BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           360 (Yee)
          
          Hearing Date:  5/28/2009        Amended: 4/23/2009
          Consultant: Katie Johnson       Policy Vote: Health 7-4
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  SB 360 would require hospitals to ensure that all  
          direct care registered nurses receive and complete an  
          orientation of a minimum of five standard shifts where the  
          orientee would be observed by an experienced direct care nurse,  
          as specified, prior to being counted toward the hospital's  
          established nurse-to-patient ratio.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          Increased UC medical     unknown, possibly in the hundreds   
          General/      
          center and other                of thousands to millions of  
          dollars                  Federal
          hospitals' costs impact on
          Medi-Cal                        
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  SUSPENSE FILE. AS PROPOSED TO BE AMENDED.

          Existing law provides for the licensure and regulation of health  
          facilities, including hospitals, by the California Department of  
          Public Health (CDPH) and requires the CDPH to establish minimum  
          hospital nurse-to-patient ratios by licensed nurse  
          classification and by hospital unit. Existing law requires  
          specified hospitals to adopt written procedures for training and  
          orientation of nursing staff which would prohibit a registered  
          nurse from being assigned to a nursing unit until that nurse has  
          received the specified orientation and demonstrated sufficient  
          competency. The CDPH does not anticipate any workload increase  
          as a result of the passage of this bill.

          This bill would require each general acute care hospital, acute  
          psychiatric hospital, and special hospital to ensure that all  










          direct care registered nurses, including new hires, casual, per  
          diem, temporary agency, registry and traveler staff, receive and  
          complete orientation to the unit to which they would be  
          assigned. This bill would require these health facilities to  
          adopt written policies for the training and orientation of  
          nursing staff.

          This bill would provide that current competency 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. This bill would  
          require that an observing nurse directly observe the orientee  
          for a minimum of five standard nursing shifts. This bill would  
          prohibit an orientee from being included in the calculation of  
          the licensed nurse-to-patient ratio. This bill would define  
          "orientee" as a direct care registered nurse who has not  
          received and completed orientation to the hospital and patient  
          care unit or clinical area to which he or she would be assigned  
          and whose current competency has not been demonstrated and  
          validated. This bill would exempt a 

          Page 2
          SB 360 (Yee)

          state inpatient mental health hospital, a state developmental  
          center, and a state veterans' home from the provisions of this  
          bill.

          It is estimated that the California Department of Corrections  
          and Rehabilitation (CDCR) would need annual General Funds of up  
          to $200,000 to provide these observation services for its two  
          acute care hospitals which are staffed by approximately 300  
          nurses.

          This bill would increase the cost of providing health care to  
          Californians and would, as such, put unknown, but potentially  
          significant pressure in the hundreds of thousands to millions of  
          dollars on the General Fund and federal funds which provide  
          funding for the Medi-Cal program in hospitals. The Medi-Cal  
          program offers comprehensive coverage to low-income individuals.  
          The University of California operates five medical centers and  
          estimates an increased cost of approximately $3.1 million  
          system-wide. There would also be increased costs to all  
          California hospitals on the order of $40 to 80 million  
          system-wide.











          This bill is substantially similar to SB 1721 (Yee) of 2008,  
          which was held on the Assembly Appropriations Committee suspense  
          file.

          The proposed amendments would exempt general acute care  
          hospitals run by CDCR from these provisions. The amendments  
          would restrict this bill's provisions to apply to only temporary  
          agency, registry, and traveler staff registered nurses and would  
          give consideration to temporary agency nurses based on years of  
          experience in relation to the number of observed shifts required  
          by this bill as follows: less than 10 years of experience, 5  
          shifts; 10 - 19 years of experience, 4 shifts; 20 or more years  
          of experience, 3 shifts.