BILL NUMBER: SB 1365	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 31, 2016

INTRODUCED BY   Senator Hernandez
   (Principal coauthor: Assembly Member Bonta)

                        FEBRUARY 19, 2016

   An act to add Section 1323.1 to the Health and Safety Code,
relating to health facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1365, as amended, Hernandez. Hospitals.
   Under existing law, health facilities, including hospitals, as
defined, are licensed and regulated by the State Department of Public
Health. Existing law prohibits a health facility from charging,
billing, or otherwise soliciting payment from a patient on behalf of,
or referring a patient to, another health facility in which the
health facility has a significant beneficial interest, except as
provided. A violation of these provisions is a crime.
   This bill would  require an entity that operates or
controls a hospital, as defined, and that also operates, controls, or
leases real property for use as an outpatient treatment setting, to
ensure that the outpatient facility does not charge a fee to or
impose costs on a patient or other payer for inpatient care or
hospital care, except as provided.   require a general
acute care hospital that offers a service in a hospital-based
outpatient clinic, as defined, to provide specified notice to each
patient when that service is available in a nonhospital-based
location.  By expanding  a   the
application of an existing  crime,  this  
the  bill would create a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    Section 1323.1 is added to the
Health and Safety Code, to read:
   1323.1.  An entity that operates or controls a hospital, as
defined in subdivision (a), (b), or (f) of Section 1250, and that
also operates, controls, or leases real property for use as an
outpatient treatment setting shall ensure that the outpatient
facility does not charge a fee to or impose costs on a patient or
other payer for inpatient care or hospital care unless the care is
provided in the portion of the facility that is subject to Section
1276.4 or a hospital building as defined in subdivision (a) of
Section 129725. 
   SECTION 1.    Section 1323.1 is added to the 
 Health and Safety Code   , to read:  
   1323.1.  (a) A general acute care hospital that offers a service
in a hospital-based outpatient clinic shall notify each patient when
that service is available in a nonhospital-based location, as
follows:
   "The location where you are being scheduled to receive services is
a hospital-based clinic, and, therefore, may have higher costs. The
same service may be available at another location that is not
hospital-based, which may cost less. Check with ___ (Patient
Financial Services Office) for another location within our health
system, or your health insurance company, for more information about
other locations that may cost less."
   (b) For purposes of this section, a "hospital-based outpatient
clinic" means a department of a provider, as defined in Section
413.65(a)(2) of Title 42 of the Code of Federal Regulations, that is
not located on the campus of that provider. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.