BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       SB 360                                       
          S
          AUTHOR:        Yee                                          
          B
          AMENDED:       April 2, 2009                               
          HEARING DATE:  April 15, 2009                               
          3
          CONSULTANT:                                                 
          6
          Hansel/sh                                                   
          0
                                        
                                         
                                    SUBJECT
                                         
                     Health facilities: direct care nurses

                                     SUMMARY  

          Clarifies that current requirements, under which hospitals  
          must ensure that direct care registered nurses receive  
          orientation to the hospital and to the patient care unit or  
          clinical care area in which they will be working, apply to  
          new hires, casual, per diem, registry, and traveler staff.   
          Specifies procedures through which the competency of direct  
          care registered nurses may be demonstrated and validated.   
          Provides that patient care staff who are undergoing  
          orientation, and who have not had their competency  
          demonstrated and validated, shall not count as staff for  
          the purposes of meeting minimum nurse-to-patient ratios.   
          Deletes provisions of existing law that allow the  
          Department of Public Health (DPH) to take into  
          consideration the unique nature of the University of  
          California teaching hospitals when establishing licensed  
          nurse-to-patient ratios.


                             CHANGES TO EXISTING LAW  

          Existing law:
          Existing law provides for the licensing and regulation of  
                                                         Continued---



          STAFF ANALYSIS OF SENATE BILL  SB 360 (Yee)    Page 2


          

          health facilities, including general acute care hospitals,  
          acute psychiatric hospitals, and special hospitals by the  
          Department of Public Health (DPH).

          Existing law requires DPH to adopt regulations that  
          establish minimum, specific, and numerical licensed  
          nurse-to-patient ratios, by licensed nurse classification  
          and by hospital unit, for hospitals, and provides that  
          these ratios shall constitute the minimum number of  
          registered and licensed nurses that must be allocated.   
          Existing law also requires additional staff to be assigned  
          in accordance with a documented patient classification  
          system for determining nursing care requirements that  
          includes the severity of the illness, the need for  
          specialized equipment and technology, the complexity of  
          clinical judgment needed to design, implement, and evaluate  
          the patient care plan, the ability for self-care, and the  
          licensure of the personnel required for care.

          Existing law and regulations require general acute care,  
          acute psychiatric, and special hospitals to adopt written  
          policies and procedures for the training and orientation of  
          nursing staff, and further provides that a registered nurse  
          shall not be assigned to a nursing unit or clinical area  
          until they have received orientation in that clinical area,  
          and have demonstrated current competence in providing care  
          in that area.  Existing law provides that these  
          requirements also apply to temporary personnel.  Existing  
          regulations further require patient care personnel to  
          receive an annual written performance evaluation which  
          includes an assessment of competency. 

          Existing regulations limit the duties and responsibilities  
          of all patient care personnel, prior to their completion of  
          competency standards for a patient care unit, to specific  
          duties and responsibilities for which competency has been  
          validated, as well as other limitations, as specified.

          Existing law defines the practice of nursing to include the  
          administration of medications and therapeutic agents  
          ordered by a physician or other professional who is  
          licensed to prescribe such agents, administration of skin  
          tests and immunizations, withdrawal of blood, observation  
          of signs and symptoms of illness or general physical  
          condition, implementation of appropriate reporting and  
          referral procedures or changes in treatment regimen in  




          STAFF ANALYSIS OF SENATE BILL  SB 360 (Yee)    Page 3


          

          accordance with standardized procedures, and the initiation  
          of emergency procedures.

          Existing law allows DPH to take into consideration the  
          unique nature of the University of California teaching  
          hospitals when establishing licensed nurse-to-patient  
          ratios, including for nursing services provided as part of  
          a work-study program in which there will be
          sufficient direct care registered nurse preceptors  
          available to ensure safe patient care.

          This bill:
          The bill would provide that the competency of direct care  
          registered nurses to care for patients in specific units or  
          clinical may only be demonstrated and validated by the  
          direct observation of the orientee by another direct care  
          registered nurse who has previously demonstrated current  
          competency with the relevant patient population, and may  
          not be based on self-assessment.

          The bill would require the observing direct care registered  
          nurse to directly observe and assess the orientee within  
          the relevant clinical area, and with the relevant patient  
          population, for a minimum of five standard nursing shifts,  
          in order to determine whether the orientee displays the  
          required knowledge and skills of patient assessment,  
          patient care planning, intervention, evaluation, and  
          patient advocacy, to satisfactorily fulfill the duties  
          required under the Nursing Practice Act, and to meet nurse  
          competency requirements established by the Board of  
          Registered Nursing.  

          The bill would exempt state mental hospitals, state  
          developmental centers, and state veterans' homes, as  
          defined, from these new requirements.

          This bill would additionally clarify that current  
          requirements, under which general acute care, acute  
          psychiatric, and special hospitals must ensure that all  
          direct care registered nurses receive and complete  
          orientation to the hospital and patient care unit or  
          clinical care area in which they will be working before  
          they are assigned to that unit or area, apply to new hires,  
          casual, per diem, registry, and traveler staff.  The bill  
          would exempt state mental hospitals, state developmental  
          centers, and state veterans' homes, as defined, from these  




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          existing requirements.

          The bill would provide that an orientee shall not count as  
          staff for the purposes of meeting minimum nurse-to-patient  
          ratios that otherwise apply.

          The bill would additionally delete provisions of existing  
          law that allow DPH to take into consideration the unique  
          nature of the University of California teaching hospitals  
          when establishing licensed nurse-to-patient ratios.


                                 FISCAL IMPACT  

          According to the Assembly Appropriations Committee analysis  
          of SB 1721 (Yee) of last session, which is substantially  
          similar to SB 360:

          (1) Annual increased General Fund (GF) training costs to  
          the California Department of Corrections and Rehabilitation  
          (CDCR) of $200,000 for nurse observation required by this  
          bill.  There are three CDCR hospitals and 300 nurses  
          working in these hospitals.

          (2) Annual increased GF cost pressures to the University of  
          California (UC) medical centers of $3 million for nurse  
          observation required by this bill. There are five UC  
          medical centers and 10,000 nurses working for UC.  

          (3) Additional costs to the remaining 400 acute care and  
          psychiatric hospitals statewide.


                            BACKGROUND AND DISCUSSION  

          According to the author, current practices for validating  
          competencies of hospital nursing staff, including temporary  
          staff, are inconsistent due to the lack of uniform  
          standards for validating competency, with the result that  
          patients have been harmed.  The author states that  
          hospitals are relying on inadequate competency validations  
          performed by temporary agencies, contrary to statutory  
          requirements that each hospital perform its own competency  
          validation, which is specific to each clinical area of the  
          hospital.  According to the author, SB 360 will increase  
          patient safety by ensuring that all direct patient care  




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          staff, including per diem and temporary staff and new  
          hires, receive an objective competency assessment, specific  
          to the care unit in which they will be working, before  
          assuming patient care responsibilities.

          Prior legislation
          SB 1721 (Yee)  2007-2008 contained provisions that are  
          similar to the provisions of SB 360.  Held in Assembly  
          Appropriations Committee.
          
          SB 1760 (Kuehl), Chapter 148, Statutes of 2000, provides a  
          one-year extension for the adoption of regulations  
          establishing specified nurse-to-patient staff ratios in  
          health facilities.


          AB 394 (Kuehl), Chapter 945, Statutes of 1999 requires DPH  
          to adopt regulations specifying nurse-to-patient ratios for  
          general acute care hospitals, acute psychiatric hospitals  
          and special hospitals.  Requires hospitals to adopt written  
          policies and procedures for nursing staff training.   
          Prohibits hospitals from assigning unlicensed personnel to  
          perform nursing functions in lieu of a registered nurse.   
          Allows waivers of nurse-to-patient ratios for rural  
          hospitals, as long as the health, safety, and well-being of  
          patients affected is not jeopardized.

          Arguments in support
          The California Nurses Association (CNA), the sponsor of SB  
          360, states that, due to the lack of uniform standards for  
          validating registered nurse competency, RNs have been  
          accepted into clinical areas where they are not competent,  
          and that this has resulted in patient harm.  CNA further  
          states that hospitals and temporary agencies are heavily  
          relying on subjective self-assessments of competency,  
          rather than objective assessments by qualified registered  
          nurses, and, based on these inadequate assessments, are  
          allowing nurses to assume responsibility for patient care.   
          CNA also expresses concern that registered nurses who have  
          not had their competency validated are being counted as RNs  
          for the purposes of calculating the hospital's adherence to  
          mandated nurse-to-patient ratios.  

          Arguments in opposition
          The California Hospital Association (CHA) and the  
          California Children's Hospital Association (CCHA) argue  




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          that current statutes, regulations, and accreditation  
          standards adequately ensure nurse orientation and  
          competency. Specifically, these organizations state that  
          current law requires hospitals to adopt written policies  
          and procedures for training and orientation of nursing  
          staff, including temporary staff, and to ensure that nurses  
          have demonstrated competency in providing care in a  
          specific unit.  The organizations state that hospital  
          accreditation standards contain similar requirements for  
          competency verification, and that those standards apply to  
          hospitals, including when they use temporary nurses.  They  
          further state that if a staff nurse has concerns that a  
          newly assigned nurse does not possess requisite  
          competencies, he or she can file a complaint without fear  
          of retaliation. 

          CHA and CCHA argue the bill will exacerbate the current  
          nurse shortage and increase hospital costs by requiring  
          staff nurses to take reduced patient loads and by requiring  
          experienced nurses undergoing orientation to spend more  
          time to demonstrate competency before they can be assigned  
          to patient care.

          A number of hospital organizations and individual hospitals  
          also argue that the bill's requirement that competency may  
          only be validated through direct observation over five  
          working shifts is arbitrary, eliminates the ability of  
          hospitals to plan orientation based on the level of  
          experience of the particular nurse, and to use temporary  
          agency staff to address gaps when a staff nurse is sick, or  
          when there is a labor dispute.  
                                         




                                    COMMENTS
           
          1.  Should the bill allow for documentation of prior  
          comparable training and observation?  It may be possible  
          for a hospital to determine whether a nurse, including a  
          temporary agency nurse, has worked in the same unit of one  
          hospital as the unit they will be working in another  
          hospital, and has undergone direct observation of their  
          nursing skills for some number of shifts.  In some areas,  
          it might be possible for hospitals to utilize a common  




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          registry in which they would document the training and  
          observation of nurses who rotate among hospitals.  In these  
          cases, would it make sense for the hospital to be able to  
          credit some of the previous training and observation to the  
          five working shift requirement?  

          2.  Exemption of state mental hospitals, developmental  
          centers, and veterans homes from orientation and competency  
          validation requirements.  As drafted, the bill would exempt  
          these hospitals not only from the bill's requirements that  
          nurse competency be validated through direct observation  
          over five working shifts, but also from existing  
          requirements that nurses in these hospitals receive  
          orientation to the unit in which they will be working and  
          have their competency validated before they are assigned to  
          patient care.  This could create a different standard for  
          state-administered hospitals versus other hospitals.

          3.  Bill eliminates special nurse staffing provisions for  
          UC teaching hospitals.  As part of the nurse staffing ratio  
          statute enacted by the Legislature in 1999, DPH was given  
          authority to take into account the unique nature of UC  
          teaching hospitals in setting nurse ratios, but was  
          required to ensure that the ratios are consistent with  
          nursing requirements set by the Board of Registered Nursing  
          for UC clinical training programs.  SB 360 would delete  
          these provisions of the nurse staffing ratio statute.   
          According to the Board of Registered Nursing, because it  
          doesn't set staffing ratios as part of its approval of  
          clinical training programs, these provisions have never  
          been implemented.

           
                                    POSITIONS  


          Support:  California Nurses Association (sponsor)
                 American Federation of State, County and Municipal  
          Employees
                 Consumer Federation of California
                 United Nurses Association of California/Union of  
          Health Care     
                           Professionals

          Oppose:  California Hospital Association
                 California Children's Hospital Association




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                 California State Council (unless amended)
                 Catholic Healthcare West
                 Centinela Hospital Medical Center
                 Children's Hospital Central California
                 Coalinga regional Medical Center
                 College Hospital of Costa Mesa
                 Colusa Regional Medical Center
                 Community Hospital of Long Beach
                 Community Hospital of San Bernardino
                 Corona Regional Medical Center
                 Enloe Medical Center
                 Garden Grove Hospital and Medical Center
                 Gateways Hospital and Mental Health Center
                 Glenn Medical Center
                 Henry Mayo Newhall Memorial Hospital
                 Huntington Beach Hospital
                 John F. Kennedy Memorial Hospital
                 John Muir Health
                 Kindred Hospital, San Francisco Bay Area
                 La Palma Intercommunity Hospital
                 Lodi Memorial Hospital
                 Lompoc Valley Medical Center
                 Los Alamitos Medical Center
                 Madera Community Hospital
                 Mammoth Hospital
                 Marian Medical Center
                 Mercy San Juan Medical Center
                 Mercy Medical Center
                 Methodist Hospital
                 Mission Hospital in Mission Viejo
                 Modoc Medical Center
                 Palo Verde Hospital
                 Paradise Valley Hospital
                 Pomona Valley Medical Center
                 Rady Children's Hospital- San Diego
                 Saint Francis Memorial Hospital
                 San Antonio Community Hospital
                 Sequoia Hospital
                 Sharp HealthCare
                 Sierra Kings Health Care District
                 St. Bernardine Medical Center
                 St. Elizabeth Community Hospital
                 St. Joseph's Behavioral Health Center
                 St. Joseph Hospital of Orange
                 St. Mary's Medical Center
                 Surprise Valley Health Care District




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                 Sutter Delta Medical Center
                 United Hospital Association
                 Whittier Hospital Medical Center
                 Several individuals


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