Bill Text: CA SB1365 | 2015-2016 | Regular Session | Chaptered

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Bill Title: Hospitals.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2016-09-23 - Chaptered by Secretary of State. Chapter 501, Statutes of 2016. [SB1365 Detail]

Download: California-2015-SB1365-Chaptered.html

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BILL NUMBER: SB 1365	CHAPTERED
	BILL TEXT

	CHAPTER  501
	FILED WITH SECRETARY OF STATE  SEPTEMBER 23, 2016
	APPROVED BY GOVERNOR  SEPTEMBER 23, 2016
	PASSED THE SENATE  AUGUST 29, 2016
	PASSED THE ASSEMBLY  AUGUST 24, 2016
	AMENDED IN ASSEMBLY  AUGUST 18, 2016
	AMENDED IN ASSEMBLY  JUNE 16, 2016
	AMENDED IN SENATE  MAY 31, 2016

INTRODUCED BY   Senator Hernandez
   (Principal coauthor: Assembly Member Bonta)

                        FEBRUARY 19, 2016

   An act to add Section 1323.1 to the Health and Safety Code,
relating to health facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1365, Hernandez. Hospitals.
   Under existing law, health facilities, including general acute
care hospitals, are licensed and regulated by the State Department of
Public Health. Existing law prohibits a health facility from
charging, billing, or otherwise soliciting payment from a patient on
behalf of, or referring a patient to, another health facility in
which the health facility has a significant beneficial interest,
except as provided. A violation of these provisions is a crime.
   This bill would require a general acute care hospital, except as
specified, to provide a delineated notice to each patient scheduled
for a service in a hospital-based outpatient clinic, as defined, when
that service is available in a nonhospital-based location. By
expanding the application of an existing crime, the bill would create
a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1323.1 is added to the Health and Safety Code,
immediately following Section 1323, to read:
   1323.1.  (a) A general acute care hospital shall notify each
patient scheduled for a service in a hospital-based outpatient clinic
when that service is available in another location that is not
hospital-based. The notification shall be in substantially the
following form:
   The location where you are being scheduled to receive services is
a hospital-based clinic, and, therefore, may have higher costs. The
same service may be available at another location within our health
system that is not hospital-based, which may cost less. Check with
the  insert name of office] at insert telephone number] for
another location within our health system, or check with your health
insurance company, for more information about other locations that
may cost less.
   (b) For purposes of this section, a "hospital-based outpatient
clinic" means a department of a provider, as defined in Section
413.65(a)(2) of Title 42 of the Code of Federal Regulations, that is
not located on the campus of that provider.
   (c) This section shall not apply to a general acute care hospital
operated by a nonprofit corporation under common control with a
nonprofit health care service plan licensed pursuant to the
Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section 1340) of Division 2) that exclusively
contracts with no more than two medical groups in the state to
provide and arrange for medical services for the enrollees of the
health care service plan, so long as the cost-sharing design does not
vary based on whether the care is provided in a hospital-based
clinic or a medical office building.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.