BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 630
                                                                  Page  1

          Date of Hearing:  April 17, 2012

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
                   SB 630 (Alquist) - As Amended:  January 18, 2012

           SENATE VOTE  :  36-0
           
          SUBJECT  :  Hospital: licensure.

           SUMMARY  :  Permits Stanford Hospital and Clinics (SHC) and Lucile 
          Packard Children's Hospital at Stanford (LPCH), for the purposes 
          of providing emergency services and care to patients with 
          conditions related to active labor presenting in the emergency 
          department (ED) of SHC, to be treated as a single licensed 
          facility if the two hospitals have entered into a specified 
          agreement.  Specifically,  this bill  :    

          1)Permits, SHC and LPCH to be treated as a single licensed 
            facility for purposes of providing emergency services and care 
            to patients with conditions related to active labor presenting 
            to the ED at SHC if all of the following conditions are met:

             a)   The two hospitals have entered into an agreement in 
               which LPCH accepts and provides emergency services and care 
               to all patients who are in active labor presenting to the 
               ED at SHC, without regard to insurance status, financial 
               status, or other nonclincal factors;

             b)   A physician and surgeon, qualified ED registered nurse, 
               or other appropriate personnel under the supervision of a 
               physician and surgeon determines, prior to the transfer, 
               that the patient has signs or symptoms or both suggestive 
               of active labor, the patient can be safely transferred from 
               the ED at SHC to the Labor and Delivery unit of LPCH, and 
               that the patient does not have a condition, illness, or 
               injury more appropriately treated in the ED;

             c)   The patient has the right to refuse the transfer; and,

             d)   Each hospital has a prepared plan to promptly transport 
               the patient with an employee escort who has specialized 
               training in transporting women in labor.

          2)Makes findings and declarations regarding the unique 








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            circumstances of SHC and LPCH and the justification regarding 
            the need for a special law.

          3)Contains an urgency clause that will make this bill effective 
            immediately upon enactment.

           EXISTING LAW  :

          1)Provides for the licensure of health facilities, including 
            general acute care hospitals, by the Department of Public 
            Health (DPH).

          2)Establishes the federal Emergency Medical Treatment and Active 
            Labor Act (EMTALA), which governs when and how a patient may 
            be refused treatment or transferred from one hospital to 
            another when the patient is in an unstable medical condition.

          3)Prohibits the transfer of a person needing emergency services 
            and care from one hospital to another for any nonmedical 
            reason, unless specified conditions are met, including that 
            the person is examined and evaluated by a physician.

          4)Defines "emergency services and care" as requiring screening, 
            examination, and evaluation by a physician to determine if 
            active labor exists, and if it does, the care, treatment, and 
            surgery by a physician necessary to relieve or eliminate the 
            emergency medical condition.

          5)Defines "active labor" to mean labor in which there is either 
            inadequate time to safely transfer to another hospital prior 
            to delivery or a transfer may pose a threat to the health and 
            safety of the patient or the unborn child.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible costs.

           COMMENTS  :  

           1)PURPOSE OF THIS BILL  .  According to the author, this bill is a 
            narrowly tailored patient safety bill to help expectant 
            mothers obtain optimal care when they arrive in active labor 
            at SHC's ED.  SHC, which is physically connected via an 
            interior hallway to LPCH, has an ED but does not have a Labor 
            and Delivery unit, so it uses LPCH's Labor and Delivery unit, 
            which is approximately 600 feet away.  The author maintains 








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            that, unfortunately, existing law, while well intended, 
            requires an expectant mother who arrives at SHC's ED to be 
            subjected to a full medical screening by a physician before 
            she can be transferred to the dedicated Labor and Delivery 
            unit at LPCH.  This screening and coordination of SHC and LPCH 
            physicians can delay optimal care for the expectant mother and 
            child by up to 90 minutes.  This bill, the author argues, will 
            improve the safety of patient's in active labor who arrive at 
            SHC's ED by speeding up the transfer process for patients from 
            SHC's ED to LPCH.

           2)BACKGROUND  .  According to SHC, SHC and LPCH are separately 
            licensed and accredited acute care hospitals located in Palo 
            Alto, California on the campus of Stanford University.  The 
            main inpatient facilities of the two hospitals are located in 
            the same hospital building.  While each hospital has a 
            dedicated main entrance, internal corridors in the building 
            connect the two hospitals, allowing easy access by patients, 
            visitors, and personnel at both facilities.  According to SHC, 
            SHC maintains an ED that meets the definition of a "dedicated 
            ED" under federal EMTALA obligations.  However, SHC does not 
            provide labor and delivery, post-partum, newborn nursery, or 
            neonatal intensive care services.  Alternatively, LPCH does 
            not maintain a basic ED, or hold out the provision of a 
            "dedicated ED" for pediatric emergency services.  Instead, SHC 
            and LPCH have coordinated providing pediatric emergency 
            services in the SHC ED.  

          SHC and LPCH have developed a Memorandum of Understanding (MOU) 
            that expresses the terms and conditions under which laboring 
            patients that present to the SHC ED will be transferred to the 
            LPCH Labor and Delivery unit.  The MOU would apply to all 
            pregnant patients estimated to be 20 weeks of gestation or 
            greater and requires an initial triage assessment by a 
            qualified ED registered nurse to determine if the patient: a) 
            has signs and/or symptoms suggestive of active labor; b) can 
            be safely transported from the ED to the Labor and Delivery 
            unit; and, c) is not suffering from a condition, illness or 
            injury more appropriately treated with the ED.  The MOU states 
            LPCH agrees to accept all pregnant patients without 
            discriminating against any patient on the basis of payor type 
            or other non-clinical factor.

          According to a letter dated April 27, 2011 from the federal 
            Centers for Medicare and Medicaid Services (CMS), CMS has 








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            found the MOU between SHC and LPCH to appear to pose no 
            negative outcome to beneficiaries and no potential violation 
            of EMTALA.  The letter indicated, however, that SHC and LPCH 
            were also licensed by DPH and DPH might have regulations which 
            could conflict with the hospitals' proposed joint facility 
            transfer procedure.  The letter instructed that the hospitals 
            contact DPH directly to assess compliance with State 
            regulations.

          On June 29, 2011, DPH communicated to SHC that the department 
            had reviewed the MOU and determined that it did not meet the 
            requirements established under current State law.  
            Specifically, DPH found that current law requires screening, 
            examination, and evaluation by a physician prior to any 
            transfer from the ED.  The MOU agreement requires a triage 
            assessment by a qualified ED registered nurse, but not a 
            physician.

           3)EMTALA  .  EMTALA was passed as part of the Consolidated Omnibus 
            Budget Reconciliation Act of 1986 and requires hospitals to 
            provide care to anyone needing emergency health care treatment 
            regardless of citizenship, legal status or ability to pay.  
            Hospitals may only transfer or discharge patients needing 
            emergency treatment under their own informed consent, after 
            stabilization, or when their condition requires transfer to a 
            hospital better equipped to administer the treatment.  
            Congress passed EMTALA to combat the practice of "patient 
            dumping," i.e., refusal to treat people because of inability 
            to pay or insufficient insurance, or transferring or 
            discharging emergency patients on the basis of high 
            anticipated diagnosis and treatment costs.

          EMTALA allows an on-call physician, under hospital policies, the 
            option of sending a representative, such as a non-physician 
            practitioner or his/her representative to appear at the 
            hospital and provide further assessment or stabilizing 
            treatment to an individual.  According to EMTALA, this 
            determination should be based on the individual's medical 
            need, the capacities of the hospital, the applicable state's 
            scope of practice laws, and the hospital bylaws and rules and 
            regulations.  The designated on-call physician is ultimately 
            responsible for providing the necessary services to the 
            individual regardless of who makes the in-person appearance.

           4)SUPPORT  .  SHC and LPCH both write in support that this bill 








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            will provide statutory language to allow SHC and LPCH to 
            implement a MOU to enable the two hospitals to be treated as a 
            single consolidated license solely for women presenting to the 
            SHC ED with labor-related conditions. SHC maintains that from 
            September 1, 2010 to August 31, 2011, an average of 23 women 
            per month were delayed in the SHC's ED on average for 54 
            minutes before they could be transferred to LPCH's Labor and 
            Deliver unit. The hospitals explain that they have cooperated 
            to encourage women with labor-related conditions to go 
            directly to LPCH, but many women present to the SHC ED.  SHC 
            asserts that in most hospitals that provide emergency and 
            obstetric services, women presenting to the ED are re-directed 
            to the Labor and Delivery unit for examination and 
            labor-related services.  This bill ensures that expectant 
            mothers and their unborn children can receive prompt and 
            appropriate care eliminating undesirable delays 
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Stanford Hospital and Clinics (sponsor)
          California Hospital Association
          Lucile Packard Children's Hospital
           
            Opposition 
           
          None on file.

           Analysis Prepared by  :    Tanya Robinson-Taylor / HEALTH / (916) 
          319-2097