BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 235
                                                                  Page  1

          Date of Hearing:   April 29, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 235 (Hayashi) - As Amended:  April 14, 2009 

          Policy Committee:                              Health Vote:19-0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill clarifies hospital and health plan responsibilities  
          with respect to psychiatric emergencies. Specifically, this  
          bill: 

          1)Defines "psychiatric emergency medical condition." Specifies  
            that inpatient admission may be required to relieve or  
            eliminate a psychiatric emergency. 

          2)Establishes specific criteria for the safe and appropriate  
            transfer of patients to an inpatient psychiatric unit or to  
            another facility. Authorizes health plans to make a subsequent  
            transfer to a contracting facility, if safe and necessary. 

          3)Establishes hospital transfer procedures with respect to  
            documentation, health coverage information, health plan  
            notification, and communication. 

           FISCAL EFFECT  

          No direct fiscal impact as a result of these clarifying changes.  
          The services, providers, and payers addressed in this bill are  
          required under state and federal laws to provide emergency  
          services, including psychiatric emergencies, in a specified  
          manner. This bill clarifies and enumerates specific process and  
          communication requirements to improve quality of care and reduce  
          payment disputes between hospitals and health plans. 

           COMMENTS  

           1)Rationale  . This bill is sponsored by the California Hospital  
            Association (CHA) to reduce payment denials by health plans  








                                                                  AB 235
                                                                  Page  2

            for hospital treatment of emergency psychiatric conditions.   
            This bill defines a psychiatric emergency and specifies  
            processes and communication that need to happen during and  
            after various transfers of patients who have received  
            psychiatric services. The author and sponsor indicate this  
            bill will improve care and reduce disputed claims for services  
            and treatment. 

           2)Federal Emergency Treatment Mandate  . The Emergency Medical  
            Treatment and Active Labor Act (EMTALA), enacted in 1986,  
            prohibits the practice of patient dumping, treatment denial,  
            and patient discharge based on anticipated high emergency  
            treatment costs. The mandate to treat psychiatric and other  
            emergency medical needs is included in EMTALA transport and  
            treatment mandates. Hospitals are required to provide  
            appropriate screening examinations to determine whether  
            emergency medical conditions exist, regardless of patients'  
            ability to pay. When emergency medical needs are identified,  
            EMTALA requires hospitals to stabilize patients. This bill  
            addresses transfers related to psychiatric post-stabilization  
            services specifically. Current state law requires  
            non-contracting hospitals to make certain contacts with health  
            plans during an emergency, including to obtain medical record  
            information. However, some contact requirements differ  
            depending on whether a patient is receiving pre- or  
            post-stabilization care. 

           3)Related Legislation  .  AB 2861 (Hayashi), in 2008, was similar  
            to this bill and was vetoed. The veto message indicated that a  
            drafting error would make the provisions unworkable. This bill  
            addresses that concern.

          AB 1203 (Salas), Chapter 603, Statutes of 2008 established  
            uniform requirements about communications between health plans  
            and non-contracting hospitals related to post-stabilization  
            care following an emergency, and generally prohibits a  
            non-contracting hospital from billing a patient who is a  
            health plan enrollee for post-stabilization services. 

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081