BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           235 (Hayashi)
          
          Hearing Date:  6/29/2009        Amended: 6/11/2009
          Consultant: Katie Johnson       Policy Vote: Health 8-2
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 235 would extend the definition of emergency  
          services and care to include additional screening, examination,  
          and evaluation by medical professionals to determine if a  
          psychiatric emergency medical condition exists. The bill would  
          also clarify hospital and health plan responsibilities regarding  
          psychiatric emergencies.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          DMHC oversight           $60        $0       $0        Special*

          *Managed Care Fund
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 

          Existing federal law, the Emergency Medical Treatment and Active  
          Labor Act (EMTALA), requires hospital emergency rooms to provide  
          emergency screening and stabilization services without regard to  
          a patient's ability to pay for services rendered.

          Existing law provides for the licensure and regulation of health  
          care service plans by the Department of Managed Health Care  
          (DMHC). It would cost DMHC approximately $60,000 one-time to  
          update the filings of health plans as a result of this bill. Any  
          ongoing costs would be minor and absorbable.

          Existing law provides for the licensure and regulation of health  
          facilities by the California Department of Public Health (CDPH).  
          There would be no cost to CDPH to continue its oversight of  
          health facilities as a result of this bill.

          Existing state law requires health plans and insurers to pay for  










          emergency care and services. Existing law defines an "emergency  
          medical condition" as a condition that, absent immediate medical  
          attention, could result in placing the patient's health in  
          serious jeopardy, serious impairment to bodily functions, or  
          serious dysfunction of any bodily organ or part.

          Existing law defines "emergency services and care" to mean  
          medical screening, examination, and evaluation by a physician or  
          by other appropriate personnel under the supervision of a  
          physician, to determine if an emergency medical condition or  
          active labor exists, and if it does, the care, treatment, and  
          surgery by a physician necessary to relieve or eliminate the  
          emergency medical condition.


          Page 2
          AB 235 (Hayashi)

          This bill would further define "emergency services and care" to  
          mean an additional screening, examination, and evaluation by a  
          physician, or other personnel to the extent permitted by law and  
          within their scope of practice, to determine if a psychiatric  
          emergency medical condition exists, and the care and treatment  
          necessary to relieve or eliminate the psychiatric emergency  
          medical condition.

          This bill would define a "psychiatric emergency medical  
          condition" means a mental disorder that manifests itself by  
          acute symptoms of sufficient severity that it would render the  
          patient to be an immediate danger to himself or herself or to  
          others and unable to provide for, or utilize, food, shelter, or  
          clothing.

          Existing law provides that a patient is "stabilized" or that  
          "stabilization" has occurred when, in the opinion of the  
          treating provider, the patient's medical condition is such that  
          no material deterioration of the patient's condition is likely  
          to result from, or occur during, the release or transfer of the  
          patient.

          This bill would clarify that the care and treatment necessary to  
          relieve or eliminate a psychiatric emergency medical condition  
          could include admission or transfer to a psychiatric unit within  
          a general acute care hospital or to an acute psychiatric  
          hospital. This bill would permit the transfer of a patient for  
          admission to a psychiatric unit within a general acute care  










          hospital or to an acute psychiatric hospital for care and  
          treatment that is necessary to relieve or eliminate a  
          psychiatric emergency medical condition provided that there  
          would be no material deterioration of the patient's psychiatric  
          emergency medical condition as a result of, or during, the  
          transfer.

          This bill would clarify that the emergency services and care  
          specified in this bill's provisions do not apply to Medi-Cal  
          managed care plan contracts to the extent that such services are  
          excluded from coverage under those contracts.

          This bill would specify a process by which the hospital would  
          notify an individual's health plan of the need to transfer a  
          patient with a psychiatric medical condition and when the  
          transfer occurred.  

          This bill would permit a health plan to transfer a patient from  
          a noncontracting facility to a contracting general acute care  
          hospital or psychiatric hospital provided that in the opinion of  
          the treating provider the patient's psychiatric emergency  
          medical condition is such that no material deterioration of the  
          patient's psychiatric emergency medical condition is likely to  
          result, or occur during, the transfer.

          This bill would require a hospital to which a patient was  
          transferred to notify the patient's health plan of the transfer,  
          provided the facility has the name of the health plan.

          This bill would state that these provisions should not be  
          construed to require providers to seek authorization to provide  
          emergency services and care to a patient who has a psychiatric  
          emergency medical condition that is not otherwise required by  
          law.


          Page 3
          AB 235 (Hayashi)

          Any costs to hospitals and health plans to implement the  
          provisions of this bill would be absorbable.

          This bill is substantially similar to AB 2861 (Hayashi) of 2008,  
          which the Governor vetoed, stating, "this bill contains numerous  
          drafting errors that render its provisions confusing at best and  
          potentially harmful to patients at worst." This bill has been  










          redrafted into its current form, which differs from AB 2861, and  
          thus addresses the Governor's veto message.