BILL ANALYSIS �
AB 2051
Page 1
Date of Hearing: May 7, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2051 (Gonzalez) - As Amended: April 29, 2014
Policy Committee: HealthVote:19-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Department of Health Care Services (DHCS)
to process applications within 15 days of receiving an
application from an affiliate primary care clinic applying to be
a Medi-Cal provider, and deems applications approved on the 16th
day after receiving the application.
FISCAL EFFECT
Minor costs for DHCS to identify and expedite affiliate primary
care clinic applications.
COMMENTS
1)Purpose . According to the author, legislation enacted several
years ago provides DPH must approve a clinic license within 30
days. Unfortunately, the streamlined licensure process did
not specifically address the timelines by which the DHCS must
complete the affiliate clinic's enrollment into Medi-Cal. The
author notes as a consequence, affiliate clinics are entitled
to receive their license, open their doors, and provide
services to patients within 30 days of submitting an
application to DPH, however, they often cannot get paid for
providing those services until their enrollment in Medi-Cal is
complete, which can several months.
2)Background . Certain non-profit corporations that operate
multiple primary care clinics are entitled to use a
streamlined application process that allows qualifying primary
care clinics, known as affiliated primary care clinics, to
receive a DPH license within 30 days of submitting a completed
application. This streamlined licensure process, in place as
AB 2051
Page 2
of 2011 pursuant to SB 442 (Ducheny), Chapter 502, Statutes of
2010, has eliminated unnecessary paperwork, eased
administrative burdens, and significantly sped up the
licensing process for these affiliated clinics.
Current law allows clinics to claim retroactive reimbursement
for services provided to Medi-Cal eligible beneficiaries
before the provider enrollment is complete. Thus, this bill
does not increase net costs for Medi-Cal services. However,
clinics may not have the resources to cover the cost of
several months of services while waiting for DHCS approval .
This bill will allow them to be reimbursed for services much
more quickly after opening their doors.
3)Staff Comment . The author may wish to clarify the bill is
relevant to enrollment as a Medi-Cal provider, not
certification as a Medi-Cal provider, to better reflect
intent.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081