BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1785
                                                                  Page  1

          Date of Hearing:   May 19, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1785 (Galgiani) - As Amended:  April 28, 2010 

          Policy Committee:                              HealthVote:11-6

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the CA Department of Corrections and  
          Rehabilitation (CDCR) to establish a telemedicine program at all  
          state prisons by January 1, 2015. Specifically, CDCR: 

          1)Must include guidelines for determining when and where  
            telemedicine is preferable.

          2)Must be used only in the best interest of the patient.

          3)Must ensure telemedicine does not supplant civil service  
            physician and dental positions.

          4)Must annually report to the Legislature regarding telemedicine  
            objectives and performance.

           FISCAL EFFECT  

          No new net costs or savings as this bill essentially codifies  
          current CDCR/federal medical receivership practice and planning.  
          The receivership estimates continued implementation of the  
          existing telemedicine program will result in annual GF savings  
          in the range of $10 million. Telemedicine is a significant  
          component of the receiver's ongoing prison health care  
          "turn-around plan" as well as the governor's proposal to reduce  
          correctional health care spending by $800 million in 2010-11.  

           COMMENTS  

           1)Rationale  . According to the receivership, the sponsor of this  
            measure, while this bill is not necessary for implementation  
            of the ongoing telemedicine program, it is important to "to  








                                                                  AB 1785
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            ensure the sustainability of a cost-effective prison health  
            care system once the Receivership has returned control of  
            prison health care back to some State entity. By codifying  
            these nationally recognized standards of effective medicine,  
            the legislature will establish some oversight of the State  
            prison health care system in order to ensure that it does not  
            once again backslide to an unconstitutional level in the  
            future."


           2)Telemedicine  provides interactive healthcare via  
            telecommunication technology. Telemedicine allows patients to  
            visit with physicians live over video for immediate care, or  
            via recorded video/still images, patient data is stored and  
            sent to physicians for diagnosis and follow-up treatment at a  
            later time. 
           3)The CDCR telemedicine problem,  as stated by the receivership  
            in its October 2009 Utilization Management Project Charter, is  
            "the absence of strong leadership to nurture the program as  
            well as insufficient expanded telemedicine infrastructure to  
            support a significantly expanded telemedicine program. The  
            Receiver will put in place strong leadership within the  
            telemedicine program with a direction to upgrade CDCR's  
            telemedicine technologies, assess and expand staffing as  
            appropriate and engage with the UC system and others to  
            establish a vastly expanded the telemedicine program."  

            According to the receivership in its April 2010 Cost  
            Containment Report, telemedicine will result in significant  
            savings in contract medical and medical custody transportation  
            and guarding as well as protecting public safety by having  
            fewer inmates in transit.  

           4)Background - The California Prison Health Care Receivership  is  
            a non-profit organization created to house the activities of  
            the federal Receiver. The Receivership was established by U.S.  
            District Court Judge Thelton E. Henderson as the result of a  
            2001 class action law suit (Plata v. Schwarzenegger) over the  
            quality of medical care in the state's 33 prisons. The court  
            found that the care violated the Eighth Amendment of the U.S.  
            Constitution, which forbids cruel and unusual punishment of  
            the incarcerated.  

            In 2006, the court appointed the receiver to oversee the  
            delivery of inmate medical care within CDCR. According to the  








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            Department of Finance (DOF) in a 2010-11 budget change  
            proposal, since 2006 the receiver has significantly increased  
            the number of clinical staff, clinician pay, access to CDCR  
            clinicians, and referrals to specialists and contracted  
            providers, which has resulted in the cost of inmate medical  
            services increasing from $883 million in 2005-06 to $2 billion  
            in 2008-09 with a slight reduction in expenditures anticipated  
            for 2009-10 and 2010-11.  

           5)Related Legislation  .

             a)   AB 1817 (Arambula), also before the committee today, and  
               also sponsored by the receiver, requires CDCR to maintain a  
               medical utilization management program.  

             b)   AB 2747 (Lowenthal), also before the committee today,  
               and also sponsored by the receiver, requires CDCR to  
               maintain and operate a comprehensive pharmacy services  
               program.  

             c)   AB 2668 (Galgiani), on this committee's Suspense File,  
               requires CDCR to install telemedicine fixtures and  
               broadband infrastructure in the CDCR Medical Facility.  

             d)   AB 2222 (Galgiani), on this committee's Suspense File,  
               authorizes CDCR to install telemedicine fixtures and  
               broadband infrastructure in new or existing buildings  
               authorized pursuant to phase II of AB 900.    

             e)   AB 2233 (Nielsen), on this committee's Suspense File,   
               requires CDCR to create a new system of inmate health care  
               delivery and work with UC and the receiver to assess the  
               concept of turning inmate health care over to the UC  
               system.
           
           
           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081