BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        SB 906|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  SB 906
          Author:   Correa (D)
          Amended:  4/7/14
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  7-0, 4/30/14
          AYES:  Hernandez, Morrell, De Le�n, DeSaulnier, Evans, Monning,  
            Wolk
          NO VOTE RECORDED:  Beall, Nielsen

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 5/12/14
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines


           SUBJECT  :    Elective Percutaneous Coronary Intervention Offsite  
          Program

           SOURCE  :     Author


          DIGEST  :    This bill creates the Elective Percutaneous Coronary  
          Intervention (PCI) Offsite Program in the Department of Public  
          Health (DPH) to certify an unlimited number of general acute  
          care hospitals that are licensed to provide cardiac  
          catheterization laboratory service in California, and that meet  
          prescribed, additional criteria, to perform scheduled, elective  
          PCI.  Authorizes a hospital that was participating in the  
          Elective PCI Pilot Program as of December 31, 2014, to continue  
          to perform elective PCI provided that the hospital obtains a  
          certification, as specified, by January 1, 2016.  Requires the  
          Office of Statewide Health Planning and Development (OSHPD) to  
                                                                CONTINUED





                                                                     SB 906
                                                                     Page  
          2

          annually develop and make available to the public a report  
          regarding each participating hospital's performance, as  
          specified, and authorizes DPH to form an advisory oversight  
          committee for the purpose of analyzing those reports and  
          recommending changes.  Also authorizes DPH to charge each  
          participating hospital a supplemental licensing fee not to  
          exceed the reasonable cost to DPH of overseeing the program.

           ANALYSIS  :    

          Existing law:

          1. Licenses and regulates general acute care hospitals by DPH,  
             and in addition to the basic services offered under that  
             license, permits general acute care hospitals to seek  
             approval from DPH to offer special services, including  
             cardiac surgery and cardiac catheterization laboratory  
             services.

          2. Requires DPH, for cardiac catheterization laboratory  
             services, to adopt standards and regulations that specify  
             that only diagnostic services, and which diagnostic services,  
             may be offered by an acute care hospital that is approved to  
             provide cardiac catheterization laboratory service but is not  
             also approved to provide cardiac surgery service.

          3. Establishes the Elective PCI Pilot Program to allow DPH to  
             authorize up to six general acute care hospitals that are  
             licensed to provide cardiac catheterization laboratory  
             service in California, and that meet specified requirements,  
             to perform scheduled, elective PCI and stent placement for  
             eligible patients without onsite cardiac surgery.
           
          4. Establishes an advisory oversight committee, comprised of one  
             interventionalist from each pilot hospital, an equal number  
             of cardiologists from non-pilot hospitals, and a  
             representative from DPH, to oversee, monitor, and make  
             recommendations to DPH concerning the Elective PCI Pilot  
             Program.

          5. Requires the advisory oversight committee to submit at least  
             two reports to DPH during the pilot period, and to conduct a  
             final report by November 30, 2013, including recommendations  
             for the continuation or termination of the pilot program.

                                                                CONTINUED





                                                                     SB 906
                                                                     Page  
          3


          6. Requires DPH to prepare and submit a report to the  
             Legislature on the results of the Elective PCI Pilot Program  
             within 90 days of receiving the final report from the  
             advisory oversight committee.  Requires this report to  
             recommend whether elective PCI without onsite cardiac surgery  
             should be continued in California, and if so, under what  
             conditions.

          7. Sunsets the provisions of law creating the Elective PCI Pilot  
             Program on January 1, 2015.

          This bill:

          1. Establishes the Elective PCI Offsite Program in DPH to allow  
             DPH to certify general acute care hospitals that are licensed  
             to provide cardiac catheterization laboratory service in  
             California, and that meet the requirements of this bill, to  
             perform scheduled, elective percutaneous transluminal  
             coronary angioplasty and stent placement for eligible  
             patients.

          2. Defines various terms for purposes of this bill, including  
             that "elective PCI" means scheduled percutaneous transluminal  
             coronary angioplasty and stent placement, and does not  
             include urgent or emergency PCI that is scheduled on an ad  
             hoc basis, and that "eligible hospital" means a general acute  
             care hospital that has a licensed cardiac catheterization  
             laboratory and is in substantial compliance with all  
             applicable state and federal licensing laws and regulations.

          3. Requires an eligible hospital, as defined, in order to  
             participate in the Elective PCI Offsite Program, to obtain  
             certification from DPH and to meet all of the following  
             requirements:

             A.    Demonstrate that it complies with the recommendations  
                of the Society for Cardiovascular Angiography and  
                Interventions, the American College of Cardiology  
                Foundation, and the American Heart Association, for  
                performance of PCI without onsite cardiac surgery, as  
                those recommendations may evolve over time;

             B.    Provide evidence showing the full support from hospital  

                                                                CONTINUED





                                                                     SB 906
                                                                     Page  
          4

                administration in fulfilling the necessary institutional  
                requirements, including, but not limited to, appropriate  
                support services such as respiratory care and blood  
                banking; and

             C.    Participate in, and provide timely submission of data  
                to, the American College of Cardiology-National  
                Cardiovascular Data Registry, and confer rights to  
                transfer this data to OSHPD.

          4. Requires an eligible hospital to submit an application to DPH  
             to obtain certification to participate in the Elective PCI  
             Offsite Program, and requires the application to include  
             sufficient information to demonstrate compliance with the  
             standards set forth in this bill, and to include other  
             specified information, including a description of backup  
             emergency services.

          5. Permits an eligible hospital that was participating in the  
             Elective PCI Pilot Program to continue to perform elective  
             PCI and to be considered an offsite hospital provided that  
             the hospital obtains a certification under the provisions of  
             this bill by January 1, 2016.

          6. Requires OSHPD, using data transferred from the American  
             College of Cardiology-National Cardiovascular Data Registry,  
             as specified under this bill, to annually develop and make  
             available to the public a report regarding each offsite  
             hospital's performance on mortality, a stroke rate, and an  
             emergency coronary artery bypass graft rate.

          7. Permits DPH to establish an advisory oversight committee  
             composed of two interventionalists from offsite hospitals,  
             two interventionalists from hospitals that are not offsite  
             hospitals, and a representative of DPH, for the purpose of  
             analyzing the report issued by OSHPD and making  
             recommendations for changing the data to be included in  
             future reports issued by OSHPD.

          8. Requires DPH to revoke a certification issued under this bill  
             if at any time an offsite hospital fails to meet the criteria  
             set forth in this bill.  Permits an offsite hospital whose  
             certification is revoked to request an appeal, and specifies  
             that these hospitals are not precluded from reapplying for  

                                                                CONTINUED





                                                                     SB 906
                                                                     Page  
          5

             certification.

          9. Permits DPH to charge offsite hospitals a supplemental  
             licensing fee, the amount of which cannot exceed the  
             reasonable cost to DPH of overseeing the program.

          10.Permits DPH to contract with a professional entity with  
             medical program knowledge to meet the requirements of this  
             bill.

           Background
           
           Elective PCI Pilot Program background  .  According to the Senate  
          Health Committee analysis of SB 891 (Correa, Chapter 295,  
          Statutes of 2008), which created the Elective PCI Pilot Program,  
          the legislation was prompted by studies showing that elective  
          PCI for low- to medium-risk patients can be safely and  
          effectively performed at hospitals without cardiac surgery  
          services if they meet certain requirements.  The current  
          limitation on hospitals performing interventional cardiac  
          procedures, if they are not also licensed to perform cardiac  
          surgery, was enacted over 25 years ago.  Since that time, there  
          have been great technological and methodological advances in  
          interventional cardiology that have significantly improved  
          patient outcomes and reduced incidents of emergency cardiac  
          surgery.  At the time the Elective PCI Pilot Program was  
          enacted, hospitals in 28 states were already performing elective  
          PCI without on-site surgical capability but with transfer  
          arrangements to facilities that do have such capability.  Today,  
          45 states permit elective PCI without onsite surgery.

          The six hospitals selected by DPH for the pilot program were:   
          Los Alamitos Medical Center; Sutter Roseville Medical Center;  
          Kaiser Permanente Walnut Creek Medical Center; Doctors Medical  
          Center-San Pablo; Clovis Community Medical Center; and St. Rose  
          Hospital in Hayward.

          The final report from the Elective PCI Pilot Program Advisory  
          Oversight Committee (PCI AOC), dated November 19, 2013, found no  
          significant outcome differences between the six hospitals in the  
          pilot program, and the control group of 116 hospitals performing  
          these procedures with onsite cardiac surgery services.  No  
          strong relationship was noted between hospital volumes and  
          overall safety and efficacy.  Potential worse outliers were  

                                                                CONTINUED





                                                                     SB 906
                                                                     Page  
          6

          identified only in the non-pilot control group of hospitals with  
          onsite surgery.

           Prior Legislation
           
          SB 357 (Correa, Chapter 202, Statutes of 2013), extended the  
          January 1, 2014, sunset date for the Elective PCI Pilot Program  
          to January 1, 2015, and requires the final report by the PCI AOC  
          to be completed by November 30, 2013, rather than at the  
          conclusion of the pilot program.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


          According to the Senate Appropriations Committee:


           One-time costs of about $110,000 for initial licensing of  
            hospitals by DPH (Licensing and Certification Program Fund).


           Minor ongoing costs review compliance by participating  
            hospitals as part of the DPH's ongoing licensing enforcement  
            program (Licensing and Certification Program Fund).

           Minor reporting costs by the OSHPD (California Health Data and  
            Planning Fund).

           SUPPORT  :   (Verified  5/14/14)

          American College of Cardiology - California Chapter
          California Hospital Association
          Los Alamitos Medical Center

           ARGUMENTS IN SUPPORT  :    The California Hospital Association  
          (CHA) states in support that this bill allows DPH to certify  
          general acute care hospitals, which meet the requirements of  
          this bill, to perform scheduled, elective PCI angioplasty and  
          stent placement for patients.  CHA notes that the results of the  
          pilot study found that the six California hospitals  
          participating in the pilot program demonstrated similar safety  
          and efficacy results for elective and non-elective PCIs when  
          compared to hospitals with onsite surgery.

                                                                CONTINUED





                                                                     SB 906
                                                                     Page  
          7


          The Los Alamitos Medical Center also supports this bill, stating  
          that it was one of the pilot participants, and that it  
          successfully partnered with DPH to generate clinical and  
          economic data that positions California to move forward with a  
          permanent program, resulting in better outcomes for these  
          procedures along with enhanced patient safety.


          JL:d  5/14/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****































                                                                CONTINUED