BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   SB 221|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 221
          Author:   Walters (R)
          Amended:  4/21/09
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  11-0, 4/1/09
          AYES:  Alquist, Strickland, Aanestad, Cedillo, Cox,  
            DeSaulnier, Leno, Maldonado, Negrete McLeod, Pavley, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Home dialysis agencies

           SOURCE  :     California Dialysis Council


           DIGEST  :    This bill repeals existing law which provides  
          for the licensure and regulation of home dialysis agencies.

           ANALYSIS  :    

          Existing law:

          1. Establishes "home dialysis agencies," which are defined  
             as specified entities that engage in providing home  
             dialysis services and other therapeutic services to  
             patients in their homes.

          2. Defines "home dialysis services" as the treatment and  
             care given to patients of a home dialysis agency which  
             are administered by a physician, qualified registered or  
                                                           CONTINUED





                                                                SB 221
                                                                Page  
          2

             licensed nurse, or qualified hemodialysis technician  
             pursuant to a patient's care plan.  

          3. Requires home dialysis agencies to be licensed by the  
             Department of Public Health (DPH), and sets forth  
             various requirements a home dialysis agency must meet in  
             order to qualify for licensure, having specified  
             policies relating to patient care, personnel training  
             and qualifications, and recordkeeping.  Home dialysis  
             agencies are required to provide specified services,  
             including nursing, nutritional counseling, medical, and  
             social services, perform assessments of a patient's home  
             to ensure a safe physical environment for the  
             performance of dialysis, and meet specified requirements  
             relating to dialysis equipment, supplies, and waste  
             disposal.

          This bill repeals existing statute which provides for the  
          licensing and regulation of home dialysis agencies, and  
          makes findings and declarations that the statute has  
          created confusion and misunderstandings with respect to  
          dialysis services provided in skilled nursing facilities  
          (SNFs).

           Background
           
           Home dialysis agencies  .  The home dialysis agency model set  
          forth by existing law is one where a patient would receive  
          staff-assisted dialysis treatment in his or her own home.   
          The home dialysis agency law defines a "home" as a house,  
          apartment, SNF, intermediate care facility, congregate  
          living facility, or other setting where dialysis is  
          provided by at least one staff person per patient.

          According to DPH, although existing statute allows for  
          licensure of home dialysis agencies, it has never been  
          implemented, and no provider has been licensed as a home  
          dialysis agency.

           Dialysis services in SNFs  .  In June 2007, the then  
          Department of Health Services, now referred to as DPH,  
          issued an All Facilities Letter (AFL) stating that the  
          provision of dialysis services in a long-term care setting,  
          including SNFs, was not authorized.  The department  







                                                                SB 221
                                                                Page  
          3

          interpreted the home dialysis agency statutes as applicable  
          to SNF dialysis providers; since no provider was licensed  
          as a home dialysis agency, the department ordered the  
          delivery of dialysis services in SNFs to cease.

          In August 2007, DPH issued a subsequent All Facilities  
          Letter which superseded and clarified the letter issued two  
          months prior.  In this letter, DPH stated that, upon  
          further review, it had determined that dialysis services  
          may be provided in SNFs under existing regulations, which  
          allow for the provision of dialysis as an optional service.  
           DPH clarified that SNFs must meet specified federal  
          certification standards, and be authorized by DPH to  
          provide the dialysis services, and that the services must  
          be added to the facility's license.  The letter provided  
          that these dialysis services may only be provided to  
          residents of the facility, and not to the general public,  
          and further provided that if the SNF does not employ  
          qualified persons to provide dialysis services, it may  
          contract with an outside service that meets all applicable  
          standards for providing dialysis services.  SNFs are  
          required to have written policies and procedures for the  
          management of dialysis services.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  4/21/09)

          California Dialysis Council (source)
          California Association of Health Facilities


           ARGUMENTS IN SUPPORT  :    The California Dialysis Council  
          (CDC) states that no entity has ever requested licensure  
          under the home dialysis agency law, and that the existing  
          of the law has created confusion among certain dialysis  
          providers.  The CDC states that this bill will help avoid  
          such confusion by repealing the home dialysis agency law. 

          The California Association of Health Facilities (CAHF)  
          states that the home dialysis statute has caused confusion  
          among health care providers as to whether or not the  
          provision of dialysis services in SNFs is permitted.  CAHF  







                                                                SB 221
                                                                Page  
          4

          explains that in 2007, this confusion resulted in a small  
          group of providers meeting with DPH to ask for  
          clarification on the law.  CAHF states that the meeting  
          prompted DPH's June 2007 AFL disallowing dialysis services  
          in SNFs, which as later retracted and replaced by the  
          August 2007 AFL clarifying that dialysis services may be  
          provided in SNFs as an optional service.  CAHF states that  
          this statute is out-dated, and has never been applied, and  
          that by repealing the statute, facilities will have clear  
          authority to provide dialysis services to patients who are  
          often so ill, that they cannot be safely transported  
          between a dialysis clinic and their facility of residence.   



          CTW:do  4/21/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****