BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1246 (Hernandez) - Health facility staffing.
          
          Amended: April 25, 2012         Policy Vote: Health 5-2
          Urgency: No                     Mandate: Yes
          Hearing Date: May 24, 2012      Consultant: Brendan McCarthy
          
          SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.
          
          
          Bill Summary: SB 1246 would require the Department of Public 
          Health to review compliance by hospitals with existing nurse 
          staffing ratios and patient classification systems. The bill 
          would also deem a failure to have a patient classification 
          system an immediate jeopardy violation.

          Fiscal Impact: 
              Absorbable costs to review compliance with staffing ratios 
              and patient classification systems as part of ongoing 
              inspection activities. (Licensing and Certification Program 
              Fund).

          Background: Existing law requires hospitals to maintain 
          specified nurse-to-patient ratios. Existing regulations require 
          hospitals to develop and maintain patient classification 
          systems, which are more detailed protocols for staffing levels 
          based on specific patient needs. Existing law requires the 
          Department of Public Health to inspect hospitals no less than 
          every three years to review compliance with these and other 
          regulatory requirements.

          Existing law also specifies administrative penalties that may be 
          assessed by the Department, based on the potential harm to 
          patients.

          Proposed Law: SB 1246 would make several changes to the 
          Department of Public Health's enforcement of existing laws and 
          regulations relating to hospitals. The bill would:

              Explicitly require the Department of Public Health to 
              review hospitals compliance with nurse-to-patient ratios and 
              patient classification systems when performing periodic 
              inspections.








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              Codify existing regulations requiring hospitals to develop, 
              maintain, and annually update patient classification 
              systems.
              Deem the failure to maintain a patient classification 
              system an immediate jeopardy violation (which under current 
              law is punishable by fines from $50,000 to $100,000).
              Deem the failure to comply with a patient classification 
              system a non-immediate jeopardy violation.
              Require nurses on a hospital's committee to review patient 
              classification systems to be appointed by the collective 
              bargaining agent, if any.


          Related Legislation: SB 541 (Alquist) Chapter 605 of 2008 
          modified the existing administrative penalties authorized in 
          law, making violations risking immediate jeopardy to patients 
          subject to fines from $50,000 to $100,000. Upon adoption of 
          regulations implementing SB 541 (which have not yet been 
          completed), penalties would increase to $75,000 to $125,000. 

          Staff Comments: Current law requires the Department to inspect 
          hospitals for compliance with provisions of state law and 
          regulations. The Department has general authority to impose 
          administrative penalties based on for deficiencies that threaten 
          patient safety. The Department has indicated that it does review 
          hospital compliance with nurse-to-patient ratios (required in 
          statute) and patient classification systems (required in 
          regulation) as part of its existing inspection and enforcement 
          program.

          The Department indicates that deeming a failure to maintain a 
          patient classification an immediate jeopardy violation, which 
          means a larger fine, would lead to more appeals of those 
          violations, generating additional workload under the 
          Department's appeal process.

          The only mandates imposed on local governments by the bill 
          relate to misdemeanor penalties, and are thus non-reimbursable 
          under the constitution.

          Proposed Author Amendments: The proposed amendments would limit 
          the requirement to maintain patient classification systems to 
          acute care hospitals and eliminate the provision that makes the 
          failure to maintain a patient classification system an immediate 








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          jeopardy violation.