BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                       Senator Elaine K.  Alquist, Chair


          BILL NO:       AB 57                                        
          A
          AUTHOR:        Price                                        
          B
          AMENDED:       As Introduced
          HEARING DATE:  June 25, 2009                                
          5
          CONSULTANT:                                                 
          7
          Hansel/sh                                                  
                                                                       
                                          
                                        
                                     SUBJECT
                                         
                  University of California hospitals: staffing

                                     SUMMARY  


          Requires the Department of Public Health (DPH) to establish  
          a procedure for collecting and reviewing written staffing  
          plans developed by the University of California (UC)  
          hospitals.  Requires DPH to review documentation from each  
          hospital concerning several aspects of its patient  
          classification plan, as specified.


                             CHANGES TO EXISTING LAW  

          Existing law:
          Provides for the inspection and licensure of health  
          facilities, including hospitals, by the Department of  
          Public Health.

          Requires DPH to adopt regulations that establish minimum,  
          specific, and numerical nurse-to-patient ratios, by  
          licensed nurse classification and by hospital unit, for  
          general acute care, acute psychiatric, and specialty  
          hospitals.  Existing law requires the ratios to constitute  
          the minimum number of registered and licensed nurses that  
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          must be allocated, and 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, the ability  
          for self-care, and the licensure of the personnel required  
          for care.

          Authorizes the Director of DPH to assess administrative  
          penalties against general acute care, acute psychiatric,  
          and specialty hospitals for licensing deficiencies and  
          violations, including violations of staffing requirements,  
          as specified.  In particular, the director is authorized to  
          assess the licensee of specified health facilities an  
          administrative penalty in an amount not to exceed $25,000  
          per violation, if a licensee receives a notice of  
          deficiency constituting an immediate jeopardy to the health  
          or safety of a patient, as defined, and is required to  
          submit a plan of correction.

          Existing regulations:
          Requires the administrator of nursing services for each  
          hospital, or their designee, to develop a written staffing  
          plan for each patient care unit, based on patient care  
          needs as determined by the hospital's patient  
          classification system.  

          Requires a staffing plan to be developed and implemented  
          for each patient care unit, which must specify patient care  
          requirements, and the staffing levels for registered nurses  
          and other licensed and unlicensed personnel.

          Requires hospitals to develop and document a process by  
          which all interested staff may provide input on the patient  
          classification system.

          This bill:
          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.

          Requires DPH, as part of its procedure, to collect and  




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          review documentation from each hospital relating to all of  
          the following:

           The hospital's annual review of the reliability of its  
            patient classification system;

           The hospital's adjustments to its patient classification  
            system, based on the annual review of the patient  
            classification system; and,

           The hospital's process for accepting staff input about  
            the patient classification system, the system's required  
            revisions, and the overall staffing plan.

          Requires DPH to exclude from its review issues related to  
          registered nurse staffing.

          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 to review that information as a representative sample.

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

          Makes various findings and declarations including that  
          inadequate staffing is a matter of statewide concern, and  
          that this 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 a state entity.

          The bill would sunset its provisions on July 1, 2013.
          
                                         

                                 FISCAL IMPACT  

          According the Assembly Appropriations Committee analysis of  
          AB 57:

                 Fee-supported special fund costs of approximately  
               $10,000 for DPH to review staffing plans submitted by  
               the five University of California Medical Centers.




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                 Unknown, likely absorbable, staffing costs to the  
               UC to provide DPH with staffing reports and evidence  
               of patient classification methodologies.


                            BACKGROUND AND DISCUSSION 

          According to the author, the intent of AB 57 is to better  
          ensure safe hospital staffing at UC medical centers by  
          requiring DPH to collect and review the medical centers'  
          written staffing plans and related documentation.  The  
          author states that recruitment and retention of key  
          employees is a challenge at UC medical centers, and that UC  
          has acknowledged that it faces a shortage of key personnel  
          in its 2007-08 budget request.  The author cites a 2007  
          analysis that found that one in four patient care workers  
          at the UC medical centers has two years or less experience  
          and states that for many critical patient care positions,  
          turnover is high.  The author states that the measure will  
          also provide a factual basis upon which the Legislature and  
          DPH can evaluate the need for minimum staffing requirements  
          in professional and technical classifications other than  
          nursing.  The author states that closer oversight of  
          staffing in the medical centers is appropriate, given that  
          the medical centers constitute the only general purpose  
          health care system owned and operated by a state entity.

          Current hospital staffing requirements
          Current regulations require hospitals to 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.  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  




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          professional and technical staffing levels, it would  
          investigate a complaint that is received related to  
          staffing, including non-nurse personnel, in a hospital, and  
          the investigation would involve examining the hospital's  
          patient classification system and staffing plans.  If a  
          patient suffered harm and understaffing was determined to  
          be a contributing causative factor, DPH would issue a  
          deficiency notice.

          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, the UC medical centers comprise  
          one of the largest health care systems in California and  
          constitute one of the two largest Medi-Cal providers in the  
          state.  

          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.  A 2007 report for the UC Davis  
          Health System 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,  
          the UC Davis Medical Center has offered signing bonuses,  
          participated in employee referral programs, partnered with  
          other hospitals to offer training programs, and recruited  
          at employment and career fairs.
          
          Prior legislation
          AB 2244 (Price) of 2008 contained provisions substantially  
          similar to this bill.  AB 2244 was vetoed by Governor  
          Schwarzenegger, who stated in his veto message that current  
          law already requires hospitals to have written staffing  




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          plans for nursing staff and that hospitals must determine  
          the staffing needs for "non-licensed" classifications using  
          the hospital's individual patient care requirements and  
          their system of delivering care.  

          AB 13 (Brownley) of 2007 would have required specified  
          hospitals to adopt a plan or procedure for determining  
          staffing of non-nurse professionals and technical  
          classifications, as specified.  Would have directed DPH to  
          review hospitals' compliance with their plans, and allowed  
          the director to levy administrative penalties for failure  
          to comply with the bill's provisions.  AB 13 is pending on  
          the Senate Floor.  

          AB 520 (Brownley) of 2007 was substantially similar to AB  
          13.  AB 520 was held in the Assembly Appropriations  
          Committee.

          AB 2754 (Chan) of 2006 was substantially similar to AB 13.   
          AB 2754 failed passage on the Senate Floor.

          AB 761 (Jones) of 2005 would have required hospitals to  
          consider staffing guidelines developed by relevant  
          professional associations and worker and patient injury  
          rates in determining non-nurse staffing levels in  
          hospitals.  AB 761 failed passage on the Senate Floor.

          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.

          AB 1927 (Dymally) of 2004 would have required general acute  
          care hospitals, acute psychiatric hospitals, and special  
          hospitals to at least annually, review the use of, and  
          consult with, professional, technical, and support staff,  
          as specified.  AB 1927 failed passage on the Assembly  
          Floor.  

          Arguments in support
          The American Federation of State, County, and Municipal  
          Employees (AFSCME) states that the UC hospitals comprise a  
          crucial component of the state's health care system.  As  
          such, it is necessary to ensure that these hospitals  
          maintain adequate staffing levels.  The expanded oversight  




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          and review provided by AB 57 will provide assurances that  
          patients are receiving appropriate and quality care in  
          these facilities.

          Arguments in opposition
          DPH states that AB 57 will result in the redirection of DPH  
          staff from other mandated activities.  Since non-nurse  
          staff, such as respiratory therapists, phlebotomists, and  
          radiology technicians, are not required to be included in  
          each hospital's patient classification system and written  
          staffing plan, DPH does not believe a review of the  
          staffing plans will yield the information related to  
          adequacy of staffing of non-nurse personnel.  DPH also  
          estimates the bill would require surveyors to spend an  
          additional 150 hours per annual hospital inspection to  
          review UC hospital staffing plans, and divert them from  
          other state-mandated activities.


                                  PRIOR ACTIONS

           Assembly Floor:               48-31
          Assembly Appropriations:      10-5 
          Assembly Higher Education:6-3
          Assembly Health:         13-6


                                     COMMENTS
           
           1.  Bill limited to UC hospitals.  The committee has heard  
            a number of bills that would    require hospitals  
            generally to document the systems they use for making  
            staffing decisions involving non-nurse personnel.  This  
            bill, by contrast, would require DPH to review the  
            methods and systems by which UC hospitals make staffing  
            decisions involving non-nurse personnel.  It is not clear  
            that issues involving staffing of non-nurse personnel are  
            any more or less prevalent at UC hospitals versus other  
            hospitals.
                                         

                                   POSITIONS  
                                        
          Support:  American Federation of State, County and  
          Municipal Employees (sponsor)




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                 American Federation of State, County and Municipal  
          Employees, Local 3299
                 United Nurses of California/Union of Health Care  
          Professionals
                    (UNAC/UHCP)

          Oppose:   Department of Public Health



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