BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1589
                                                                  Page  1

          Date of Hearing:   May 16, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                  AB 1589 (Simitian) - As Amended:  April 30, 2001 

          Policy Committee:                              HealthVote:13-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:                

           SUMMARY  

          This bill requires the Medical Board of California to commission  
          a study on the electronic transmission of prescriptions by  
          physicians.  Specifically, this bill: 

          1)Requires the Medical Board to consult with the Board of  
            Pharmacy on the study.

          2)Requires a report to the Legislature by January 1, 2003,  
            including recommendations for methods to encourage physicians  
            to issue prescriptions by this method and identification of  
            systems such as digital certification to protect patient  
            prescriptions.

           FISCAL EFFECT  

          Minor one-time costs to the Medical Board-ranging from $50,000  
          to $100,000 (Medical Board Contingent Fund)-to commission the  
          study.

           COMMENTS  

           1)Purpose  .  This bill seeks to explore new technologies to make  
            health care delivery more cost-effective and reduce errors  
            while maintaining appropriate security.  A policy paper from  
            the Institute for Safe Medication Practices (ISMP) called for  
            the elimination of handwritten prescriptions within three  
            years.  The ISMP paper stated the health care industry has  
            been slow to adopt new technologies, with prescription writing  
            arguably being the most important paper transaction remaining.  
             With the increasing use of wireless handheld devices, ISMP  
            asserts a solution to the handwriting crisis is more likely.








                                                                  AB 1589
                                                                  Page  2


          This bill requires a study of electronic transmission of  
            prescriptions, to include recommendations on how to improve  
            receptivity by physicians and the use of digital certification  
            to verify a physician's identity.

           2)Institute of Medicine Report  .  In a November 1999 report, the  
            Institute of Medicine issued an oft-cited report, "To Err is  
            Human:  Building a Safer Health System."  The report found  
            that approximately 7,000 hospital patients die annually from  
            preventable medication-related errors.  Among its  
            recommendations for reducing medication-related errors, the  
            report suggested establishing patient safety programs that  
            incorporate safety principles, such as standardizing and  
            simplifying equipment, supplies and processes.

           Analysis Prepared by  :    Joyce Iseri / APPR. / (916) 319-2081