BILL ANALYSIS
SB 196
Page 1
SENATE THIRD READING
SB 196 (Corbett)
As Amended July 9, 2009
Majority vote
SENATE VOTE :vote not relevant
HEALTH 14-5 APPROPRIATIONS 12-5
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|Ayes:|Jones, Adams, Ammiano, |Ayes:|De Leon, Ammiano, |
| |Block, | |Charles Calderon, Coto, |
| |Carter, De La Torre, De | |Davis, Fuentes, Hall, |
| |Leon, Hall, | |John A. Perez, Skinner, |
| |Hayashi, Hernandez, | |Solorio, Torlakson, Hill |
| |Bonnie Lowenthal, Nava, | | |
| |V. Manuel Perez, Salas | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Fletcher, Conway, |Nays:|Conway, Duvall, Harkey, |
| |Emmerson, Gaines, Audra | |Miller, |
| |Strickland | |Audra Strickland |
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SUMMARY : Changes the notice requirements for hospital closures.
Specifically, this bill :
1)Increases from 90 to 120 days the public notice an acute care
hospital must provide prior to closing or downgrading the
emergency department (ED).
2)Adds employees to the list of entities that must be provided
with this notice and requires the hospital to hold a minimum
of three public meetings related to the proposed changes.
3)Requires the facility to inform the public of the status at
the second public meeting.
4)Increases from 30 to 60 days the public notice an acute care
hospital must give prior to closing a facility or relocating
supplemental services.
EXISTING LAW :
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1)Establishes the Department of Public Health (DPH) as the state
entity responsible for licensing and regulating health
facilities, including acute care hospitals.
2)Requires that any hospital that provides emergency medical
services, as soon as possible, but not later than 90 days
prior to a planned reduction or elimination of the level of
emergency medical services, provide notice of the intended
change to DPH, the local government entity in charge of the
provision of health services, and all health care service
plans or other entities under contract with the hospital to
provide services to enrollees of the plan or other entity.
3)Requires that in addition to the notice required by #2) above,
affected hospitals, within the 90 days, provide public notice
of the intended change in a manner that is likely to reach a
significant number of residents of the community serviced by
that facility.
4)Requires the county in which the closure or downgrade will
occur to prepare an impact evaluation that DPH must receive
before approving the change. The impact evaluation must
include the impact on community access to emergency care. The
process must include at least one public hearing, meet
specified timelines and may be delegated to the local
emergency services agency.
5)Requires any general acute care hospital not later than 30
days prior to a planned closure of the facility or elimination
of a supplemental service to provide public notice with
specified information, including a description of the planned
action and of the three nearest available comparable services
in the community. Requires the hospital to post the notice at
the entrance to the facility and provide it to DPH and the
county board of supervisors.
6)Requires, under the Beilenson Act, that, prior to a county
health facility closing, eliminating, or reducing the level of
medical services provided, or the leasing, selling, or
transfer of management, the county board of supervisors
provide public notice, including notice posted at the entrance
to all county health care facilities, of public hearings to be
held by the board of supervisors prior to its decision to
proceed. The notice is required to contain: a) a list of the
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proposed reductions or changes, by facility and service; b)
the amount and type of each proposed change; c) the expected
savings; and, d) the number of persons affected.
7)Allows counties to establish Local Health Care Districts
(hospital district) to operate health care facilities,
including acute care hospitals. Hospital districts are
required to secure voter approval in the district before
transferring or leasing more than 50% of the assets to a
private corporation.
8)Requires hospitals to meet seismic safety standards by 2008
and allows extensions under certain circumstances to 2013 and
2020.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, absorbable costs to DPH and unknown, but likely
absorbable costs to hospitals.
COMMENTS : According to the author, when a hospital closes or
eliminates a health service, it has a dramatic effect on the
availability, quality, and accessibility of care. This bill
adds 30 days to the existing notice requirement for an acute
care hospital for a total of 60 days. It also adds 30 days
notice of the closure of an ED, for a total of 120 days, and
requires the hospital to hold three public meetings. This
additional notice, the author states, will allow the public to
find solutions to keep their emergency rooms open, find a new
provider, or increase revenue to keep the local hospital open.
This bill also requires a status report at the second public
hearing.
The California Hospital Association (CHA) opposes this bill and
states that hospitals close because of inadequate revenue.
According to CHA, it is frequently a choice between closing the
emergency department or the entire hospital. CHA contends that
when a closure is announced, staff begin to look for other
opportunities and that adding 90 days and more pubic meetings
will "pile on" costs to a troubled hospital. With regard to the
author's assertion that this provides additional time to find
solutions, the opponents respond that a financial solution is
virtually impossible in these economic times.
SB 196
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Analysis Prepared by : Marjorie Swartz / HEALTH / (916)
319-2097
FN: 0002349