BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       SB 1119                                      
          S
          AUTHOR:        Wright                                       
          B
          AMENDED:       March 23, 2010                              
          HEARING DATE:  April 14, 2010                               
          1
          CONSULTANT:                                                 
          1
          Hansel/jl                                                   
          1              9
                                     SUBJECT
                                         
                              Health care staffing

                                     SUMMARY  

          Requires agencies that refer licensed nursing staff for  
          temporary employment in health facilities, including  
          general acute care, acute psychiatric, and special  
          hospitals, to meet requirements similar to those that apply  
          to the referral of licensed nursing staff to long-term care  
          facilities.
                                         
                            CHANGES TO EXISTING LAW  

          Existing law:
           Provides for the certification and regulation of  
            certified nurse assistants (CNA) under the Department of  
            Health Services, and licenses registered nurses under the  
            Board of Registered Nursing (the Board).

           Requires an employment agency that refers temporary  
            certified nurse assistants to an employer that is a  
            long-term health care facility to provide written  
            verification that the employment agency has verified that  
            the certified nurse assistant is registered on the state  
            registry of certified nurse assistants and is in good  
            standing, and a statement that the certified nurse  
            assistant has at least six months of experience working  
            in a long-term health care facility.
                                                         Continued---



          STAFF ANALYSIS OF SENATE BILL 1119 (Wright)   Page 2


          


           Requires an employment agency that refers licensed  
            nursing staff, defined to include a licensed registered  
            nurse (RN), licensed vocational nurse, or psychiatric  
            technician, to a long-term care facility to verify that  
            the individual is in good standing with the Board of  
            Registered Nursing or the Board of Vocational Nursing and  
            Psychiatric Technicians, as applicable, and has  
            successfully secured a criminal record clearance.  

           Requires an employment agency that refers temporary  
            certified nurse assistants or licensed nursing staff to  
            an employer who is a licensed long-term care facility to  
            additionally do all of the following:

            --Provide a statement that the individual has had a  
            health examination within 90 days prior to employment  
            with the employment agency, or seven days after  
            employment with the employment agency and at least  
            annually thereafter, and verification that the individual  
            has had tuberculosis (TB) screening within 90 days prior  
            to employment and annually thereafter;

            --Provide written verification that the individual does  
            not have any unresolved allegations against them  
            involving the mistreatment, neglect, or abuse of a  
            patient, including injuries of unknown source and  
            misappropriation of resident property;

            --Maintain a record of all advertisements, showing the  
            date of publication and the publication in which the  
            advertisement appeared, for a period of one year from the  
            date of the advertisement;

            --Refrain from advertising or making any other  
            representation that it is a home health agency; and

            --Adopt policies and procedures regarding prevention of  
            resident or patient abuse by temporary staff.

           Requires that any employee referred to a long-term care  
            facility be identified as a temporary staff person in the  
            facility's daily staffing levels required to be posted  
            pursuant to federal law.

           Provides that no temporary staff person referred by an  




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            employment agency may
            be solely responsible for a unit unless that person has  
            received a full orientation to the facility and the  
            applicable unit for which he or she is assigned.

           Allows any facility or individual to refer complaints  
            concerning employment agencies which place licensed  
            nursing staff or certified nurse assistants in long-term  
            health care facilities to the appropriate licensing,  
            certification, ombudsman, adult protective
            services, or proper law enforcement agency for action.

           Provides for licensure of private duty nurse registry  
            agencies and requires nurse registries to verify nurses'  
            experience and training and to verify that applicants  
            hold current licenses.

          This bill:
           Requires agencies that refer licensed nursing staff for  
            temporary employment in health facilities, including  
            general acute care, acute psychiatric, and special  
            hospitals, to meet requirements similar to those that  
            apply to the referral of licensed nursing staff to  
            long-term care facilities.

           Specifically, requires such agencies to:
            --Verify that individuals referred to health facilities  
            are licensed and in good standing, have successfully  
            secured a criminal record clearance, have had health  
            exams and TB screening, as specified, and do not have any  
            unresolved allegations against them involving the  
            mistreatment, neglect, or abuse of a patient.

            --Maintain a record of all advertisements;

            --Refrain from advertising or making any other  
            representation that it is a home health agency;

            --Adopt policies and procedures regarding prevention of  
            resident or patient abuse by temporary staff.

            --Provide, upon the request of the State Department of  
            Public Health, a list of temporary employees who have  
            been referred to a specified health facility during the  
            period in which the facility is involved in a labor  
            action.




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           Provides that no licensed nursing staff referred by an  
            employment agency to a health facility may be solely  
            responsible for a unit unless that person has received a  
            full orientation to the facility and the applicable unit  
            for which he or she is assigned.

           Makes other conforming changes.


                                  FISCAL IMPACT  

          This bill has not been analyzed by a fiscal committee.


                            BACKGROUND AND DISCUSSION  

          According to the author, SB 1119 is intended to create  
          screening procedures for temporary nursing registries that  
          provide nurses for health care facilities that are similar  
          to those that apply to the referral of temporary private  
          duty nurses, nurses working in long-term care facilities,  
          and staff who provide telephone medical advice.

          The author cites statistics that the temporary nurse  
          staffing industry is estimated to range from 3,000 to 6,000  
          agencies nationwide.  Nearly six percent of registered  
          nurses in the United Sates are licensed in California.   
          Approximately 19,000 California licensed registered nurses  
          work as temporary nurses.  Due to nursing shortages, most  
          health care facilities rely on temporary nurses.  

          The author argues that the nurse staffing industry is  
          poorly regulated and acts as a haven for problem nurses.   
          The author asserts that most agencies do not do background  
          checks, allow applicants to take competency exams online,  
          and hire nurses without even conducting an interview.  The  
          author cites a December 2009 Los Angeles Times article  
          which found dozens of cases where temporary agencies  
          skimped on background checks, failed to document  
          qualifications, and ignored complaints concerning problem  
          nurses.  According to the article, the lapses have allowed  
          problem nurses to move from hospital to hospital.

          Responsibilities of agencies and registries to screen  
          nursing staff




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          Under current law, nurse registries that supply private  
          duty nurses are required to verify the applicants'  
          experience or training and to verify that applicants hold  
          current licenses.

          AB 1643 (Negrete McLeod) of 2001 (Chapter 326, Statutes of  
          2001) requires employment agencies that refer temporary  
          certified nurse assistants or licensed nursing staff to  
          long-term care facilities to verify that the individuals  
          are licensed and in good standing, have had health exams  
          and TB screening, and do not have any unresolved  
          allegations against them.   AB 1643 was passed in response  
          to concerns that increasing dependence by long-term care  
          facilities on nurse registries and employment agencies for  
          nurses and other staff was diminishing the quality of care  
          provided to long-term care residents.  However, these  
          responsibilities are limited to referrals by employment  
          agencies to long-term care facilities.

          Some employment agencies that refer health care staff are  
          certified by the Joint Commission, an organization that  
          accredits hospitals, nursing homes, ambulatory care  
          providers, and home care organizations.  The certification  
          program evaluates key functional areas such as the  
          agencies' processes for verifying the credentials and  
          competencies of health care staff.

          Reporting requirements related to nurses and psychiatric  
          technicians
          Current law requires licensed vocational nurses and  
          psychiatric technicians to report unprofessional conduct on  
          the part of fellow licensees to their respective licensing  
          boards.  Current law also requires employers of vocational  
          nurses and psychiatric technicians to report to these  
          licensing boards the termination or suspension for cause of  
          any licensed vocational nurse or psychiatric technician.   
          In addition, standards of competence for registered nurses  
          established by the Board of Registered Nursing encourage  
          RNs to report unprofessional conduct of other RNs to the  
          Board.

          Current law additionally allows, but does not require,  
          facilities or individuals to refer complaints concerning  
          employment agencies that place licensed nursing staff or  
          certified nurse assistants in long-term care facilities to  
          licensing or certification agencies, long-term care  




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          ombudsman agencies, adult protective services programs, and  
          law enforcement agencies.

          Related bills
          SB 360 (Yee) of 2009-2010 would have required each new  
          direct care registered nursing hire to receive and complete  
          an orientation to the hospital and patient care unit in  
          which he or she will be working.  Would have precluded a  
          nurse who has not completed this orientation from being  
          assigned to direct patient care, and would require  
          observation of the nurse during the orientation by a direct  
          care registered nurse.  Held in Senate Appropriations  
          Committee.

          
          Prior legislation
          SB 1721 (Yee)  2007-2008 contained provisions that are  
          similar to the provisions of SB 360.  Held in Assembly  
          Appropriations Committee.

          SB 1643 (Negrete McLeod) - Chapter 326, Statutes of 2001,   
          requires employment agencies that refer temporary certified  
          nurse assistants or licensed nursing staff to long-term  
          care facilities to verify that the individuals are licensed  
          and in good standing, have had health exams and TB  
          screening, and do not have any unresolved allegations  
          against them.  Requires these agencies to meet other  
          requirements pertaining to background screening,  
          advertising, and reporting to the Department of Public  
          Health.

          Arguments in support
          AMN Healthcare, Inc., a large temporary health care  
          staffing agency, states that, while it subscribes to very  
          stringent standards regarding internal background checks  
          and qualifications of staff, there is room to improve on  
          the current requirements that apply to the industry. 
          

                                     COMMENTS  

          1.  Employment agencies that refer health staff are not  
          licensed or regulated.  As drafted, this bill would add  
          provisions to the Civil Code, imposing new duties on  
          employment agencies that refer licensed health staff to  
          health care facilities.  While a patient or their  




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          representative, or a health care facility could recoup  
          damages from harm caused by an agency's failure to properly  
          screen a licensed nurse, there is no direct oversight of  
          agencies, meaning that no entity inspects them or handles  
          complaints regarding them.  While it may be beyond the  
          scope of the bill to provide for licensing or direct  
          oversight of employment agencies that refer health care  
          staff, a suggested amendment would be to require agencies  
          above a certain size to be certified or accredited by a  
          nationally recognized accrediting body that is recognized  
          by the Centers for Medicare and Medicaid Services.

          2.  Additional reporting requirements related to problem  
          nurses could help reduce churning.  While the bill would  
          result in better screening of licensed nursing staff by  
          employment agencies, it could still be possible for nurses  
          who are refused or sent back by health care facilities to  
          continue to be rereferred to other facilities or to move  
          from one agency to another, as long as information about  
          the send back or refusal is not part of the licensing  
          record.  A suggested amendment would be to require  
          facilities to report to the relevant licensing boards when  
          they send back licensed or refuse nursing staff for any of  
          the grounds for which they currently have to report  
          terminations or suspensions, and to similarly require  
          agencies themselves to report when they terminate or  
          suspend staff for cause.






          3.  Suggested technical amendment:

          On page 4, lines 9 - 14, amend as follows:

          (e) An employment agency shall require that any employee  
          referred to a long-term care    health  facility be  
          identified as a temporary staff person in the facility's  
          daily staffing levels required to be posted in accordance  
          with the standards set forth in Section 941 of Appendix F  
          of Public Law 106-554 (42 U.S.C. Sec. 1395i-3(b)(8) and 42  
          U.S.C. Sec. 1395r(b) (8)).
          





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                                    POSITIONS  


          Support:  AMN Healthcare, Inc.

          
          Oppose:  None received


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