BILL NUMBER: SB 1365	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 16, 2016
	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,   general acute care hospitals,
 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 a general acute care hospital 
that offers a service in a hospital-based outpatient clinic, as
defined,  to provide  a  specified notice to each
patient  scheduled for a service in a hospital-based outpatient
clinic, as defined,  when that service is available in a
nonhospital-based location. By expanding the application of an
existing crime, 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: 
   SECTION 1.    Section 1323.1 is added to the 
 Health and Safety Code   ,  immediately following
Section 1323  , to read: 
   1323.1.  (a) A general acute care hospital  that offers a
service in a hospital-based outpatient clinic  shall notify
each patient  scheduled for a service in a hospital-based
outpatient clinic  when that service is available in  a
nonhospital-based location, as follows:   another
location that is not hospital-based. The notification shall be in
substantially the following form:  
   "The 
    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 
within our health system  that is not hospital-based, which may
cost less. Check with  ___ (Patient Financial Services
Office)   the  insert name of office   ]
  at insert telephone number   ]  for another
location within our health system, or  check with  your
health insurance company, for more information about other locations
that may cost  less."   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.