BILL ANALYSIS                                                                                                                                                                                                    �



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          SENATE THIRD READING
          SB 1228 (Alquist)
          As Amended August 20, 2012
          Majority vote

           SENATE VOTE  :36-0  
           
           HEALTH              12-0        APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Monning, Atkins, Eng,     |Ayes:|Gatto, Harkey,            |
          |     |Garrick, Gordon, Hayashi, |     |Blumenfield, Bradford,    |
          |     |Roger Hern�ndez, Bonnie   |     |Charles Calderon, Campos, |
          |     |Lowenthal, Mansoor,       |     |Davis, Fuentes, Hall,     |
          |     |Mitchell, Nestande, Pan   |     |Hill, Cedillo, Mitchell,  |
          |     |                          |     |Nielsen, Norby, Solorio,  |
          |     |                          |     |Wagner                    |
           ----------------------------------------------------------------- 
           SUMMARY  :  Adds "small house skilled nursing facility" (SHSNF), 
          as defined, to the skilled nursing facility (SNF) category of 
          facilities licensed by the Department of Public Health (DPH), 
          and permits an SHSNF to be licensed by DPH beginning on January 
          1, 2014, if the SHSNF meets specified requirements.  
          Specifically,  this bill  :    

          1)Adds SHSNF, as defined, to the SNF category of facilities 
            licensed by DPH beginning on January 1, 2014, if the SHSNF 
            meets specified requirements.

          2)Defines "home" as an apartment, home, or other similar unit 
            that serves 12 or fewer residents.

          3)Defines "SHSNF" as an SNF that is licensed for the purposes of 
            providing skilled nursing care in a homelike, 
            non-institutional setting and is one of the following:

             a)   A stand-alone home;

             b)   A facility that consists of more than one home; or,

             c)   A distinct area within an existing SNF that otherwise 
               meets the definition of "home" referenced in 2) above, and 
               has been dedicated to the small house model, has distinct 
               entry, and has no through traffic of staff, residents, or 








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               visitors not affiliated with the household.

          4)Defines "versatile worker," for purposes of SHSNF licensing 
            requirements, as a certified nursing assistant who provides 
            personal care, socialization, activity aide services, meal 
            preparation services, and laundry and housekeeping services.  
            Requires the SHSNF, to the extent permitted under federal law, 
            to utilize versatile workers for purposes of resident care.

          5)Requires the SHSNF 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.  Permits DPH or the Office of Statewide Health 
            Planning and Development (OSHPD) to waive one or more 
            regulations that conflict with the provisions of this bill in 
            order to permit SHSNFs to meet licensure requirements, if DPH 
            or OSHPD determines doing so will not jeopardize the health 
            and safety of a facility's residents.  Requires DPH or OSHPD 
            to consider whether the practice contained in the provision 
            has been demonstrated safely in other states and requires them 
            to consider peer-reviewed research.

          6)Requires the SHSNF, to the extent permitted under federal law, 
            to provide meals cooked on the premises of each home, and not 
            prepared in a central kitchen and transported to the home.

          7)Requires the SHSNF to meet all federal and state direct-care 
            staffing requirements for SNFs.  Requires all direct care 
            staff to be onsite, awake, and available within each home at 
            all times.

          8)Requires SHSNFs to provide consistent staff assignments and 
            self-managed work teams of direct care staff.  Requires 
            licensed nursing staff to direct the versatile workers in all 
            activities delegated under the licensed nurses' scope of 
            practice.  A versatile worker may be supervised by nonclinical 
            staff at the discretion of the SHSNF.

          9)Requires SHSNFs to provide training for all staff involved in 
            the operation of the home and be completed prior to initial 
            operation of the home, concerning the philosophy, operations, 
            and skills required to implement and maintain self-directed 
            care, self-managed work teams, a noninstitutional approach to 
            long-term care, safety and emergency skills, food handling and 








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            safety, and other elements necessary for the successful 
            operation of the home.  Requires versatile workers and other 
            staff interacting with residents in the homes to demonstrate 
            proficiency in these areas as well as the facility's policies 
            and procedures, conflict resolution, and self-directed care 
            principles. 

          10)Requires replacement staff to undergo the training described 
            in 9) above, within six weeks of commencing employment with 
            the facility.

          11)Exempts any staff members who are employed on a short-term, 
            temporary basis due to permanent staff illness or unexpected 
            absence from the training requirements set forth in 9) above.

          12)Requires the SHSNF, to the extent permitted under federal 
            law, to consist of a home-like, rather than institutional, 
            environment having the following characteristics:

             a)   The home is accessible to disabled persons, and is 
               designed as a house, an apartment, or a distinct area 
               within an existing SNF that is similar to housing available 
               in the surrounding community, and that includes shared 
               areas that would only be commonly shared in a private home 
               or apartment;

             b)   The home does not, to the extent practicable, contain 
               institutional features, such as nursing stations, 
               medication carts, room numbers, and wall-mounted licenses 
               or certificates;

             c)   The home includes resident rooms that accommodate not 
               more than two residents per room.  Homes are encouraged to 
               include private, single-occupancy bedrooms that are shared 
               only at the request of a resident to accommodate a spouse, 
               partner, family member, or friend, and that contain a full 
               private and accessible bathroom.  Double occupancy rooms 
               contain a full private and accessible bathroom, and each 
               resident's bedroom area be visually separated from the 
               other by a full height wall or a permanently installed 
               sliding door, folding door, or partition that provide 
               visual and acoustic separation.  Residents have direct use 
               of, and access to, an exterior window at all times;









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             d)   The home contains a living area where residents and 
               staff socialize, dine, and prepare food together that 
               provides, at a minimum, a living room seating area, a 
               dining area large enough to accommodate all residents and 
               at least two staff members, and a full kitchen that may be 
               utilized by residents;

             e)   The home contains ample natural light;

             f)   The home has built-in safety features to allow areas of 
               the facility to be accessible to residents during the 
               majority of the day and night;

             g)   The home provides access to secured outdoor space; and,

             h)   The home endeavors to create an aging in place 
               environment where long-stay residents may form permanent 
               homes with each other.

          13)Requires the SHSNF to be certified to participate as a 
            provider of care either as a SNF under the federal Medicare 
            Program or as a nursing facility under the federal Medicaid 
            Program.

          14)Requires DPH and OSHPD to consult with providers, employee 
            organizations, consumer advocates, and other interested 
            stakeholders including groups with demonstrated experience in 
            SHSNF operations, on the physical, operational, and other 
            aspects of SHSNFs.

          15)Requires DPH to adopt regulations to implement this bill.

           EXISTING LAW  :
          
          1)Provides for the licensure of health facilities, including 
            SNFs, by DPH.

          2)Defines "SNF" as a health facility that provides skilled 
            nursing care and supportive care to patients whose primary 
            need is for availability of skilled nursing care on an 
            extended basis.

          3)Requires OSHPD, under the Alfred E. Alquist Hospital 
            Facilities Seismic Safety Act, to assume responsibility for 








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            the enforcement of all building standards related to hospital 
            buildings, including SNFs.

           EXISTING REGULATIONS  :
          
          1)Further define "SNF" as a facility providing 24-hour inpatient 
            care and, at a minimum, includes physician, skilled nursing, 
            dietary, and pharmaceutical services and an activity program.

          2)Require each SNF licensed for 59 or fewer beds to have at 
            least one registered nurse or a licensed vocational nurse, 
            awake and on duty, in the facility at all times, day and 
            night.

          3)Require each SNF to employ sufficient nursing staff to provide 
            a minimum of 3.2 nursing hours per patient day.  Requires this 
            staffing ratio to only include direct caregivers, which is 
            defined to include registered nurses, licensed vocational 
            nurses, psychiatric technicians, or certified nurse 
            assistants, who are performing nursing services.

          4)Specify that while all SNFs are required to maintain 
            compliance with licensing requirements, these requirements are 
            not to prohibit the use of alternate concepts, methods, 
            procedures, techniques, equipment, personnel qualifications, 
            or the conducting of pilot projects, as long as such 
            exceptions have prior written approval of DPH.
          
           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee:

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

          2)Minor one-time costs to OSHPD to adapt building standards for 
            SHSNFs.

          3)Any ongoing costs for licensure and inspection of SHSNFs 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 SHSNF model will lead to an 
            increase in the total number of nursing home beds and 








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            commensurate state staff costs.  Nursing home licensure fees 
            collected by DPH are currently $312 per bed.

           COMMENTS  :  According to the author, SHSNFs implementing the core 
          practices outlined in this bill are an important development in 
          long-term care options that many consumers, family, and staff 
          prefer to traditional 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 asserts that this deep 
          culture change model of SHSNFs is proliferating in many states 
          and meets all federal nursing home certification requirements.  
          Unfortunately, these homes are difficult to develop in 
          California under current state requirements, and California's 
          current statutory and regulatory framework did not anticipate 
          this significant innovation.

          According to the author, SHSNFs following the practices outlined 
          in this bill currently require multiple agency interpretations 
          and waivers to move forward in California.  These 
          interpretations and waivers add a great deal of time and expense 
          to implementation - both for the provider organizations and the 
          state agencies involved.  This additional time and expense 
          discourages their development and deprives California residents 
          of this important option.

          The author states that this bill would create a new health 
          facility licensing category to assist the development of SHSNFs 
          implementing the core practices that research has shown to 
          reliably deliver improved satisfaction, quality, and cost 
          outcomes.  


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


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