BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           726 (Ashburn)
          
          Hearing Date:  5/18/2009        Amended: 5/6/2009
          Consultant:  Bob Franzoia       Policy Vote: Health 10-0 BP&ED  
          6-2
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          ____
          BILL SUMMARY: 

          SB 726 would extend from January 1, 2011, to January 1, 2018, a  
          pilot project to allow qualified district hospitals to employ a  
          physician and surgeon under certain conditions. This bill would  
          require the Medical Board of California (MBC) to provide a  
          preliminary report by July 1, 2013 and a final report by July 1,  
          2016 evaluating the effectiveness of the pilot project.  This  
          bill would make other changes to the conditions of the pilot  
          project.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Pilot project expansionUp to $100 one time by 10/1/2013 and  
          Special*
          and extension          by 10/1/2016
                                                                      
          * Contingent Fund of the Medical Board of California
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          STAFF COMMENTS: Currently, the provisions of the pilot project  
          apply to qualified district hospitals.  A qualified hospital is  
          defined as a hospital that, among other things, is located in a  
          county with a population of less than 750,000 and had net losses  
          from operations in 2000-01.  This bill would expand that  
          definition to include a hospital that, among other things, is  
          located in a medically underserved area or a rural hospital and  
          had net less from operations in the most recent fiscal year.

          This bill would require a preliminary report by the MBC by  
          October 1, 2013 and a final report three years later.

          Staff notes the MBC was challenged in evaluating the pilot  










          project to date and preparing the report made available  
          September 10, 2008.  It appears the first pilot project was too  
          restrictive and due to the low number of participants, it was  
          difficult for the MBC to obtain sufficient information to  
          prepare a valid analysis.  Regardless, the report provides a  
          valuable summary and evaluation of the pilot project to date.   
          Expanding the pilot project to deal with restrictions should,  
          among other things, ensure there is enough data to determine if  
          the pilot project is effective in delivering medical care in  
          underserved areas.

          The cost of the MBC's 2008 report provides the estimate of the  
          cost of the 2013 and 2016 reports.