BILL ANALYSIS Ó SENATE COMMITTEE ON VETERANS AFFAIRS Senator Jim Nielsen, Chair 2015 - 2016 Regular Bill No: SB 980 Hearing Date: 4/12/16 ----------------------------------------------------------------- |Author: |Nielsen | |-----------+-----------------------------------------------------| |Version: |2/10/16 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Wade Teasdale | | | | ----------------------------------------------------------------- Subject: Veterans' homes DESCRIPTION Summary: 1)Requires the Department of Veterans Affairs (CalVet) (a) to adopt statewide policies and procedures, by regulation, for operation of the state veterans home system; (b) to establish a quality of care assessment team; (c) to implement a statewide electronic health records system; and (d) correct and update outdated terminology and references within the portion of the Military and Veterans Code (MVC) that governs state veterans' homes. Existing law: 1)Authorizes establishment and operation of the Veterans' Home of California system. 2)Establishes the authority and responsibilities of CalVet in administering the system. 3)Requires each on-site home administrator to adopt rules and regulations for the administration of each home. 4)Defines criteria for admission to a veterans' home. 5)Requires that home members (residents) pay fees and charges as determined by CalVet, subject to a specified fee schedule. 6)Authorizes CalVet to investigate a veteran's financial status for admission purposes. SB 980 (Nielsen) Page 2 of ? 7)Requires 100% of the monies received by a veterans' home from veterans receiving federal aid to be placed to the credit of the home to offset the costs of being in the home. 8)Requires that -- upon the death of a veteran in a home - any monies not in excess of $3,000 held by the home for the veteran to be paid to the home's Morale, Welfare, and Recreation Fund, if no will or heir or other family member is discovered. 9)Authorizes: a) Married veteran home members to have their non-veteran spouses domicile with them. b) A resident spouse to continue residency after a veteran spouse's death. This bill: 1)Corrects and updates archaic and outdated terminology and references within the portion of the MVC that governs state veterans' homes. 2)Clarifies that the on-site home administrator to be the senior executive appointed to oversee the operations of a veterans' home. 3)Requires the Secretary of Veterans Affairs to adopt uniform statewide policies and procedures, by regulation, for the operation of the veterans' home system. 4)Requires CalVet to establish a quality of care assessment team. 5)Requires the Secretary to implement a statewide electronic health record system. 6)Requires the Secretary to annually report to the veterans policy committees of the Legislature. 7)Requires that fees and charges be established by the Secretary. 8)Requires the Secretary to adopt rules and regulations that SB 980 (Nielsen) Page 3 of ? apply to the homes and the criteria for admission. 9)Provides that a resident spouse who continues residency after a veteran spouse's death to continue to pay all applicable fees and comply with all department regulations. 10) Requires CalVet to determine the total worth of any member's property or assets for purposes of admission, including validating income levels for purposes of establishing fees. 11) Provides that monies received by a veterans' home from veterans who receive federal aid to be deposited into the Federal Trust Fund, a continuously appropriated fund, to be used for the operating costs of the home. BACKGROUND State Veterans Homes The State of California provides veterans' homes to help provide for the state's aged or disabled veterans to acknowledge the service and tremendous sacrifices California veterans have made on behalf of our nation. CalVet's Veterans Homes Division provides rehabilitative, residential medical care and services in a homelike environment for aged and disabled veterans (and eligible veteran spouses) residing in the State's eight veterans homes, which are located in Barstow, Chula Vista, Fresno, Lancaster. Redding, Ventura, West Los Angeles, and Yountville. As of mid-March 2016, a total of 2,158 members resided in the homes. Many of the homes were built in the last 10 years and the state's laws and regulations governing the homes are not standardized. Also, some policies and procedures are outdated and need to be updated to reflect the level of care provided at the homes. Levels of Care The eight campuses offer different combinations of the following levels of care that generate increasing levels of cost: 1)Independent living/domiciliary care (Barstow, Chula Vista, SB 980 (Nielsen) Page 4 of ? Yountville): This level of care is for residents able to perform activities of daily living with, at most, minimal assistance. Non-nursing employees provide limited supervision. Residents have access to all of the Home's services, activities, and medical care. Individuals can transfer to higher levels of care as needed. Independent living is also referred to as Domiciliary by CalVet and the USDVA. 2)Residential care/assisted living (All homes except Barstow): Residential Care Facilities for the Elderly (RCFE) are available for residents who require minimal assistance and supervision with some activities of daily living. RCFE services may include care by licensed nurses. In the future, memory care programs may be established within the RCFEs. 3)Intermediate care (Barstow, Yountville): This level is for residents who often require licensed nursing assistance with medications and treatments, and generally require unlicensed nursing assistance with several daily living activities. 4)Skilled nursing care (Barstow, Chula Vista, Fresno, Redding, West LA, Yountville) This level of care provides 24-hour services of licensed nurses and certified nursing assistants, and is more comprehensive than intermediate care. Skilled nursing residents have greater access to rehabilitation therapies, nursing care, pharmacy management, structured activities and clinical dietary services. 5)Memory care: The Fresno, Redding, West LA and Yountville homes provide memory care programs within their skilled nursing facilities. 6)Outpatient clinic: In addition to the above levels of care, each home provides an outpatient clinic to serve its members. The clinics provide comprehensive multidisciplinary assessments as well as ongoing primary care. The clinics address the veteran's routine care needs and also will arrange visits with outside medical specialists as necessary. SB 980 (Nielsen) Page 5 of ? Electronic Health Records New technologies and financial incentives have resulted in health care providers increasingly and actively using electronic health records (EHR). An EHR is an electronic version of a patient's medical history, which is maintained by the provider over time, and may include all of the key administrative clinical data relevant to that persons care under a particular provider, including demographics, progress notes, problems, medications, vital signs, past medical history, immunizations, laboratory data and radiology reports The EHR automates access to the information and has the potential to streamline clinician workflow. The EHR also has the ability to support other care-related activities directly or indirectly through various interfaces, including evidence-based decision support, quality management, and outcomes reporting. In 2009, the President signed the American Recovery and Reinvestment Act which included the establishment of the Office of the National Coordinator for Health Information Technology to facilitate and expand the use of health information technology pursuant to national standards. Using electronic health record systems is intended to reduce medical errors and increase patient accessibility to personal medical information. However, according to Privacy Rights Clearing House, 1263 data breaches involving medical and healthcare providers have been made public since 2005. Those breaches involved over 45 million records. Accordingly, both the state and federal governments continue enact measures to ensure the protection of patient medical information, and closely monitor legislation involving EHRs. COMMENT Committee Comments : 1)This bill is double-referred to Senate Judiciary at that that Committee's request. Judiciary staff says their interest is exclusively in the EHR provisions. 2)The state veterans home system has expanded rapidly from three homes to eight within the past decade. This has challenged CalVet's departmental ability to ensure a standardized, high quality of care in all the homes. New CalVet Secretary Vito Imbasciani, a physician, has announced this as a priority concern. SB 980 (Nielsen) Page 6 of ? 3)According to CalVet, the dollar amounts in MVC Sec. 1035.3 have been unchanged since at least 1983, when that section was amended last. They have not been adjusted for inflation nor have they been adjusted to address increases in court and administrative costs associated with collecting and disposing of assets. In many cases the department has had to spend more in court fees and administrative costs than what is actually recovered from the assets. Additionally, since Sec. 1035.5 references Secs. 1035 through 1035.4 for disposal of assets for residents admitted after January 1, 1984, the sections are still relevant and need to be updated. This bill updates the dollar amounts. Related/Prior Legislation SB 543 (Wolk, pending Assembly, 2016 ), with regard to the Veterans Home of California system, creates a single system-wide Morale, Welfare, and Recreation Fund (MWR Fund) that consolidates existing and future MWR moneys generated by individual veterans home campuses, and establishes procedures and restrictions on the budgeting and spending of moneys in the Fund. SB 1410 (Wolk, Chapter 659, Statutes of 2014 ) requires non-veteran spouses to pay the same fees and charges as paid by veteran members of a veterans' home, as determined by CalVet, and subjects them to the same prohibitions. AB 1580 (Yamada, died Senate 3rd Reading, 2014 ) consolidates the separate MWR Funds at each veterans home into a newly created fund in the State Treasury. SB 10 (Evans, Chapter 265, Statutes of 2011 ) provides for the establishment of a Veteran's Home Allied Council for each veterans home, and would additionally permit each council to represent veterans who reside in that same home in matters before the Legislature if each council, in the course of providing that representation, complies with specified requirements, as prescribed. POSITIONS SB 980 (Nielsen) Page 7 of ? Sponsor: AMVETS CA Association of County Veterans Service Officers Support: California State Commanders Veteran Council California Long-Term Care Ombudsman Association Military Officers Association of America-CA Council of Chapters Veterans of Foreign Wars- Department of CA Vietnam Veterans of America-CA State Council Oppose: None on file -- END --