BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1483 (Steinberg) - Physicians and surgeons.
          
          Amended: April 30, 2012         Policy Vote: B&P 7-0
          Urgency: No                     Mandate: No
          Hearing Date: May 24, 2012      Consultant: Bob Franzoia
          
          SUSPENSE FILE.  AS PROPOSED TO BE AMENDED.


          Bill Summary: SB 1483 would establish the Physician Health 
          Program administered by the Physician Health, Awareness and 
          Monitoring Quality Oversight Committee.  The purpose of the 
          program would be to promote awareness and education relative to 
          physician and surgeon health issues, including impairment due to 
          alcohol or substance abuse, mental disorders, or other health 
          conditions that could affect the safe practice of medicine.

          Fiscal Impact: Unknown, major program costs likely in the range 
          of $1.5 million to $2 million annually to the Department of 
          Consumer Affairs.

          Background: A similar physician health program was established 
          in 1980 with the intent "that the Medical Board of California 
          (MBC) seek ways and means to identify and rehabilitate 
          physicians and surgeons with impairment due to abuse of 
          dangerous drugs or alcohol, or due to mental illness or physical 
          illness, affecting competency so that physicians and surgeons so 
          afflicted may be treated and returned to the practice of 
          medicine in a manner which will not endanger the public health 
          and safety."

          Although the enabling language made reference to physicians with 
          mental or physical
          illness, the diversion program was structured to monitor 
          substance-abusing physicians.  Participants in the diversion 
          program included physicians who voluntarily 
          sought help (self-referrals), physicians who were referred by 
          the MBC's enforcement
          program during investigation of a complaint (board-referred), 
          and physicians who were
          ordered to participate by MBC's Division of Medical Quality 
          (DMQ) as a term of probation in a formal disciplinary order 








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          (board-ordered).  Each participant was required to enter into a 
          contract with the program and agree to abstain from the use of 
          drugs and alcohol, submit to random bodily fluids testing, 
          attend support group meetings with similarly impaired 
          physicians, undergo psychotherapy and/or substance abuse 
          treatment, retain a "worksite monitor," and cease practicing 
          medicine if so instructed by the program due to relapse or other 
          noncompliance with the terms of the contract.

          Twelve MBC staff administered the program.  Although several of 
          the program's components (including bodily fluids collection, 
          laboratory testing, and facilitation of support group meetings) 
          were contracted, the case management function of the program and 
          program administration were performed by the MBC at $1,200,000 
          to $1,400,000 annually and paid through licensing fees paid by 
          all California physicians. As of June 30, 2005, 232 physicians 
          were participating in the program though participation was near 
          300 at one time. 
          Each of five audits found the program was not adequately 
          monitoring participants though the MBC implemented 
          recommendations of the auditor each time.  After the June 2007 
          Bureau of State Audits report, the MBC voted not to support 
          continuation of the program.  The program sunset July 1, 2008 
          and was repealed January 1, 2009.

          Proposed Law: This bill enacts the Physician Health, Awareness, 
          and Monitoring Quality Act of 2012, which would facilitate a 
          public-private program, independent of the MBC, to: 
          - Promote awareness about physician health issues that could 
          interfere with safe practice; including alcohol or substance 
          abuse, mental illness, or other health conditions that may be 
          addressed through private treatment and monitoring programs.
          - Coordinate and oversee private treatment and monitoring 
          programs, educate the medical community about early intervention 
          options and provide resources to ensure physicians and surgeons 
          are better able to choose interventions that meet their needs.
          - Protect patients by, as a condition of receiving confidential 
          access to such resources and referrals, requiring that 
          participating physicians and surgeons agree to specific terms 
          and conditions, the violation of which would result in immediate 
          reporting to the MBC for purposes of potential enforcement 
          action.

          California is one of five states that do not have a physician 








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          health program.

          No state regulatory agency is provided an oversight role and the 
          bill does not specify how the program would be funded.

          Related Legislation: AB 526 (Fuentes) 2009 would have 
          established the Public Protection and Physician Health Program 
          Act of 2009 to create within the State and Consumer Services 
          Agency the Public Protection and Physician Health Committee, 
          which would, until January 1, 2021, assist physicians and 
          surgeons who may be impaired by alcohol or substance abuse or 
          dependence or by a mental disorder.  AB 526 was held on the 
          Suspense File.  

          AB 214 (Fuentes) 2008 would have created the Public Protection 
          and Physician Health Program Act under the Department of Public 
          Health.  The Governor vetoed this bill stating that it is 
          inappropriate to separate the program from the MBC because it is 
          critical that the licensing agency be directly involved in 
          monitoring participation in the diversion program to protect 
          patients and enable timely enforcement actions.  

          The proposed amendments would:
          (1) Place the oversight of the committee within the Department 
          of Consumer Affairs.  
          (2) Increase the biennial renewal fee of a physician's 
          certificate (Business and Professions Code 2435 (b) by $39.50, 
          an approximately five percent increase.
           
          All costs of the committee and the program would be paid out of 
          the revenue collected by this fee.