BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 100|
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                                 THIRD READING


          Bill No:  SB 100
          Author:   Price (D)
          Amended:  5/3/11
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEV. COMMITTEE  :  9-0, 5/2/11
          AYES:  Price, Emmerson, Corbett, Correa, Hernandez, Negrete 
            McLeod, Vargas, Walters, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  8-0, 5/26/11
          AYES:  Kehoe, Walters, Alquist, Lieu, Pavley, Price, 
            Runner, Steinberg
          NO VOTE RECORDED:  Emmerson


           SUBJECT  :    Healing arts

           SOURCE  :     Author


           DIGEST  :    This bill requires the Medical Board of 
          California (MBC) to adopt regulations on or before January 
          1, 2013, on the appropriate level of physician availability 
          necessary within clinics using laser or intense pulse light 
          devices for elective cosmetic surgery; makes a number of 
          changes regarding the approval, oversight and inspection of 
          "outpatient settings", as defined, by MBC and accreditation 
          agencies approved by the MBC, and in developing a plan of 
          corrective action for any deficiencies found by the 
          accreditation agencies or the MBC during inspections, or 
          otherwise; and revises the existing definition of 
          "outpatient settings" to include fertility clinics that 
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          offer in vitro fertilization.
           
          ANALYSIS  :    

          Existing law:

          1. Requires the MBC in conjunction with the Board of 
             Registered Nursing (BRN), and in consultation with the 
             Physician Assistant Committee and professionals in the 
             field, to review issues and problems relating to the use 
             of laser or intense light pulse devices for elective 
             cosmetic procedures by physicians and surgeons, nurses, 
             and physician assistants.

          2. Requires the MBC and the BRN to promulgate regulations 
             to implement changes determined to be necessary with 
             regard to the use of laser or intense pulse light 
             devices for elective cosmetic procedures by physicians 
             and surgeons, nurses and physicians assistants.

          3. Defines "outpatient setting" as any facility, clinic, 
             unlicensed clinic, center, office, or other setting that 
             is not part of a general acute care facility where 
             anesthesia is used.

          4. Defines "accreditation agency" as a public or private 
             organization that is approved to issue certificates of 
             accreditation to outpatient settings by the MBC pursuant 
             to specified requirements.

          5. Requires the MBC to adopt standards for accreditation of 
             "outpatient settings", as defined, and in approving 
             accreditation agencies to perform accreditation of 
             outpatient settings, ensure that the certification 
             program shall, at a minimum, include standards for 
             specified aspects of settings' operations.

          6. Authorizes the MBC to evaluate the performance of an 
             approved accreditation agency no less than every three 
             years, or in response to a complaint against an agency, 
             or complaints against one or more outpatient settings 
             accreditation by an agency that indicated noncompliance 
             by the agency with standards approved by the MBC. 


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          This bill:

          1. Requires the MBC to adopt regulations on or before 
             January 1, 2013 regarding the appropriate level of 
             physician availability needed within clinics or other 
             settings using laser or intense pulse light devices for 
             elective cosmetic procedures.  Specifies that the 
             regulations to be adopted will 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.

          2. Includes in the existing law definition of outpatient 
             setting facilities that offer in vitro fertilization 
             procedures.  Requires the MBC to adopt standards for 
             outpatient settings that offer in vitro fertilization.

          3. Requires an outpatient setting to submit for approval by 
             an accrediting agency at the time of accreditation, 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 or to govern emergency or 
             urgent care situations.  Specifies that the plan shall 
             include, at a minimum, that if a patient is being 
             transferred to a local accredited or licensed acute care 
             hospital, the outpatient setting shall do all of the 
             following:

             A.    Notify the individual designated by the patient to 
                be notified in case of emergency;

             B.    Ensure that the mode of transfer is consistent 
                with the patient's medical condition;

             C.    Ensure that all relevant clinical information is 
                documented and accompanies the patient at the time of 
                transfer; and

             D.    Continue to provide appropriate care to the 
                patient until the transfer is effectuated.

          4. Allows the MBC to adopt regulations it deems necessary 

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             to specify procedures that should be performed in an 
             accredited outpatient setting for facilities or clinics 
             that are outside the definition outpatient setting, as 
             specified.

          5. Requires the accrediting agency, as part of the 
             accreditation process, to conduct a reasonable 
             investigation of the prior history of the outpatient 
             setting, including all physicians and surgeons who have 
             an ownership interest, to determine whether there have 
             been any adverse accreditation decisions, as specified.  
             States that conducting a reasonable investigation means 
             querying the MBC and the Osteopathic Medical Board of 
             California to ascertain if either the outpatient setting 
             has, or, it its owners are licensed physicians and 
             surgeons, and if those physicians and surgeons have been 
             subject to an adverse accreditation decision.
             
          6. Requires an outpatient setting to comply with existing 
             adverse event reporting requirements and penalties that 
             apply to health facilities.

          7. Requires the MBC to place the list of accredited 
             outpatient setting it currently maintains on its Web 
             site on whether an outpatient setting is accredited or 
             the accreditation has been revoked, suspended, or placed 
             or probation, or the setting has received a reprimand by 
             the accrediting agency.  Specifies that the list shall 
             include the name, address and telephone number of any 
             owners and their medical license numbers, name and 
             address of the facility, name and telephone number of 
             the accreditation agency, and the effective and 
             expiration dates of the accreditation.  Requires 
             accrediting agencies to provide and update the MBC on 
             all outpatient settings that are accredited.

          8. Requires an accrediting agency to report within three 
             business days to the MBC if an outpatient setting's 
             certificate for accreditation has been denied for 
             failure to meet the standards approved by the MBC, as 
             specified.  

          9. States that every outpatient setting shall be inspected 
             by accrediting agencies and may be inspected by the MBC. 

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              Includes the following requirements in the inspection:  
             (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 than once every three years by the accrediting 
             agency and as often as necessary by the MBC to ensure 
             quality of care provided.

          10.Requires, if an accreditation agency determines as a 
             result of its inspection that an outpatient setting is 
             not in compliance with standards, as specified, 
             correction of any identified deficiencies within a set 
             timeframe.  States that failure to comply would result 
             in the accrediting agency issuing a reprimand, 
             suspending or revoking the outpatient setting's 
             accreditation.

          11.Requires that prior to suspending or revoking a 
             certificate of accreditation, an outpatient setting must 
             agree with the accreditation agency on a plan of 
             correction.  Specifies that the plan of correction, 
             which includes the deficiencies, shall be conspicuously 
             posted in a location accessible to public view.  
             Provides that within 10 days after the adoption of the 
             plan of correction, the accrediting agency shall send a 
             list of deficiencies and the corrective action to be 
             taken to the MBC.  

          12.States that if an outpatient setting does not comply 
             with a corrective action plan within a timeframe 
             specified by the accrediting agency, the accrediting 
             agency shall issue a reprimand, and may either place the 
             outpatient setting on probation, suspend or revoke the 
             accreditation of an outpatient setting, and to notify 
             the MBC of this action.  Provides that this provision 
             shall not be deemed to prohibit an outpatient setting 
             that is unable to correct the deficiencies, as specified 
             in the plan of correction, for reasons beyond its 
             control, from voluntarily surrendering its accreditation 
             prior to initiation of any suspension or revocation 
             proceeding.  

          13.Requires an accreditation agency, within 24 hours, to 
             report to the MBC if an outpatient setting has been 

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             issued a reprimand or if the outpatient setting's 
             certification of accreditation has been suspended or 
             revoked or if the outpatient setting has been placed on 
             probation.

          14.Requires an accreditation agency, upon receipt of a 
             complaint from the MBC that an outpatient setting poses 
             an immediate risk to public safety, to inspect an 
             outpatient setting and report its findings of inspection 
             to the MBC within 5 business days.  Provides that if an 
             accrediting agency receives any other complaint from the 
             MBC, it shall investigate the outpatient setting and 
             report its finding of investigation to the MBC within 30 
             days.

          15.Requires that reports on the results of inspection to be 
             kept on file with the MBC and the accreditation agency 
             along with the plan of correction and the comments of 
             the outpatient setting.  Indicates that the inspection 
             report may include a recommendation for re-inspection, 
             and that all inspection reports, list of deficiencies, 
             and plans of correction are public records open to 
             public inspection.

          16.Provides that if one accrediting agency denies 
             accreditation, or revokes or suspends the accreditation 
             of an outpatient setting, this action shall apply to all 
             other accrediting agencies.  Allows an outpatient 
             setting to reapply for accreditation with another 
             accrediting agency upon disclosure of the full 
             accreditation report of the accrediting agency that 
             denied accreditation.  Indicates that any outpatient 
             setting that has been denied accreditation shall 
             disclose the accreditation report to any other 
             accrediting agency to which it submits an application.

          17.Requires that if an outpatient setting's accreditation 
             has been suspended, revoked, or if the accreditation has 
             been denied, the accreditation agency shall do all of 
             the following:  (a) notify the MBC of this action; (b) 
             send a notification letter to the outpatient setting, 
             and the notification letter should state that the 
             setting is no longer allowed to perform procedures that 
             require outpatient setting accreditation; and (c) 

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             require the outpatient setting to remove its 
             accreditation certification and to post the notification 
             letter in a conspicuous location, accessible to public 
             view.

          18.Allows the MBC to take any appropriate action it deems 
             necessary, as specified, if the outpatient setting's 
             certification of accreditation has been suspended, 
             revoked, or if the accreditation has been denied.

          19.Requires, instead of allows, the MBC to evaluate the 
             performance of accrediting agencies no less than every 
             three years, as specified.

          20.Requires the MBC to investigate all complaints 
             concerning a violation, as specified.  Requires the MBC 
             or the local district attorney, upon discovery that an 
             outpatient setting is not complying with certification 
             requirements, to bring an action to enjoin the 
             outpatient setting's accreditation, as specified.  
             States that if an outpatient setting is operating 
             without a certificate of accreditation, this shall be 
             prima facie evidence that a violation has occurred, as 
             specified, and additional proof shall not be necessary 
             to enjoin an outpatient setting's operation. 

          21.Clarifies that a survey does not constitute an 
             inspection for purposes of outpatient settings.

          22.Deletes the requirement that the MBC or the accrediting 
             agency give reasonable prior notice and present proper 
             identification prior to an inspection.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

          According to the Senate Appropriations Committee:

                           Fiscal Impact (in thousands)

             Major Provisions                 2011-12      2012-13    
             2013-14               Fund  

            Outpatient facility                       up to $50 

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            annually            Special*

            * Medical Board of California Contingent Fund

           SUPPORT  :   (Verified  5/26/11)

          California Medical Association
          California Society of Anesthesiologists 
          California Society of Dermatology and Dermatologic Society

           ARGUMENTS IN SUPPORT  :    The California Medical Association 
          (CMA) states that this bill will enhance the safety of 
          patients who obtain procedures in outpatient surgery 
          settings.  The CMA states that this bill closes gaps and 
          adds important safeguards, and brings important new 
          regulatory oversight over accredited outpatient settings 
          and improves the ability of accrediting agencies and the 
          MBC to ensure that the care provided to consumers in these 
          settings  is top notch, and that any bad actors are 
          immediately identified and remediated or discipline.

          The California Society of Dermatology and Dermatologic 
          Society states that this bill protects patient safety by 
          increasing accreditation requirements and oversight of 
          outpatient surgery clinics.


          JJA:mw  5/26/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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