| 1 | A bill to be entitled |
| 2 | An act relating to licensure of home health agencies, home |
| 3 | medical equipment providers, and health care clinics; |
| 4 | designating Miami-Dade County as a health care fraud area |
| 5 | of special concern for certain purposes; creating s. |
| 6 | 408.8065, F.S.; providing requirements for licensure of |
| 7 | home health agencies, home medical equipment providers, |
| 8 | and health care clinics; requiring the posting of a surety |
| 9 | bond in a specified minimum amount under certain |
| 10 | circumstances; requiring demonstration of financial |
| 11 | viability; providing limitations on licensing of home |
| 12 | health agencies in certain counties; providing an |
| 13 | exception for existing applicants accredited by an |
| 14 | organization recognized by the Agency for Health Care |
| 15 | Administration; providing penalties; providing an |
| 16 | effective date. |
| 17 |
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| 18 | Be It Enacted by the Legislature of the State of Florida: |
| 19 |
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| 20 | Section 1. The Legislature hereby designates Miami-Dade |
| 21 | County as a health care fraud area of special concern for |
| 22 | purposes of implementing increased scrutiny of home health |
| 23 | agencies, home medical equipment providers, and health care |
| 24 | clinics in Miami-Dade County in order to assist the state's |
| 25 | efforts to prevent Medicaid fraud, waste, and abuse in the |
| 26 | county and throughout the state. |
| 27 | Section 2. Section 408.8065, Florida Statutes, is created |
| 28 | to read: |
| 29 | 408.8065 Licensure requirements for home health agencies, |
| 30 | home medical equipment providers, and health care clinics.-- |
| 31 | (1) An applicant for initial licensure, renewal of |
| 32 | licensure, or change of ownership licensure as a home health |
| 33 | agency, home medical equipment provider, or health care clinic |
| 34 | shall comply with the following requirements: |
| 35 | (a) For initial, renewal, or change of ownership licenses |
| 36 | for a home health agency, a home medical equipment provider, or |
| 37 | a health care clinic, applicants and controlling interests must |
| 38 | have been legal residents of the United States for at least 5 |
| 39 | years or file a surety bond of at least $500,000, payable to the |
| 40 | agency, which guarantees that the home health agency, home |
| 41 | medical equipment provider, or health care clinic will act in |
| 42 | full conformity with all legal requirements for operation. |
| 43 | (b) An applicant for an initial or a change of ownership |
| 44 | license must demonstrate financial ability to operate, as |
| 45 | required under s. 408.810(8), and submit a financial statement, |
| 46 | including a balance sheet, an income and expense statement, and |
| 47 | a statement of cash flow for the first 2 years of operation, |
| 48 | that provides evidence that the applicant has sufficient assets, |
| 49 | credit, and projected revenues to cover liabilities and |
| 50 | expenses. The applicant must also prove it has the ability to |
| 51 | fund all startup costs through the break-even point in |
| 52 | operations by submitting a statement of estimated provider |
| 53 | startup costs and sources of funds. The statement shall |
| 54 | disclose, at a minimum, reasonable anticipated startup costs, |
| 55 | including operating funds needed to reach the break-even point |
| 56 | when operating receipts equal or exceed expenditures. To reach |
| 57 | the break-even point, at a minimum, operating funds must be |
| 58 | equal to 2 months' average expenses to cover working capital and |
| 59 | contingencies. The minimum amount for contingency funding shall |
| 60 | be not less than 1 month's average projected expenses. The |
| 61 | applicant must provide documented proof that the funds necessary |
| 62 | for startup, working capital, and contingency financing will be |
| 63 | available as needed. The applicant shall have demonstrated the |
| 64 | financial ability to operate if the applicant's assets, credit, |
| 65 | and projected revenues meet or exceed projected liabilities and |
| 66 | expenses. All documentation required under this subsection must |
| 67 | be prepared in accordance with generally accepted accounting |
| 68 | principles and may be in a compilation form. The financial |
| 69 | statement must be signed by a certified public accountant. |
| 70 | (3) The agency may not issue an initial or a change of |
| 71 | ownership license to a home health agency under part III of |
| 72 | chapter 400 or this part for the purpose of opening a new home |
| 73 | health agency until July 1, 2010, in any county with at least |
| 74 | one actively licensed home health agency and a population of |
| 75 | persons 65 years of age or older, as indicated in the most |
| 76 | recent population estimates published by the Executive Office of |
| 77 | the Governor, that is fewer than 1,200 per home health agency. |
| 78 | In such counties, for any complete application submitted prior |
| 79 | to July 1, 2009, the agency may issue an initial or a change of |
| 80 | ownership license only if the applicant has received |
| 81 | accreditation before May 1, 2009, from an accrediting |
| 82 | organization that is recognized by the agency. |
| 83 | (4) In addition to the requirements of s. 408.812, any |
| 84 | person who offers services that require licensure under part |
| 85 | III, part VII, or part X of chapter 400 without obtaining a |
| 86 | valid license; any person who knowingly files a false or |
| 87 | misleading license, license renewal, or change of ownership |
| 88 | application or who submits false or misleading information |
| 89 | related to such application or agency rule; and any person who |
| 90 | violates or conspires to violate this section commits a felony |
| 91 | of the third degree, punishable as provided in s. 775.082, s. |
| 92 | 775.083, or s. 775.084. |
| 93 | Section 3. This act shall take effect July 1, 2009. |