BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       SB 761                                       
          S
          AUTHOR:        Aanestad                                     
          B
          AMENDED:       April 22, 2009                              
          HEARING DATE:  April 29, 2009                               
          7
          CONSULTANT:                                                 
          6
          Moreno/cjt                                                  
          1              
                                        
                                     SUBJECT
                                         
                        Health manpower:  pilot projects

                                     SUMMARY  

          Requires the Office of Statewide Health Planning and  
          Development (OSHPD), no later than June 30, 2010, to submit  
          an annual report to the Legislature on all approved or  
          renewed health workforce pilot projects, including, but not  
          limited to, assessment of outcomes, budget impact, and  
          sources of funding.  

                             CHANGES TO EXISTING LAW  

          Existing law:
          Permits OSHPD to approve experimental health workforce  
          pilot projects in specified fields, and gives priority to  
          pilot projects in rural and central city areas.

          Existing law requires all data collected by OSHPD and the  
          manpower pilot projects to be public information, with due  
          regard for the confidentiality of individual patient  
          information.  Project evaluation is required to be  
          conducted by OSHPD, and the law requires raw data from  
          individual projects and the data that is the basis of  
          OSHPD's evaluation is required to be made available on  
          request.  OSHPD is required to provide a reasonable  
          opportunity for interested parties to submit dissenting  
                                                         Continued---



          STAFF ANALYSIS OF SENATE BILL  SB 761 (Aanestad)Page 2


          

          views or challenges in reports to the Legislature and  
          professional licensing boards.  
          
          This bill:
          Requires OSHPD, no later than June 30, 2010, to submit an  
          annual report to the Legislature on all approved or renewed  
          health workforce pilot projects, including, but not limited  
          to, assessment of outcomes, budget impact, and sources of  
          funding.  

                                  FISCAL IMPACT  

          Unknown.



                            BACKGROUND AND DISCUSSION  

          According to the author, accountability and transparency  
          are critical to the function of the Legislature.  Given the  
          limitation of resources to address healthcare workforce  
          shortages in the state, pilot projects under the health  
          workforce pilot project program administered by the Office  
          of Statewide Health Planning and Development should meet  
          standards of safety, effectiveness, and fiscal  
          responsibility.  An annual report that addresses these  
          standards and allows Legislative oversight offers consumer  
          protection and accountability to taxpayers.  The author  
          states that the OSHPD Healthcare Workforce Pilot Project  
          Program should be subject to oversight by the Legislature,  
          particularly given its potential impact on public health  
          and patient safety.

          Background
          According to a February 2009 paper prepared by the Senate  
          Office of Research (SOR), statewide shortages of health  
          providers currently exist in several major health  
          professions, such as nursing, primary care, and allied  
          health.  Furthermore, healthcare workforce needs are  
          projected to increase dramatically due to population aging,  
          growth, and diversity. Inability to meet health workforce  
          needs will have serious adverse health access, quality, and  
          cost consequences.  The SOR report pointed out that, for  
          professions regulated by the state, scope of practice is  
          restricted by law and closely guarded by the professions.   
          Practitioners often assert that they are uniquely qualified  




          STAFF ANALYSIS OF SENATE BILL  SB 761 (Aanestad)Page 3


          

          to perform the range of tasks permitted by their license  
          (to protect the patient's safety) and do not support  
          delegating tasks to associates who may not be as highly  
          trained.  Changes to scope of practice can provide  
          opportunities for additional resources for certain  
          professions.  However, policy changes must strike a balance  
          between public protection and ensuring a fair market place.  


          Health Manpower Pilot Projects Act
          The Health Manpower Pilot Projects Act of 1972 was intended  
          to address the need to improve the effectiveness of the  
          state's health care delivery system, particularly as it  
          related to the development of health care professionals.   
          According to a 2003 OSHPD report, the law was in response  
          to an issue policymakers had been grappling with since the  
          early 1960s: the functioning of licensed nurses in roles  
          that exceeded the scope of the California Nurse Practice  
          Act of 1939.   The health workforce pilot project program  
          permits expanded roles for health care occupations to be  
          designed, demonstrated, and tested by health facilities,  
          state agencies, and educational institutions.  In addition,  
          new categories of health occupations and professions can be  
          developed to fill gaps in the health care delivery system.

          According to OSHPD, pilot projects are conducted in three  
          phases: didactic, clinical, and employment/utilization  
          (E/U).  The didactic phase consists of a specified  
          curriculum of classroom training designed to teach the  
          participants the necessary skills to achieve the project's  
          objectives.  In the clinical phase, the participant applies  
          these skills under the direct supervision of the project  
          instructor.  In the E/U phase, the participants utilize and  
          test the new skills in the work setting with continued  
          periodic monitoring.  There have been 171 applications to  
          the program.  OSHPD has approved 78 applications that  
          completed their pilot project, approved 28 applications  
          that were discontinued due to statute changes while in  
          progress or there was a decline in interested trainees, and  
          65 denied or withdrawn  applications. Approved pilot  
          projects have related to expanded roles for nurses  
          (including nurse practitioners, nurse midwives, and nurse  
          anesthetists), pharmaceutical prescribing and dispensing  
          projects, expanded roles for "medical auxiliaries"  
          (emergency medical technicians and physician assistants),  
          maternal-child health projects, and mental health projects.  




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          Oversight of projects
          In order to receive approval from OSHPD, pilot projects  
          under the program submit an extensive application.   
          Applications are reviewed by OSHPD for feasibility and  
          completeness and are made available for review by  
          appropriate health care professional boards, agencies,  
          associations, and technical consultants for review.  A  
          public meeting is held at which abstracts of the  
          application are distributed for review, comments from  
          consultants, reviewers, healing arts boards, professional  
          associations, and other interested parties are heard and  
          addressed.  

          After a project receives approval, OSHPD oversight  
          continues through site visits.  Invitations to attend site  
          visits are extended by OSHPD to "an interdisciplinary team  
          composed of representatives of the healing arts boards,  
          professional organizations, and other state regulatory  
          bodies," most of whom are identified through the  
          application review process.  Site visits include a  
          determination that patient safeguards are in place and  
          validation that the project is in compliance with the  
          approved or amended application.  Ongoing project oversight  
          and review includes the submission of reports, project  
          updates, and other written information requested by OSHPD  
          (and required under the program regulations and authorizing  
          statute).  Project approval is reviewed and must be renewed  
          annually.  Through this renewal process, the project  
          sponsor submits reports, project updates, data summaries,  
          and other written information as requested by OSHPD.  All  
          of these materials are public information.  

                                     COMMENTS
                                         
          1.The need for information identified in this bill is  
            unclear.  The state does not fund any pilot projects  
            under this program.  Each applicant is responsible for  
            funding their project(s).  The current pilot project  
            (#171) is funded by the John Merck Fund, the Education  
            Foundation of America, the David and Lucile Packard  
            Foundation, and an anonymous foundation. OSHPD's  
            administration of the program is funded through hospital  
            fees deposited into the Health Data and Planning Fund,  
            which were projected at $25 million for fiscal year  




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            2008-09.  OSHPD dedicates approximately 0.3 positions and  
            $20,000 for program oversight.  This bill requires an  
            "assessment of...budget impact and sources of funding."    
            However, this information is already made available to  
            the public.  In line with the author's intent and because  
            it is unclear how budget impact could be assessed by  
            OSHPD, this bill should be amended as follows:
          
            On page 2, line 5:
            128196.  Not later than June 30, 2010, and annually  
            thereafter, the office shall submit to the Legislature a  
            report relating to all health workforce pilot projects  
            approved or renewed pursuant to this article that  
            includes, but is not limited to, assessment of outcomes  ,  
            budget impact, and sources of funding  .  

                                    POSITIONS  

          Support:  None received

          Oppose:   None received

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