BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 657
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          ASSEMBLY THIRD READING
          AB 657 (Hernandez)
          As Amended June 2, 2009
          Majority vote 

           HEALTH              12-4        LABOR AND EMPLOYMENT      5-2   
           
           ----------------------------------------------------------------- 
          |Ayes:|Jones, Ammiano, Block,    |Ayes:|Monning, Eng, Furutani,   |
          |     |Carter,                   |     |Ma, Portantino            |
          |     |De La Torre, De Leon,     |     |                          |
          |     |Hall, Hayashi, Hernandez, |     |                          |
          |     |Bonnie Lowenthal, Hill,   |     |                          |
          |     |Salas                     |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Adams, Conway, Emmerson,  |Nays:|Bill Berryhill, Gaines    |
          |     |Gaines                    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      12-5                                        
           
           -------------------------------- 
          |Ayes:|De Leon, Ammiano,         |
          |     |Charles Calderon, Davis,  |
          |     |Fuentes, Hall, John A.    |
          |     |Perez, Price, Skinner,    |
          |     |Solorio, Torlakson,       |
          |     |Krekorian                 |
          |     |                          |
          |-----+--------------------------|
          |Nays:|Nielsen, Duvall, Harkey,  |
          |     |Miller, Audra Strickland  |
          |     |                          |
           -------------------------------- 
           SUMMARY  :  Requires the Office of Statewide Health Planning and  
          Development (OSHPD), in collaboration with the California  
          Workforce Investment Board (Board), to establish a task force to  
          assist OSHPD in developing a health care workforce master plan  
          for the state.  Specifically,  this bill  requires:  

          1)OSHPD, in collaboration with the Board and based on  
            information provided by the Health Care Workforce  
            Clearinghouse, to establish and lead in coordinating the  








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            Health Professions Workforce Task Force (Task Force) to assist  
            in the development of a health professions workforce master  
            plan for the state.  Specifies task force membership is  
            voluntary and without compensation.  Requires the task force  
            to comprise not more than 21 members representing both rural  
            and urban areas and the following, as specified:  a) The  
            Legislature; b) University of California (UC); c) The  
            California State University; d) California Community Colleges;  
            e) The Department of Education; f) Leadership of a health  
            sciences program in a school district; g) The Board and a  
            regional workforce investment board; h) Labor, health  
            insurers, and medical groups; i) Health professions, including  
            nursing and allied health; j) Community clinics and hospitals;  
            and, k) Community-based organizations. 

          2)The Task Force to hold its first meeting no later than October  
            31, 2009, and to meet no less than three times per year to do  
            all of the following:

             a)   Assess impact, capacity, and effectiveness of, and  
               report on, existing state and private workforce training  
               programs, as specified;

             b)   Review local workforce investment plans and assess  
               progress toward meeting current health workforce needs;
             c)   Identify education and employment trends in the health  
               professions; 

             d)   Identify the ten health care professions with the  
               highest demand and develop a plan to meet that demand; 

             e)   Recommend state policies to address workforce shortage  
               and distribution issues; 

             f)   Compile, assess, and align with other strategic plans  
               for developing California's health workforce; and,

             g)   Submit to OSHPD, no later than October 31, 2013, a  
               complete health professions workforce master plan to OSHPD  
               and the Legislature.

          3)The Task Force to seek, and OSHPD to accept, funds from the  
            federal government and private entities to support the  
            activities of the Task Force.   








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           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, annual costs in the range of $100,000 of federal or  
          private funding through 2013, if the Task Force succeeds in  
          securing such support. 

           COMMENTS  :   According to the author, this bill is needed because  
          there is currently no statewide strategic plan on the health  
          care workforce.  The author states that demographic shifts are  
          causing widening gaps between health care workforce supply and  
          demand, as seen in shortages of primary care providers and other  
          health professionals.  California's population is aging,  
          growing, and increasing in diversity, and California's workforce  
          of health professionals is ill-equipped to respond to new  
          pressures on the health care system.  Additionally, the author  
          is concerned that state and private entities are working in  
          silos, leading to duplication of efforts and inefficiency. 

          The UC Office of the President's Final Report of the Advisory  
          Council on Future Growth in the Health Professions (UC report)  
          notes California has more residents age 65 and older than any  
          other state, and more than one in four California residents is  
          born outside the U.S.  According to the UC report, by 2015,  
          nearly 37% of California's population will be of Hispanic or  
          Latino origin, nearly 14% will be of Asian or Pacific Islander  
          heritage, and 6% will be African-American.  The report indicates  
          that there are shortages in nearly all health professions,  
          including the approximately 200 allied health occupations.  The  
          UC report projects that California will face a shortfall of  
          approximately 47,600 nurses by 2010, and shortfalls of 116,000  
          nurses and nearly 17,000 doctors by 2015.  

          In addition to the provider shortage, health care professionals  
          are not proportionately representative of the populations they  
          serve.  According to the Sullivan Commission Report, "Missing  
          Persons: Minorities in the Health Professions" (Sullivan  
          Report), African-Americans, Hispanic-Americans, and American  
          Indians make up more than 25% of the U.S. population but only 9%  
          of the nation's nurses, 6% of its physicians, and 5% of  
          dentists.  The Sullivan Report further links poorer minority  
          health to the shortage of minority health care providers.

          The UC report indicates that California has limited capacity to  
          educate and train health care providers and has long relied on  








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          in-migration of health professionals trained in other states and  
          countries.  According to the California Medical Association,  
          California ranks 39th in the nation in the number of medical  
          students per capita.  UC indicates that 60% of qualified nursing  
          students were turned away because of a lack of educational  
          slots.

          In 2007, Governor Schwarzenegger convened through OSHPD the  
          Healthcare Workforce Diversity Advisory Council (Council), which  
          was composed of diverse stakeholders and funded by a $120,000  
          grant from the California Wellness Foundation (TCWF) for one  
          year.  The Council's final report recommended in part that the  
          State develop a comprehensive, multi-year strategy and  
          implementation plan to develop health workforce diversity. 

          In 2006, The California Endowment awarded a grant to the Public  
          Health Institute and the UC Berkeley School of Public Health to  
          conduct a comprehensive study on health professions workforce  
          diversity for the state.  This study, called the Connecting the  
          Dots (CTD) Initiative, examined current and potential roles for  
          all stakeholders, including K-12 schools, local communities,  
          health professions employers, and local and state government.   
          CTD recommends, in part, the state develop a comprehensive  
          health workforce master plan, institutionalize the Council, and  
          improve health professions data collection through licensing  
          agencies.  

          In May 2007, the Assembly Health Committee held an informational  
          hearing on the California health care workforce, during which  
          speakers spoke of the need for new programs to increase the  
          diversity of California's health care workforce.  A speaker  
          representing TCWF pointed out that increasing diversity in the  
          health professions is not only an avenue for improving quality  
          of care and access to care, but also an important workforce  
          development strategy.  TCWF noted that jobs in the healthcare  
          sector, particularly among the allied health professions, are  
          now among the fastest growing in the economy, and data indicate  
          that in the next 15 years California will require tens of  
          thousands of nurses and other allied health professionals to  
          meet demand.  

          In March 2009, the Senate Health Committee held an informational  
          hearing entitled "California's Healthcare Workforce - Toward a  
          Comprehensive Solution."  Witnesses at this hearing highlighted  








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          California's health workforce shortages and lack of diversity  
          and recommended that the state develop a comprehensive health  
          workforce master plan. 

          The California Academy of Family Physicians (CAFP), sponsor of  
          this bill, writes some seven million Californians live in health  
          professions shortage areas (HPSAs) with less than one primary  
          care physician per 3,500 residents.  CAFP argues HPSA residents  
          suffer higher rates of preventable diseases, poorly treated  
          chronic conditions, and preventable complications such as  
          end-stage renal disease.  The California Dental Association  
          writes in support that a workforce master plan could produce  
          findings for use by dental and other health professions to  
          develop policies on recruitment, retention, training and  
          educational programs to improve access to care in the state.   
          The San Bernardino County Board of Supervisors writes in support  
          of a prior version that an adequate supply of well-prepared  
          public health professionals is essential to an effective public  
          health system, and it has had continuing difficulties in hiring  
          qualified public health professionals, leading to chronic  
          understaffing, difficult working conditions, the loss of  
          population-based services and direct patient services, and  
          delaying the start-up of new programs.  The California  
          Pan-Ethnic Health Network and the American Federation of State,  
          County, and Municipal Employees, AFL-CIO also support this bill.  



           Analysis Prepared by  :    Allegra Kim / HEALTH / (916) 319-2097 
                                                                   FN:  
                                                                 0001381