BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1228
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 1228 (Alquist) - As Amended:  May 29, 2012 

          Policy Committee:                             HealthVote:12-7

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill establishes "small house skilled nursing facility" 
          (small-house SNF) as a new subcategory of skilled nursing 
          facilities for purposes of state licensure on or after January 
          1, 2014.  Specifically, this bill:

          1)Specifies certain licensure requirements a small-house SNF 
            must meet, including a number of facility requirements such as 
            a homelike environment, semi-private rooms, ample natural 
            light, and living and kitchen areas. 

          2)Requires the small-house SNF to comply with all state laws and 
            regulations that govern SNFs, except to the extent that those 
            laws and regulations are inconsistent with the provisions of 
            this bill.  

          3)Authorizes the California Department of Public Health (CDPH) 
            and the Office of Statewide Health Planning and Development 
            (OSHPD) to waive certain regulations that apply to SNFs in 
            order to allow small-house SNFs to operate

          4)Requires they consult with stakeholders, consider 
            peer-reviewed research, and consider other states' experience 
            in development of regulations and standards specific to 
            small-house SNFs. 

          5)Defines "versatile worker" as a certified nursing assistant 
            (CNA) who provides personal care, socialization, activity aide 
            services, meal preparation services, and laundry and 
            housekeeping services

          6)Requires the small-house SNF to use versatile workers for 








                                                                  SB 1228
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            purposes of resident care, and requires training and 
            demonstration of proficiency for versatile workers and other 
            small-house SNF staff.

           FISCAL EFFECT  

          1)Costs of at least $200,000 per year for at least two years 
            (fee-supported special fund) to CDPH to consult with 
            stakeholders and develop regulations specific to small-house 
            SNFs.

          2)Minor one-time costs to OSHPD to adapt building standards for 
            small-house SNFs.

          3)Any ongoing costs for licensure and inspection of small-house 
            SNFs will be supported by fee revenue from licensed 
            facilities.  Total staff costs may or may not increase as a 
            result of this bill as compared to the status quo.  It is 
            unknown whether streamlining licensure for the small-house SNF 
            model will lead to an increase in the total number of nursing 
            home beds and commensurate state staff costs.  Nursing home 
            licensure fees collected by CDPH are currently $312 per bed.  

           COMMENTS  

           1)Rationale  . According to the author, small-house SNFs provide a 
            homelike environment, and are an important development in 
            long-term care options that many consumers, family, and staff 
            prefer to traditional institutional settings.  The author 
            states that they also deliver better clinical outcomes, more 
            direct-care time, and greater resident engagement at the same 
            operating cost as traditional nursing homes.  

            The author states small-house SNFs are difficult to develop in 
            California under current state requirements, and California's 
            current statutory and regulatory framework did not anticipate 
            this significant innovation. She indicates one California 
            nursing home provider has been working for three years to 
            implement the Green House model, a small-house SNF model that 
            has been extensively studied and replicated, but the provider 
            has experienced significant delays and added costs because it 
            does not fit well with California's current law.  

           2)Background  . The Green House concept is an innovative model for 
            residential long-term care that involves a restructuring of 








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            the philosophy of care, architecture, and organizational 
            structure normally associated with long-term care. 
             
             Green House -style SNFs are generally self-contained private 
            residences, and offer each of 10-12 residents a private 
            bedroom and bathroom.  They also contain a common space, 
            including a living area, kitchen, and single dining table.  
            Specially trained CNAs work in teams to provide direct care, 
            and other health care professionals also work in a team-based 
            setting in partnership with direct care staff. According to 
            the author, Green House homes are currently operating in 21 
            states.  

            Preliminary studies have suggested that care in Green 
            House-model SNFs may lead to small improvements in certain 
            outcomes, such as more direct care time per day in Green House 
            models as compared to similar residents in traditional nursing 
            homes. Studies are ongoing to attempt to tease out whether 
            Green House offer better care than traditional nursing homes 
            and, if so, which specific elements and practices are making 
            the difference.

           3)Support  .  This bill is sponsored by NCB Capital Impact, which 
            has established The Green House Project, funded by the Robert 
            Wood Johnson Foundation, to help spur replication of The Green 
            House concept.  It is supported by the California Association 
            of Health Facilities, the trade group of SNFs. 


           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081