BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       SB 455                                      
          AUTHOR:        Hernandez
          AMENDED:       August 6, 2014
          HEARING DATE:  August 20, 2014
          CONSULTANT:    Marchand

          PURSUANT TO SENATE RULE 29.10.

           SUBJECT  :  General acute care hospitals: nurse to patient ratios.
           
            SUMMARY  :  Codifies existing regulations requiring hospitals to  
          have a committee annually review the reliability of its patient  
          classification system, including regulations requiring at least  
          one-half of this committee be composed of registered nurses who  
          provide direct patient care. Requires the registered nurses  
          appointed to this committee to be selected by the collective  
          bargaining agent, if any. Requires the Department of Public  
          Health, during every periodic state inspection of a hospital, to  
          inspect for compliance with nurse-to-patient ratios, as  
          specified.

          Existing law:
          1.Licenses and regulates health facilities by the Department of  
            Public Health (DPH).
                 
          2.Requires DPH to inspect for compliance with state laws and  
            regulations during a state periodic inspection or at the same  
            time as a federal periodic inspection.  Requires, for general  
            acute care hospitals, acute psychiatric hospitals, and special  
            hospitals, the inspection to be conducted no less than once  
            every three years.

          3.Requires DPH to adopt regulations that establish minimum,  
            specific, and numerical licensed nurse-to-patient ratios, by  
            licensed nurse classification and by hospital unit, for  
            hospitals.


          4.Requires the ratios adopted by regulation to constitute the  
            minimum number of registered and licensed nurses that must be  
            allocated. Requires additional staff to be assigned in  
            accordance with a documented patient classification system for  
            determining nursing care requirements, including:  the  
                                                         Continued---



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            severity of the illness; need for specialized equipment and  
            technology; complexity of clinical judgment needed to design,  
            implement, and evaluate the patient care plan and the ability  
            for self-care, and licensure of the personnel required for  
            care.

          Existing regulations:
          1.Define "patient classification system," in part, as a method  
            for establishing staffing requirements by unit, patient, and  
            shift.

          2.Require a hospital's administrator of nursing service to  
            develop a written staffing plan based on patient care needs  
            determined by the patient classification system.

          3.Require the reliability of the patient classification system  
            for validating staffing requirements to be reviewed at least  
            annually by a committee appointed by the nursing administrator  
            to determine whether or not the system accurately measure  
            patient care needs, and requires at least half of the members  
            of the review committee to be registered nurses who provide  
            direct patient care.

          This bill:
          1.Requires a committee for each general acute care hospital, at  
            least annually, to review the reliability of the patient  
            classification system, as specified, for validating staffing  
            requirements to determine whether or not the system accurately  
            measures patient care needs.

          2.Requires at least one-half of the membership of the patient  
            classification system review committee to be composed of  
            registered nurses who provide direct patient care, and  
            requires these registered nurses to be appointed by the  
            bargaining agent of the registered nurses, if any, and in the  
            absence of a bargaining agent, to be appointed by the nursing  
            administrator. Requires the remaining members of the review  
            committee to be appointed by the nursing administrator of the  
            hospital.

          3.Requires DPH, during every periodic state inspection of a  
            general acute care hospital, to inspect for compliance with  
            the nurse-to-patient ratios established pursuant to specified  
            provisions of existing law.

          4.States the intent of the Legislature that the provisions of  




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            this bill specified in 1) and 2) above, relating to the  
            patient classification system review committee, are to  
            supersede similar provisions in the California Code of  
            Regulations, and are not intended to affect any other law.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor costs to DPH's Licensing and Certification Fund  
          to modify regulations that conflict with this bill's provisions.

           COMMENTS  :  
           1.Author's statement.  This bill codifies an existing regulation  
            that requires a committee composed of at least 50 percent  
            registered nurses to annually review the reliability of a  
            hospital's patient classification system. This bill makes one  
            change to this requirement by specifying that if a hospital's  
            nurses are represented by a collective bargaining agent, then  
            the collective bargaining agent can select the nurses that are  
            appointed to the committee. Additionally, this bill requires  
            that hospitals are surveyed for compliance with nurse staffing  
            requirements as part of the existing inspection that the  
            department is required to complete for each hospital every  
            three years.

          2.Nurse to patient ratios and patient classification systems.   
            In 2004, regulations implementing nurse-to-patient ratios in  
            California hospitals pursuant to AB 394 (Kuehl), Chapter 945,  
            Statutes of 1999, went into effect.  However, long before  
            California had specific nurse-to-patient ratios, hospitals  
            were required by regulation to establish a patient  
            classification system. This patient classification system is a  
            method by which hospitals establish staffing requirements by  
            unit, patient, and shift, and includes a method by which the  
            amount of nursing care needed for each category of patient is  
            validated for each unit.

          The regulations implementing the AB 394 nurse-to-patient ratios  
            law set the minimum ratio of nurses to patient by unit,  
            including one-to-one in operating rooms, one-to-two in  
            intensive care units, and one-to-five in general  
            medical-surgical units. These regulations also incorporated  
            the patient classification system requirement. In essence, the  
            specific nurse-to-patient ratios establish the minimum number  
            of nurses by unit, while the patient classification system  
            determines whether there needs to be a higher level of  
            staffing beyond the minimum ratio after taking into  




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            consideration factors such as the severity of the illness, the  
            need for specialized equipment and technology, and the  
            complexity of clinical judgment needed to evaluate the patient  
            care plan, among other factors. The nurse-to-patient ratio  
            regulations require that the minimum ratios must be met at all  
            times.

          Finally, the regulations require the reliability of the patient  
            classification system for validating staffing requirements to  
            be reviewed at least annually by a committee appointed by the  
            nursing administrator to determine whether the system  
            accurately measures patient care needs. At least half of the  
            members of this committee are required to be registered nurses  
            who provide direct patient care.

          3.Prior legislation. SB 1246 (Hernandez) of 2012, contained very  
            similar provisions to this bill, among several other  
            provisions. In addition to the provisions that are similar to  
            this bill, SB 1246 also would have required periodic  
            inspections by DPH to include a review of compliance with  
            nurse staffing ratios and patient classification systems, and  
            eliminated a requirement that DPH promulgate regulations  
            further defining the criteria for assessing administrative  
            penalties, thereby allowing existing fine authority to go into  
            effect. SB 1246 was vetoed by Governor Brown.
            
            AB 394 (Kuehl), Chapter 945, Statutes of 1999, requires DPH to  
            adopt regulations specifying nurse-to-patient ratios, by unit,  
            for general acute care hospitals, acute psychiatric hospitals  
            and special hospitals. Additionally, requires hospitals to  
            adopt written policies and procedures for nursing staff  
            training. Provided that the ratios shall constitute the  
            minimum number of registered and licensed nurses that must be  
            provided; requires hospitals to assign additional staff in  
            accordance with a documented patient classification system.

          4.Support.  This bill is co-sponsored by the United Nurses  
            Associations of California/Union of Health Care Professionals  
            (UNAC/UHCP), and the American Federation of State, County and  
            Municipal Employees (AFSCME) which state that this bill is  
            designed to improve compliance with existing law covering  
            nurse-to-patient staffing in hospitals. This bill does this by  
            implementing the following three changes: 1) adding compliance  
            with nurse-to-patient ratios to the periodic inspections that  
            hospitals are required to have every three years; 2) putting  
            regulations that require hospitals to have a Patient  




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            Classification System into statute; and 3) requiring that the  
            collective bargaining agent, if any, has the opportunity to  
            appoint the registered nurses to the committee that reviews  
            the Patient Classification System. UNAC/UHCP and AFSCME state  
            that nurse staffing ratios are academically proven to save  
            lives, yet existing laws requiring hospitals to comply with  
            these ratios are oftentimes ignored. By increasing enforcement  
            of these ratios, this bill will help ensure patients are  
            receiving adequate critical care.

          5.Opposition.  The California Hospital Association (CHA) is  
            opposed to this bill unless amended to remove the provision  
            giving a third-party labor union the right to appoint specific  
            members to the patient classification review committee,  
            arguing that this is an inappropriate infringement on the  
            hospital's ultimate responsibility for patient care. Under  
            current regulations, CHA states that the members of the  
            patient classification committee are appointed by the hospital  
            nursing administrator, and this bill would change that  
            process.  CHA states that the hospital has ultimate  
            responsibility for ensuring quality patient care, and given  
            this responsibility, it is inappropriate to delegate a major  
            component of its assessment tool to a third party. For  
            example, CHA states that the hospital may want to have  
            particular units represented on the committee, while the union  
            may appoint individuals based on their own priorities such as  
            leadership development or other factors.  Further, CHA states  
            that the hospital must maintain the prerogative to appoint  
            staff in good standing who are eligible and qualified to  
            perform the duties vested in the review committee.  The  
            bargaining agent is not a hospital representative and cannot  
            determine performance eligibility requirements. With regard to  
            the recent amendments requiring DPH to inspect for compliance  
            with the nurse-to-patient ratios, CHA states that this  
            requirement is redundant and unnecessary as DPH already  
            routinely inspects all aspects of patient care delivery during  
            their periodic inspections.

          The California Nurses Association (CNA) is also opposed to this  
            bill, stating that recently added language creates a fa�ade  
            that appears to increase enforcement of nurse-to-patient  
            ratios but actually does nothing to increase overall hospital  
            staffing compliance. CNA states that this bill, if enacted  
            into law, would undermine hard-won gains in registered nurse  
            staffing by not taking into account, for staffing purposes, 1)  




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            the severity of the illness; 2) the complexity of clinical  
            judgment involved in the patient's care; and, 3) the licensure  
            of the personnel required to provide that care.

          The Department of Finance states in opposition that it is  
            unnecessary, as nearly identical regulations currently exist,  
            and that control over the appointment process to the patient  
            classification review committee would be more appropriately  
            reached through contract negotiations between the hospitals  
            and the unions.
          
           SUPPORT AND OPPOSITION  :
          Support:  United Nurses Associations of California/Union of  
                    Health Care Professionals (sponsor)
                    American Federation of State, County and Municipal  
                    Employees, AFL-CIO (cosponsor)
                    American Nurses Association\California
                    SEIU California

          Oppose:   Association of California Healthcare Districts
          California Hospital Association
                    California Nurses Association
                    Department of Finance
                    Hospital Corporation of America