Amended
IN
Assembly
May 20, 2020 |
Amended
IN
Assembly
May 11, 2020 |
Introduced by Assembly Member Wicks (Coauthors: Assembly Members Bonta and O’Donnell) |
February 03, 2020 |
This bill would prohibit a hospital, as defined, during any health-related state of emergency in California proclaimed by the President of the United States, health-related state of emergency proclaimed by the Governor, or health-related local emergency, as specified, from closing or otherwise ceasing operations or eliminating a level of emergency care or supplemental service, except as excused by the department. The bill would require the department to impose a penalty of $75,000, per day, for each day a hospital violates these prohibitions, and would further require the department to deposit the collected penalties into the Internal Departmental Quality Improvement Account. The penalties would be available subject to appropriation by the Legislature.
This bill would require a hospital during these specified emergencies and prior to an offer for sale on the open market, to first offer the state and the city and the county where the hospital is located, a reasonable opportunity to purchase the hospital at a fair market rate, as determined by the Attorney General. The bill would further require a hospital under these conditions to ensure that there are no lapses in operation of the hospital between a change in ownership.
(a)Except as provided in subdivision (c), during any health-related state of emergency in California proclaimed by the President of the United States or health-related state of emergency proclaimed by the Governor, a hospital shall not do any of the following:
(1)Close or otherwise cease operations.
(2)Eliminate a level of emergency care.
(3)Eliminate a supplemental service.
(b)Except as provided in subdivision (c), during any health-related local emergency, a hospital located within the jurisdiction, or a hospital located within a 40-mile
circumference outside the boundary of the jurisdiction, that proclaimed the local emergency shall not do any of the following:
(1)Close or otherwise cease operations.
(2)Eliminate a level of emergency care.
(3)Eliminate a supplemental service.
(c)(1)The department shall impose a penalty of seventy-five thousand dollars ($75,000), per day, for each day a hospital violates subdivision (a) or (b), or both. The department shall deposit all penalties collected pursuant to this section into the Internal Departmental Quality Improvement Account, established pursuant to Section 1280.15, and the penalties shall be subject to appropriation by the Legislature.
(2)The
department may excuse a hospital from the prohibitions in subdivision (a), (b), or both, as necessary to redirect resources to address public need for health services during the proclaimed federal or state emergency or local emergency.
(d)(1)During any health-related state of emergency in California proclaimed by the President of the United States or health-related state of emergency proclaimed by the Governor and prior to an offer for sale on the open market, a hospital shall first offer the state and the city and the county where the hospital is located a reasonable opportunity to purchase the hospital at a fair market rate, as determined by the Attorney General.
(2)During any health-related local emergency and prior to an offer for sale on the open market, a hospital located within the jurisdiction, or a hospital located within a 40-mile circumference
outside the boundary of the jurisdiction, that proclaimed the local emergency shall first offer the state and the city and the county where the hospital is located a reasonable opportunity to purchase the hospital at a fair market rate, as determined by the Attorney General.
(e)During any health-related state of emergency in California proclaimed by the President of the United States, health-related state of emergency proclaimed by the Governor, or health-related local emergency, a hospital shall ensure that there are no lapses in operation of the hospital between a change in ownership.
(f)This section shall not apply to a hospital that is forced to close, eliminate a level of emergency care, or eliminate a supplemental service as a result of the impacts of a natural disaster on the physical operations of the hospital.
(g)For purposes of this section, the following definitions shall apply:
(1)“Department” means the State Department of Public Health.
(2)“Hospital” means a health facility, as defined in subdivision (a) or (b) of Section 1250, or a hospital that provides emergency medical services under Section 1255.
(3)“Local emergency” means a local emergency proclaimed pursuant to Article 14 (commencing with Section 8630) of Chapter 7 of Division 1 of Title 2 of the Government Code.
(4)“Supplemental service” means an organized inpatient or outpatient service which is not required to be provided by law or regulation.