BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2059
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          Date of Hearing:   May 6, 2014

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                    AB 2059 (Muratsuchi) - As Amended: May 1, 2014

           SUBJECT  :   Medical Records: Electronic Delivery 

           KEY ISSUE  :  Should the Evidence Code be updated to permit the  
          request and delivery of electronic medical records? 

                                      SYNOPSIS

          Under existing law, an attorney, prior to filing a civil action,  
          may present a written request, properly signed and authorized by  
          an adult patient, to the medical provider that maintains the  
          patient's medical records.  The provider must make the records  
          available for inspection and copying by the attorney within five  
          days.  The purpose of this law is to help the plaintiff, and his  
          or her attorney, determine if there is sufficient evidence or  
          cause to bring a lawsuit.  According to the author, this law  
          needs to be updated to account for the fact that medical records  
          today are routinely held in electronic form and could be more  
          efficiently provided in that form.  This non-controversial bill  
          would clarify that if medical records are maintained in an  
          electronic form, and an attorney requests that the medical  
          records be electronically delivered in electronic form, then the  
          medical provider shall comply with that request, assuming that  
          the attorney has provided a proper authorization signed by the  
          adult patient or appropriate representative.  Existing law  
          currently establishes a "per page" cost and a retrieval fee that  
          the provider may charge the requesting attorney.  This amount  
          has not been updated in many years and, moreover, it is not  
          entirely clear what an appropriate "per page" charge should be  
          if the records are in electronic form and electronically  
          delivered.  As such, the bill in its current form contains a  
          yet-to-be-determined fee amount, but the author and stakeholders  
          will continue working to develop a fair and reasonable amount  
          should the bill move out of this Committee today.  The bill is  
          sponsored by the Consumer Attorneys of California.  There is no  
          opposition to this bill, which recently passed out of the  
          Assembly Health Committee on a 19-0 vote. 

           SUMMARY  :  Requires a health care provider, upon request by an  
          authorized attorney, to provide the attorney with an electronic  








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          copy of the requested medical record if the medical record  
          exists in a digital or electronic format that can be delivered  
          electronically.  Specifically,  this bill  :

          1)Provides that if an electronic copy of a medical record is  
            requested by an attorney before the filing of an action, as  
            specified, the health care provider shall provide an  
            electronic copy of the requested medical record if the medical  
            record exists in a digital or electronic format that can be  
            delivered electronically. 

          2)Provides that if requested records are electronic health  
            records provided on a digital or other electronic medium and  
            the requesting party requests delivery in a digital or  
            electronic medium, the health care provider may charge  
            reasonable per-page, processing, and retrieval fees.

          3)Increases the period of time in which the health provider must  
            respond to a request for medical records from five (5) days to  
            fifteen (15) days after the presentation of a written  
            authorization. 

           EXISTING LAW  :

          1)Requires health care providers to make a patient's medical  
            records available for inspection and copying by an attorney,  
            prior to the filing of any action or the appearance of a  
            defendant in an action, when the attorney presents written  
            authorization from an adult patient, the guardian or  
            conservator of his or her person or estate, or the personal  
            representative or an heir of a deceased patient.  In the case  
            of a minor, written authorization from a parent or guardian of  
            the minor.  (Evidence Code Section 1158.)

          2)Prohibits a health care provider or their agent from copying  
            requested medical records when the requesting attorney has  
            employed a professional photocopier registered, or anyone  
            exempt from being required to register as a professional  
            photocopier, as specified.  (Id.)

          3)Makes the person or entity having custody of the medical  
            records liable for all reasonable expenses, including  
            attorney's fees, incurred in any proceeding when the medical  
            records are not made available during business hours within  
            five days of the written request.








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          4)Permits all reasonable costs incurred by a health care  
            provider in making patient records available to be paid by the  
            person whose written authorization required the availability  
            of the records.  (Id.)

          5)Defines "reasonable cost" to include $0.10 per page for  
            standard sized reproduction of documents, $0.20 per page for  
            copying from microfilm, actual costs for the reproduction of  
            oversize documents or those requiring special processing, and  
            $16 per hour per person for clerical costs incurred in  
            locating and making the records available, actual postage  
            charges, and actual costs, if any, charged to the witness by a  
            third person for the retrieval and return of records held by  
            that third person.  (Id.) 

          6)Limits the fees, where the records are delivered to the  
            attorney for inspection or photocopying at the record  
            custodian's place of business, to $15, plus actual costs, if  
            any, charged to the witness by a third person for the  
            retrieval and return of records held by that third person.   
            (Id.)

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.

           COMMENTS  :  Sponsored by the Consumer Attorneys of California  
          (CAOC), this bill seeks to modernize the Evidence Code by  
          allowing an attorney to request an electronic copy of a medical  
          record, where one exists, if the attorney has proper  
          authorization from the patient to whom the records pertain.   
          Under existing law, an attorney, prior to filing a civil action,  
          may present a written request, properly signed and authorized by  
          an adult patient, to the medical provider that maintains the  
          patient's records.  The provider must make the records available  
          for inspection and copying by the attorney, or be subject to  
          liability for any reasonable expenses, including attorney's  
          fees, incurred in any attempt to enforce the request.  The  
          purpose of existing law is to help the plaintiff, and his or her  
          attorney, make an evaluation as to whether there is sufficient  
          cause to bring a lawsuit and, if there is, whether there is  
          sufficient evidence to prevail. 

          According to the author and sponsor, however, the law should be  
          updated to reflect the fact that medical records today are  








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          routinely held in electronic form and more efficiently and  
          cost-effectively provided in that form.  This bill, therefore,  
          would specify that if medical records are maintained in an  
          electronic form, and an attorney requests that the medical  
          records be electronically delivered in electronic form, then the  
          custodian of the records shall comply with that request,  
          assuming that the attorney has provided a proper authorization  
          signed by the adult patient or an appropriate representative.  

           Longer Time Frame to Respond  :  Existing law requires the medical  
          provider to produce the records within five days of the request.  
           Failure to do so may subject the provider to liability for  
          reasonable expenses, including attorney's fees, incurred in  
          enforcing the request.  According to the sponsor, however, not  
          only is this period "unrealistic," it is also "universally  
          ignored."  Therefore, this bill increases the time that the  
          medical provider has to respond from five (5) days to fifteen  
          (15) days. 

           Appropriate Fees to be Determined  :  Under existing law, the  
          medical provider is permitted to charge the requesting attorney  
          reasonable costs for making the records available.  These could  
          include the costs of copying and printing, or the cost of paying  
          someone to retrieve the files.  These retrieval costs can be  
          greater if records are stored at an off-site facility or by a  
          third-party storage provider.  Existing law provides that the  
          "reasonable costs" shall include, but are not limited to, 10  
          cents per page for standard reproduction or 20 cents per page  
          for copying documents from microfilm.  (The use of the term  
          "microfilm," which is rarely used anymore, may reflect the  
          problem that the author and sponsor are trying to solve.)  In  
          addition to this per page charge, existing law allows the  
          medical provider to charge for reasonable clerical costs  
          incurred in locating and making the records available, at a  
          maximum rate of $16 per hour per person.  

          Electronic delivery of an electronic file will, presumably,  
          alter the rationale behind these charges.  For example, it would  
          presumably cost the same amount to send a 10-page document  
          electronically as it would to send a 20-page document  
          electronically.  However, while both attorneys and health care  
          providers agree that copies of records should be provided in  
          electronic records when possible, there is apparently not yet a  
          consensus on what the fee structure for providing records in  
          electronic form should be.  As such, the bill in print leaves  








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          the per page and retrieval amounts indeterminate at this point.   
          The author and sponsor have informed the Committee that the  
          stakeholders will work collaboratively to develop fair and  
          reasonable fees, should the bill move out of this Committee.  

           ARGUMENTS IN SUPPORT  :  According to the sponsor, the Consumer  
          Attorneys of California (CAOC), "AB 2059 will modernize Evidence  
          Code Section 1158 . . . [which] has not been updated to reflect  
          the reality of electronic medical records (EMRs) and contains  
          outdated cost reimbursement and time frame structures."  CAOC  
          claims that at least seven other states have distinct electronic  
          rates and caps.  In addition, CAOC contends, the existing  
          requirement that records be provided within five days of a  
          request "is both unrealistic and universally ignored in today's  
          world."  




           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Consumer Attorneys of California (sponsor)
          American Federation of State, County, and Municipal Employees  
          (AFSCME)
          California Association of Health Services at Home 
          California Workers' Compensation Services Association 

           Opposition 
           
          None on file
           
          Analysis Prepared by :   Thomas Clark / JUD. / (916) 319-2334