BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1974
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 1974 (Quirk) - As Amended:  May 1, 2014 

          Policy Committee:                              HealthVote:19-0

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

           SUMMARY  

          This bill, for purposes of health facility licensure and  
          certification, exempts units of nursing facilities organized to  
          provide physical therapy services, occupational therapy  
          services, or speech pathology and audiology services to  
          residents of the facility from the definition of "special  
          services" that require state approval.

           FISCAL EFFECT  

          Minor and absorbable costs to the Department of Public Health to  
          apply this change to licensure practice, and minor commensurate  
          reduced workload.

           COMMENTS  

           1)Purpose  .  AB 1974 would exempt certified nursing facilities  
            from being subject to a state application process to provide  
            the specified therapy services, when the facility only  
            provides the therapy services to their residents.  Since these  
            services are mandated by the federal government in order to  
            maintain certification for payment through Medicare and  
            Medicaid with the federal Center for Medicaid and Medicare  
            Services (CMS), the state process is duplicative. This bill  
            would eliminate it.

           2)Background  . Current state licensing regulations detailed in  
            the California Code of Regulations (CCR) Title 22 specify the  
            required services a facility must provide in order to be  
            licensed as a skilled nursing facility, and also identify  
            special, optional services.  Physical therapy, occupational  
            therapy, speech pathology and audiology services are special,  








                                                                  AB 1974
                                                                  Page  2

            optional services under state regulations and require an  
            application and state approval.  Federal requirements in Title  
            42 of the Code of Federal Regulations (42 CFR) Section 483.45  
            require  all certified nursing facilities to have access to  
            physical therapy, occupational therapy, and speech pathology  
            and audiology services. The facility can choose to provide  
            these services or obtain the required services from an outside  
            provider of specialized rehabilitative services. 

            In response to concerns state law was not being enforced, SB  
            1312 (Alquist), Chapter 895, Statutes of 2006 specified that  
            inspections and investigations of long-term health care  
            facilities shall determine compliance with both federal  
            standards and California statutes and regulations.  The state  
            now enforces both state licensure law and federal  
            certification standards.  Facilities held to the more  
            stringent or precise requirement when there is an overlap in  
            state and federal requirements.  
           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081