BILL ANALYSIS �
AB 2458
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Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2458 (Bonilla) - As Amended: April 10, 2014
Policy Committee: HealthVote:19-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill creates a fund and appropriates money for graduate
medical education residency programs. Specifically, this bill:
1)Creates the Graduate Medical Education (GME) Fund and
specifies moneys in the fund are to be used, upon
appropriation by the Legislature, to administer and fund
grants to graduate medical education residency programs
located in California hospitals or teaching health centers.
2)Appropriates $25 million from the GF, and appropriates $2.84
million per year for three years, commencing 2014-15, from the
Health Data and Planning Fund, to the GME Fund
3)Requires the Office of Statewide Health Planning and
Development, in consultation with the California Healthcare
Workforce Policy Commission, to develop criteria for
distribution of available moneys in the fund.
FISCAL EFFECT
1)Expenditures of $25 million GF in 2014-15, and $2.84 million
per year for three years commencing with 2014-15 (Health Data
and Planning Fund), for purposes of increasing the number of
residency slots available in the state.
2)One-time administrative costs to OSHPD, likely less than
$100,000, to develop criteria for distribution of the
available money (Graduate Medical Education Fund).
3)Total administrative costs to OSHPD of $1.6 million over the
time in which residency awards are made, assuming
AB 2458
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administrative costs of 5% of the amount provided (Graduate
Medical Education Fund).
COMMENTS
1)Purpose . According to the author, funding for primary care
residency programs in California is inadequate. This bill
establishes the Fund as a dedicated source to finance
additional slots in residency programs in California hospitals
and health centers. This bill builds on a proposed budget
investment by calling for an additional infusion of money from
the General Fund.
2)Budget Proposal . As part of the governor's 2014-15 budget
proposal, OSHPD requested $2.84 million per year for three
years (Health Data Planning Fund) to expand its Song-Brown
Health Care Workforce Training Program to fund primary care
residency programs via the Song-Brown Program, and to expand
eligibility for Song-Brown residency program funding to
teaching health centers. OSHPD notes the Health Data Planning
Fund will receive a $12 million repayment from a loan to the
General Fund in 2014-15.
3)Song-Brown . The Song-Brown Health Care Workforce Training Act
(Song-Brown Program) was established in 1973 to increase the
number of family physicians to provide needed medical services
to the people of California. The program provides financial
support to family practice residency, family nurse
practitioner, physician assistant, and registered nurse
education programs throughout California. The Song-Brown
program is aided by the California Healthcare Workforce Policy
Commission, a 15-member citizen advisory board. Accredited
training programs submit applications to receive program
funding. At present, 30 California Family Practice Residency
Programs and 13 Physician Assistant/Family Nurse Practitioner
Programs receive ongoing support from the Song-Brown program.
4)Related Legislation .
a) AB 1176 (Bocanegra and Bonta) of 2013 established the
Medical Residency Training Program to fund GME residency
programs in California and required every health insurer or
health plan that provides health care coverage in this
state to pay an annual GME assessment of $5 for each
covered life. AB 1176 was held on the Suspense File of
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this committee.
b) AB 565 (Salas), Chapter 378, Statutes of 2013, among
other things, revises the definition of a practice setting
for purposes of the Steven M. Thompson Physician Corps Loan
Repayment Program (STLRP) to include a physician owned and
operated medical practice setting that provides primary
care located in a medically underserved area.
c) AB 860 (Perea and Bocanegra) would have appropriated
$600,000 from the Managed Care Administrative Fines and
Penalties Fund to the Steven M. Thompson Medical School
Scholarship Program (STMSSP) Account within HPEF. AB 860
was held on the Suspense File of this committee.
5)Prior Legislation .
a) AB 589 (Perea), Chapter 339, Statutes of 2012,
establishes the STMSSP to promote the education of medical
doctors and doctors of osteopathy, as specified.
b) SB 635 (Ed Hernandez) of 2012 would have required funds
deposited into the Managed Care Administrative Fines and
Penalties Fund (Managed Care Fund) in excess of $1 million
to be transferred each year to OSHPD for the purpose of the
Song-Brown, as specified. SB 635 was held on the Suspense
File of this committee.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081