BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  SB 1456|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1456
          Author:   Kuehl (D)
          Amended:  8/23/04 
          Vote:     21

           
           PRIOR SENATE VOTES NOT RELEVANT

          ASSEMBLY FLOOR  :  53-22, 8/24/04 - See last page for vote


           SUBJECT  :    Hospitals:  physicians and surgeons:   
          self-governance

          SOURCE  :     Author


           DIGEST  :     Assembly Amendments  delete the contents of the  
          bill.  Previously, the bill prohibited an owner or operator  
          of the Santa Susana Field Laboratory site in Ventura County  
          from using, selling, transferring, or leasing any part of  
          that site for residential use unless certain findings were  
          met.

          This bill now clarifies the medical staff's right of  
          self-governance and makes various findings and  
          declarations.

           ANALYSIS  :    

          This bill:

          1. Requires the medical staff's right of self-governance to  
             include, but not be limited to, all of the following: 
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             A.    Establishing in medical bylaws, rules or  
                regulation, criteria and standards consistent with  
                the medical peer review process, for medical staff  
                membership and privileges.

             B.    Establishing in medical staff bylaws, rules or  
                regulations, clinical criteria and standards to  
                oversee and manage quality assurance, utilization  
                review, and other medical staff activities including,  
                but not limited to, periodic meetings of the medical  
                staff and its committees and departments and review  
                and analysis of patient medical records.

             C.    Selecting and removing medical staff officers.

             D.    Assessing medical staff dues and utilizing the  
                medical staff dues as appropriate for the purposes of  
                the medical staff.

             E.    The ability to retain and be represented by  
                independent legal counsel at the expense of the  
                medical staff, provided  that medical staff at the  
                University of California (UC) have the right to  
                retain and be represented by independent legal  
                counsel at the expense of the medical staff upon  
                approval by the Regents of the UC or their designee  
                in accordance with the bylaws of the Regents, which  
                approval shall not be unreasonably denied.
              
             F.    Initiating, developing, and adopting medical staff  
                bylaws, rules and regulation, and amendments thereto,  
                subject to approval of the hospital governing board,  
                which approval shall not be unreasonably withheld. 

          2. Prohibits the medical bylaws from interfering with the  
             independent rights of the medical staff to do any of the  
             following, but requires the procedures for:

             A.    Selecting and removing medical staff officers/

             B.    Assessing medical staff dues and utilizing medical  
                staff dues as appropriate for the purposes of the  
                medical staff.







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             C.    The ability to retain and be represented by  
                independent legal counsel at the expense of the  
                medical staff. 

          3. Requires, that with respect to any dispute arising, the  
             medical staff and hospital governing board to meet and  
             confer in good faith to resolve the dispute.  Allows a  
             superior court of any county to issue an injunction,  
             writ of mandate, or other appropriate order whenever a  
             person or entity has engaged in or is about to engage in  
             any acts or practices that hinder, restrict, or  
             otherwise obstruct the ability of the medical staff to  
             exercise its rights, obligations, or responsibilities,  
             as specified. 

          4. Makes legislative findings and declarations on the  
             following: 

             A.    That providing quality medical care in hospitals  
                depends on the mutual accountability,  
                interdependence, and responsibility, of the medical  
                staff and the hospital governing body for the proper  
                performance of their respective obligations.

             B.    That the governing board of a hospital must act to  
                protect the quality of medical care provided and the   
                competency of its medical staff, and the responsible  
                governance of the hospital in the event that the  
                medical staff fails in any of its substantive duties  
                or responsibilities, and nothing in this bill  
                undermines their authority.  The final authority of  
                the hospital governing board may be exercised for the  
                responsible governance of the hospital or for the  
                conduct of the business affairs of the hospital but  
                such final authority may only be exercised with a  
                reasonable and good faith belief that the medical  
                staff has failed to fulfill a substantive duty or  
                responsibility in matters pertaining to the quality  
                of patient care.  Specifies that it would be a  
                violation of the medical staff's self-governance and  
                independent rights for the hospital governing board  
                to assume a duty or responsibility of the medical  
                staff precipitously, unreasonably, or in bad faith.







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             C.    That the specific actions that would constitute  
                bad faith or unreasonable action on the part of  
                either the medical staff, or hospital governing board  
                will always be fact specific and cannot be precisely  
                described in statute, and that the provisions set  
                forth herein do nothing more than provide for the  
                basic independent rights and responsibilities of a  
                self-governing medical staff.  Specifies that a  
                successful relationship between a hospital's medical  
                staff and governing board depends on the mutual  
                respect for the rights and responsibilities of the  
                other. 

          5. Makes the bill's enactment contingent on the passage of  
             SB 1325 (Kuehl). 
           
          Comments

           This bill is substantially similar to the provisions of SB  
          1325 (Kuehl), pending the Governor's action, but includes  
          clarifying amendments dealing with the medical staff of UC  
          hospitals.  The amendments indicate that UC medical staff's  
          right to retain and be represented by independent legal  
          counsel must be approved by the Regents of the UC or its  
          designee in accordance with the bylaws of the Regents.  UC  
          believes these amendments are necessary to address the  
          unique relationship between the UC and its faculty  
          physicians and make this bill consistent with the bylaws  
          governing the UC.  The UC specifies that its faculty  
          physicians enjoy certain rights and privileges that are not  
          common to other medical staff including access to legal  
          counsel under the UC Regents' Bylaws and Standing Orders,  
          the provision of medical malpractice insurance, and benefit  
          of internal grievance processes designed to address and  
          resolve quality issues and concerns.  
          Without the amendments, the provisions of the SB 1325 would  
          have an adverse impact on the relationship of faculty  
          physicians and the UC Board of Regents or its designees. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           







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          ASSEMBLY FLOOR  : 
          AYES:  Berg, Bermudez, Calderon, Canciamilla, Chan, Chavez,  
            Chu, Cohn, Corbett, Correa, Diaz, Dutra, Firebaugh,  
            Frommer, Garcia, Goldberg, Hancock, Jerome Horton,  
            Shirley Horton, Houston, Jackson, Kehoe, Laird, Leno,  
            Levine, Lieber, Liu, Longville, Lowenthal, Maldonado,  
            Montanez, Mullin, Nakanishi, Nakano, Nation, Negrete  
            McLeod, Oropeza, Parra, Reyes, Richman, Ridley-Thomas,  
            Salinas, Samuelian, Simitian, Spitzer, Steinberg, Vargas,  
            Wesson, Wiggins, Wolk, Wyland, Yee, Nunez
          NOES:  Aghazarian, Bates, Benoit, Bogh, Campbell, Cogdill,  
            Cox, Dutton, Harman, Haynes, Keene, La Malfa, La Suer,  
            Leslie, Matthews, Maze, McCarthy, Mountjoy, Pacheco,  
            Plescia, Runner, Strickland
          NO VOTE RECORDED:  Daucher, Dymally, Koretz, Maddox, Pavley


          CP:mel  8/25/04   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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