BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1177 (Galgiani) - Physician and Surgeon Health and Wellness  
          Program
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: May 4, 2016            |Policy Vote: B., P. & E.D. 9 -  |
          |                                |          0                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: No                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: May 16, 2016      |Consultant: Brendan McCarthy    |
          |                                |                                |
           ----------------------------------------------------------------- 

          This bill meets the criteria for referral to the Suspense File.

          Bill  
          Summary:  SB 1177 would authorize the Medical Board of  
          California to establish a Physician and Surgeon Health and  
          Wellness program.


          Fiscal  
          Impact:  
           Likely ongoing costs up to $150,000 per year for staff support  
            of the new program by the Medical Board of California  
            (Contingent Fund of the Medical Board of California).

           Likely ongoing contract costs between $200,000 and $400,000  
            per year to operate the Program (Contingent Fund of the  
            Medical Board of California). The Department of Consumer  
            Affairs currently contracts with an outside entity to manage a  
            program to provide substance abuse services to licensees of  
            several licensing boards. 

            The cost estimate above assumes that disciplinary actions by  







          SB 1177 (Galgiani)                                     Page 1 of  
          ?
          
          
            the Medical Board relating to mental health or substance abuse  
            issues that do not result in license revocation or surrender  
            would likely result in the licensee entering the program  
            authorized under the bill. The estimate also assumes that some  
            portion of other disciplinary actions involve a substance  
            abuse issue which would lead to a licensee entering the  
            program. Under the bill, the costs to participate in the  
            program would be paid for by participating licensees (as would  
            the costs for direct health care or substance abuse services).


          Background:  Under current law, the Medical Board of California licenses  
          physicians and surgeons and regulates the practice of medicine.  
          The Medical Board formerly operated a "diversion" program,  
          wherein licensees subject to disciplinary action relating to  
          substance abuse could seek treatment for those issues in lieu of  
          disciplinary action. After several reviews of the former  
          diversion program found serious deficiencies, the program was  
          allowed to sunset in 2008.
          Many other health profession licensing boards within the  
          Department of Consumer Affairs operate diversion programs,  
          operated by a single outside entity that contracts with the  
          Department.




          Proposed Law:  
            SB 1177 would authorize the Medical Board of California to  
          establish a Physician and Surgeon Health and Wellness program.
          Specific provisions of the bill would:
                 Authorize the Medical Board to establish a Physician and  
               Surgeon Health and Wellness Program for the early  
               identification and appropriate interventions to support  
               rehabilitation from substance abuse;
                 Require the Program to meet specified criteria -  
               including referral to appropriate treatment, requiring a  
               written agreement with a participant, and compliance with  
               existing policies of the Department of Consumer Affairs;
                 Require the Board to contract for program administration  
               with a third-party vendor, with specified criteria and  
               requirements on the vendor;
                 Require a physician, as  condition of participation in  
               the Program, to enter into a written agreement with the  








          SB 1177 (Galgiani)                                     Page 2 of  
          ?
          
          
               Program and to pay all expenses related to treatment,  
               testing, etc.;
                 Require the Board to adopt regulations to establish a  
               fee on participating physicians, to cover all the costs of  
               participating in the Program.


          Related  
          Legislation:  In recent years, there have been several bills  
          proposed to establish some form of diversion program at the  
          Medical Board - including AB 2346 (Gonzalez, 2014), SB 1483  
          (Steinberg, 2012), AB 526 (Fuentes, 2009), AB 214 (Fuentes,  
          2008), and AB 2443 (Nakanishi, 2008). None of those bills were  
          enacted.


                                      -- END --