's RSAB and by evaluation of data from the two pilot projects currently underway to assess the benefit and cost of directions for change for CCS. CMA argues it would be prudent to not move forward with this bill this year to allow those processes to play out. CMA indicates it would remove its opposition to the bill if it is amended to extend the current managed care carve out of CCS for an additional year while the stakeholder board completes its work and the state reports back on data from the pilot projects. Kaiser Permanente (KP) writes this bill will unnecessarily disrupt the coordinated and centralized primary and specialty care its over 11,000 CCS-eligible kids already receive through its four CCS-certified tertiary medical facilities 64 CCS-certified special care centers. KP argues that, under this bill, it appears that in order to be allowed to continue to provide care to CCS children in KP, it would be required to contract with a free-standing children's hospital as part of a separate KIDS network. KP seeks an amendment to allow CCS children to remain in KP. 12.Concerns. The California Association of Health Plans (CAHP) writes expressing concern with the requirement that health care practitioners be CCS paneled providers as there is a SB 586 (Hernandez) Page 15 of ? backlog of approvals. CAHP argues the ability to panel providers should be given to children's hospitals and DHCS. CAHP also expresses concern with continuity of care as children will be moving back and forth between KIDS and health plan networks. CAHP argues there is a need for a careful detailed analysis of CCS-eligible conditions to redefine medical eligibility for the CCS program to reduce children moving back and forth across networks. CAHP also argues there needs to be a stronger requirement for facilitated communications between DHCS, KIDS, counties and health plans to be fully outlined and understood as the lack of coordination between these systems is an issue today that is not sufficiently addressed in the bill as currently drafted. CAHP also states that it is unclear how children with chronic conditions will be transitioned out of the program at age 21 or 26 as transitions to appropriate adult specialists should be done in a collaborative manner in order to protect the individuals and ensure age appropriate care is provided. 13.Proposed author's amendment. The author is offering amendment below to allow additional CCS providers with appropriate expertise to form KIDS networks: (2) "Kids Integrated Delivery System (KIDS)" means an entity selected by the department to coordinate and manage the provision of Medi-Cal and CCS services for eligible children, on a county or regional basis, consistent with managed care principles, techniques, and practices, to ensure access to cost-effective, quality care for enrolled children. A KIDS plan may include either of the following organizational models: (A) An entity coordinated through a children's hospital with a shared governance structure comprised of providers who are held jointly accountable for achieving measured quality improvements and reductions in the rate of spending growth for Medi-Cal services for enrolled children. (B) An entity coordinated by a CCS-approved provider with a shared governance structure comprised of providers, including participation by at least one children'shospital,hospital or a hospital that was designated, prior to January 1, 2016, as a CCS tertiary hospital, and as of that date, holds a designation as a CCS tertiary hospital pursuant to the Standards for Tertiary Hospitals set forth in the California Children's Services Manual of Procedures, who are held jointly accountable for achieving measured SB 586 (Hernandez) Page 16 of ? quality improvements and reductions in the rate of spending growth for Medi-Cal services for enrolled children. SUPPORT AND OPPOSITION : Support: California Children's Hospital Association (sponsor) California WIC Association Children's Hospital of Los Angeles Children's Hospital and Research Center Oakland Children's Hospital of Orange County (CHOC) Children's Children's Hospital of Orange County (CHOC) Physician Network Children's Specialty Care Coalition Lucille Packard Children's Hospital Stanford Together We Grow Rady Children's Hospital San Diego Valley Children's Healthcare, Inc. Valley Children's Primary Medical Group, Inc. Oppose: American Academy of Pediatrics California Association for Health Services at Home California Medical Association (unless amended) Kaiser Permanente (unless amended) -- END --