BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1816
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          ASSEMBLY THIRD READING
          AB 1816 (Yamada)
          As Amended May 23, 2014
          Majority vote 

           HEALTH              19-0        APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Pan, Maienschein,         |Ayes:|Gatto, Bigelow,           |
          |     |Ammiano, Atkins, Bonilla, |     |Bocanegra, Bradford, Ian  |
          |     |Rendon, Ch�vez, Chesbro,  |     |Calderon, Campos, Eggman, |
          |     |Gomez, Gonzalez, Roger    |     |Gomez, Holden, Jones,     |
          |     |Hern�ndez, Mansoor,       |     |Linder, Pan, Quirk,       |
          |     |Nazarian, Nestande,       |     |Ridley-Thomas, Wagner,    |
          |     |Patterson, Ridley-Thomas, |     |Weber                     |
          |     |Wagner, Wieckowski,       |     |                          |
          |     |Bocanegra                 |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires the Department of Public Health (DPH) to set  
          a performance benchmark, not to exceed 60 days, to complete a  
          long-term care facility complaint investigation and requires DPH  
          to provide additional information about the investigation of the  
          complainant.  Specifically, among other provisions,  this bill :  

          1)Requires DPH, by July 1, 2015, to complete investigations of  
            complaints against long-term health care facilities within the  
            number of days specified by the benchmark after receipt of the  
            complaint.  

             2)   Requires DPH, when it extends an investigation in 1)  
               above, to notify the complainant and provide the basis for  
               the extension, the status of the investigation and the  
               anticipated completion date. 

             3)   Effective July 1, 2015, requires DPH to include specific  
               findings concerning each alleged violation and a summary of  
               the evidence in the written determination it is required to  
               make at the investigation's conclusion.  

             4)   Requires DPH to analyze its compliance with the  
               benchmark in its annual system and staffing analysis,  
               including specified data on the department's compliance  
               with the benchmark. 








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           FISCAL EFFECT  :  Unknown, significant costs, potentially in the  
          low millions of dollars annually to the Licensing and  
          Certification (L&C) Fund within DPH to meet the imposed time  
          frames for completion of investigations from the, paid for by  
          facility licensing fees.  Of this amount, about 5% is  
          attributable to state-run facilities, whose licensure fees are  
          paid for with General Fund dollars.  

           COMMENTS  :  The author of this bill writes that testimony  
          received by the Legislature in a joint oversight hearing of the  
          Assembly Aging and Long-Term Care Committee and the Assembly  
          Health Committee indicated that DPH struggles to meet its  
          workload demands.  Testimony revealed that thousands of  
          complaints of mistreatment, misconduct, and abuse have  
          languished for years with incomplete investigation.  The author  
          writes that each day that a complaint is left open, medically  
          fragile and vulnerable adults in long-term health care  
          facilities are placed at risk of harm.  Timely investigations  
          are critical to reduce risk by identifying and acting to protect  
          dependent adults in state care from dangerous situations.  This  
          bill is intended to address this issue by establishing a  
          performance benchmarks by which DPH can evaluate the length of  
          an investigation.

          The L&C division within DPH is responsible for ensuring and  
          promoting a high standard of medical care in approximately 8,000  
          health care facilities and agencies in California, including  
          about a total of 2,500 long-term health care facilities:  1,270  
          skilled nursing facilities; 1,187 intermediate care facilities;  
          65 congregate living health facilities; and, 16 pediatric day  
          health and respite care facilities.  In addition to inspecting  
          long-term health care facilities for compliance with state law,  
          L&C is also the state survey agency for the federal Centers for  
          Medicare and Medicaid Services (CMS).  DPH is responsible for  
          certifying to the federal government that nursing homes are  
          eligible for payments under CMS programs.  CMS requires L&C to  
          promptly review complaints/incidents, conduct unannounced onsite  
          investigations of reports alleging noncompliance, and inform CMS  
          of any certification requirements that are found to be out of  
          compliance.

          The timeliness of the L&C complaint investigation process has  
          been a subject of criticism for several years.  This matter has  








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          been the subject of lawsuits against the state, investigative  
          reporting articles, and increased oversight from CMS.
           
           State law requires DPH to prepare an analysis along with the  
          annual fee report that includes, among other data, information  
          on the number and timeliness of complaint investigations.  The  
          law does not specify how DPH should measure the timeliness of  
          complaint investigation.  From 2007-08 to 2009-10, DPH reported  
          the percentage of investigations completed within specified  
          timeframes.  The reported timeframes vary from year to year.   
          Beginning with the 2012-13 report's information on 2010-11  
          complaints, DPH has not included any information on timeliness  
          of complaint investigation completion.  

          In support, California Advocates for Nursing Home Reform  
          (CANHR), writes that this bill, by requiring timely  
          investigation of complaints, will prevent nursing home  
          residents from continuing to be subject to neglect or abuse  
          after it has been reported, and that this bill will help  
          ensure that DPH's findings are fair, accurate, and efficient  
          because investigations will be conducted and completed while  
          evidence is readily available and still fresh.  CANHR writes  
          that the timely investigation of nursing home complaints is  
          a matter of life and death for nursing home residents and  
          that this bill will help protect nursing home residents from  
          neglect and abuse and help restore public confidence in  
          California's nursing home oversight system.

          There is no known opposition to this bill. 
           

          Analysis Prepared by  :    Dharia McGrew / HEALTH / (916) 319-2097  



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