BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:   June 18, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 906 (Correa) - As Amended:  June 4, 2014 

          Policy Committee:                             HealthVote:18-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill establishes the Elective Percutaneous Intervention  
          (PCI) Offsite Program, administered by the Department of Public  
          Health (DPH), to certify eligible hospitals, as defined, as able  
          to perform PCI (angioplasty).  It also:

          1)Requires the Office of Statewide Health Planning and  
            Development (OSHPD) to collect data and issue a report on  
            hospital performance on PCI procedures.

          2)Authorizes DPH to:

             a)   Charge participating hospitals a supplemental licensing  
               fee to cover the department's reasonable costs of  
               overseeing the program. 
             b)   Establish an advisory oversight committee to make  
               recommendations regarding data to be collected.
             c)   Contract with a professional entity with medical program  
               knowledge to meet program requirements.

           FISCAL EFFECT  

          1)Approximately $300,000 annually to OSHPD (California Health  
            Data and Planning Fund) to collect and analyze information  
            related to PCI procedures, and to produce an annual report.   
            Costs may be somewhat lower in future years as data procedures  
            and analytical methodology are routinized.   

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

          3)Minor ongoing costs to review compliance by participating  








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            hospitals as part of the Department's ongoing licensing  
            enforcement program (Licensing and Certification Program  
            Fund).

          COMMENTS  

           1)Purpose  . This bill seeks to allow hospitals meeting certain  
            criteria to offer elective PCI.  Currently, pursuant to state  
            regulations, a hospital must conduct cardiac surgery on-site  
            in order to offer PCI on a non-emergency basis.  Recent  
            studies suggest that outcomes for PCI conducted in locations  
            without access to on-site cardiac surgery are comparable to  
            those with on-site cardiac surgery.  

           2)Background  . PCI, also known as angioplasty, is a procedure to  
            open narrowed or blocked coronary arteries that supply blood  
            to the heart.  It is conducted by inserting a catheter through  
            blood vessels to coronary arteries, and inflating a balloon.   
            A small mesh tube called a stent may also be placed in order  
            to restore blood flow through narrow or blocked arteries. 

            PCI is often performed on an emergency basis in the hospital  
            when patients are experiencing chest pain, or after a heart  
            attack. In contrast, elective PCI may be conducted in  
            asymptomatic patients.  For example, an individual may be  
            referred for an angiogram after a stress test, and the  
            physician may discover during a diagnostic angiogram that an  
            artery is showing signs of blockage, and insert a stent.  

            Currently, some hospitals have cardiac catheterization  
            laboratories that perform diagnostic work (an angiogram), but  
            they cannot simultaneously perform the angioplasty on an  
            elective basis unless they also offer onsite cardiac surgery.  
            Relevant professional societies have been reluctant to  
            recommend offering elective PCI without on-site cardiac  
            surgery as a backup, because in rare instances, complications  
            from the procedure may require cardiac surgery. They  
            recognize, however, that it has become fairly common in spite  
            of this concern.  The most recent 2011 guidelines offer  
            guidance for elective PCI in hospitals that lack on-site  
            cardiac surgery, including recommendations about appropriate  
            planning, rigorous patient selection, and transport  
            capabilities. PCI is already allowed on an emergency basis in  
            California hospitals without on-site cardiac surgery.









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           3)Elective PCI Pilot Program  . SB 891 (Correa), Chapter 295,  
            Statues of 2008, established a pilot to allow DPH to study the  
            safety of elective PCI in hospitals without on-site cardiac  
            surgery services.  Six California hospitals participated in  
            the study.  According to the November 19, 2013 final report  
            from a PCI Pilot oversight committee, the PCI Pilot hospitals  
            demonstrated similar safety and efficacy results for elective  
            and non-elective PCIs when compared to 116 hospitals with  
            on-site surgery.  The report has not yet been published in a  
            peer-reviewed journal.  

            Pursuant to SB 357 (Correa), Chapter 202, Statues of 2013, DPH  
            was required to submit a report to the Legislature  
            recommending whether elective PCI without on-site cardiac  
            surgery should be continued in California and, if so, under  
            what conditions.  According to statute, based on the timing of  
            the final report from the oversight committee last fall, the  
            DPH report was due in late February 2014.  DPH indicates the  
            report is under review and is not available at this time.

           4)Elective PCI Identified as an Overused Procedure  .    
            Prestigious national health care quality entities recently  
            highlighted elective PCI as one of five medical procedures  
            with a high potential for overuse.  Use of medical treatments  
            and interventions when not clinically appropriate can increase  
            health care costs and expose patients to harm without  
            providing benefit.  A July 2013 paper titled "Proceedings from  
            the National Summit on Overuse," describes findings of work  
            group members that reviewed 72,000 elective PCIs; only 50%  
            were classified as appropriate, 38% as uncertain, and 11.6% as  
            inappropriate. Other studies have found that 6-8% of PCIs are  
            not appropriate (performed in patients in whom that treatment  
            was not necessary, or when a medical or surgical intervention  
            would be more clinically effective).  Recommendations for  
            curbing overuse include "Appropriate Use Criteria" developed  
            by professional societies, standardized referral practices and  
            interpretation of noninvasive testing, ensuring patient  
            consent is adequately informed, and increased public and  
            professional education.  Because many hospitals provide  
            elective PCI currently, the extent to which this bill may  
            increase the number of elective PCI procedures is unknown.   
            There are currently 62 hospitals in California authorized to  
            perform cardiac catheterization laboratory services that do  
            not offer on-site cardiac surgery, which would potentially  
            seek to offer elective PCI through this program. According to  








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            Health Care Blue Book, fair prices for PCI in California  
            exceed $20,000 per procedure.  Data indicates approximately  
            25,000 elective PCI procedures were performed in 2009, as well  
            as significant regional variation in the use of elective PCI.   

                
            5)Related Legislation  .  SB 830 (Galgiani) requires OSHPD to  
            include heart valve repair and replacement surgeries in their  
            annual risk adjusted outcome reports for coronary artery  
            bypass graft surgeries, and to annually publish a new  
            risk-adjusted outcome report for all PCIs and transcatheter  
            valve procedures performed in California.  SB 830 was held in  
            the Senate Appropriations Committee.
                
            6)Previous Legislation  . SB 891 (Correa), Chapter 295, Statues of  
            2008 created the PCI Pilot Program. SB 357 (Correa), Chapter  
            202, Statues of 2013, extended the January 1, 2014 sunset date  
            for the PCI Pilot Program to January 1, 2015, and required the  
            final report by the oversight committee to be completed by  
            November 30, 2013.

           7)Comments  . This bill would expand the availability of an  
            elective procedure statewide based on results from a pilot  
            program that have not yet been published in a peer-reviewed  
            journal, and before DPH recommendations related to the pilot  
            are available.  Given DPH recommendations are forthcoming, the  
            committee may wish to ensure the department is provided  
            adequate flexibility to incorporate its recommendations into  
            the program structure. Additional criteria not included in the  
            bill, or the ability to require more specificity in meeting  
            certain criteria included in the bill, may be important to  
            ensure patient safety.

            In addition, it is unclear whether requirements in the bill to  
            adhere to standards published by professional societies also  
            serve to address potential overuse.  Given as many as one in  
            10 elective PCI procedures may be inappropriate according to  
            national experts, the committee may wish to consider  
            referencing best practices with respect to preventing overuse  
            of elective PCI to reduce unnecessary health care costs and  
            promote quality of care, as it contemplates making the  
            procedure more widely available. 

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081 









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