BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1318
                                                                  Page  1

          Date of Hearing:   August 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 1318 (Wolk) - As Amended:  August 8, 2012 

          Policy Committee:                             HealthVote:15-0

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

           SUMMARY  

          This bill, beginning January 1, 2015, requires licensed clinics 
          and other health facilities that do not achieve a 90% influenza 
          (flu) vaccination rate among onsite health care workers who are 
          employees and medical staff (health care personnel) to adopt a 
          model mandatory vaccination policy as determined by the 
          Department of Public Health (DPH).  Specifically, this bill: 

          1)Requires licensed clinics and other health facilities to: 

             a)   Institute measures designed to maximize flu immunization 
               rates, including but not limited to aerosol transmissible 
               disease training.
             b)   Offer all employees free onsite influenza vaccinations, 
               if available.
             c)   Require health care personnel to either receive a flu 
               vaccination or adhere to the most effective measures to 
               prevent flu transmission, as determined by the facility.
             d)   Keep records of vaccination compliance among health care 
               personnel, and make records available upon request of any 
               government agency, organization, or individual. 
             e)   Beginning January 1, 2015, either achieve a 90% flu 
               vaccination rate among health care personnel, or adopt a 
               model mandatory vaccination policy, as determined by the 
               State Health Officer, the local health officer, or both, 
               during the following flu season.

          2)Authorizes clinics and health facilities to request and 
            maintain vaccination records of contract employees, and 
            require contract employees to verify compliance with flu 
            immunization.









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          3)Requires facilities and medical staff to develop policies to 
            ensure compliance with this bill among employees and medical 
            staff, respectively.

          4)Requires DPH to develop the model mandatory vaccination policy 
            through a stakeholder process no later than July 1, 2015.  
            Exempts this policy development from the Administrative 
            Procedures Act and allows the policy to be communicated via 
            all-facility letters.  

          5)States that it does not require DPH to perform additional 
            duties that are separate from its existing licensing survey or 
            other statutory requirements. 

          6)Allows facilities and local jurisdictions to institute 
            additional measures to prevent flu transmission. 

          7)Exempts correctional treatment centers, as well as dialysis 
            clinics that meet certain infection control protocols required 
            for reimbursement through the Medicare program, as specified. 

          8)Repeals provisions of law that require hospitals to offer free 
            onsite flu vaccines, institute influenza plans and protocols, 
            and revises disaster plans to include a pandemic influenza 
            component. 

           FISCAL EFFECT  

          1)One-time fee-supported special fund costs of $50,000 to 
            $100,000 (Licensing and Certification Program Fund) to DPH to 
            conduct a stakeholder process.  

          2)DPH will incur costs of $350,000 annually to verify compliance 
            with new requirements in approximately 4,500 health 
            facilities. DPH enforcement processes include inspection for 
            deficient practices during periodic licensing surveys, and 
            during complaint investigations.  

            In future years, as facilities and DPH inspectors gain greater 
            experience and vaccination rates increase, particularly if 
            most facilities achieve 90% compliance rates, enforcement 
            costs may be reduced. 

          3)Unknown, indirect cost savings may be experienced by health 
            care facilities and health care payers, including CalPERS and 








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            state programs such as Medi-Cal, if improved vaccination rates 
            at health facilities reduce transmission of health 
            care-acquired flu.  Literature suggests high vaccination rates 
            will have this effect.

           COMMENTS  

           1)Rationale  . The California Medical Association, the Health 
            Officers Association of California, and the California 
            Association for Nurse Practitioners are the sponsors of this 
            bill. According to the author, this bill ensures that all 
            health care workers in health facilities, including 
            physicians, either receive the flu vaccination or comply with 
            an effective means to prevent the spread of the flu virus.  
            The author cites a 64% vaccination rate among health care 
            workers in California hospitals as evidence that comprehensive 
            voluntary programs are inadequate to improve vaccination 
            rates.  She indicates mandatory vaccination policies are 
            proven to prevent flu transmission, and that this bill will 
            protect vulnerable patients by reducing spread of the flu. 

           2)Background.  According to the Centers for Disease Control and 
            Prevention (CDC), high vaccination rates among health care 
            workers reduce flu transmission, staff illness, and 
            absenteeism, and flu-related illness and death, especially 
            among people in health care facilities who are at increased 
            risk for severe flu illnesses. Additionally, reports have 
            shown that higher vaccination levels among staff have been 
            associated with a lower risk of hospital-acquired flu cases.  
            Lower flu vaccination rates have led to greater number of flu 
            outbreaks in hospitals and long term care facilities.  Major 
            professional societies have all endorsed and published 
            recommendations requiring health care workers with direct 
            patient care to be immunized.  Even so, mandatory vaccination 
            remains a controversial strategy that pits health care worker 
            autonomy against patient safety.

            DPH reports that among hospitals that reported vaccination 
            rates for the 2009-10 flu season, vaccination rates were 62% 
            on average, despite requirements to offer free vaccines and 
            for signed declinations for those who refuse vaccines. The 
            CDC's Healthy People 2020 initiative includes a target 
            vaccination rate among health care workers of 90%.  The CDC 
            indicates vaccination rates are 98.1% among health care 
            workers who had an employer requirement for vaccination, 








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            suggesting that this bill will lead to dramatic increases in 
            vaccination rates among health care workers. 

           3)Previous Legislation  .  SB 739 (Speier), Chapter 526, Statutes 
            of 2006 required hospitals to, among other things, offer 
            onsite flu vaccinations, if available, to all hospital 
            employees at no cost to the employee. It also required 
            hospitals to require its employees to be vaccinated or, if the 
            employee elects not to be vaccinated, to declare in writing 
            that he or she has declined the vaccination. 

           4)Opposition  .  The California Hospital Association supported a 
            previous version of this bill that included a masking 
            requirement for workers who declined a flu vaccination, but 
            oppose the current language requiring hospitals that fail to 
            achieve a 90% vaccination rate to adopt a policy, as 
            determined by DPH.  They cite uncertainty with respect to the 
            policy that will be developed by DPH, and whether that policy 
            will be effective at increasing vaccination rates as intended. 
              

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