BILL ANALYSIS �
AB 334
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 334 (Buchanan)
As Amended August 11, 2014
2/3 vote. Urgency
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|ASSEMBLY: | |(April 22, |SENATE: | | |
| | |2013) | | | |
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(vote not relevant) (vote not available)
Original Committee Reference: P.E., R. & S.S.
SUMMARY : Makes changes to existing law that prohibits the
Alameda Health System (AHS) from contracting with a private
person or entity for physician and surgeon services to specify
that the person or entity includes, but is not limited to, a
subsidiary or other entity established by AHS.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Make changes to existing law that prohibits AHS from
contracting with a private person or entity for physician and
surgeon services to specify that the person or entity
includes, but is not limited to, a subsidiary or other entity
established by AHS.
2)Add an urgency statute.
3)Make other technical and conforming changes.
EXISTING LAW :
1)Authorizes the Alameda County Board of Supervisors to
establish a hospital authority separate and apart from the
county to manage, administer and control the Alameda County
Medical Center, now known as AHS.
2)Prohibits AHS, before January 1, 2024, from entering into a
contract with any private person or entity to replace services
being provided by specified physicians and surgeons, with
services provided by a private person or entity without clear
and convincing evidence that the needed medical care can only
be delivered cost-effectively by a private contractor.
AB 334
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FISCAL EFFECT : None
COMMENTS :
1)Background and prior legislation. Following the passage of AB
2374 (Bates), Chapter 816, Statutes of 1996, the Alameda
County Board of Supervisors appointed a board of trustees to
separately manage, administer and control AHS. According to
AHS, their integrated public health care system employs more
than 4,500 people including 1,000 physicians throughout
Alameda County. In the 1990s the Highland Hospital, a
regional trauma center and teaching hospital, John George
Psychiatric Hospital, an acute and emergency care facility,
Fairmont Hospital, an acute rehabilitation hospital and
skilled nursing facility, and the community wellness centers,
in Highland, Newark, Eastmont, and Hayward consolidated as the
Alameda County Medical Center.
Current law established by AB 1008 (Buchanan), Chapter 311,
Statutes of 2013, prohibits AHS from privatizing services
provided by physicians and surgeons, and establishes
eligibility for retirement benefits for employees of a
facility that is acquired or merged into AHS.
2)Purpose of this bill. This bill builds upon current law
established by AB 1008 which prohibits AHS from entering into
a contract with any private person or entity to replace
services being provided by physicians and surgeons who are
employed by AHS and in a recognized collective bargaining unit
as of March 31, 2013, with services provided by a private
person or entity without clear and convincing evidence that
the needed medical care can only be delivered cost-effectively
by a private contractor. This bill specifies that the AHS is
prohibited from entering into a contract for physician and
surgeon services with any other person or entity, including,
but not limited to, a subsidiary or other entity established
by AHS.
3)Author's statement. According to the author, "This bill is
necessary to clarify the protections afforded to the
physicians employed by AHS. On April 22, 2014, AHS
incorporated a wholly owned subsidiary physician's
organization, Alameda Health Partners, and is encouraging
physicians and surgeons affiliated with the hospital to
contract with this organization. This bill would clarify that
AB 334
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the provisions against unilateral contracting of medical
services apply to all third parties, including a wholly owned
subsidiary of AHS."
4)Arguments in support. The American Federation of State,
County, and Municipal Employees, co-sponsor of the bill
argues, "AHS was able to side-skirt existing law and threaten
the job security of represented physicians and surgeons by
incorporating a wholly owned subsidiary that encourages the
privatization of the services provided by medical and surgical
practitioners in the public health system. This bill will
protect the jobs of Alameda County's physicians and surgeons,
and ensure the uninterrupted provision of medical services to
the community."
5)Arguments in opposition. None
6)Two-thirds vote. This bill requires a two-thirds vote of each
house because of the urgency clause.
7)Gut and amend. The subject matter of this bill has not been
heard in any Assembly policy committee this legislative
session.
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958
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