BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON
          BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
                              Senator Jerry Hill, Chair
                                2015 - 2016  Regular 

          Bill No:            SB 1177         Hearing Date:    August 25,  
          2016
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          |Author:   |Galgiani                                              |
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          |Version:  |August 18, 2016                                       |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Sarah Mason                                           |
          |:         |                                                      |
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             Subject:  Physician and Surgeon Health and Wellness Program


          SUMMARY:  Authorizes the Medical Board of California (MBC) to establish  
          a Physician and Surgeon Health and Wellness Program (PHWP) for  
          the early identification and appropriate interventions to  
          support a licensee in his or her rehabilitation from substance  
          abuse and authorizes MBC to contract with an independent entity  
          to administer the PHWP. 

          Existing law:
          
         1)Establishes the Department of Consumer Affairs (DCA) which  
            oversees boards and bureaus that license and regulate  
            businesses and professions, including but not limited to  
            physicians, nurses, dentists, engineers, architects,  
            contractors, cosmetologists, automotive repair facilities  
            and private postsecondary education institutions.   
            (Business and Professions Code (BPC § 101)

         2)Requires individuals or entities contracting with the DCA  
            or any board within the DCA to provide services relating  
            to the treatment and rehabilitation of licentiates  
            impaired by alcohol or dangerous drugs to retain all  
            records and documents pertaining to those services until  
            such time as these records and documents have been  
            reviewed for audit by the Department for a maximum of  
            three years, as specified.  (BPC § 156.1) 








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         3)Requires all records and documents pertaining to services  
            for the treatment and rehabilitation of licentiates  
            impaired by alcohol or dangerous drugs provided by any  
            contract vendor to the DCA, or to any board to be kept  
            confidential, and not subject to discovery or subpoena.   
            (Id.)

         4)Establishes the Substance Abuse Coordination Committee  
            (SACC) in the DCA, comprised of executive officers of the  
            DCA's healing arts boards and a designee of the State  
            Department of Health Care Services.  (BPC § 315 (a))

         5)Requires the SACC to formulate, by January 1, 2010,  
            uniform and specific standards (Uniform Standards) in  
            specified areas that each healing arts board shall use in  
            dealing with substance-abusing licensees, whether or not  
            a board chooses to have a formal diversion program.  (BPC  
            § 315 (c))

         6)Requires a healing arts board, except the Board of  
            Registered Nursing (BRN), to order a licensee of the  
            board to cease practice if the licensee tests positive  
            for any substance that is prohibited under the terms of  
            the licensee's probation or diversion program.  (BPC §  
            315.2)

         7)Permits a healing arts board to adopt regulations  
            authorizing the board to order a licensee on probation or  
            in a diversion program to cease practice due to a major  
            violation or if the licensee has been ordered to undergo  
            a clinical diagnostic evaluation pursuant to uniform and  
            specific standards, as specified, but that this  
            requirement shall not apply to the BRN for purposes of  
            their intervention program.  (BPC §§ 315.4 (a) and (d)) 

         8)Prohibits an order to cease practice from being governed  
            by the Administrative Procedures Act, and states that the  
            order shall not constitute a disciplinary action.  (BPC  
            §§ 315.4 (b) and (c))

         9)Requires the following boards to establish a diversion  
            program for board licensees in order to seek ways and  
            means to identify and rehabilitate licensees whose  
            competency may be impaired due to abuse of dangerous  








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            drugs and alcohol, so that licensees may be treated and  
            returned to practice in a manner which will not endanger  
            the public health and safety.  Most also specify  
            Legislative intent that a diversion program (or  
            intervention program) is a voluntary alternative approach  
            to traditional disciplinary actions:

             a)   The Dental Board of California for dentists and dental  
               hygienists.  (BPC §§ 1695-1699 and BPC §§ 1966-1966.6))

             b)   The Osteopathic Medical Board of California for  
               osteopathic physicians and surgeons.  (BPC §§ 2360-2370)

             c)   The Physical Therapy Board of California for physical  
               therapists.  (BPC §§ 2662-2669)

             d)   The Board of Registered Nursing for registered nurses.   
               (BPC §§ 2770-2770.14)

             e)   The Physician Assistant Board for physician assistants.   
               (BPC §§ 3534- 3534.10)

             f)   The Board of Pharmacy to operate a recovery program for  
               pharmacists or intern pharmacists.  (BPC §§ 4360-4373)

             g)   The Veterinary Medical Board for veterinarians and  
               registered veterinary technicians.  (BPC §§ 4860-4873) 

         10)Establishes the Attorney Diversion and Assistance Act  
            within the State Bar of California to address the  
            substance abuse and mental health problems of attorneys  
            who voluntarily participate in the program.  (BPC §§  
            6230-6238)

         11)Provides for the professional review of specified healing  
            arts licentiates by a peer review body, as defined,  
            including a medical or professional staff of any licensed  
            health care facility or clinic, health care service plan,  
            specified health professional societies, or a committee  
            organized by any entity that functions as a body to  
            review the quality of professional care provided by  
            specified health care practitioners. (BPC § 805)

         12)Requires a report to be filed by a peer review body to an  








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            agency having regulatory jurisdiction over healing arts  
            licentiates if a licentiate's application for staff  
            privileges is denied or rejected, has had his or her  
            membership, staff privileges, or employment terminated or  
            revoked for medical disciplinary reasons; or if  
            restrictions are imposed, or voluntarily accepted, on  
            staff privileges, membership or employment for a  
            cumulative total of 30 days or more for any 12-month  
            period, for a medical disciplinary cause or reason  
            (Commonly referred to as an "805 report" pursuant to §  
            805 of the BPC.)

         13)Requires a peer review body to file a report with the  
            relevant agency within 15 days after a peer review body  
            makes a final decision or recommendation regarding the  
            disciplinary action to be taken against a licentiate if  
            it is determined, based on the investigation of the  
            licentiate, that the licentiate was involved in the use  
            of, or prescribing for or administering to himself or  
            herself, any controlled substance; or the use of any  
            dangerous drug or alcoholic beverages, to the extent, or  
            in such a manner as to be dangerous or injurious to the  
            licentiate, any other person, or to the public, or to the  
            extent that such use impairs the ability of the  
            licentiate to practice safely.  (BPC § 805.01) 

         14)Provides for the licensure and regulation of physicians  
            and surgeons by the Medical Board of California (MBC)  
            pursuant to the Medical Practice Act. (Business and  
            Professions Code (BPC) § 2000 et. seq.)

          15)Requires MBC to investigate complaints from the public,  
             other licensees, health care facilities or from others  
             as specified.  Requires MBC to investigate the  
             circumstances underlying a report received pursuant to  
             BPC §805 or §805.01 above within 30 days to determine if  
             an interim suspension order or temporary restraining  
             order should be issued.  (BPC § 2220)

          16)Requires MBC to prioritize its investigative and  
             prosecutorial resources to ensure that physicians and  
             surgeons representing the greatest threat of harm are  
             identified and disciplined expeditiously.  Requires  
             cases involving drug or alcohol abuse by a physician and  








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             surgeon involving death or serious bodily injury to a  
             patient to be handled as a high priority.  (BPC  
             §2220.05)

          17)Provides MBC with the authority to issue a probationary  
             physician's and surgeon's certificate to an applicant subject  
             to terms and conditions, including, but not limited to  
             practice limited to a supervised, structured environment,  
             continuing medical or psychiatric treatment, ongoing  
             participation in a specified rehabilitation program, or  
             abstention from the use of alcohol or drugs.  (BPC §2221)

          18)Provides that the MBC shall take action against a  
             physician who is charged with unprofessional conduct, as  
             specified.  (BPC § 2234)

          19)Provides that a violation of any federal or state  
             statute or regulation regulating dangerous drugs or  
             controlled substances constitutes unprofessional  
             conduct.  (BPC § 2238) 

          20)Provides that the use of, or self-prescribing or  
             self-administering, of any controlled substance or  
             dangerous drugs or alcoholic beverages in such a manner  
             as to be dangerous or injurious to the licensee or any  
             other person or to the public, or to the extent that  
             such use impairs the ability of the licensee to practice  
             medicine safely, or more than one misdemeanor or any  
             felony involving the use, consumption or  
             self-administration of any of these substances,  
             constitutes unprofessional conduct.  (BPC § 2239) 

          This bill:

          1)Authorizes MBC to establish a Physician and Surgeon Health and  
            Wellness Program (PHWP) for the early identification and  
            appropriate interventions to support a licensee in his or her  
            rehabilitation from substance abuse to ensure that the  
            licensee remains able to practice medicine in a manner that  
            will not endanger the public health and safety and will  
            maintain the integrity of the medical profession. 

          2)Requires MBC, if it establishes a PHWP, to contract for  
            administration with an independent administering entity  








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            selected by MBC through a request for proposals process and  
            requires the PHWP to:

             a)   Educate licensees about the recognition and prevention  
               of physical, emotional, and psychological problems;

             b)   Offer assistance to licensees in identifying substance  
               abuse problems;

             c)   Evaluate the extent of substance abuse problems and  
               refer licensees to the appropriate treatment by executing a  
               written agreement with a participant;

             d)   Provide for the confidential participation by a licensee  
               with substance abuse issues who does not have a restriction  
               on his or her practice related to those substance abuse  
               issues.  Authorizes MBC to inquire of the program whether a  
               licensee is enrolled, if an investigation of licensee  
               occurs after the licensee has enrolled in the program; and

             e)   Comply with the Uniform Standards as adopted by the  
               SACC.

          1)Requires the administering entity to have expertise and  
            experience in the areas of substance or alcohol abuse in  
            healing arts professionals, identify and use a statewide  
            treatment resource network including treatment and screening  
            programs and support groups, establish a process for  
            evaluating these treatment and screening programs, provide  
            counseling and support for the licensee and for the family of  
            any physician and surgeon referred for treatment, make their  
            services available to all licensees, including those who  
            self-refer and have a system for immediately reporting a  
            licensee to MBC, including, but not limited to, a physician  
            and surgeon who withdraws or is terminated from the program.   
            Requires this system of reporting to ensure absolute  
            confidentiality in the communication to the MBC and prohibits  
            the administering entity from providing this information to  
            any other individual or entity unless authorized by the  
            participating licensee.

          2)Specifies that the contract with MBC and an administering  
            entity shall require the administering entity to provide  
            regular communication to MBC, including annual reports to the  








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            board with program statistics that do not include personally  
            identifiable information relating to any participant.   
            Requires the administering entity to submit to periodic audits  
            and inspections of all operations, records, and management  
            that maintain the confidentiality of all records reviewed and  
            information obtained in the course of conducting the audit.   
            Authorizes MBC to terminate the contract.

          3)Requires physician and surgeon participants to enter into an  
            individual agreement with the program and agree to pay  
            expenses related to treatment, monitoring, laboratory tests,  
            and other activities specified in the participant's written  
            agreement which shall include:

             a)   A jointly agreed-upon plan and mandatory conditions and  
               procedures to monitor compliance with the program;

             b)   Compliance with terms and conditions of treatment and  
               monitoring;

             c)   Criteria for program completion;

             d)   Criteria for termination of a participant from the  
               program;

             e)   Acknowledgment that withdrawal or termination of a  
               physician and surgeon participant from the program shall be  
               reported to MBC.

          1)States that any agreement entered shall not be considered a  
            disciplinary action or order by MBC and shall not be disclosed  
            to MBC if the physician and surgeon did not enroll in the  
            program as a condition of probation or as a result of a MBC  
            action and if the physician and surgeon is in compliance with  
            the conditions and procedures in the agreement.  States that  
            any oral or written information reported to MBC shall remain  
            confidential and shall not constitute a waiver of any existing  
            evidentiary privileges, except that confidentiality regarding  
            participation in the program and related records shall not  
            apply if MBC has referred a participant as a condition of  
            probation.  States that nothing in this section prohibits,  
            requires, or otherwise affects the discovery or admissibility  
            of evidence in an action by MBC against a physician and  
            surgeon based on acts or omissions that are alleged to be  








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            grounds for discipline.

          2)Provides that participation in the program shall not be a  
            defense to any disciplinary action that may be taken by MBC  
            and clarifies that MBC is not precluded from commencing  
            disciplinary action against a physician and surgeon who is  
            terminated unsuccessfully from the program.  

          3)Establishes the PHWP Account is the Contingent Fund of MBC,  
            funds from which shall be available upon appropriation by the  
            Legislature for the support of the PHWP.  Requires MBC to  
            adopt regulations to determine the appropriate fee that a  
            participating licensee shall provide MBC and states that the  
            fee must cover all costs for participating in the program,  
            including any administrative costs incurred by MBC to  
            administer the program.

          FISCAL  
          EFFECT:  

          COMMENTS:
          
          1. Purpose.  This bill is sponsored by the  California Medical  
             Association  (CMA).  According to the Author, "Currently,  
             California physicians and surgeons are the only licensed  
             medical professionals without a wellness and treatment  
             program aimed at providing support and rehabilitation for  
             substance abuse, stress, and other health issues.  In fact,  
             California is just one of a few states nationwide that does  
             not provide a pathway for physicians and surgeons to address  
             substance abuse and mental health problems.  Physicians  
             experience health problems at the same frequency as the  
             general population.  Most states have robust physician health  
             programs to evaluate and coordinate care for physicians  
             suffering from mental health, behavioral health or substance  
             abuse issues.  Because there is no program in California,  
             many who suffer from these conditions often do not know where  
             to turn for help.  California needs a statewide system to  
             increase awareness and coordination of reliable treatment  
             options."

          2. Background.  

             a)   The Medical Board's former Physician Diversion Program  








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               (PDP).  The MBC's PDP was created in 1980 to rehabilitate  
               doctors with mental illness and substance abuse problems  
               without endangering public health and safety.  Under this  
               concept, physicians who abuse drugs and/or alcohol or who  
               are mentally or physically ill may be "diverted" from the  
               disciplinary track into a program that monitors their  
               compliance with terms and conditions of a contract that is  
               aimed at ensuring their recovery.

          The PDP was a voluntary program and only those physicians and  
          surgeons who voluntarily requested diversion treatment and  
          supervision could participate in the program.  A physician could  
          enter the diversion program in any of the following ways:  a)  
          self-referral; b) referral by the MBC's Enforcement Unit in lieu  
          of discipline; or c) directed as part of a disciplinary order.   
          Confidentiality was required for physicians and doctors that  
          self-refer and could be granted to those who were referred by  
          MBC (doctors could avoid public discipline if there was no  
          evidence of patient harm and they successfully completed the  
          program).  For those who were directed to the program as part of  
          a disciplinary order, disciplinary actions are public records  
          and the practice violation that triggered the MBC's involvement  
          would be reflected in the doctor's public file.  Any physician  
          and surgeon terminated from the PDP for failure to comply with  
          program requirements was subject to a disciplinary action for  
          acts committed before, after or during participation in the PDP,  
          and a physician that successfully completed the PDP was not  
          subject to any disciplinary action for any alleged violation  
          that resulted in referral to the PDP.  The PDP monitored  
          participants' attendance at group meetings, facilitated random  
          drug testing, and required reports from work-site monitors and  
          treatment providers.  Many of the physicians in the PDP retained  
          full and unrestricted medical licenses during their  
          participation and enjoyed complete confidentiality.  The PDP was  
          allowed to sunset on June 30, 2008.

             b)   Audits and Review of the PDP.  The Bureau of State  
               Audits (BSA) audited the PDP four times between 1982 and  
               2007.  In 2005, a statutorily created enforcement monitor  
               also audited the PDP.  The enforcement monitor's audit  
               indicated that "the Board's PDP is significantly flawed;  
               its most important monitoring mechanisms are failing, it is  
               chronically understaffed, and it exposes patients to  
               unacceptable risks posed by physicians who abuse drugs and  








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               alcohol."   The 2007 BSA audit concluded, "Although the PDP  
               has made many improvements since the release of the  
               November 2005 report of the enforcement monitor, there are  
               still some areas in which the program must improve in order  
               to adequately protect the public."  BSA pointed out the  
               following:  Although case managers appear to be contacting  
               participants on a regular basis and participants appear to  
               be attending group meetings and completing the required  
               amount of drug tests, the PDP did not adequately ensure  
               that it receives required monitoring reports from its  
               participants' treatment providers and work-site monitors.   
               In addition, although the PDP reduced the amount of time it  
               takes to admit new participants into the program and begin  
               drug testing, it did not always respond to potential  
               relapses in a timely and adequate manner.  Specifically,  
               the PDP did not always require a physician to immediately  
               stop practicing medicine after testing positive for alcohol  
               or a non-prescribed or prohibited drug.  Further, of the  
               drug tests scheduled in June and October 2006, 26 percent  
               were not performed as randomly scheduled.   Additionally,  
               the PDP currently did not have an effective process for  
               reconciling its scheduled drug tests with the actual drug  
               tests performed and does not formally evaluate its  
               collectors, group facilitators, and diversion evaluation  
               committee members to determine whether they are meeting  
               program standards.  The BSA indicated that MBC had not  
               provided consistently effective oversight of the PDP.

          In recognition that patient safety could not continue to be  
          compromised, the MBC voted unanimously on July 26, 2007 to end  
          the PDP, declaring in its motion that "in light of Board's  
          primary mission of consumer protection and as the regulatory  
          agency charged with the licensing of physicians and surgeons and  
          enforcement of the Medical Practice Act, the Board hereby  
          determines it is inconsistent with Board's public protection  
          mission and policies to operate a diversion program."  This  
          declaration prompted the Board to approve a Diversion Transition  
          Plan (DTP) on November 2, 2007 to accommodate the 203 physicians  
                                                                        already in the PDP.  

             c)   Other Health Board Diversion Programs.  While MBC housed  
               its diversion program, other boards outsource these  
               functions.  The DCA currently manages a master contract  
               with MAXIMUS, Inc. (MAXIMUS), a publicly traded corporation  








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               for the healing arts boards that have a diversion program.   
               Under this model, the individual boards oversee the  
               programs, but services are provided by MAXIMUS.  These  
               diversion programs generally follow the same general  
               principles of the MBC's former PDP.  Health practitioners  
               with substance abuse issues may be referred in lieu of  
               discipline or self-refer into the programs and receive help  
               with rehabilitation.  After an initial evaluation,  
               individuals accept a participation agreement and are  
               regularly monitored in various ways, including random drug  
               testing, to ensure compliance.  MAXIMUS provides the  
               following services that the Medical Board kept in house:   
               Medical advisors, compliance monitors, case managers, urine  
               testing system, reporting, and record maintenance.  The  
               DCA's master contract standardizes certain tasks, such as  
               designing and implementing a case management system,  
               maintaining a 24-hour access line, and providing initial  
               intake and in-person assessments, but the planning and  
               execution of the programs are tailored to each board  
               according to their needs and mandates.  Each board  
               specifies its own policies and procedures.  MAXIMUS  
               generally has a less hands-on approach to managing the  
               diversion programs than the Medical Board attempted.   
               MAXIMUS reports that caseloads range from 100 to 200 per  
               clinical case management team.  MAXIMUS also limits its  
               in-person resources; for example, in the program design for  
               the Board of Registered Nursing, MAXIMUS specifies that  
               they will conduct in-person reassessments by telephone  
               unless otherwise requested by the Nursing Board.  Also, the  
               contractor performs unobserved, as well as observed, drug  
               screening.
          
          The most recent audit of MAXIMUS conducted on behalf of DCA by  
          CPS Human Resources Consulting (CPS Audit) found that overall  
          MAXIMUS is effectively and efficiently managing the various  
          diversion programs (the audit only focused on the contractor and  
          did not look into how boards refer licensees or what boards do  
          with information from MAXIMUS). The audit recommended that  
          MAXIMUS be continued as the vendor.  Cost of participation  
          remains an issue and may be cost-prohibitive for many licensees.  
           Audit findings and recommendations include:

                           Over the audit period, approximately 67  
                    percent of program participants were female; 80  








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                    percent were Caucasian, and the average age increased  
                    from 30-34 years old to 45-49 years old 

                           Approximately 67 percent of participants  
                    entered the program through a referral by a board

                           Slightly over 50 percent of participants  
                    successfully completed the program

                           Most relapses occurred in the first year of  
                    the program and primarily due to abuse of alcohol,  
                    narcotics and other opiates, and benzodiazepine but  
                    the rate of relapse has improved over time

                           BRN does not include nurses on probation in  
                    the program

                           Some program participants lose their health  
                    insurance, but there are insurance benefits available  
                    for substance abuse and mental health treatment

                           MAXIMUS should identify a program staff member  
                    whose sole responsibility is to become knowledgeable  
                    about health insurance coverage benefits and referral  
                    sources, and periodically update the clinical case  
                    managers and compliance monitors (this would require a  
                    change in the master contract with DCA)

                           Clinical case manager caseloads should be  
                    reduced, program managers should be provided with  
                    recovery training and MAXIMUS should identify ways to  
                    better treat participants suffering from mental  
                    illness (this would require a change in the master  
                    contract with DCA)

                           MAXIMUS should identify an acceptable, but  
                    less frequent, random testing schedule that would  
                    accomplish the goal and reduce participant cost and  
                    loss; Uniform Standard 4 would then have to be  
                    modified accordingly (this would require a change in  
                    the master contract with DCA) 

                           Participating boards should attempt to monitor  
                    long range participant outcomes after program  








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                    completion, which would require a statutory change  
                    (this would require a change in the master contract  
                    with DCA)

             a)   Uniform Substance Abuse Standards.   SB 1441   
               (Ridley-Thomas, Chapter 548, Statutes of 2008) required the  
               DCA to develop Uniform Standards to be used by each healing  
               arts board in dealing with substance-abusing licensees in  
               16 specified areas, including requirements and standards  
               for:  (1) clinical and diagnostic evaluation of the  
               licensee; (2) temporary removal of the licensee from  
               practice; (3) communication with licensee's employer about  
               licensee status and condition; (4) testing and frequency of  
               testing while participating in a diversion program or while  
               on probation; (5) group meeting attendance and  
               qualifications for facilitators; (6) determining what type  
               of treatment is necessary; (7) worksite monitoring; (8)  
               procedures to be followed if a  licensee tests positive for  
               a banned substance; (9) procedures to be followed when a  
               licensee is confirmed to have ingested a banned substance;  
               (10) consequences for major violations and minor violations  
               of the standards and requirements; (11) return to practice  
               on a full-time basis; (12) reinstatement of a health  
               practitioner's license; (13) use and reliance on a  
               private-sector vendor that provides diversion services;  
               (14) the extent to which participation in a diversion  
               program shall be kept confidential; (15) audits of a  
               private-sector vendor's performance and adherence to the  
               uniform standards and requirements; and (16) measurable  
               criteria and standards to determine how effective diversion  
               programs are in protecting patients and in assisting  
               licensees in recovering from substance abuse in the long  
               term.
          
          As part of the SB 1441 implementation, the DCA convened the  
          Substance Abuse Coordination Committee (SACC), which consisted  
          of representatives from all of the healing arts boards.  A  
          series of meetings, subject to the Bagley-Keene Open Meeting  
          Act, were held from 2009 to 2011 to discuss and develop the  
          standards.  The Uniform Standards were finally adopted in early  
          2010, with the exception of the frequency of drug testing.  The  
          Department reconvened the SACC in March 2011, where a final vote  
          was taken on an amended schedule for drug testing frequency.









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          At that time, all of the health care boards were asked to adopt  
          and implement the standards.  In response to questions regarding  
          whether adoption of the standards was optional or mandatory,  
          three different legal opinions were issued that opined that the  
          boards were mandated to adopt all of the standards.

          The only standard that needed statutory authority dealt with the  
          cease practice requirement.    SB 1172  (Negrete McLeod, Chapter  
          517, Statutes of 2010) was enacted, and among other provisions  
          required healing arts boards to order a licensee to cease  
          practice if the licensee tests positive for any prohibited  
          substance under the terms of the licensee's probation or  
          diversion program.

          By 2013, two years after the final form was developed, MBC had  
          still not yet adopted the Uniform Standards.  The prior  
          confusion and delay by MBC in adopting the standards in their  
          entirety was whether or not the board needed to reinstate its  
          diversion program in order to implement the Uniform Standards.  
          It was determined at the April 2013 MBC meeting that a specified  
          diversion program was not a condition necessary to implement the  
          Uniform Standards, and therefore, MBC could immediately commence  
          the rulemaking process to adopt the new standards.  The MBC  
          formally implemented the Uniform Standards in July 2014.

             b)   Post-Diversion at MBC.  Without a diversion program,  
               impaired physicians with substance abuse issues must find  
               their own treatment facility for ssistance.  MBC is not  
               made aware that the physician received treatment unless a  
               complaint is received, and the physician may present the  
               treatment as evidence in a disciplinary proceeding only if  
               he or she wishes.  When MBC is made aware of substance  
               abuse, licensees are placed on formal probation, with terms  
               customized to fit the licensee's individual need.  Typical  
               terms include participation in support group meetings,  
               random testing for drug and alcohol use, practice  
               restrictions, and/or medical or psychiatric treatment,  
               including psychotherapy.    

          MBC still retains the power to currently order biological fluid  
          testing as a condition of probation.  Each physician must find a  
          collector to perform random drug testing as required by MBC's  
          Probation Unit, and the collector must meet the testing  
          requirements set out in the terms and conditions of probation.   








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          If the physician tests positive, MBC issues a cease practice  
          order, if allowed in the condition of probation, until the Board  
          investigates and takes subsequent action.  If the condition does  
          not authorize a cease practice order, the Board investigates  
          whether the physician is safe to practice medicine.  If not, MBC  
          staff will seek an Interim Suspension Order or ask the physician  
          to agree not to practice via a stipulated agreement.  

          3.Current Diversion Discussion by MBC.  At the October 2015 MBC  
            meeting, the Board discussed a new physician health program.   
            At the time, the board discussed recommendations about the  
            operation of the program by a private entity who would report  
            to the board when a physician is terminated from the program  
            for any reason.  MBC voted to approve a set of elements for a  
            physician health program including:

                       Compliance with the Uniform Standards.

                       Not residing within MBC.

                       Run by a private/contracted non-profit entity.

                       Inclusion of adequate protocols for communication  
                  with MBC.

                       Participation in regularly scheduled meetings with  
                  MBC. 

                       Allowance for both self-referrals and probationers  
                  to participate. 

                       Reporting to MBC of any physician who is  
                  terminated from the program, for any reason.  

                       No diversion - if a complaint/report is received,  
                  MBC's enforcement process will be followed, regardless  
                  of program participation.

                       Maintenance of clear and regular communication to  
                  MBC on the status of probationers in the Program. 

                       Participants share in cost of administering the  
                  program.









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                       Repercussions, if required audit finds the program  
                  is not in compliance.

                       Assurance that sufficient resources are available  
                  to perform clinical roles and case management roles,  
                  with sufficient expertise and experience 
                (50 physicians per case manager).

                       Limited to substance-abusing licensees. 

                       Strict documentation of monitoring.
               
          4. Prior Related Legislation.   AB 2346  (Gonzalez) of 2014 would  
             have authorized MBC to contract with a third party to  
             establish a voluntary Physician Health Program.  (  Status:    
             The bill was held under submission in the Assembly Committee  
             on Appropriations.)

              SB 1483  (Steinberg) of 2012 would have created the Physician  
             Health, Awareness, and Monitoring Quality Act (PHAMQ Act) and  
             established a Physician Health Program for physicians,  
             medical students, and medical residents seeking treatment for  
             alcohol or substance abuse, a mental disorder, or other  
             health conditions.  Created a Physician Health, Awareness,  
             and Monitoring Quality Oversight Committee within the DCA and  
             vested it with the duties and responsibilities for the  
             program, including entering into contracts.  (  Status:   The  
             bill was placed on inactive file on the Assembly Floor.) 

              SB 1172  (Negrete McLeod, Chapter 517, Statutes of 2010)  
             required healing arts boards to order a licensee to cease  
             practice if the licensee tests positive for any prohibited  
             substance under the terms of the licensee's probation or  
             diversion program 

              AB 526  (Fuentes) of 2009 would have established a voluntary  
             Physician Health Program within the State and Consumer  
             Services Agency to assist physicians and surgeons with  
             alcohol or substance abuse.  (  Status:   The bill was held  
             under submission in the Senate Committee on Appropriations.)   


              AB 214  (Fuentes) of 2008 would have established a voluntary  
             Physician Health Program within the Department of Public  








          SB 1177 (Galgiani)                                      Page 17  
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             Health to assist physicians and surgeons with alcohol or  
             substance abuse.  (  Status:   The measure was vetoed by  
             Governor Schwarzenegger who stated in his veto message that  
             "separating the operation of such programs from the Medical  
             Board of California is inappropriate.  Ideally, diversion  
             programs would always lead to success, but the reality is  
             that not everyone succeeds in recovery. It is critical that  
             the licensing agency be directly involved in monitoring  
             participation in diversion programs to protect patients and  
             enable timely enforcement actions.")  

              SB 1441  (Ridley-Thomas, Chapter 548, Statutes of 2008)  
             established the SACC within DCA to develop uniform standards  
             and controls for programs dealing with licensees with  
             substance abuse problems.

              AB 2443  (Nakanishi) of 2008 would have required the MBC to  
             establish a program to promote the well-being of physicians  
             and surgeons.  (  Status:   The measure was vetoed by Governor  
             Schwarzenegger who stated in his veto message "This bill,  
             while well-intentioned, detracts from the mission and purpose  
             of the MBC.  The Board should be focused on successfully  
             implementing its current licensure, regulatory and  
             enforcement activities before attempting to offer new  
             programs outside its highest priority - protecting the health  
             and safety of consumers.")

              SB 761  (Ridley-Thomas) of 2007 would have extended the sunset  
             date of the PDP to July 1, 2010.  (  Status:   The bill was held  
             under submission in the Assembly Committee on  
             Appropriations.) 

              SB 231  (Figueroa, Chapter 674, Statutes of 2005) established  
             a January 1, 2009, sunset date for the PDP.

          5. Arguments in Support.  Supporters state that this bill will  
             bring California back in line with the majority of other  
             states and licensed professions who recognize that wellness  
             and treatment programs serve to enhance public health as well  
             as provide necessary resources for those in need of help.   
             Supporters note that this bill would achieve legislation that  
             is supportive of early intervention, offers flexible  
             treatment options and achieves the goals of retaining  
             valuable members of the medical community while protecting  








          SB 1177 (Galgiani)                                      Page 18  
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             the public.
             
             MBC writes that the PHWP proposed in this bill is not a  
             diversion program, will not divert physicians from discipline  
             and notes that the bill requires compliance with the Uniform  
             Standards as well as requires any participant who is  
             terminated or withdraws from the PHWP to be reported to MBC,  
             very important elements to the board.

          6. Arguments in Opposition.  Consumers Union's Safe Patient  
             Project (CU SPP) is concerned that this bill would allow  
             physicians accused of substance abuse to be diverted into a  
             confidential substance abuse program and that information  
             will be kept secret from their patients. According to the  
             group, "As soon as a physician is required to enter a  
             substance abuse-related program that information should be  
             publicly reported on the MBC website. Further, substance  
             abusing physicians who have been referred by the MBC into  
             treatment should be required to disclose that to their  
             patients. Additionally, whether or not substance abuse is  
             involved, all physicians should be subject, at minimum, to  
             the same MBC public reporting requirements, i.e. the  
             involvement of substance abuse should never be a cause to  
             allow secrecy or reduce public reporting requirements, such  
             as information about actions taken by the board on doctors'  
             online profiles."  CU SPP additionally writes that the  
             program included in this legislation for substance abusing  
             physicians should not be associated with the California  
             Medical Association or with any nonprofit associated with the  
             CMA or with any entity associated with past administrators.  
             According to CU SPP, "This 'fox guarding the chicken house'  
             approach led to the failed model the MBC used in the past and  
             should not be repeated."
          

          SUPPORT AND OPPOSITION:
          
           Support:  

          California Chapter of the American College of Emergency  
          Physicians
          California Health Advocates
          California Hospital Association
          California Primary Care Association








          SB 1177 (Galgiani)                                      Page 19  
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          Medical Board of California
          Union of American Physicians and Dentists

           Neutral:
           
          Consumer Watchdog

           Opposition:  

          Center for Public Interest Law
          Consumers Union Safe Patient Project


                                      -- END --