BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 57
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          Date of Hearing:   April 14, 2009

                            ASSEMBLY COMMITTEE ON HEALTH
                                  Dave Jones, Chair
                   AB 57 (Price) - As Introduced:  December 5, 2008
           
          SUBJECT  :  University of California hospitals: staffing.

           SUMMARY  :  Requires the Department of Public Health (DPH) to  
          establish a procedure for collecting and reviewing the written  
          staffing plans developed by specified University of California  
          (UC)-operated health facilities.  Specifically,  this bill  :  

          1)Requires DPH to establish a procedure for collecting and  
            reviewing the written staffing plans developed by UC general  
            acute care hospitals, acute psychiatric hospitals, and special  
            hospitals.

          2)Requires the collection and review procedure developed by DPH  
            to include all of the following:

             a)   Review of the reliability of the patient classification  
               system for validating staffing requirements;

             b)   Potential adjustments in the patient classification  
               system, as specified; and,

             c)   Staff input about the patient classification system, the  
               system's required revisions, and the overall staffing plan.

          3)Excludes a review of documentation relating only to registered  
            nurses from the collection and review procedure developed by  
            DPH.

          4)Allows DPH, if it deems it necessary to reduce the volume of  
            information collected and reviewed, to identify specific time  
            frames for which the information is to be collected and review  
            that information as a representative sample.

          5)Requires a UC general acute care hospital, acute psychiatric  
            hospital, and special hospital to cooperate with DPH in  
            providing the required information.

          6)Makes various findings and declarations including that  
            inadequate staffing is a matter of statewide concern and this  








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            bill is intended to provide DPH and the public with access to  
            the written staffing plans and actual staffing levels of the  
            only general purpose health care system owned and operated by  
            the state. 

          7)Sunsets the provisions of this bill on July 1, 2013.

           EXISTING LAW  :

          1)Provides for the inspection and licensure of health  
            facilities, including hospitals, by DPH.

          2)Establishes, pursuant to regulations, minimum, specific, and  
            numerical nurse-to-patient ratios by licensed nurse  
            classification and by hospital unit for hospitals.

          3)Requires the ratios to constitute the minimum number of  
            registered and licensed nurses that must be allocated.   
            Requires additional staff to be assigned in accordance with a  
            documented patient classification system for determining  
            nursing care requirements, including the severity of the  
            illness, the need for specialized equipment and technology,  
            the complexity of clinical judgment needed to design,  
            implement, and evaluate the patient care plan and the ability  
            for self-care, and the licensure of the personnel required for  
            care.

          4)Requires, pursuant to regulations, a written staffing plan to  
            be developed by the administrator of nursing services or a  
            designee, based on patient care needs determined by the  
            patient classification system.  Requires the staffing plan to  
            be developed and implemented for each patient care unit and to  
            specify patient care requirements and the staffing levels for  
            registered nurses and other licensed and unlicensed personnel.

          5)Authorizes DPH to assess the licensee of specified health  
            facilities an administrative penalty in an amount not to  
            exceed $50,000 for a first violation, $75,000 for a second  
            violation within three years of the first violation, and  
            $100,000 for a third and subsequent violation penalty within  
            three years of the first violation, if a licensee receives a  
            notice of deficiency constituting an immediate jeopardy to the  
            health or safety of a patient and the health facility is  
            required to submit a plan of correction.  Defines immediate  
            jeopardy as a situation in which the licensee's noncompliance  








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            with one or more requirements of licensure has caused, or is  
            likely to cause, serious injury or death to the patient.  

           FISCAL EFFECT  :   This bill has not yet been analyzed by a fiscal  
          committee.  According to an Assembly Appropriations Committee  
          analysis of a substantially similar bill last year, AB 2244  
          (Price), the provisions of this bill could result in:

          1)Annual General Fund (GF) costs and cost pressures of $300,000  
            to $600,000 from 2009 through 2013 for UC to hire additional  
            analysts to establish, review, and monitor staffing plans for  
            each of the five UC hospitals. 

          2)Major GF staffing costs and cost pressures of $10 million per  
            100 hospital employees hired pursuant to staffing ratios  
            established after 2014 pursuant to the intent of this bill.   
            The legislative intent of this bill is to provide a "factual  
            foundation" upon which the Legislature and DPH may evaluate  
            the need for minimum staffing requirements to improve patient  
            safety.  Staffing ratios established for nurses pursuant to AB  
            394 (Kuehl), Chapter 945, Statutes of 2000, are expected to  
            create almost $1 billion in new annual staffing costs in 2008,  
            according to ramp-up estimates by the former Department of  
            Health Services (now DPH). 

          3)Annual GF costs to DPH of $50,000 from 2009 through 2013 to  
            provide review and analysis of UC staffing plans and patient  
            classification system requirements.

          4)Unknown DPH and UC workload and penalty revenue to the extent  
            DPH levies penalties on UC hospitals pursuant to this bill.  


           COMMENTS  :  

          1)PURPOSE OF THIS BILL.   The author maintains that understanding  
            safe staffing levels for key hospital personnel is critical  
            for quality patient care.  The author asserts that  
            understaffing of professional and technical hospital employees  
            may endanger patient care by forcing staff to simultaneously  
            cover multiple patients in different units of the hospital,  
            delaying timely receipt of patient test results, causing  
            inaccurate or misleading films and tests, and increasing  
            employee back or other injuries that affect their ability to  
            provide quality care.  The author points out that UC academic  








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            medical centers are the only general purpose health care  
            system owned and operated by a state of California and, as  
            such, UC should be required to make data available to DPH and  
            the public to ensure quality health care is provided in these  
            facilities. 

           2)UC MEDICAL CENTERS  .  According to UC, the five medical centers  
            operated by UC (Davis, Irvine, Los Angeles, San Diego, and San  
            Francisco) support the clinical teaching programs of UC's  
            medical and health sciences schools and receive more than  
            138,000 inpatient discharges, 261,000 emergency room visits  
            and more than 3.6 million outpatient visits each year.  The UC  
            medical centers provide a full range of health care services  
            in their communities and are sites for the development and  
            testing of new diagnostic and therapeutic techniques.   
            Collectively, these UC medical centers comprise one of the  
            largest health care systems in California and one of the two  
            largest Medi-Cal providers in the state.  The UC health system  
            operates Level I trauma centers in four of its five regions  
            and staffs San Francisco General Hospital's Level I trauma  
            center.  A major provider to uninsured and underinsured  
            patients in Sacramento, San Diego, and Orange Counties, the UC  
            system also has relationships with more than 100 affiliated  
            Veterans Affairs, county, and community-based health  
            facilities throughout California.

           3)CURRENT HEALTH WORKFORCE SHORTAGES AT UC  .  UC indicates that  
            all UC medical centers currently have systems in place to  
            determine staffing needs, measure turnover rates, and assess  
            staffing effectiveness based on each individual hospital's  
            facility details, patient acuity levels, and employee needs.   
            For example, a 2007 Human Resources Annual Report of the UC  
            Davis Health System, which includes the UC Davis Medical  
            Center (UCDMC), indicated that some of the most difficult to  
            recruit positions in 2006-07 included clinical laboratory  
            scientists, physical/occupational therapists, respiratory  
            therapists, magnetic resonance imaging technologists, and  
            radiological technologists.  The report noted that to attract  
            applicants to positions that are difficult to fill, UCDMC  
            offered sign on bonuses, participated in employee referral  
            programs, partnered with other hospitals to offer training  
            programs, and recruited at employment and career fairs.

           4)HOSPITAL STAFFING PRACTICES  .  Current regulations require  
            hospitals to meet established nurse-to-patient ratios and to  








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            develop a written staffing plan for registered nurses and  
            other licensed and unlicensed personnel that reflects patient  
            care needs based on a patient classification system.   
            Hospitals use various types of non-nursing professional and  
            technical staff to provide direct patient care, including  
            respiratory therapists, phlebotomists, radiology technicians,  
            lab technicians, pharmacy technicians, emergency room and  
            surgical technicians, and nursing assistants.  However,  
            according to DPH, hospitals may use non-nursing staff to meet  
            patient care needs, if they are otherwise allowed to provide  
            those services.  For instance, respiratory care services could  
            be provided by a nurse or respiratory therapist or blood draws  
            could be done by a nurse or phlebotomist.  DPH also indicates  
            that while it does not review the methods or procedures that  
            hospitals use to determine non-nursing professional and  
            technical staffing levels, it would investigate a complaint  
            that it received related to staffing, including non-nurse  
            personnel, in a hospital and the investigation would involve  
            examining the hospital's written staffing plan.  If a patient  
            suffered harm and understaffing was determined to be a  
            contributing causative factor, DPH states that it would issue  
            a deficiency notice for staffing. 

           5)SUPPORT  .  The sponsor of this bill, the American Federation of  
            State, County and Municipal Employees (AFSCME), writes that UC  
            hospitals comprise a crucial component of the state's health  
            care system and, as such, it is necessary to ensure that these  
            facilities are maintaining adequate staffing levels.  AFSCME  
            believes the expanded oversight and review provided by this  
            bill will allow for appropriate monitoring of staffing levels  
            and patient care requirements at UC hospitals while  
            safeguarding public health.
           
          6)PREVIOUS AND RELATED LEGISLATION  .  
           
             a)   AB 2244 (Price) of 2008 was substantially similar to  
               this bill and was vetoed by Governor Arnold Schwarzenegger.  
                In his veto message, the Governor stated that current law  
               already requires hospitals to have written staffing plans  
               for nursing staff and that to target a requirement  
               specifically at the five UC hospitals is both unnecessary  
               and ineffective.

             b)   AB 13 (Fuentes) of 2007 would have required specified  
               hospitals to adopt a plan or procedure for determining  








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               staffing of professional and technical classifications, as  
               specified, and would have directed DPH to review compliance  
               and deem failure to maintain, review annually, or comply  
               with the plan or procedure to constitute staffing that has  
               the potential for harm to patients.  AB 13 was vetoed by  
               Governor Arnold Schwarzenegger with his message stating  
               that current law already requires hospitals to have written  
               staffing plans for nursing staff and that DPH already has  
               the authority to issue deficiencies and administrative  
               penalties to hospitals when an investigation concludes that  
               staffing deficiencies lead to harm or poor patient  
               outcomes.  

              c)   AB 520 (Brownley) of 2007 was substantially similar to  
               AB 13 and was held in the Assembly Appropriations  
               Committee.  
           
             d)   AB 2754 (Chan) of 2006 was substantially similar to AB  
               13.  AB 2754 failed passage on the Senate Floor.  
           
             e)   AB 761 (Jones) of 2005 would have required hospitals to  
               consider any staffing guidelines developed by relevant  
               professional associations and to annually review and report  
               worker and patient injury rates.  AB 761 failed passage on  
               the Senate Floor.  
           
             f)   AB 2300 (Dymally) of 2004 would have required hospitals  
               to develop a staffing plan for professional, technical, and  
               support staffing.  AB 2300 failed passage in the Assembly  
               Health Committee.   
           
             g)   AB 1927 (Dymally) of 2004 would have addressed staffing  
               in hospitals for professional, technical and support staff.  
                AB 1927 failed passage on the Assembly Floor.  

          7)DOUBLE REFERRAL  .  This bill has been double-referred.  Should  
            this bill pass out of this committee, it will be referred to  
            the Assembly Higher Education Committee.

           8)QUESTIONS AND COMMENTS  .

              a)   The scope of this bill does not identify the occupations  
               for which data is to be collected and reviewed  .  The author  
               may wish to clarify the classifications that are the  
               subject of this bill.








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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees,  
          Local 3299 (co-sponsor)
          American Federation of State, County and Municipal Employees,  
          AFL-CIO (co-sponsor)
          United Nurses Associations of California/Union of Health Care  
          Professionals

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :  Tanya Robinson-Taylor / HEALTH / (916)  
          319-2097