Senate Bill 1170c1

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    Florida Senate - 1998                           CS for SB 1170

    By the Committee on Health Care and Senator Myers





    317-2208-98

  1                      A bill to be entitled

  2         An act relating to public hospital meetings and

  3         records; amending s. 395.3035, F.S.; defining

  4         "strategic plan" for purposes of provisions

  5         that provide for the confidentiality of such

  6         plans and of meetings relating thereto;

  7         providing an exemption from open meetings

  8         requirements for meetings at which such plans

  9         are modified or approved by the hospital's

10         governing board; providing for public meeting

11         and notice regarding strategic plans; providing

12         for future review and repeal; authorizing the

13         governing board of a public hospital to study

14         issues relating to reduction or termination of

15         a health service; requiring a public meeting

16         for presentation of proposals; providing for

17         public comment; restricting governing board

18         adoption to proposals presented; providing

19         conditions for the early release of transcripts

20         of meetings at which such plans are discussed;

21         prohibiting public hospitals from taking

22         certain specified actions at closed meetings;

23         requiring a public meeting prior to

24         implementation of a strategic plan; requiring

25         notice and access to certain materials upon

26         request; providing a finding of public

27         necessity; providing an effective date.

28

29  Be It Enacted by the Legislature of the State of Florida:

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    Florida Senate - 1998                           CS for SB 1170
    317-2208-98




  1         Section 1.  Paragraph (b) of subsection (2) and

  2  subsection (4) of section 395.3035, Florida Statutes, are

  3  amended, present subsection (6) is renumbered as subsection

  4  (10), and new subsections (6), (7), (8), and (9) are added to

  5  that section to read:

  6         395.3035  Confidentiality of public hospital records

  7  and meetings.--

  8         (2)  The following public hospital records and

  9  information are confidential and exempt from the provisions of

10  s. 119.07(1) and s. 24(a), Art. I of the State Constitution:

11         (b)  A public hospital's strategic plans, including

12  plans for marketing its services, which services are or may

13  reasonably be expected by the hospital's governing board to be

14  provided by competitors of the hospital. However, documents

15  that are submitted to the hospital's governing board as part

16  of the board's approval of the hospital's budget, and the

17  budget itself, are not confidential and exempt.

18         (4)(a)  Those portions of a board meeting at which the

19  written strategic plans, including written plans for marketing

20  its services, are discussed or reported on are exempt from the

21  provisions of s. 286.011 and s. 24(b), Art. I of the State

22  Constitution.

23         (b)  Those portions of a board meeting at which written

24  strategic plans, including written plans for marketing its

25  services, are modified or approved by the governing board are

26  exempt from the provisions of s. 286.011 and s. 24(b), Art. I

27  of the State Constitution. This paragraph is subject to the

28  Open Government Sunset Review Act of 1995 in accordance with

29  s. 119.15 and shall stand repealed on October 2, 2003, unless

30  reviewed and saved from repeal through reenactment by the

31  Legislature.

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    Florida Senate - 1998                           CS for SB 1170
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  1         (c)  All portions of any board meeting which are closed

  2  to the public shall be recorded by a certified court reporter.

  3  The reporter shall record the times of commencement and

  4  termination of the meeting, all discussion and proceedings,

  5  the names of all persons present at any time, and the names of

  6  all persons speaking. No portion of the meeting shall be off

  7  the record.  The court reporter's notes shall be fully

  8  transcribed and maintained by the hospital records custodian

  9  within a reasonable time after the meeting.  The transcript

10  shall become public 3 years after the date of the board

11  meeting or at an earlier date if the strategic plan that was

12  discussed, reported on, modified, or approved at the meeting

13  has been fully implemented.

14         (6)  For purposes of this section, the term "strategic

15  plan" means any record that describes actions or activities

16  to:

17         (a)  Initiate or acquire a new health service;

18         (b)  Expand an existing health service;

19         (c)  Acquire additional facilities;

20         (d)  Expand existing facilities;

21         (e)  Change all or part of the use of an existing

22  facility or a newly acquired facility;

23         (f)  Acquire, merge, or consolidate with another health

24  care facility or health care provider;

25         (g)  Enter into a shared-service arrangement with

26  another health care provider;

27         (h)  Enter into a transaction permitted by s. 155.40;

28         (i)  Market the services of the hospital and its

29  ancillary facilities; or

30         (j)  Any combination of activities specified in

31  paragraphs (a)-(i).

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    Florida Senate - 1998                           CS for SB 1170
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  2  The term "strategic plan" does not include records that

  3  describe the existing operations of a public hospital or other

  4  public health care facility which implement or execute the

  5  provisions of a strategic plan, unless disclosure of any such

  6  document would disclose any part of a strategic plan which has

  7  not been fully implemented or such document is a record that

  8  is otherwise exempt from the Public Records Law. Existing

  9  operations include, but are not limited to, the hiring of

10  employees, the purchase of equipment, the placement of

11  advertisement, entering into contracts with physicians to

12  perform medical services, and other types of expenditures for

13  the purpose of implementing a strategic plan. Records that

14  describe operations are not exempt, except as specifically

15  provided by this section.

16         (7)  The governing board of a public hospital may not

17  approve at any closed meeting a binding agreement to sell,

18  lease, merge, or consolidate the hospital. Any such approval

19  must be made at a meeting open to the public and noticed in

20  accordance with s. 286.011.

21         (8)  The governing board of a public hospital, in

22  developing a strategic plan that may result in a substantial

23  reduction or termination of a health service, may conduct

24  studies and engage in other fact-finding activities and may

25  discuss such studies and fact-finding reports, as provided in

26  subsection (4). However, prior to the governing board adopting

27  any proposal that would result in the termination or a

28  substantial reduction of a health service that is not

29  available from any other provider within 30-minutes' driving

30  time, the governing board must present all proposals under

31  consideration relating to the health service to the public at

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    Florida Senate - 1998                           CS for SB 1170
    317-2208-98




  1  a public meeting noticed and conducted in accordance with

  2  chapter 286. The public may comment on all proposed

  3  alternatives. The governing board may not adopt any proposal

  4  other than a proposal or any combination of proposals

  5  presented to the public as required under this subsection.

  6         (9)  If the governing board of the entity that owns the

  7  hospital or other health care facility closes a portion of any

  8  board meeting pursuant to subsection (4), the governing board,

  9  prior to placing the strategic plan or any discrete component

10  of the strategic plan into operations, must notice and conduct

11  a meeting in accordance with s. 286.011. The notice of the

12  meeting must be given not less than 15 days in advance of the

13  meeting and must specify that the implementation of all or a

14  part of a strategic plan will be discussed at the meeting. The

15  written materials that are furnished to the board in

16  preparation for the noticed meeting which describe or support

17  the proposed actions of the board will be furnished to any

18  member of the public, upon request, at least 7 days prior to

19  the meeting.

20         Section 2.  (1)  The Legislature finds that it is a

21  public necessity that portions of a public hospital's

22  governing board meetings be closed when strategic plans that

23  are exempt from the Public Records Law are discussed. If such

24  meetings are not closed, information contained in confidential

25  strategic plans would be revealed. The disclosure of any such

26  confidential plans would make it exceptionally difficult, if

27  not impossible, for a public hospital to effectively compete

28  in the marketplace against private hospitals, whose records

29  and meetings are not required to be open to the public.

30         (2)  It is also a public necessity that any records

31  generated at closed public hospital board meetings, such as

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    Florida Senate - 1998                           CS for SB 1170
    317-2208-98




  1  tape recordings, notes, and minutes, memorializing the

  2  discussions regarding such confidential strategic plans,

  3  including marketing plans, also be held confidential for a

  4  limited time as provided; otherwise, confidential proprietary

  5  and trade secret information would become public and impair a

  6  public hospital's ability to effectively and efficiently

  7  compete in the marketplace.

  8         (3)  The necessity for the strategic planning exemption

  9  from public records and public meeting laws is critical to the

10  survival of Florida's public-hospital delivery system, which

11  is often the last safety net for our less advantaged citizens

12  and visitors. Disclosure of information contained in a

13  strategic plan, as defined in this act, would place a public

14  hospital at a competitive disadvantage with respect to its

15  privately owned competitors and could allow those competitors

16  to disrupt the implementation of any strategic plan or

17  marketing plan.

18         Section 3.  This act shall take effect upon becoming a

19  law.

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    Florida Senate - 1998                           CS for SB 1170
    317-2208-98




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                         Senate Bill 1170

  3

  4  Language is added to the bill that: (1) clarifies the meaning
    of the term "strategic plan;" (2) prohibits a public hospital
  5  governing board from entering into a binding agreement to
    sell, lease, merge, or consolidate the hospital in any setting
  6  other than a public meeting that has been noticed as required
    under the Public Meetings Law; (3) authorizes the governing
  7  boards of public hospitals to conduct studies and fact-finding
    relating to reduction or termination of health services, but
  8  requires them to allow the public an opportunity to comment on
    any proposals that would result in substantial reduction or
  9  termination of a health service that would be unavailable to
    consumers from another health care provider within 30-minutes
10  driving time and prohibits such governing boards from adopting
    any proposal other than a proposal or a combination of
11  proposals presented to the public for comment; and (4) for
    those strategic plans or portions of such plans, discussed
12  during governing board meetings that were closed to the
    public, requires public hospital governing boards to give
13  15-days notice and conduct a public meeting for presentation
    of such plans prior to placing the plans into operation and to
14  make written materials describing or supporting the board's
    proposed actions available to the public 7 days in advance of
15  the meeting, upon request. The statement of public necessity
    is modified.
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