BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1150
                                                                  Page  1

          Date of Hearing:   June 22, 2010

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER  
                                     PROTECTION
                                 Mary Hayashi, Chair
             SB 1150 (Negrete McLeod) - As Introduced:  February 18, 2010

           SENATE VOTE  :   31-1
           
          SUBJECT  :   Healing arts.

           SUMMARY  :   Requires license designations on health care provider  
          advertising, requires the Medical Board of California (MBC) to  
          adopt regulations regarding the appropriate level of physician  
          availability needed within clinics or other settings using laser  
          or intense pulse light devices, requires MBC to post a factsheet  
          on cosmetic surgery, requires MBC to adopt standards for  
          settings that offer in vitro fertilization, and makes changes to  
          MBC oversight of accreditation agencies.  Specifically,  this  
          bill  :   

          1)Requires advertising by the following licensees to include the  
            following specified designations:

             a)   A chiropractor shall include the designation "DC" or the  
               word "chiropractor" immediately following the  
               chiropractor's name;

             b)   A dentist shall include the designation "DDS" or "DMD"  
               immediately following the dentist's name;

             c)   A physician and surgeon shall include the designation  
               "MD" immediately following the physician and surgeon's  
               name;

             d)   An osteopathic physician and surgeon shall include the  
               designation "DO" immediately following the osteopathic  
               physician and surgeon's name;

             e)   A podiatrist shall include the designation "DPM"  
               immediately following the podiatrist's name;

             f)   A registered nurse (RN) shall include the designation  
               "RN" immediately following the RN's name;









                                                                  SB 1150
                                                                  Page  2

             g)   A licensed vocational nurse shall include the  
               designation "LVN" immediately following the licensed  
               vocational nurse's name;

             h)   A psychologist shall include the designation "Ph.D."  
               immediately following the psychologist's name;

             i)   An optometrist shall include the applicable designation  
               or word, as specified, immediately following the  
               optometrist's name;

             j)   A physician assistant (PA) shall include the designation  
               "PA" immediately following the PA's name; and,

             aa)  A naturopathic doctor (ND) shall include the designation  
               "ND" immediately following the ND's name.  However, if the  
               ND uses the term or designation "Dr." in an advertisement,  
               he or she shall further identify himself, as specified.  

          2)Defines "advertisement" as a communication by means of mail,  
            television, radio, motion picture, newspaper, book, directory,  
            Internet, or other electronic communication.  Advertisements  
            do not include:

             a)   A medical directory released by a health care service  
               plan or a health insurer;

             b)   A billing statement from a health care practitioner to a  
               patient; or,

             c)   An appointment reminder from a health care practitioner  
               to a patient.

          3)Applies the advertising requirements starting January 1, 2012  
            to any advertisement that is published annually and prior to  
            July 1, 2011.

          4)States that this bill does not apply to any advertisement or  
            business card disseminated by a health care service plan, as  
            specified.

          5)Requires MBC to adopt regulations regarding the appropriate  
            level of physician availability needed within clinics or other  
            settings using laser or intense pulse light devices for  
            elective cosmetic procedures by January 1, 2012.  However,  








                                                                  SB 1150
                                                                  Page  3

            these regulations shall not apply to laser or intense pulse  
            light devices approved by the federal Food and Drug  
            Administration for over-the-counter use by a health care  
            practitioner or by an unlicensed person on himself or herself.  


          6)Requires MBC to post on its Internet Web site an  
            easy-to-understand factsheet to educate the public about  
            cosmetic surgery and procedures, including their risks.   
            Included with the factsheet shall be a comprehensive list of  
            questions for patients to ask their physician and surgeon  
            regarding cosmetic surgery. 

          7)Includes in vitro fertilization facilities in the definition  
            of "outpatient setting," (setting), authorizing MBC oversight.  


          8)Requires settings to, at the time of accreditation, submit for  
            approval by an accreditation agency of a detailed plan,  
            standardized procedures, and protocols to be followed in the  
            event of serious complications or side effects from surgery  
            that would place a patient at high risk for injury or harm and  
            to govern emergency and urgent care situations.

          9)Requires MBC to adopt standards that it deems necessary for  
            settings that offer in vitro fertilization.

          10)Requires, rather than permits, MBC to notify the public  
            whether a setting is accredited, certified, or licensed, or if  
            the setting's accreditation, certification, or license has  
            been revoked, suspended, or placed on probation, or if the  
            setting has received a reprimand by the accreditation agency. 

          11)Requires every accredited setting to be inspected by the  
            accreditation agency and permits MBC inspection.  

          12)Requires MBC to ensure that accreditation agencies inspect  
            outpatient settings based on the following:

             a)   The frequency of inspection shall depend upon the type  
               and complexity of the outpatient setting to be inspected;  
               and,

             b)   Inspections shall be conducted no less often than once  
               every three years by the accreditation agency and as often  








                                                                  SB 1150
                                                                  Page  4

               as necessary by MBC to ensure the quality of care provided.  


          13)Deletes the requirement that MBC or the accreditation agency  
            give reasonable prior notice and present proper identification  
            to enter and inspect any setting that is accredited by an  
            accreditation agency. 

          14)Requires the setting to agree with the accreditation agency  
            on a plan of correction that gives the setting reasonable time  
            to supply information demonstrating compliance with the  
            standards of the accreditation agency, as well as the  
            opportunity for a hearing on the matter upon the request of  
            the setting.  During that allotted time, a list of  
            deficiencies and the plan of correction shall be conspicuously  
            posted in a setting accessible to public view.  

          15)Requires reports on the results of any inspection be kept on  
            file with MBC or the accreditation agency along with the plan  
            of correction and the setting comments. The inspection report  
            may include a recommendation for reinspection.  All inspection  
            reports, lists of deficiencies, and plans of correction shall  
            be public records open to public inspection. 

          16)Requires the accreditation agency to immediately report to  
            MBC if the setting has been issued a reprimand, if the  
            setting's certification of accreditation has been suspended or  
            revoked, or if the setting has been placed on probation. 

          17)Permits MBC to issue a citation to the accreditation agency  
            if it is not meeting MBC's criteria. 

          18)Permits MBC to establish, by regulation, a system to issue a  
            citation to an accreditation agency that is not meeting MBC's  
            criteria.  This system shall meet the requirements of existing  
            law, as applicable, except that both of the following shall  
            apply:

             a)   Failure of an agency to pay an administrative fine  
               assessed pursuant to a citation within 30 days of the date  
               of the assessment, unless the citation is being appealed,  
               may result in MBC's termination of approval of the agency.   
               Where a citation is not contested and a fine is not paid,  
               the full amount of the assessed fine shall be added to the  
               renewal fee, as specified.  Approval of an agency shall not  








                                                                  SB 1150
                                                                  Page  5

               be renewed without payment of the renewal fee and fine;  
               and,

             b)   Administrative fines collected pursuant to the system  
               shall be deposited in the Outpatient Setting Fund of the  
               MBC. 

          19)States legislative intent.

          20)Makes technical amendments. 

           EXISTING LAW  :

     1)Provides that it is unlawful for health care licensees to  
            disseminate or cause to be disseminated any form of public  
            communication, as defined, containing false, fraudulent,  
            misleading, deceptive statement, or image, as specified, to  
            induce the provision of services or the rendering of a product  
            relating to a professional practice or business for which he  
            or she is licensed, and provides that any person so licensed  
            who violates this provision is guilty of a misdemeanor and  
            that such violation shall constitute good cause for revocation  
            or suspension of his or her license or other disciplinary  
            action including an administrative fine not to exceed $10,000.

     2)Authorizes advertising by health care licensees to include certain  
            general information regarding the practitioner and requires  
            certain disclosures to be made regarding dentists, physicians  
            and surgeons, podiatrists and optometrists regarding the  
            advertising of their education, accreditation, certification  
            or specialty.

     3)Requires a health care practitioner to disclose, while working, his  
            or her name and license status on a specified name tag in at  
            least 18-point type but provides if a health care practitioner  
            is in a practice or office where their license is prominently  
            displayed, they may opt to not wear a name tag. 

     4)Requires the MBC and the Board of Registered Nurses to promulgate  
            regulations to implement necessary changes on the use of laser  
            or intense pulse light devices for elective cosmetic  
            procedures by physicians and surgeons, nurses, and PAs.

     5)Requires the MBC to adopt standards for accreditation of settings,  
            as defined, and in approving accreditation agencies to perform  








                                                                  SB 1150
                                                                  Page  6

            accreditation of settings, ensure that the certification  
            program shall, at a minimum, include standards for specified  
            aspects of settings' operations.

     6)Requires accreditation of a setting to be denied by the  
            accreditation agency if the setting does not meet specified  
            standards and allows the setting to reapply for accreditation  
            at any time after receiving notification of denial.

     7)Provides that before suspending or revoking a certificate of  
            accreditation, the accrediting agency shall provide the  
            setting with notice of deficiencies and reasonable time to  
            supply information demonstrating compliance with the standards  
            of the accrediting agency as well as the opportunity for a  
            hearing on the matter upon request of the setting.

     8)Defines treatment for infertility as procedures consistent with  
            established medical practices in the treatment of infertility  
            by licensed physicians and surgeons including, but not limited  
            to, diagnosis, diagnostic tests, medication, surgery, and  
            gamete intrafallopian transfer.  Defines in vitro  
            fertilization as the laboratory medical procedures involving  
            the actual in vitro fertilization process.
          
     9)Requires the Department of Public Health (DPH) to license and  
            inspect health facilities, including acute care hospitals.   
            Requires DPH to conduct periodic inspections of acute care  
            hospitals no less than once every three years.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "SB  
          1150 guarantees the public's safety by strengthening the  
          regulation and oversight of fertility clinics and surgical  
          centers performing cosmetic procedures, and ensures that quality  
          of care standards are in place at these clinics and checked by  
          the appropriate credentialing agency." 

           Background  .  Cosmetic surgery is gaining in popularity.  The  
          American Society of Plastic Surgeons' Web site states that  
          approximately 12.1 million cosmetic procedures were performed in  
          2008, representing a $10.3 billion industry.    
          








                                                                  SB 1150
                                                                  Page  7

          Most cosmetic procedures occur in physician-owned clinics.   
          These clinics are accredited by one of four accreditation  
          agencies approved by the MBC and are commonly referred to as  
          settings.  A setting is defined as a facility where anesthesia  
          is used in doses that, when administered, does not have the  
          probability of placing the patient at risk for loss of life.   
          These accrediting agencies ensure that certification programs  
          include standards for the operation of settings, such as safety  
          and emergency training requirements, licensure or certification  
          of allied health staff, provision of onsite equipment, and  
          medication and trained personnel in a medical emergency.   
          Settings permit surgery only by a licensee who has admitting  
          privileges at a local accredited or licensed acute care hospital  
          and require a system for patient care and monitoring procedures.  
           

          Currently there are two organizations to which physicians who  
          practice reproductive medicine generally belong.  Both  
          organizations provide practice guidelines and minimum standards  
          for assisted reproductive technologies, including in vitro  
          procedures.  However, those guidelines are not mandatory.  

           Arguments in support  .  MBC writes, "This bill aims to improve  
          the regulation and oversight of outpatient settings including  
          surgery centers and fertility clinics, by ensuring that quality  
          of care standards are in place and evaluated regularly.  MBC  
          feels that with the number of cosmetic procedures being  
          performed in the United States quickly increasing, there is  
          great need for state oversight of clinic operations." 

           Arguments in opposition  .  The California Hospital Association  
          (CHA) is concerned with the language in this bill that states,  
          "The department, pursuant to its existing regulations, inspect  
          the peer review process utilized by acute care hospitals as part  
          of its periodic inspection of these hospitals."

          CHA states, "Peer review plays an essential role in assuring the  
          quality and safety of care provided in California hospitals.   
          CHA strongly supports peer review and the protections  
          surrounding peer review which are so important in assuring  
          candid, robust participation by physicians and other  
          practitioners.  CHA believes that the intent language ? is  
          unnecessary because the department already has authority to  
          inspect hospitals for compliance with California hospital  
          licensing requirements, including requirements related to  








                                                                  SB 1150
                                                                  Page  8

          hospital medical staffs."

           Previous legislation  .  SB 674 (Negrete McLeod) of 2009  
          required a health care practitioner, as specified, include  
          specific professional designation following the health care  
          practitioner's name in advertisements; required the MBC to  
          adopt regulations on the appropriate level of physician  
          availability necessary within clinics or other settings using  
          laser or intense pulse light devices for elective cosmetic  
          surgery; required certain healing arts licensees to include  
          in advertisements certain words or designations following  
          their names indicating the particular educational degree they  
          hold or healing art they practice, as specified; and,  
          authorized the MBC to issue an accreditation agency a  
          citation, including an administrative fine, in accordance  
          with a specified system established by the MBC if the agency  
          is not meeting the criteria set by the MBC.  

          This bill was vetoed by the Governor, who stated, "While some  
          provisions may provide marginal improvements to consumer  
          protection, I cannot support this bill when it fails to  
          address the need for stronger licensing and oversight of  
          outpatient surgical centers.   The continued reliance by the  
          medical community on external accreditation agencies without  
          enforcement capability is an insufficient solution for  
          protecting patients.  As outpatient surgeries continue to  
          increase in number and complexity, surgical centers cannot  
          continue to perform procedures in an unregulated and  
          unenforced environment." 

           Related legislation  :  AB 583 (Hayashi) of 2009 requires health  
          care practitioners to display their educational degree, license  
          type and status, and board certification on either their nametag  
          or in their offices, as specified.  Requires supervising  
          physicians and surgeons to post their hours in each office.  AB  
          583 is on the Senate Inactive File.

           Double-referred  .  This bill is double-referred to Assembly  
          Health Committee.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Consumer Attorneys of California








                                                                  SB 1150
                                                                  Page  9

          Medical Board of California
          Proctor & Gamble Company
           
            Opposition 
           
          California Hospital Association

           Analysis Prepared by  :    Sarah Weaver / B.,P. & C.P. / (916)  
          319-3301