SB 648, as amended, Mendoza. Health and care facilities: referral agencies.
Existing law requires a 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. The bill would prohibit a referral agency from holding any power of attorney or any other property of a
begin delete client, andend delete would require a referral agency to provide begin delete specified written noticeend delete to each person receiving its begin delete services.end delete 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.
P3 1(2) The long-term health care facility assumes responsibility
2for timeliness of the services.
3(3) Services are provided or obtained only when ordered by the
4attending physician and a notation is made in the resident’s medical
5chart reflecting that the service has been provided to the resident.
6(c) It is unlawful for any person, association, or corporation to
7establish, conduct, or maintain a referral agency or to refer any
8person for remuneration to any residential care facility for the
9elderly for professional services if that facility does not meet the
10licensing 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,
15profit or nonprofit agency that is engaged in the business of
16referring persons for remuneration to any extended care facility,
17skilled nursing home, intermediate care facility, or residential care
18facility for the elderly, or a distinct part of a facility providing
19extended 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
28meaning as set forth in Section 1569.2.
Section 1404 of the Health and Safety Code is amended
No licensee under this chapter shall have a direct or
32indirect financial interest in any facility doing business with the
Section 1409.4 is added to the Health and Safety Code,
begin deleteA end deletelicensee shall provide
37each person receiving services from the licensee with
begin delete written
38notice, in 16-point bold type, ofend delete
39 all of the following:
P4 1(1) Whether the licensee has an agreement or contract with the
2facility to which the person is being referred.
3(2) That a commission or fee will be received by the licensee
4from the facility as a result of the referral, if applicable.
5(3) Any gift or exchange of monetary value between the facility
6and the licensee that is in addition to, or in lieu of, a commission
8(4) Any fee charged to the person or persons by the licensee.
9The notice shall include a description of the services being rendered
10for that fee and the licensee’s refund policy.
11(5) The licensee’s contact information, including address and
begin delete The privacy
13policy shall be placed clearly and prominently at the front of the
14written notice.end delete
17(6) The date of the licensee’s most recent tour or visit to the
18facility and, as appropriate, a
begin delete review or summary ofend delete the most recent evaluation report for a
20residential care facility for the elderly prepared pursuant to Section
22(7) Information regarding the services the referred facility offers,
23including, but not limited to, intermittent skilled nursing care,
24memory care, assistance with and distribution of medication, and
25other services, if applicable.
26(8) The contact information, including address and phone
27number, of the State Department of Social Services or State
28Department of Public Health, as appropriate, and the contact
29information for filing consumer complaints, including contact
30information for the local long-term care ombudsman.
P5 1(b)end delete
2 The licensee shall provide the
begin delete written notificationend delete pursuant to subdivision (a) in the same language in which
4the licensee negotiates any referral services with the person
6(c) Theend delete
7 licensee shall retain a signed
8acknowledgment from the person being referred, or his or her
9conservator, guardian, family member, or agent under a power of
10attorney, stating that the
begin delete written noticeend delete
11 required by this section was received. The
begin delete acknowledgmentend delete
21 shall be
22retained for a period of no less than four years.
Section 1409.6 is added to the Health and Safety Code,
It is unlawful for a licensee to share any personal
40information, including, but not limited to, the name, address, age,
P6 1gender, or medical information of the person receiving services
2from the licensee, with any unauthorized person or third-party
3affiliate of the
begin delete licensee.end delete
Section 1409.7 is added to the Health and Safety Code,
It is unlawful for a licensee to hold any power of
25attorney for a person receiving placement referral services from
26that licensee, or to receive or hold a client’s property in any
Section 1409.8 is added to the Health and Safety Code,
On and after July 1, 2016, all persons, associations, or
31corporations licensed pursuant to this chapter shall maintain
32liability insurance coverage in an amount of at least one million
33dollars ($1,000,000) per referred person and three million dollars
34($3,000,000) in the total annual aggregate, for negligent acts or
35omissions by the licensee.
Corrected 5-13-15—See last page. 96