(1) Existing law requires the State Department of Public Health to license, regulate, and inspect health facilities, as specified. Existing law requires a hospital that provides emergency medical services to, as soon as possible, but not later than 90 days prior to a planned reduction or elimination of the level of emergency medical services, provide notice of the intended change to the department, other specified entities, and the public. Existing law also requires a health facility to provide public notice, as specified, not less than 30 days prior to closing the health facility, eliminating a supplemental service, as defined, or relocating the provision of supplemental services to a different campus.
This bill would require a hospital that provides emergency medical services to provide notice, as specified, at least 180 days before a planned reduction or elimination of the level of emergency medical services. The bill would require a health facility to provide at least 180 days' notice, as specified, prior to closing the health facility and at least 90 days prior to eliminating or relocating a supplemental service, except as specified. The bill would require the mandatory public notice to include specific notifications, including, among others, a continuous notice posted in a conspicuous location within the internet website of a newspaper of general circulation serving the local geographical area in which the hospital or health facility is located.
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.
(2) Under existing law, violation of the provisions relating to health facility licensure is a misdemeanor.
By expanding the scope of a crime, this bill would impose 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.

Statutes affected:
AB 2037: 1255.1 HSC, 1255.25 HSC
02/03/20 - Introduced: 1255.1 HSC, 1255.25 HSC
05/11/20 - Amended Assembly: 1255.1 HSC, 1255.25 HSC
AB2037: 1255.1 HSC, 1255.25 HSC