BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 177|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
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                                 THIRD READING


          Bill No:  SB 177
          Author:   Strickland (R), et al.
          Amended:  5/25/11
          Vote:     21


           SENATE HEALTH COMMITTEE  :  7-0, 04/13/11
          AYES:  Hernandez, Strickland, Alquist, Anderson, De Le�n, 
            DeSaulnier, Rubio
          NO VOTE RECORDED:  Blakeslee, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 05/23/11
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Price, Runner, Steinberg


           SUBJECT  :    Congregate living health facilities

           SOURCE  :     Visiting Nurse & Hospice Care


           DIGEST  :    This bill raises the bed limit from 12 to 25 for 
          congregate living health facilities that serve terminally 
          ill patients in Santa Barbara County.

           ANALYSIS :    Existing law:

          1.Provides for the licensure and regulation of health 
            facilities, including hospitals, skilled nursing 
            facilities, and congregate living health facilities 
            (CLHFs).

          2.Defines a CLHF as a residential home with a capacity of 
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            no more than 12 beds, that provides inpatient care, 
            medical supervision, 24-hour skilled nursing and 
            supportive care, and other services to persons who meet 
            one of the following:

             A.   Persons who are mentally alert who have physical 
               disabilities, who may be ventilator dependent;

             B.   Persons who have a diagnosis of terminal illness, 
               or life-threatening illness, or both, as defined; or 

             C.   Persons who are catastrophically and severely 
               disabled, as defined.

          1.Provides, notwithstanding the 12-bed limit, that a CLHF 
            that is operated by a city and county may have 59 beds, 
            and provides that a CLHF that is not operated by a city 
            and county that serves persons who have a diagnosis of 
            terminal illness or life-threatening illness, or both, 
            that is located in a county of 500,000 or more persons, 
            may have not more than 25 beds.

          2.Provides that the primary need of CLHF residents shall be 
            for skilled nursing care on a recurring, intermittent, 
            extended, or continuous basis, and provides that this 
            care is generally less intense than that provided in 
            general acute care hospitals but more intense than that 
            provided in skilled nursing facilities.

          3.Provides for the licensure and regulation by the 
            Department of Public Health of persons or agencies that 
            provide hospice services in a person's home or other care 
            setting, defined as a specialized form of 
            interdisciplinary health care that is designed to provide 
            palliative care, alleviate the physical, emotional, 
            social, and spiritual discomforts of an individual 
            diagnosed with a terminal illness, and provide supportive 
            care to the primary caregiver and the family.  

          This bill raises the bed limit from 12 to 25 for congregate 
          living health facilities that serve terminally ill patients 
          in Santa Barbara County.

          Background

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          In order to provide options for providing care to 
          chronically ill patients outside of hospitals, CLHFs were 
          established as a category of licensed health facilities in 
          1986.  CLHFs were initially limited to having no more than 
          six beds and were limited to serving mentally alert, 
          physically disabled residents, who can be 
          ventilator-dependent.  In 1988, a second category of CLHFs 
          was authorized to provide 24-hour inpatient care to 
          terminally ill patients.  These facilities were allowed to 
          have 25 beds in counties which have a population of 500,000 
          or more persons.  In 1989, a third category of CLHFs was 
          established, to serve persons who are catastrophically and 
          severely disabled, which were allowed to have 12 beds in 
          counties with more than 500,000 persons.  In 2005, 
          legislation was enacted which raised the bed-size limit for 
          CLHFs in all counties to 12 beds, while retaining the 
          higher 25-bed limit for CLHFs serving terminally ill 
          patients in counties with more than 500,000 persons.

          The impetus for the 1988 legislation establishing the new 
          CLHF category for terminally ill patients, with a bed limit 
          of 25 in counties with over 500,000 persons, was to enable 
          a proposed 25-bed hospice facility serving persons with 
          AIDS, which was proposed to be operated by Barlow Hospital 
          in Los Angeles, to be licensed as a CLHF.

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

          According to the Senate Appropriations Committee:

           Major Provisions                2011-12     2012-13    
           2013-14   Fund  
          Increased CLHF-B                                  
          potentially minor to significant costs            General/*
             capacity                                       Federal
          Cost avoidance                                         
          potentially minor to significant cost avoidance**      
          General/*
                                                            Federal

          *Medi-Cal costs shared 50 percent General Fund, 50 percent 
          federal funds.

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           SUPPORT  :   (Verified  5/25/11)

          Visiting Nurse & Hospice Care (source) 
          All Saints-by-the Sea Episcopal Church
          Alliance for Living and Dying Well
          Alzheimer's Association, California Central Coast Chapter
          American Dream Concepts
          The Beatitude Society
          Brown & Brown Insurance
          California Association for Health Services at Home
          California Hospital Association
          California Hospice and Palliative Care Association
          California Transplant Donor Network
          CenCal Health
          City of Goleta
          Community Hospice
          Cottage Health System
          Council on Alcoholism and Drug Abuse
          County of Santa Barbara Board of Supervisors
          Dream Foundation
          Frank Schipper Construction Co.
          Friendship Center
          Grace House
          Hospice of Santa Barbara, Inc.
          Hospice of the East Bay
          Hospice of the Foothills
          Hutton Parker Foundation
          Livingston Memorial Visiting Nurse Association
          Maravilla
          Orfalea Foundations
          PMSM Architects
          Santa Barbara Cancer Center
          Santa Barbara County Medical Society
          Santa Barbara Neighborhood Clinics
          Santa Barbara Region Chamber of Commerce
          Santa Barbara Village
          Sharon Kennedy Estate Management
          Sharp Hospice Care
          St. Francis Foundation
          United Way of Santa Barbara County
          Visiting Nurse Association of the Inland Counties
          Vista Del Monte Retirement Community


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           OPPOSITION  :    (Verified  5/25/11)

          California Nurses Association 

           ARGUMENTS IN SUPPORT  :    VNHC states that as the only 
          licensed hospice inpatient facility in Santa Barbara 
          County, Serenity House has struggled to meet demands for 
          end-of-life beds.  Between 2008 and 2009, Serenity House 
          saw a 71 percent increase in the number of patients served 
          and has a growing waiting list due to the lack of available 
          beds for end of life patients.  VNHC states that based on 
          current population projections, the number of people over 
          the age of 65 in Santa Barbara County will increase by 24 
          percent by 2050.  While VNHC acknowledges that it made an 
          error in assuming it would be able to build an 18-bed 
          facility, because it believed that a waiver or exception 
          process existed to allow it to operate at the higher 
          bed-size, VNHC states that the need for additional 
          end-of-life beds continues to be critical in Santa Barbara 
          County and this bill will enable it to meet these needs and 
          continue providing compassionate care to persons at the end 
          of life.  

           ARGUMENTS IN OPPOSITION  :    The California Nurses 
          Association (CNA) objects to the fact that the one CLFH 
          facility that would benefit from the bed limit change in SB 
          177 was built outside of existing bed limits that apply to 
          CLHFs, and that the administrators of Serenity House did 
          not abide by state law when planning and constructing the 
          facility.  CNA argues that it is not appropriate to make an 
          accommodation for this one facility.  CNA further questions 
          whether the building standards for the Serenity House 
          facility have been correctly applied and would be 
          sufficient to keep patients and staff safe.  CNA notes that 
          the type of patients that can reside in a CLHF include 
          persons who are catastrophically and severely 
          neurologically disabled, and urges the committee to gain a 
          fuller understanding of why the Office of Statewide Health 
          Planning and Development reversed its claim of jurisdiction 
          over the building standards for the facility.  
           

          CTW:nl  5/25/11   Senate Floor Analyses 


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                         SUPPORT/OPPOSITION:  SEE ABOVE

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