Amended in Senate March 25, 2014

Senate Bill No. 1352

Introduced by Senator Hancock

February 21, 2014

An act to amend Section begin delete 1501 end delete begin insert 101850 end insert of begin insert , and to amend the heading of Chapter 5 (commencing with Section 101850) of Part 4 of Division 101 of, end insert the Health and Safety Code, relating to begin delete community care facilities end delete begin insert the Alameda Health System end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 1352, as amended, Hancock. begin delete Community care facilities: legislative intent. end delete begin insert Alameda Health System. end insert

begin insert

Existing law authorizes the board of supervisors of Alameda County to establish an independent hospital authority strictly and exclusively dedicated to the management, administration, and control of the group of public hospitals, clinics, and programs that comprise the Alameda County Medical Center.

end insert begin insert

This bill would instead authorize the board to establish an independent hospital authority for the Alameda Health System, which was formerly known as the Alameda County Medical Center. The bill would make conforming changes with regard to legislative findings and declarations and would include additional legislative findings and declarations relating to the Alameda Health System.

end insert begin delete

Existing law establishes the Community Care Facilities Act, which provides for the licensure and regulation of community care facilities, as defined, by the State Department of Social Services. The act declares that it is the intent of the state to develop policies and programs designed to provide adequate service to, and protect the rights of, persons who receive services from a community care facility.

end delete begin delete

This bill would make technical, nonsubstantive changes to this provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert The Legislature finds and declares all of the
following: end insert

begin insert

(a) The Alameda County Medical Center has evolved to include
additional facilities that have expanded services and the quality
of care to the residents of the County of Alameda.

end insert begin insert

(b) In order to better reflect the regional availability of services
to the residents of the County of Alameda, the Alameda County
Medical Center is doing business as the Alameda Health System
and it is appropriate that the name change be reflected statutorily
to ensure that there is no confusion in the administration of state
programs.

end insert begin insert

(c) The Alameda Health System is a major public health care
provider and medical training institution recognized for its world
class patient and family-centered system of care.

end insert begin insert

(d) The Alameda Health System provides comprehensive,
high-quality medical treatment, health promotion, disease
prevention, and health maintenance in an integrated system of
hospitals, clinics, and health services.

end insert begin insert

(e) As a training institution, the Alameda Health System
maintains an environment that is supportive of a wide range of
educational programs and activities, including the education of
medical students, interns, residents, and continuing education for
medical nursing, and other staff, along with medical research.

end insert begin insert

(f) The Alameda Health System is a regional provider of health
care services, and includes the following facilities:

end insert begin insert

(1) Highland Hospital, located in Oakland, is a major regional
trauma center and teaching hospital that delivers primary,
specialty, and multispecialty care. Within the Highland campus
are centers of excellence in maternity services, gastroenterology,
surgery, orthopedics, geriatrics and senior care, and trauma.

end insert begin insert

(2) John George Psychiatric Hospital, located in San Leandro,
provides psychiatric emergency and acute care services to adults
experiencing severe and disabling mental illnesses.

end insert begin insert

(3) San Leandro Hospital, located in San Leandro, is a 93-bed
facility in central Alameda County acquired in late 2013 and
provides a wide range of medical services, including 24-hour
emergency services, critical care, a full complement of skilled
surgeons, rehabilitation services, and ancillary services.

end insert begin insert

(4) Fairmont Hospital, located in San Leandro, is an acute
rehabilitation center that is one of the foremost providers of acute
rehabilitation services in northern California, treating severe
injuries such as stroke, brain, and multiple-trauma injuries.

end insert begin insert

(5) Wellness Centers, in Oakland, Hayward, and Newark form
a network of community-based wellness centers that expand access
to primary care and Alameda Health System medical specialties.
All primary services are offered at the Wellness Centers to provide
continuity of care for patients. These services include pediatrics,
immunizations, family planning, HIV/AIDS, breast health, dental,
podiatry, tuberculosis, minor surgery, social work, and health
education.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert The heading of Chapter 5 (commencing with Section
101850) of Part 4 of Division 101 of the end insert begin insert Health and Safety Code end insert
begin insert is amended to read: end insert

 

Chapter  5. Alameda begin delete  County Medical Center end delete begin insert Health
System end insert  Hospital Authority

 

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 101850 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

101850.  

The Legislature finds and declares the following:

(a) (1) Due to the challenges facing the Alameda begin delete County
Medical Center end delete begin insert Health System end insert arising from changes in the public
and private health industries, the Alameda County Board of
Supervisors has determined that a transfer of governance of the
Alameda begin delete County Medical Center end delete begin insert Health System end insert to an independent
governing body, a hospital authority, is needed to improve the
efficiency, effectiveness, and economy of the community health
services provided at the medical center. The board of supervisors
has further determined that the creation of an independent hospital
authority strictly and exclusively dedicated to the management,
administration, and control of the medical center, in a manner
consistent with the county’s obligations under Section 17000 of
the Welfare and Institutions Code, is the best way to fulfill its
commitment to the medically indigent, special needs, and general
populations of Alameda County. To accomplish this, it is necessary
that the board of supervisors be given authority to create a hospital
authority. Because there is no general law under which this
authority could be formed, the adoption of a special act and the
formation of a special authority is required.

(2) The following definitions shall apply for purposes of this
section:

(A) “The county” means the County of Alameda.

(B) “Governing board” means the governing body of the hospital
authority.

(C) “Hospital authority” means the separate public agency
established by the Board of Supervisors of Alameda County to
manage, administer, and control the Alameda begin delete County Medical
Center end delete begin insert Health System end insert .

(D) “Medical center” means the Alameda begin delete County Medical
Center end delete begin insert Health System, which was formerly known as the Alameda
County Medical Center end insert .

(b) The board of supervisors of the county may, by ordinance,
establish a hospital authority separate and apart from the county
for the purpose of effecting a transfer of the management,
administration, and control of the medical center in accordance
with Section 14000.2 of the Welfare and Institutions Code. A
hospital authority established pursuant to this chapter shall be
strictly and exclusively dedicated to the management,
administration, and control of the medical center within parameters
set forth in this chapter, and in the ordinance, bylaws, and contracts
adopted by the board of supervisors begin delete which end delete begin insert that end insert shall not be in
conflict with this chapter, Section 1442.5 of this code, or Section
17000 of the Welfare and Institutions Code.

(c) A hospital authority established pursuant to this chapter shall
be governed by a board that is appointed, both initially and
continually, by the Board of Supervisors of the County of Alameda.
This hospital authority governing board shall reflect both the
expertise necessary to maximize the quality and scope of care at
the medical center in a fiscally responsible manner and the diverse
interest that the medical center serves. The enabling ordinance
shall specify the membership of the hospital authority governing
board, the qualifications for individual members, the manner of
appointment, selection, or removal of governing board members,
their terms of office, and all other matters that the board of
supervisors deems necessary or convenient for the conduct of the
hospital authority’s activities.

(d) The mission of the hospital authority shall be the
management, administration, and other control, as determined by
the board of supervisors, of the group of public hospitals, clinics,
and programs that comprise the medical center, in a manner that
ensures appropriate, quality, and cost-effective medical care as
required of counties by Section 17000 of the Welfare and
Institutions Code, and, to the extent feasible, other populations,
including special populations in begin delete Alameda County end delete begin insert the County of
Alameda end insert .

(e) The board of supervisors shall adopt bylaws for the medical
center that set forth those matters related to the operation of the
medical center by the hospital authority that the board of
supervisors deems necessary and appropriate. The bylaws shall
become operative upon approval by a majority vote of the board
of supervisors. Any changes or amendments to the bylaws shall
be by majority vote of the board of supervisors.

(f) The hospital authority created and appointed pursuant to this
section is a duly constituted governing body within the meaning
of Section 1250 and Section 70035 of Title 22 of the California
Code of Regulations as currently written or subsequently amended.

(g) Unless otherwise provided by the board of supervisors by
way of resolution, the hospital authority is empowered, or the
board of supervisors is empowered on behalf of the hospital
authority, to apply as a public agency for one or more licenses for
the provision of health care pursuant to statutes and regulations
governing licensing as currently written or subsequently amended.

(h) In the event of a change of license ownership, the governing
body of the hospital authority shall comply with the obligations
of governing bodies of general acute care hospitals generally as
set forth in Section 70701 of Title 22 of the California Code of
Regulations, as currently written or subsequently amended, as well
as the terms and conditions of the license. The hospital authority
shall be the responsible party with respect to compliance with these
obligations, terms, and conditions.

(i) (1) Any transfer by the county to the hospital authority of
the administration, management, and control of the medical center,
whether or not the transfer includes the surrendering by the county
of the existing general acute care hospital license and corresponding
application for a change of ownership of the license, shall not
affect the eligibility of the county, or in the case of a change of
license ownership, the hospital authority, to do any of the
following:

(A) Participate in, and receive allocations pursuant to, the
California Healthcare for the begin delete Indigent end delete begin insert Indigents end insert Program (CHIP).

(B) Receive supplemental reimbursements from the Emergency
Services and Supplemental Payments Fund created pursuant to
Section 14085.6 of the Welfare and Institutions Code.

(C) Receive appropriations from the Medi-Cal Inpatient Payment
Adjustment Fund without relieving the county of its obligation to
make intergovernmental transfer payments related to the Medi-Cal
Inpatient Payment Adjustment Fund pursuant to Section 14163 of
the Welfare and Institutions Code.

(D) Receive Medi-Cal capital supplements pursuant to Section
14085.5 of the Welfare and Institutions Code.

(E) Receive any other funds that would otherwise be available
to a county hospital.

(2) Any transfer described in paragraph (1) shall not otherwise
disqualify the county, or in the case of a change in license
ownership, the hospital authority, from participating in any of the
following:

(A) Other funding sources either specific to county hospitals or
county ambulatory care clinics or for which there are special
provisions specific to county hospitals or to county ambulatory
care clinics.

(B) Funding programs in which the county, on behalf of the
medical center and the Alameda County Health Care Services
Agency, had participated prior to the creation of the hospital
authority, or would otherwise be qualified to participate in had the
hospital authority not been created, and administration,
management, and control not been transferred by the county to the
hospital authority, pursuant to this chapter.

(j) A hospital authority created pursuant to this chapter shall be
a legal entity separate and apart from the county and shall file the
statement required by Section 53051 of the Government Code.
The hospital authority shall be a government entity separate and
apart from the county, and shall not be considered to be an agency,
division, or department of the county. The hospital authority shall
not be governed by, nor be subject to, the charter of the county
and shall not be subject to policies or operational rules of the
county, including, but not limited to, those relating to personnel
and procurement.

(k) (1) Any contract executed by and between the county and
the hospital authority shall provide that liabilities or obligations
of the hospital authority with respect to its activities pursuant to
the contract shall be the liabilities or obligations of the hospital
authority, and shall not become the liabilities or obligations of the
county.

(2) Any liabilities or obligations of the hospital authority with
respect to the liquidation or disposition of the hospital authority’s
assets upon termination of the hospital authority shall not become
the liabilities or obligations of the county.

(3) Any obligation of the hospital authority, statutory,
contractual, or otherwise, shall be the obligation solely of the
hospital authority and shall not be the obligation of the county or
the state.

(l) (1) Notwithstanding any other provision of this section, any
transfer of the administration, management, or assets of the medical
center, whether or not accompanied by a change in licensing, shall
not relieve the county of the ultimate responsibility for indigent
care pursuant to Section 17000 of the Welfare and Institutions
Code or any obligation pursuant to Section 1442.5 of this code.

(2) Any contract executed by and between the county and the
hospital authority shall provide for the indemnification of the
county by the hospital authority for liabilities as specifically set
forth in the contract, except that the contract shall include a
provision that the county shall remain liable for its own negligent
acts.

(3) Indemnification by the hospital authority shall not be
construed as divesting the county from its ultimate responsibility
for compliance with Section 17000 of the Welfare and Institutions
Code.

(m) Notwithstanding the provisions of this section relating to
the obligations and liabilities of the hospital authority, a transfer
of control or ownership of the medical center shall confer onto the
hospital authority all the rights and duties set forth in state law
with respect to hospitals owned or operated by a county.

(n) (1) A transfer of the maintenance, operation, and
management or ownership of the medical center to the hospital
authority shall comply with the provisions of Section 14000.2 of
the Welfare and Institutions Code.

(2) A transfer of maintenance, operation, and management or
ownership to the hospital authority may be made with or without
the payment of a purchase price by the hospital authority and
otherwise upon the terms and conditions that the parties may
mutually agree, which terms and conditions shall include those
found necessary by the board of supervisors to ensure that the
transfer will constitute an ongoing material benefit to the county
and its residents.

(3) A transfer of the maintenance, operation, and management
to the hospital authority shall not be construed as empowering the
hospital authority to transfer any ownership interest of the county
in the medical center except as otherwise approved by the board
of supervisors.

(o) The board of supervisors shall retain control over the use of
the medical center physical plant and facilities except as otherwise
specifically provided for in lawful agreements entered into by the
board of supervisors. Any lease agreement or other agreement
between the county and the hospital authority shall provide that
county premises shall not be sublet without the approval of the
board of supervisors.

(p) The statutory authority of a board of supervisors to prescribe
rules that authorize a county hospital to integrate its services with
those of other hospitals into a system of community service that
offers free choice of hospitals to those requiring hospital care, as
set forth in Section 14000.2 of the Welfare and Institutions Code,
shall apply to the hospital authority upon a transfer of maintenance,
operation, and management or ownership of the medical center by
the county to the hospital authority.

(q) The hospital authority shall have the power to acquire and
possess real or personal property and may dispose of real or
personal property other than that owned by the county, as may be
necessary for the performance of its functions. The hospital
authority shall have the power to sue or be sued, to employ
personnel, and to contract for services required to meet its
obligations. Before January 1, 2024, the hospital authority shall
not enter into a contract with any private person or entity to replace
services being provided by physicians and surgeons who are
employed by the hospital authority and in a recognized collective
bargaining unit as of March 31, 2013, with services provided by
a private person or entity without clear and convincing evidence
that the needed medical care can only be delivered cost-effectively
by a private contractor. Prior to entering into a contract for any of
those services, the authority shall negotiate with the representative
of the recognized collective bargaining unit of its physician and
surgeon employees over the decision to privatize and, if unable to
resolve any dispute through negotiations, shall submit the matter
to final binding arbitration.

(r) Any agreement between the county and the hospital authority
shall provide that all existing services provided by the medical
center shall continue to be provided to the county through the
medical center subject to the policy of the county and consistent
with the county’s obligations under Section 17000 of the Welfare
and Institutions Code.

(s) A hospital authority to which the maintenance, operation,
and management or ownership of the medical center is transferred
shall be a “district” within the meaning set forth in the County
Employees Retirement Law of 1937 (Chapter 3 (commencing with
Section 31450) of Part 3 of Division 4 of Title 3 of the Government
Code). Employees of a hospital authority are eligible to participate
in the County Employees Retirement System to the extent
permitted by law, except as described in Section 101851.

(t) Members of the governing board of the hospital authority
shall not be vicariously liable for injuries caused by the act or
omission of the hospital authority to the extent that protection
applies to members of governing boards of local public entities
generally under Section 820.9 of the Government Code.

(u) The hospital authority shall be a public agency subject to
the begin delete Myers-Milias-Brown end delete begin insert Meyers-Milias-Brown end insert Act (Chapter 10
(commencing with Section 3500) of Division 4 of Title 1 of the
Government Code).

(v) Any transfer of functions from county employee
classifications to a hospital authority established pursuant to this
section shall result in the recognition by the hospital authority of
the employee organization that represented the classifications
performing those functions at the time of the transfer.

(w) (1) In exercising its powers to employ personnel, as set
forth in subdivision (p), the hospital authority shall implement,
and the board of supervisors shall adopt, a personnel transition
plan. The personnel transition plan shall require all of the
following:

(A) Ongoing communications to employees and recognized
employee organizations regarding the impact of the transition on
existing medical center employees and employee classifications.

(B) Meeting and conferring on all of the following issues:

(i) The timeframe for which the transfer of personnel shall occur.
The timeframe shall be subject to modification by the board of
supervisors as appropriate, but in no event shall it exceed one year
from the effective date of transfer of governance from the board
of supervisors to the hospital authority.

(ii) A specified period of time during which employees of the
county impacted by the transfer of governance may elect to be
appointed to vacant positions with the Alameda County Health
Care Services Agency for which they have tenure.

(iii) A specified period of time during which employees of the
county impacted by the transfer of governance may elect to be
considered for reinstatement into positions with the county for
which they are qualified and eligible.

(iv) Compensation for vacation leave and compensatory leave
accrued while employed with the county in a manner that grants
affected employees the option of either transferring balances or
receiving compensation to the degree permitted employees laid
off from service with the county.

(v) A transfer of sick leave accrued while employed with the
county to hospital authority employment.

(vi) The recognition by the hospital authority of service with
the county in determining the rate at which vacation accrues.

(vii) The possible preservation of seniority, pensions, health
benefits, and other applicable accrued benefits of employees of
the county impacted by the transfer of governance.

(2) Nothing in this subdivision shall be construed as prohibiting
the hospital authority from determining the number of employees,
the number of full-time equivalent positions, the job descriptions,
and the nature and extent of classified employment positions.

(3) Employees of the hospital authority are public employees
for purposes of Division 3.6 (commencing with Section 810) of
Title 1 of the Government Code relating to claims and actions
against public entities and public employees.

(x) Any hospital authority created pursuant to this section shall
be bound by the terms of the memorandum of understanding
executed by and between the county and health care and
management employee organizations that is in effect as of the date
this legislation becomes operative in the county. Upon the
expiration of the memorandum of understanding, the hospital
authority shall have sole authority to negotiate subsequent
memorandums of understanding with appropriate employee
organizations. Subsequent memorandums of understanding shall
be approved by the hospital authority.

(y) The hospital authority created pursuant to this section may
borrow from the county and the county may lend the hospital
authority funds or issue revenue anticipation notes to obtain those
funds necessary to operate the medical center and otherwise provide
medical services.

(z) The hospital authority shall be subject to state and federal
taxation laws that are applicable to counties generally.

(aa) The hospital authority, the county, or both, may engage in
marketing, advertising, and promotion of the medical and health
care services made available to the community at the medical
center.

begin delete

(bb)

end delete

begin insert (ab) end insert  The hospital authority shall not be a “person” subject to
suit under the Cartwright Act (Chapter 2 (commencing with Section
16700) of Part 2 of Division 7 of the Business and Professions
Code).

begin delete

(cc)

end delete

begin insert (ac) end insert  Notwithstanding Article 4.7 (commencing with Section
1125) of Chapter 1 of Division 4 of Title 1 of the Government
Code related to incompatible activities, begin delete no end delete begin insert a end insert member of the hospital
authority administrative staff shall begin insert not end insert be considered to be engaged
in activities inconsistent and incompatible with his or her duties
as a result of employment or affiliation with the county.

begin delete

(dd)

end delete

begin insert (ad) end insert  (1) The hospital authority may use a computerized
management information system in connection with the
administration of the medical center.

(2) Information maintained in the management information
system or in other filing and records maintenance systems that is
confidential and protected by law shall not be disclosed except as
provided by law.

(3) The records of the hospital authority, whether paper records,
records maintained in the management information system, or
records in any other form, that relate to trade secrets or to payment
rates or the determination thereof, or which relate to contract
negotiations with providers of health care, shall not be subject to
disclosure pursuant to the California Public Records Act (Chapter
5 (commencing with Section 6250) of Division 7 of Title 1 of the
Government Code). The transmission of the records, or the
information contained therein in an alternative form, to the board
of supervisors shall not constitute a waiver of exemption from
disclosure, and the records and information once transmitted shall
be subject to this same exemption. The information, if compelled
pursuant to an order of a court of competent jurisdiction or
administrative body in a manner permitted by law, shall be limited
to in-camera review, which, at the discretion of the court, may
include the parties to the proceeding, and shall not be made a part
of the court file unless sealed.

begin delete

(ee)

end delete

begin insert (ae) end insert  (1) Notwithstanding any other law, the governing board
may order that a meeting held solely for the purpose of discussion
or taking action on hospital authority trade secrets, as defined in
subdivision (d) of Section 3426.1 of the Civil Code, shall be held
in closed session. The requirements of making a public report of
actions taken in closed session and the vote or abstention of every
member present may be limited to a brief general description
devoid of the information constituting the trade secret.

(2) The governing board may delete the portion or portions
containing trade secrets from any documents that were finally
approved in the closed session that are provided to persons who
have made the timely or standing request.

(3) Nothing in this section shall be construed as preventing the
governing board from meeting in closed session as otherwise
provided by law.

begin delete

(ff)

end delete

begin insert (af) end insert  Open sessions of the hospital authority shall constitute
official proceedings authorized by law within the meaning of
Section 47 of the Civil Code. The privileges set forth in that section
with respect to official proceedings shall apply to open sessions
of the hospital authority.

begin delete

(gg)

end delete

begin insert (ag) end insert  The hospital authority shall be a public agency for purposes
of eligibility with respect to grants and other funding and loan
guarantee programs. Contributions to the hospital authority shall
be tax deductible to the extent permitted by state and federal law.
Nonproprietary income of the hospital authority shall be exempt
from state income taxation.

begin delete

(hh)

end delete

begin insert (ah) end insert  Contracts by and between the hospital authority and the
state and contracts by and between the hospital authority and
providers of health care, goods, or services may be let on a nonbid
basis and shall be exempt from Chapter 2 (commencing with
Section 10290) of Part 2 of Division 2 of the Public Contract Code.

begin delete

(ii)

end delete

begin insert (ai) end insert  (1) Provisions of the Evidence Code, the Government Code,
including the Public Records Act (Chapter 5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code),
the Civil Code, the Business and Professions Code, and other
applicable law pertaining to the confidentiality of peer review
activities of peer review bodies shall apply to the peer review
activities of the hospital authority. Peer review proceedings shall
constitute an official proceeding authorized by law within the
meaning of Section 47 of the Civil Code and those privileges set
forth in that section with respect to official proceedings shall apply
to peer review proceedings of the hospital authority. If the hospital
authority is required by law or contractual obligation to submit to
the state or federal government peer review information or
information relevant to the credentialing of a participating provider,
that submission shall not constitute a waiver of confidentiality.
The laws pertaining to the confidentiality of peer review activities
shall be together construed as extending, to the extent permitted
by law, the maximum degree of protection of confidentiality.

(2) Notwithstanding any other law, Section 1461 shall apply to
hearings on the reports of hospital medical audit or quality
assurance committees.

begin delete

(jj)

end delete

begin insert (aj) end insert  The hospital authority shall carry general liability insurance
to the extent sufficient to cover its activities.

begin delete

(kk)

end delete

begin insert (ak) end insert  In the event the board of supervisors determines that the
hospital authority should no longer function for the purposes as
set forth in this chapter, the board of supervisors may, by ordinance,
terminate the activities of the hospital authority and expire the
hospital authority as an entity.

begin delete

(ll)

end delete

begin insert (al) end insert  A hospital authority which is created pursuant to this section
but which does not obtain the administration, management, and
control of the medical center or which has those duties and
responsibilities revoked by the board of supervisors shall not be
empowered with the powers enumerated in this section.

begin delete

(mm)

end delete

begin insert (am) end insert  (1) The county shall establish baseline data reporting
requirements for the medical center consistent with the Medically
Indigent Health Care Reporting System (MICRS) program
established pursuant to Section 16910 of the Welfare and
Institutions Code and shall collect that data for at least one year
prior to the final transfer of the medical center to the hospital
authority established pursuant to this chapter. The baseline data
shall include, but not be limited to, all of the following:

(A) Inpatient days by facility by quarter.

(B) Outpatient visits by facility by quarter.

(C) Emergency room visits by facility by quarter.

(D) Number of unduplicated users receiving services within the
medical center.

(2) Upon transfer of the medical center, the county shall
establish baseline data reporting requirements for each of the
medical center inpatient facilities consistent with data reporting
requirements of the Office of Statewide Health Planning and
Development, including, but not limited to, monthly average daily
census by facility for all of the following:

(A) Acute care, excluding newborns.

(B) Newborns.

(C) Skilled nursing facility, in a distinct part.

(3) From the date of transfer of the medical center to the hospital
authority, the hospital authority shall provide the county with
quarterly reports specified in paragraphs (1) and (2) and any other
data required by the county. The county, in consultation with health
care consumer groups, shall develop other data requirements that
shall include, at a minimum, reasonable measurements of the
changes in medical care for the indigent population of Alameda
County that result from the transfer of the administration,
management, and control of the medical center from the county
to the hospital authority.

begin delete

(nn)

end delete

begin insert (an) end insert  A hospital authority established pursuant to this section
shall comply with the requirements of Sections 53260 and 53261
of the Government Code.

begin delete

SECTION 1.  

Section 1501 of the Health and Safety Code is
amended to read:

1501.  

(a)  The Legislature hereby finds and declares that there
is an urgent need to establish a coordinated and comprehensive
statewide service system of quality community care for mentally
ill, developmentally and physically disabled, and children and
adults who require care or services by a facility or organization
issued a license or special permit pursuant to this chapter.

(b)  Therefore, the Legislature declares it is the intent of the
state to develop policies and programs designed to: (1) ensure a
level of care and services in the community that is equal to or better
than that provided by the state hospitals; (2) assure that all people
who require them are provided with the appropriate range of social
rehabilitative, habilitative and treatment services, including
residential and nonresidential programs tailored to their needs; (3)
protect the legal and human rights of a person in or receiving
services from a community care facility; (4) ensure continuity of
care between the medical-health elements and the supportive
care-rehabilitation elements of California’s health systems; (5)
ensure that facilities providing community care are adequate, safe
and sanitary; (6) assure that rehabilitative and treatment services
are provided at a reasonable cost; (7) assure that state payments
for community care services are based on a flexible rate schedule
varying according to type and cost of care and services provided;
(8) encourage the utilization of personnel from state hospitals and
the development of training programs to improve the quality of
staff in community care facilities; and (9) ensure the quality of
community care facilities by evaluating the care and services
provided and furnishing incentives to upgrade their quality.

end delete