BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON VETERANS AFFAIRS
                             Senator Jim Nielsen, Chair
                                2015 - 2016  Regular 

          Bill No:             SB 980         Hearing Date:    4/12/16
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          |Author:    |Nielsen                                              |
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          |Version:   |2/10/16                                              |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Wade Teasdale                                        |
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                              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            and update outdated terminology and references within the  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.







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          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  








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            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,  








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            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.










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           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.








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          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
           








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          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


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