BILL ANALYSIS �
SB 945
Page 1
SENATE THIRD READING
SB 945 (Health Committee)
As Amended May 31, 2011
2/3 vote. Urgency
SENATE VOTE :39-0
HEALTH 18-0 APPROPRIATIONS 17-0
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|Ayes:|Monning, Logue, Atkins, |Ayes:|Fuentes, Harkey, |
| |Bonilla, Eng, Garrick, | |Blumenfield, Bradford, |
| |Gordon, Hayashi, Roger | |Charles Calderon, Campos, |
| |Hern�ndez, Bonnie | |Davis, Donnelly, Gatto, |
| |Lowenthal, Mansoor, | |Hall, Hill, Lara, |
| |Mitchell, Nestande, Pan, | |Mitchell, Nielsen, Norby, |
| |V. Manuel P�rez, Silva, | |Solorio, Wagner |
| |Smyth, Williams | | |
| | | | |
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SUMMARY : Requires the Department of Health Care Services (DHCS)
to establish and administer the Medi-Cal Electronic Health
Records Incentive Program (Program) to provide federally funded
incentive payments to Medi-Cal providers to implement and use
electronic health records (EHR) systems. Contains an urgency
clause to ensure that the provisions of this bill go into
immediately effect upon enactment. Specifically, this bill :
1)Requires DHCS to establish and administer the Program in
accordance with the State Medicaid Health Information
Technology (HIT) Plan as developed by DHCS and approved by the
federal Centers for Medicare and Medicaid Services.
2)Requires the HIT Plan to include:
a) The identification and establishment of planning
processes, policies, and procedures necessary for the
Program to become operational;
b) The criteria for enrollment, eligibility, and data
collection;
c) Timeframes for professional and facility technology
modifications;
SB 945
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d) The process for provider outreach and DHCS coordination
with established regional extension centers;
e) The audit and appeals process; and,
f) Participation in the National Level Registry.
3)Requires DHCS to accept applications from and make incentive
payments to eligible professionals and facilities, upon
receipt of all necessary federal approvals and in accordance
with the HIT plan.
4)Requires the professional and facility applicants to meet the
standards for the federal EHR Technology Program, including
requirements for the meaningful use of EHR.
5)Authorizes DHCS to contract with public or private entities
and to utilize existing health care service provider
enrollment and payment mechanisms in implementing the Program.
6)Allows contracts entered into by DHCS to implement the Program
to be exempt from established competitive bidding requirements
in state law and, instead, provides for an alternative
competitive bidding process, as specified.
7)Allows DHCS to implement the Program through provider
bulletins or similar instruction without regulatory action.
8)Establishes reporting requirements to the appropriate fiscal
and policy committees of the Legislature and to the
Legislative Analyst's Office, as specified.
9)Specifies that the Program be implemented only to the extent
federal financial participation is available. Further
specifies legislative intent that the Program be funded solely
through federal funds and private contributions identified by
DHCS and that General Fund moneys shall not be used.
10)Sunsets the Program on June 30, 2021.
11)Makes various legislative findings and declarations.
FISCAL EFFECT : According to the Assembly Appropriations
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Committee, this bill would provide statutory authority for the
Medi-Cal EHR Program that is currently ongoing, so it would
likely not result in new state costs beyond what is already
approved through the budget process. Current Program funding is
approximately $2.2 million annually (90% federal/10% private
funding).
Administrative funding for the EHR incentive program is provided
through a 90% federal-10% state match, and the California Health
Care Foundation, an independent philanthropy, has agreed to
provide the 10% state match.
COMMENTS . This bill is needed to ensure DHCS may distribute
federal incentive payments to Medi-Cal providers in an expedited
manner and help many California health care providers change
their practices and utilize electronic tools. According to
DHCS, sponsor of this bill, the largest single obstacle to
adoption of EHRs by providers is the high upfront and ongoing
costs. DHCS states that the incentive payments made available
by this bill offer an unparalleled opportunity to build the HIT
infrastructure of both outpatient providers as well as
acute-care inpatient hospitals. According to the sponsor, this
bill is urgently needed in order to meet federal deadlines. In
addition, the sponsor points out that the inability to secure
contractors in a timely fashion has led to missed opportunities,
such as participation in a collaborative outreach effort that
would have leveraged resources and funding from other
participating entities.
Analysis Prepared by : Marjorie Swartz / HEALTH / (916)
319-2097
FN: 0002235