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Get the Facts on the Proposal to Recast and Modernize OSHPD

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Office of Statewide Health Planning and Development Proposed Trailer Bill Legislation#

OSHPD Recast and Modernization Fact Sheet#


The statutory changes recast the Office of Statewide Health Planning and Development (OSHPD) as the Department of Health Care Access and Information (HCAI), strengthen health workforce and other data assets, build a more robust health workforce data system, and analyze that data to better inform policy recommendations to help support the state’s health care workforce.


Pursuant to the Governor’s January Budget, this proposal would recast OSHPD as a department and align and improve its competencies to continue implementation of the Health Care Data Payments Program (HPD) and support the proposed Office of Health Care Affordability’s (OHCA) role in lowering health care costs while promoting an adequate health workforce that provides quality and equitable care. With the addition of the OHCA and the proposed changes on workforce programs and data assets, the new Department is poised to be a thought leader on health care access and information. The new Department is well-suited to play a key role in providing the data, vision, and programs to develop the health workforce to meet the state’s needs through a robust research and data center, development of workforce policy recommendations, and continued development and administration of its data assets.

Justification for Change:#

The statutory changes help support the state’s role in developing and sustaining California’s health care workforce. Also, the substantial expansion of OSHPD’s mission with the addition of OHCA warrants OSHPD’s recast into a new department and improvements to the Department’s capabilities. Specifically, the proposal primarily includes the following components:

Department Name Change: Department of Health Care Access and Information#

With the addition of new data programs such as the HPD and the proposed OHCA, OSHPD’s name does not reflect its emerging health policy leadership role and its mission is not clear to the public. A more descriptive name is the Department of Health Care Access and Information (HCAI). The Department’s work is centered on access to health care: to safe health care facilities; to an adequate workforce; to affordable, quality care; to financing for health facilities; and collecting and providing access to important information about health care outcomes, facilities, workforce, and finances.

Recasts and Expands the Health Care Workforce Clearinghouse as the California Health Workforce Research and Data Center#

Recasts and expands the Health Care Workforce Clearinghouse as the “California Health Workforce Research and Data Center” (Data Center) to serve as the state’s central hub of health workforce data. This will also require all health licensing boards to collect a core set of data elements for health workforce analysis and to provide this data to OSHPD. The Data Center will provide better and timelier data and analysis to inform state policy regarding issues of workforce shortage, equity, and distribution; provide data to the new Department’s OHCA, and HPD programs; and evaluate the effectiveness of its workforce programs.

Establishes a Single Statewide California Health Workforce Education and Training Council#

The Council will provide guidance on statewide education and health workforce training needs across key areas, including general physician education, primary care and behavioral health, and will advise on increasing the supply and diversity of physician and non-physician providers as well as the placement of providers in medically underserved areas. This would include technical assistance to new residency programs and making recommendations to improve the State’s other workforce programs. As currently done with the California Healthcare Workforce Policy Commission and Health Professions Education Foundation (HPEF), the new Department will consider the Council’s policy recommendations as part of its administration of workforce programs, including funding and award selection.

Maintain Health Professions Education Foundation Programs without 501(c)(3) Structure#

OSHPD seeks efficiency by operating the Health Professions Education Foundation (HPEF) workforce programs as a part of the new Department’s existing workforce portfolio while maintaining its licensing revenue streams. HPEF was established in 1987 to provide a clear way for private tax-deductible donations to support scholarship and loan repayment awards for aspiring health professionals. However, it is unnecessary for state programs to be under a 501(c)(3) to provide tax-exempt treatment of donations. Due to its 501(c)(3) status, the accounting and audit requirements of HPEF are costly and burdensome. The existing funding streams would continue to support these important scholarship and loan repayment programs.

Integrate the State Office of Rural Health and the J-1 Visa Waiver Program into the Primary Care Office#

Consolidating the State Office of Rural Health (CalSORH), currently located within the Department of Health Care Services, into the Primary Care Office (PCO) in the new Department will provide a centralized and better targeted approach to working with rural communities on their health care infrastructure and workforce needs and does so with fewer staff by leveraging its existing PCO infrastructure. In addition, OSHPD’s expertise makes it well-suited to administer the J-1 Visa Waiver Program, which assists doctors from other countries in obtaining a J-1 Visa waiver to practice medicine in California.

 Strengthen Data Programs#

With existing resources, OSHPD proposes to update current statutes on data reporting to enhance data quality, improve access to available data, and reduce administrative burden on data providers through the following:

— Leveraging program experience attained thus far, update the existing prescription drug cost transparency statute to add data points that help identify the therapeutic type of drug, factors describing the reason for a price increase, reasons for not disclosing information, and clearer authority for the new Department to assess reporting for completeness.

— Leveraging program experience, update the existing prescription drug cost transparency statute to improve data quality and completeness by clarifying definitions and requirements for reporting and adding information to support comparisons of branded versus generic drugs.

— Based on program experience and public stakeholder committee feedback, amend existing statutes pertaining to coronary artery bypass graft outcomes reporting to provide the new Department the flexibility to perform outcomes reporting for new and emerging cardiac procedures, such as transcatheter aortic valve replacement.

— Update existing statutes pertaining to vital statistics to ensure timely, efficient transmission of birth and death data to the new Department for the purposes of public reporting and research, such as analyses on maternal quality of care and inpatient mortality.

Statutory Changes Table of Contents#

The below table identifies substantive and cleanup sections and basis for the statutory changes of RN 2111355.

RN Section(s)Code Section(s)Substantive or CleanupBasis for Addition, Amendment or Repeal
1-6, 319BPC 502, 2717, 2852.5, 3518.1, 3770.1, 4506SubstantiveRepeals workforce data collection requirements for specific DCA boards. Instead, requires, by July 1, 2022, DCA to collect and provide to HCAI specified workforce data from its healing arts board licensees for future workforce planning. Also, authorizes DCA, in consultation with HCAI, to specify for each healing arts board the required workforce data collected outside of the regulatory process.
7HSC 102430SubstantiveAdds HCAI to the list of departments authorized to receive confidential vital statistics, such as birth and death data, from the State Registrar.
8-13, 53, 58-89, 96-97, 99-107, 112-122, 176-183, 188-255, 257-318HSC 127000, 127002, 127005, 127010, 127280, 127345-127675, 127885-127900, 127940-128040, 128705-128740, 128125-128195 128755-129355, 129680-130070CleanupRecasts OSHPD as HCAI
14-21HSC 127015-127050CleanupRepeals obsolete sections regarding assumption of functions of the former Department of Health Services (predated re-codification)
22-52, 54-57HSC 127125-127275, 127290-127300CleanupRepeals obsolete sections regarding past health planning functions, suspended since 1987
66HSC 127575-127600CleanupRepeals obsolete sections re uniform billing format, superseded by HIPAA in 1996
67HSC 127620CleanupRepeals obsolete Rural Health planning, no current responsibilities
68HSC 127670CleanupRepeals obsolete, section became inoperative January 1,2021
89-94HSC 127675- 127685SubstantiveCodifies definitions and reporting requirements of prescription drug data from prescription drug manufacturers
95HSC 127750-127800CleanupRepeals statutes related to completed workforce plan, and data programs supplanted by the Health Care Workforce Data Clearinghouse (§128050 et seq.)
98HSC 127925-127933CleanupRepeals a loan repayment program not previously funded (20+ years)
108-111HSC 128050-128052SubstantiveRevises the Health Care Workforce Clearinghouse to the Health Workforce Research and Data Center to provide functional analysis and enhance program outcomes
123HSC 128198-128198.5CleanupRepeals a loan repayment program not previously funded
124-125HSC 128205-128207SubstantiveChanges reference to California Health Workforce Education and Training Council, removes reference to prior commissions
126-135HSC 128215-128241SubstantiveEstablishes the California Health Workforce Education and Training Council, focuses pipeline advocacy duties of the counsel, contracting functions of the department
136HSC 128250-128290CleanupRepeals a loan repayment program not previously funded
HSC 128330-128401, 128454-128557SubstantiveDissolves the Health Professions Education Foundation and absorbs continuing program functions into the department
157HSC 128425-128450CleanupRepeals a scholarship program not previously funded
171HSC 128560-128585CleanupRepeals a scholarship program not previously funded
172HSC 128600-128605CleanupRepeals provisions related to a project completed 20+ years ago
173HSC 128681CleanupRepeals provisions related to a project completed 20+ years ago
174-175HSC 128690-128700SubstantiveUpdates to meet current classifications, corrects a drafting error
184-187HSC 128745-128750SubstantiveBroadens and enhances risk adjusted outcome reporting, such as coronary artery bypass graft outcomes reporting.
256129375-129590CleanupRepeals obsolete sections that formerly supported a federal Hill Burton program