BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       AB 2397
          AUTHOR:        Allen
          AMENDED:       May 25, 2012
          HEARING DATE:  June 27, 2012
          CONSULTANT:    Marchand

           SUBJECT  :  Mental health: state hospitals: ancillary clinical 
          staff-to-patient ratios.
           
          SUMMARY  :  Requires the Department of Mental Health (DMH) to 
          contract with an entity for the purposes of conducting a review 
          and analysis of staffing ratios to determine the appropriate 
          levels for effective patient treatment.

          Existing law:
          1.Charges DMH with jurisdiction over the execution of laws 
            relating to the care, custody, and treatment of mentally 
            disordered persons, including administration of five state 
            hospitals for the mentally ill.

          2.Requires the Department of Public Health (DPH) to adopt 
            regulations that establish minimum, specific, and numerical 
            licensed nurse-to-patient ratios, by licensed nurse 
            classification and by hospital unit, for hospitals, and 
            requires these ratios to constitute the minimum number of 
            registered and licensed nurses that must be allocated.
            
          This bill:
          1.Requires DMH, to the extent permitted by the California 
            Constitution and specified provisions of law governing 
            personal services contracts, to reimburse an entity for the 
            purposes of conducting a review and analysis of staffing 
            ratios to determine the appropriate levels for effective 
            patient treatment.

          2.Requires DMH to provide information to this entity as 
            necessary for it to complete its analysis and to provide 
            recommendations.

          3.States the intent of the Legislature that DMH requests the 
            independent entity to complete this analysis by March 1, 2013.

          4.Requires a report to be submitted to the Legislature by August 
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            1, 2013, regarding the independent entity's findings to ensure 
            state hospitals are making progress and to enable the 
            Legislature to consider further action that may be necessary 
            during the subsequent legislative year.

          5.Requires the report required in 4) above to be submitted in 
            compliance with specified provisions of law governing how 
            reports are to be made to the Legislature.

          6.Sunsets the provisions of this bill on January 1, 2015.

           
          FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, one-time costs of at least $300,000 General Fund for 
          an independent analysis of staffing ratios

           PRIOR VOTES  :  
          Assembly Health:    14- 5
          Assembly Appropriations:12- 5
          Assembly Floor:     51- 22
           
          COMMENTS  :  
          1.Author's statement.  This bill will help establish minimum 
            clinical staff-to-patient ratios in each of the five state 
            hospitals to ensure adequate mental health treatment as well 
            as minimal standards for a safe working and living environment 
            for staff and patients.  
            
            On May 8, 2006, the United States and the State of California 
            entered into a consent judgment that required reforms in the 
            state hospitals to ensure that patients received basic safety 
            and treatment as required by the United States Constitution 
            and other federal laws.  Some of the major reforms required in 
            the judgment included improvements to integrated therapeutic 
            and rehabilitation services in the areas of psychiatric, 
            psychological, nursing, nutrition, medical, dental, and 
            special education services as well as discharge planning and 
            integration, and protection from harm. 

            In the background of the horrifying conditions that led to the 
            federal consent judgment are the equally horrifying safety 
            conditions at the hospitals. Recent reports by the Los Angeles 
            Times, New York Times, and other papers highlighted by the 
            tragic death of an employee in October of 2010 at Napa State 
            Hospital and the brutal beating of another employee just six 
            weeks later at the same facility, have highlighted the 




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            inherent danger for both patients and staff at our state 
            hospitals.  

            AB 2397 is necessary to establish appropriate clinical staff 
            caseloads to ensure stability in treatment and safety. Simply 
            put, reducing staff levels jeopardizes the treatment required 
            under the federal consent judgment, opens the door for renewed 
            federal involvement and possibly federal receivership, and 
            will erode the minimal safety improvements made over the last 
            fifteen months.  

          2.Background on state hospitals, and reports required by 2012-13 
            Budget Act.  According to DMH, it operates five state 
            Hospitals: Atascadero, Coalinga, Metropolitan (in Norwalk), 
            Napa, and Patton (in San Bernardino County). Additionally, DMH 
            operates two Psychiatric Programs located at state prison 
            facilities in Salinas Valley and Vacaville Correctional 
            Medical Facility. A third Psychiatric Program, at the 
            Correctional Health Care Facility in Stockton, is slated to 
            open in July 2013.

            The Governor's budget plan included a proposal to eliminate 
            DMH and create a new Department of State Hospitals (DSH), 
            shifting the remaining community mental health programs to 
            various departments. The recently passed 2012-13 Budget Act, 
            AB 1464 (Blumenfield), adopted this proposal. AB 1464 also 
            contained language directing the new DSH to reimburse the 
            Office of State Audits and Evaluations (OSAE) within the 
            Department of Finance to review its prior audit report of DMH, 
            and determine the status of implementation of its 
            recommendations by DMH or its successor, DSH. AB 1464 also 
            requires DSH, prior to contracting with OSAE, to further 
            define the scope of the audit in consultation with the 
            Legislature. DSH was directed by intent language to notify 
            OSAE that it should proceed with the audit during the fall of 
            2012, and OSAE is required to submit its audit to the 
            Legislature by April 1, 2013 in order for the Legislature to 
            consider what further actions may need to be taken for the 
            following fiscal year. AB 1464 additionally required DSH to 
            submit a year-end summary report to the Department of Finance 
            and the legislative budget committees comparing each 
            institution's expenditures to its approved allotments for the 
            2012-13 fiscal year. This year-end summary report is required 
            to include the number of authorized and vacant positions, and 
            the clinical and ancillary physician staffing ratios being 




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            implemented for that fiscal year.

            Finally, AB 1470 (Committee on Budget), the DSH trailer bill 
            passed by the Legislature on June 15, contained legislative 
            intent language stating that any changes in staffing ratios at 
            the state's mental hospitals address adequate staff and 
            patient safety standards, and that staffing ratios may vary 
            based on patient acuity.
            
          3.Staffing ratios currently in place at state hospitals. DMH 
            states that its policy is to require a nursing 
            staff-to-patient ratio of 1 licensed nurse to 8 patients for 
            the day and afternoon shifts, and 1 licensed nurse for 16 
            patients for the night shift. DMH states that in addition to 
            the nursing ratios, there are also staff-to-patient ratios for 
            patient treatment teams, which are established pursuant to 
            national standards of mental health practice, and are based on 
            the acuity of the patient. A treatment team consists of a 
            psychiatrist, a psychologist, a social worker, a 
            rehabilitation therapist, a registered nurse, and a 
            psychiatric technician. However, DMH states that registered 
            nurses and psychiatric technicians fall under the nursing 
            ratios, and are not counted in the patient treatment team 
            ratios. For patients classified as requiring acute care, a 1 
            to 15 staff-to-patient ratio is followed for treatment team 
            staff, and for patients classified as intermediate care, this 
            ratio is 1 to 35 for treatment team staff.
            
          4.Legislative Analyst's Office report and OSAE audit on state 
            hospitals.  According to a March 2012 Legislative Analyst's 
            Office report entitled "2012-13 Budget: Oversight and 
            Accountability at State Hospitals" (LAO Report), over the last 
            10 years, changes in policies and patient demographics forced 
            state hospitals to adjust their staffing, mental health care 
            delivery model, and other aspects of state hospital 
            operations. The major changes include: (1) a rise in the 
            number of sexually violent predator commitments; (2) the 
            implementation of the Civil Rights of Institutionalized 
            Persons Act consent decree, requiring state hospitals to 
            reform their practices; and (3) an increase in "forensic" 
            commitments (those with mental illness who are involved in the 
            court system). The LAO Report pointed to the audit conducted 
            in 2008-09 by the OSAE within the Department of Finance, which 
            concluded that the staffing model did not adequately reflect 
            hospital workload, funding was not sufficient for annual 
            operating expenditures, and that state hospitals were not 




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            efficiently using their staff.  The LAO Report agreed with 
            this audit and with a more recent self-audit in which DMH 
            found many of the same problems. The LAO Report recommended 
            that an audit be conducted that looks at a number of issues, 
            including state hospital budgeting practices, the fiscal 
            controls being put in place, and the level of vacancies and 
            their impact on the state budget and on hospital performance. 
            The LAO Report stated that this added oversight with respect 
            to state hospitals should take place regardless of the 
            Legislature's decision on the creation of a new DSH.

          5.Prior legislation. AB 394 (Kuehl), Chapter 945, Statutes of 
            1999, required DPH to adopt regulations specifying 
            nurse-to-patient ratios, by unit, for general acute care 
            hospitals, acute psychiatric hospitals and special hospitals. 
            However, AB 394 prohibited these regulations from replacing 
            existing licensed staff-to-patient ratios for hospitals 
            operated by DMH.
            
          6.Support.  This bill is supported by the American Federation of 
            State, County and Municipal Employees, AFL-CIO (AFSCME), which 
            points to the murder of a psychiatric technician at Napa State 
            Hospital in 2010. AFSCME states that DMH has failed to adjust 
            to the fact that over the years, the state hospital population 
            has shifted to include mostly forensic commitments, including 
            many violent offenders. According to AFSCME, DMH is proposing 
            to reduce the number of treatment staff working in each 
            hospital as part of the transition to a newly created DSH. 
            AFSCME asserts that cutting treatment staff all but guarantees 
            a continued increase in the number of violent attacks on 
            workers and patients. The National Association of Social 
            Workers also supports this bill, stating that maintaining a 
            minimum ratio of ancillary staff to patients will improve the 
            quality of mental health services, increase rehabilitation, 
            and promote a safer atmosphere for patients and staff. The 
            California Psychological Association states that this bill is 
            a step in the right direction in providing a better 
            environment for state-employed psychologists.

          7.Policy comment. This bill requires DMH to reimburse an 
            independent entity for purposes of conducting a review and 
            analysis of appropriate staffing levels.  The bill states the 
            intent of the Legislature that the analysis be completed by 
            March 1, 2013, and requires DMH to submit a report to the 
            Legislature on August 1, 2013 on the independent entity's 




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            findings.  Given that the 2012-13 Budget Act requires a new 
            OSAE audit to be submitted to the Legislature by April 1, 2013 
            (see background in comment #2 above), and requires DSH to 
            refine the scope of this audit in consultation with the 
            Legislature, the author may wish to consider combining the 
            staffing analysis required by this bill with the OSAE audit, 
            as well as conform the timeline to the April 1, 2013 due date 
            of the OSAE audit.
               
          8.Technical amendment. The 2012-13 Budget Act eliminated DMH, 
            and replaced the governance of state hospitals with the new 
            DSH.  The references in this bill to DMH should instead refer 
            to DSH.
          
           SUPPORT AND OPPOSITION  :
          Support:  American Federation of State, County and Municipal 
                    Employees (co-sponsor)
                    Union of American Physicians and Dentists (co-sponsor)
                    California Psychological Association
                    National Association of Social Workers, California 
                              Chapter

          Oppose:   None received.

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