BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  ACR 152
                                                                  Page  1

          Date of Hearing:  June 10, 2014

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
                     ACR 152 (Pan) - As Introduced:  May 22, 2014
           
          SUBJECT  :  Patient centered medical homes.

           SUMMARY  :  States that the Legislature supports and encourages  
          the development and expansion of a California health care  
          delivery system that identifies patient centered medical homes  
          (PCMH) and is based upon certain principles of coordination of  
          patient care.  Specifically,  this resolution  makes the following  
          legislative findings, among others:  

          1)Patients frequently confront health care providers working in  
            independent silos that impede care coordination and cause  
            patients with multiple health issues to fall through the  
            cracks. 

          2)Patients are forced to navigate an exceedingly complex system  
            with little or no guidance, seeing multiple physicians and  
            other health providers in various settings. 

          3)The absence of accountability, quality improvement  
            programming, and clinical information systems leads to poorer  
            quality of patient care.

          4)"Patient centered medical home" is a health care delivery  
            system model in which health care providers work in  
            partnership with one another, their patients, and their  
            patients' families to coordinate care and ensure that patients  
            receive the right care at the right time. 

           EXISTING LAW  :

          1)Defines PCMH under the federal Patient Protection and  
            Affordable Care Act (ACA) and authorizes tests of innovative  
            Medicaid (Medi-Cal in California) and Medicare service  
            delivery models in federal fiscal years 2010 to 2019, to  
            reduce program expenditures while preserving or enhancing  
            patient quality of care.  Provides that innovative models  
            include PCMHs for high-need patients. 

          2)Makes grants under the ACA available to states to establish  








                                                                  ACR 152
                                                                  Page  2

            community-based interdisciplinary teams to support medical  
            homes and help primary care providers implement them in  
            federal fiscal years 2011 and 2012.

          3)Authorizes the waiving of specified Medicaid requirements for  
            demonstration projects, for care delivered through primary  
            care case-management systems, or for the provision of home- or  
            community-based services.

          4)Establishes the Medi-Cal program, administered by the  
            Department of Health Care Services (DHCS), under which  
            qualified low-income persons receive health care benefits.

          5)As of December 31, 2013, repeals the Low Income Health Program  
            (LIHP) which was an optional limited term program established  
            at the local level in California.  The LIHP operated from July  
            1, 2011 through December 31, 2013.
           
          FISCAL EFFECT  :  None

           COMMENTS  :

           1)PURPOSE OF THIS RESOLUTION  .  According to the author, having a  
            definition for "patient centered medical home" in California  
            would send an important signal to health care providers and  
            patients that our state supports care that is patient  
            centered, cost efficient, continuous, focused on prevention,  
            and based on sound, evidence-based medicine rather than  
            episodic, illness oriented care.  The author also notes that,  
            with the sunset of LIHP, what little language California law  
            had regarding medical homes was repealed, making it even more  
            imperative for the state to begin to address the issue.

           2)BACKGROUND  .  According to the American Academy of Family  
            Physicians (AAFP), the PCMH model is an approach to providing  
            comprehensive primary care for children, adolescents, and  
            adults.  The PCMH is a health care setting that facilitates  
            partnerships between patients and their personal physicians,  
            and when appropriate, the patient's family.

            This definition was laid out by the AAFP, the American College  
            of Physicians, the American Academy of Pediatrics, and the  
            American Osteopathic Association in the 2007 Joint Principles  
            for the Patient Centered Medical Home, which defines critical  
            principles within the PCMH model as:








                                                                  ACR 152
                                                                  Page  3


             a)   Access to a personal physician who leads the care team  
               within a medical practice;

             b)   A whole-person orientation to providing patient care;

             c)   Integrated and coordinated care;

             d)   Focus on quality and safety; and, 

             e)   Through the medical home model, practices seek to  
               improve the quality, effectiveness, and efficiency of the  
               care they deliver, and to ensure that the activities within  
               the practice are focused on meeting patient needs first.   
               The PCMH model seeks to foster a relationship of trust  
               between the care team and the patient, and to actively  
               engage patients as partners in their health care.

           3)SUPPORT .  The California Academy of Family Physicians is the  
            sponsor of this resolution and writes that more than 40 states  
            have adopted medical home legislation including North  
            Carolina, which developed an innovative Medicaid management  
            program: Community Care of North Carolina.  AAFP explains that  
            providers there offer continuous, healing relationships with  
            whole-person orientation and have resources to assist with  
            at-risk patients to better manage their care and prevent high  
            cost interventions and that the program was so successful that  
            it saved the state between $230 million and $260 million in  
            2004.  AAFP further notes that despite other states'  
            successes, California has been slow to act and that out of  
            control health care costs and diminishing state revenue,  
            coupled with the high cost and low quality of  
            compartmentalized patient care, must be addressed if the  
            expanded health care coverage mandated in federal reform is to  
            be successful.

           4)PREVIOUS LEGISLATION  .

             a)   AB 1542 (Jones) would have established the PCMH Act of  
               2010 to encourage licensed health care providers and  
               patients to partner in a patient-centered medical home, as  
               defined, that promotes access to high-quality,  
               comprehensive care, in accordance with prescribed  
               requirements.  AB 1542 failed passage on the Assembly  
               Floor.








                                                                  ACR 152
                                                                  Page  4


             b)   SB 393 (Ed Hernandez) would have enacted the PCMH Act of  
               2011 and would have established a definition for a medical  
               home based upon specified standards.  SB 393 was vetoed by  
               Governor Brown who stated in his veto message that he  
               commends the author for trying to improve the delivery of  
               health care by encouraging the greater use of PCMHs, but  
               argued that while this concept is not new, it is still  
               evolving and said he thought more work was needed before  
               codifying the definition contained in the bill.

             c)   AB 1208 (Pan), as introduced, would have established the  
               PCMH Act of 2013 which would have defined medical homes and  
               specified their characteristics.  AB 1208 was amended to  
               address a different subject matter and was vetoed by  
               Governor Brown.  
           
          REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          California Academy of Family Physicians

           Opposition  

          None on file.

           
          Analysis Prepared by  :    Lara Flynn / HEALTH / (916) 319-2097