SB 648, as amended, Mendoza. Health and care facilities: referral agencies.
Existing law requires a
begin delete health careend delete referral agency to obtain a license from the State Department of Public Health in order to refer a person to any extended care facility, skilled nursing home, or intermediate care facility. Existing law exempts a local public agency performing referral services without cost from these provisions. Under existing law, a violation of these provisions is subject to a civil penalty and suspension or revocation of the license.
This bill would additionally require a referral agency to obtain a license in order to refer a person to a residential care facility for the elderly.
begin delete The bill would require a referral agency to visit an extended care facility, skilled nursing home, intermediate care facility, or residential care facility for the elderly
at a time designated by the licensee and client within a reasonable time after a move is completed as a result of a referral from that referral agency.end delete
The bill would prohibit a referral agency from holding any power of attorney or any other property of a begin delete client. The billend delete would require begin delete that referral agenciesend delete provide specified written notice to each person receiving its services. The bill would also require referral agencies to maintain liability insurance in specified amounts.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1400 of the Health and Safety Code is
2amended to read:
(a) It is unlawful for any person, association, or
4corporation to establish, conduct, or maintain a referral agency or
5to refer any person for remuneration to any extended care facility,
6skilled nursing home, intermediate care facility, or residential care
7facility for the elderly, or a distinct part of a facility providing
8extended care, skilled nursing home care, or intermediate care,
9without first having obtained a written license as provided in this
10chapter from the director or from an inspection service approved
11by the director pursuant to Section 1257.
12(b) It is unlawful for any person, association, or corporation to
13establish, conduct, or maintain a referral agency or to refer any
14person for remuneration to any person or agency outside a
15long-term health care facility, as defined in Section 1418, for
16professional services for which the long-term health care facility
17does not employ a qualified professional person to furnish a
18specific service, including, but not limited to, laboratory,
19diagnostic, or therapy services, unless the long-term health care
20facility complies with current federal and state laws regarding the
21provision of these services and all of the following conditions are
23(1) The services will be provided in accordance with
24professional standards applicable to the provision of these services
25in a long-term health care facility.
26(2) The long-term health care facility assumes responsibility
27for timeliness of the services.
28(3) Services are provided or obtained only when ordered by the
29attending physician and a notation is made in the resident’s medical
30chart reflecting that the service has been provided to the resident.
31(c) It is unlawful for any person, association, or corporation to
32establish, conduct, or maintain a referral agency or to refer any
P3 1person for remuneration to any residential care facility for the
2elderly for professional services if that facility does not meet the
3licensing standards established in Chapter 3.2 (commencing with
Section 1401 of the Health and Safety Code is amended
As used in this chapter “referral agency” means a private,
8profit or nonprofit agency that is engaged in the business of
9referring persons for remuneration to any extended care facility,
10skilled nursing home, intermediate care facility, or residential care
11facility for the elderly, or a distinct part of a facility providing
12extended care, skilled nursing home care, or intermediate care.
Section 1402 is added to the Health and Safety Code,
“Residential care facility for the elderly” has the same
16meaning as set forth in Section 1569.2.
No licensee under this chapter shall have a direct or
20indirect financial interest in any
begin delete medicalend delete facility doing business
21with the licensee.
Section 1409.4 is added to the Health and Safety Code,
(a) A licensee shall provide each person receiving
26services from the licensee with written notice, in 16-point bold
27type, of all of the following:
28(1) Whether the licensee has an agreement or contract with the
begin delete referralend delete facility begin deletefor client referrals.end delete
31(2) That a commission or fee will be received by the licensee
32from the facility as a result of the referral, if applicable.
33(3) Any exchange of monetary
begin delete value, including, but not between the
34limited to, a fee, commission, or gift received,end delete
begin delete personnel or staffend delete and the licensee begin delete and the purpose for the
36exchange, if applicable.end delete
38(4) Any fee charged to the person or persons by the licensee.
39The notice shall include a description of the services being rendered
40for that fee and the licensee’s refund policy.
P4 1(5) The licensee’s contact information, including address and
3policy shall be placed clearly and prominently at the front of the
5(6) The date of the licensee’s most recent tour or visit to the
6facility and, as appropriate, a review or summary of the most recent
7evaluation report for a residential care facility for the elderly
8prepared pursuant to Section 1569.33.
9(7) Information regarding the
begin delete health careend delete
services the referred
10facility offers, including, but not limited to, intermittent skilled
11nursing care, memory care, assistance with and distribution of
12medication, and other
begin delete health careend delete services, if applicable.
13(8) The contact information, including address and phone
14number, of the State Department of Social Services or State
15 Department of Public Health, as appropriate, and the contact
16information for filing consumer complaints, including contact
17information for the local long-term care ombudsman.
18(b) The licensee shall provide the written notification pursuant
19to subdivision (a) in the same language in which the licensee
20negotiates any referral services with the person receiving services.
21(c) The licensee shall retain a signed acknowledgment from the
22person being referred, or his or her conservator, guardian, family
23member, or agent under a power of attorney, stating that the written
24notice required by this section was received. The acknowledgment
25shall be retained for a period of no less than four years.
Section 1409.5 is added to the Health and Safety Code,
If a person moves to an extended care facility, skilled
29nursing home, intermediate care facility, or residential care facility
30for the elderly as a result of a referral, the licensee shall make a
31scheduled visit to the facility at a time designated by the licensee
32and client within a reasonable time after the move is completed.
Section 1409.6 is added to the Health and Safety Code,
It is unlawful for a licensee to share any personal
36information, including, but not limited to, the name, address, age,
37gender, or medical information of the person receiving services
38from the licensee, with any unauthorized person or third-party
39affiliate of the licensee.
Section 1409.7 is added to the Health and Safety Code,
It is unlawful for a licensee to hold any power of
4attorney for a person receiving placement referral services from
5that licensee, or to receive or hold a client’s property in any
Section 1409.8 is added to the Health and Safety Code,
begin delete orend delete after July 1, 2016, all persons, associations,
10or corporations licensed pursuant to this chapter shall maintain
11liability insurance coverage in an amount of at least one million
12dollars ($1,000,000) per referred person and three million dollars
13($3,000,000) in the total annual aggregate, for negligent acts or
14omissions by the licensee.