IN THIS ISSUE | July 1, 2009

California May Begin Issuing IOUs in July | Comments on "Meaningful Use" of EHRs Submitted | Legislative Updates

California May Begin Issuing IOUs in July

The fiscal year for California came to an end at midnight June 30th, and State Controller John Chiang will be forced to begin issuing IOUs on July 2nd if the legislature was unable to pass a budget. Payment categories protected under the State Constitution, such as CalPERS, will receive regular payments in July.

The IOUs will have a maturity date of October 1, 2009, and will be paid with interest.

However, while local government agencies receiving state money for welfare and social services will be the recipients, California’s banks have not committed to honoring the anticipated billions of dollars in IOUs.  If the banks refuse to honor the IOUs, it would severely stress cities and counties depending on state funding for needed health and welfare services to low-income populations.

Visit the California Budget Webpage and California State Controller's Office for more information

Download Q&A about Registered Warrants (IOUs).

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Comments on "Meaningful Use" of EHRs Submitted

The ten day open comment period on establishing "Meaningful Use" of electronic health records (EHR) has closed, and CSRHA has submitted comments along with numerous other organizations concerned over the timeline and objectives proposed by the HIT Policy Committee to Dr. David Blumenthal, the National Coordinator for HIT on "Meaningful Use" of EHRs.

Hospitals and physicians are required to demonstrate "meaningful use" of EHRs to qualify for Medicare and Medicaid incentive payments under the federal economic stimulus law.

Click on the bullets below to download a .pdf copy of comments submitted by CSRHA, The California Primary Care Association (CPCA), and The Children's Partnership (TCP).

The primary issue expressed in CSRHA's letter is that "the HIT Policy Committee should consider a tiered approach to 'meaningful use' standards that recognize that rural organizations have vastly different capacities to successfully install and use advanced EHR/HIT systems...the current 'meaningful use' guidelines are overly aggressive and could have the impact of marginalizing small and rural providers from the overall benefits of HIT." 

This issue was reiterated to Jonah Frolich, MPH, deputy secretary of HIT with CHHSA, and Devin McGraw J.D. of the Center for Democracy and Technology at a June 26 Capitol briefing in Sacramento titled The Impact of Federal Stimulus Efforts on the Privacy and Security of Health Information in California.

Mr. Frolich stated that his recommendation to the HIT Policy Committee that morning had been to allow for flexbility in this matter and take into consideration a tiered approach for certain providers, particularly in rural areas.

CSRHA hopes these comments and advocacy efforts ensure a rollout of stimulus funds and proliferation of health information technology that all communities can benefit from.

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Legislative Updates

Here are the latest updates on rural health-related legislation that have survived through the legislative process for over the past few months:

AB 175 (Galgiani) Medical telemedicine: optometrists
Status: 6/17/09 passed the Senate Health committee - needs to move to floor action
Expands the definition of "teleophthalmology and teledermatology" by store and forward to include the services of an optometrist. This bill enables the Medi-Cal program to recognize optometrists for billing purposes thus increasing the number of providers able to perform teleophthalmology services improving access in medically underserved rural and other areas that pose geographic barriers to receiving these services.
Support: Department of Health Care Services (sponsor), California Optometric Association
Opposition: None on file

AB 657 (Hernandez) Health professions workforce: master plan
Status: 6/23/09 in the Senate Health committee
Requires the Office of Statewide Health Planning and Development (OSHPD), in collaboration with the California Workforce Investment Board (Board), to establish a task force to assist OSHPD in developing a health care workforce master plan for the state. This bill requires representation of both rural and urban areas and to address multiple facets of workforce development including: local workforce investment plans, identification of education and employment trends in the health professions and a recommendation for state policies to address workforce shortage and distribution issues.
Support: California Academy of Family Physicians (sponsor), California Pan-Ethnic Health Network; American Federal of State, County, and Municipal Employees, AFL-CIO
Opposition: None on file

AB 648 (Chesbro) Rural hospitals: physician services
Status: 6/18/2009 in the Senate Business, Professions & Economic Development Committee
Establishes the Rural Hospital Physician and Surgeon Services Demonstration Project, which permits a rural hospital whose service area includes a medically underserved area, to employ one or more physicians and surgeons, as specified, to provide medical services. This would allow qualified doctors that often encounter difficulties maintaining a practice to be employed by a hospital in order to attract and retain needed medical providers to shortage areas.
Support: California Hospital Association (sponsor), Fairchild Medical Center, Kindred Hospital, Mammoth Hospital, Mercy Medical Center Redding, Mountain Communities Healthcare District, Mountains Community Hospital, Regional Council of Rural Counties, St. Elizabeth Community Hospital, Sutter Amador Hospital, Victor Valley Community Hospital, One Individual
Opposition: California Radiological Society, California Medical Association, Community Health Centers, One Individual

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E-mail: advocate@csrha.org