CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 2                                 .
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 3                                 .
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Murman offered the following:

12

13         Amendment (with title amendment) 

14         On page 26, between lines 18 and 19, of the bill

15

16  insert:

17         Section 26.  Section 381.0403, Florida Statutes, is

18  amended to read:

19         381.0403  The Community Hospital Education Act.--

20         (1)  SHORT TITLE.--This section shall be known and

21  cited as "The Community Hospital Education Act."

22         (2)  LEGISLATIVE INTENT.--

23         (a)  It is the intent of the Legislature that health

24  care services for the citizens of this state be upgraded and

25  that a program for continuing these services be maintained

26  through a plan for community medical education.  The program

27  is intended to provide additional outpatient and inpatient

28  services, a continuing supply of highly trained physicians,

29  and graduate medical education.

30         (b)  The Legislature further acknowledges the critical

31  need for increased numbers of primary care family physicians

                                  1

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  to provide the necessary current and projected health and

 2  medical services.  In order to meet both present and

 3  anticipated needs, the Legislature supports an expansion in

 4  the number of family practice residency positions.  The

 5  Legislature intends that the funding for graduate education in

 6  family practice be maintained and that funding for all primary

 7  care specialties be provided at a minimum of $10,000 per

 8  resident per year.  Should funding for this act remain

 9  constant or be reduced, it is intended that all programs

10  funded by this act be maintained or reduced proportionately.

11         (3)  PROGRAM FOR COMMUNITY HOSPITAL EDUCATION; STATE

12  AND LOCAL PLANNING.--

13         (a)  There is established under the Board of Regents a

14  program for statewide graduate medical education.  It is

15  intended that continuing graduate medical education programs

16  for interns and residents be established on a statewide basis.

17  The program shall provide financial support for primary care

18  specialty interns and residents based on policies recommended

19  and approved by the Community Hospital Education Council,

20  herein established, and the Board of Regents. Only those

21  programs with at least three residents or interns in each year

22  of the training program are qualified to apply for financial

23  support. Programs with fewer than three residents or interns

24  per training year are qualified to apply for financial

25  support, but only if the appropriate accrediting entity for

26  the particular specialty has approved the program for fewer

27  positions. Programs added after fiscal year 1997-1998 shall

28  have 5 years to attain the requisite number of residents or

29  interns. When feasible and to the extent allowed through the

30  General Appropriations Act, state funds shall be used to

31  generate federal matching funds under Medicaid, or other

                                  2

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  federal programs, and the resulting combined state and federal

 2  funds shall be allocated to participating hospitals for the

 3  support of graduate medical education, for administrative

 4  costs associated with the production of the annual report as

 5  specified in subsection (9), and for administration of the

 6  council.

 7         (b)  For the purposes of this section, primary care

 8  specialties include emergency medicine, family practice,

 9  internal medicine, pediatrics, psychiatry,

10  obstetrics/gynecology, and combined pediatrics and internal

11  medicine, and other primary care specialties as may be

12  included by the council and Board of Regents.

13         (c)(b)  Medical institutions throughout the state may

14  apply to the Community Hospital Education Council for

15  grants-in-aid for financial support of their approved

16  programs.  Recommendations for funding of approved programs

17  shall be forwarded to the Board of Regents.

18         (d)(c)  The program shall provide a plan for community

19  clinical teaching and training with the cooperation of the

20  medical profession, hospitals, and clinics.  The plan shall

21  also include formal teaching opportunities for intern and

22  resident training.  In addition, the plan shall establish an

23  off-campus medical faculty with university faculty review to

24  be located throughout the state in local communities.

25         (4)  PROGRAM FOR GRADUATE MEDICAL EDUCATION

26  INNOVATIONS.--

27         (a)  There is established under the Board of Regents a

28  program for fostering graduate medical education innovations.

29  Funds appropriated annually by the Legislature for this

30  purpose shall be distributed to participating hospitals or

31  consortia of participating hospitals and Florida medical

                                  3

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  schools on a competitive grant or formula basis to achieve

 2  state health care workforce policy objectives, including, but

 3  not limited to:

 4         1.  Increasing the number of residents in primary care

 5  and other high demand specialties or fellowships;

 6         2.  Enhancing retention of primary care physicians in

 7  Florida practice;

 8         3.  Promoting practice in medically underserved areas

 9  of the state; 

10         4.  Encouraging racial and ethnic diversity within the

11  state's physician workforce; and

12         5.  Encouraging increased production of geriatricians.

13         (b)  Participating hospitals or consortia of

14  participating hospitals and Florida medical schools may apply

15  to the Community Hospital Education Council for funding under

16  this innovations program. Innovations program funding shall

17  provide funding based on policies recommended and approved by

18  the Community Hospital Education Council and the Board of

19  Regents.

20         (c)  Participating hospitals or consortia of

21  participating hospitals and Florida medical schools awarded an

22  innovations grant shall provide the Community Hospital

23  Education Council and Board of Regents with an annual report

24  on their project.

25         (5)(4)  FAMILY PRACTICE RESIDENCIES.--In addition to

26  the programs established in subsection (3), the Community

27  Hospital Education Council and the Board of Regents shall

28  establish an ongoing statewide program of family practice

29  residencies.  The administration of this program shall be in

30  the manner described in this section.

31         (6)(5)  COUNCIL AND DIRECTOR.--

                                  4

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (a)  There is established the Community Hospital

 2  Education Council, hereinafter referred to as the council,

 3  which shall consist of eleven members, as follows:

 4         1.  Seven members must be program directors of

 5  accredited graduate medical education programs or practicing

 6  physicians who have faculty appointments in accredited

 7  graduate medical education programs.  Six of these members

 8  must be board certified or board eligible in family practice,

 9  internal medicine, pediatrics, emergency medicine,

10  obstetrics-gynecology, and psychiatry, respectively, and

11  licensed pursuant to chapter 458. No more than one of these

12  members may be appointed from any one specialty.  One member

13  must be licensed pursuant to chapter 459.

14         2.  One member must be a representative of the

15  administration of a hospital with an approved community

16  hospital medical education program;

17         3.  One member must be the dean of a medical school in

18  this state; and

19         4.  Two members must be consumer representatives.

20

21  All of the members shall be appointed by the Governor for

22  terms of 4 years each.

23         (b)  Council membership shall cease when a member's

24  representative status no longer exists.  Members of similar

25  representative status shall be appointed to replace retiring

26  or resigning members of the council.

27         (c)  The Chancellor of the State University System

28  shall designate an administrator to serve as staff director.

29  The council shall elect a chair from among its membership.

30  Such other personnel as may be necessary to carry out the

31  program shall be employed as authorized by the Board of

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  Regents.

 2         (7)(6)  BOARD OF REGENTS; STANDARDS.--

 3         (a)  The Board of Regents, with recommendations from

 4  the council, shall establish standards and policies for the

 5  use and expenditure of graduate medical education funds

 6  appropriated pursuant to subsection (8) (7) for a program of

 7  community hospital education.  The board shall establish

 8  requirements for hospitals to be qualified for participation

 9  in the program which shall include, but not be limited to:

10         1.  Submission of an educational plan and a training

11  schedule.

12         2.  A determination by the council to ascertain that

13  each portion of the program of the hospital provides a high

14  degree of academic excellence and is accredited by the

15  Accreditation Council for Graduate Medical Education of the

16  American Medical Association or is accredited by the American

17  Osteopathic Association.

18         3.  Supervision of the educational program of the

19  hospital by a physician who is not the hospital administrator.

20         (b)  The Board of Regents shall periodically review the

21  educational program provided by a participating hospital to

22  assure that the program includes a reasonable amount of both

23  formal and practical training and that the formal sessions are

24  presented as scheduled in the plan submitted by each hospital.

25         (c)  In years that funds are transferred to the Agency

26  for Health Care Administration, the Board of Regents shall

27  certify to the Agency for Health Care Administration on a

28  quarterly basis the number of primary care specialty residents

29  and interns at each of the participating hospitals for which

30  the Community Hospital Education Council and the board

31  recommends funding.

                                  6

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (8)(7)  MATCHING FUNDS.--State funds shall be used to

 2  match funds from any local governmental or hospital source.

 3  The state shall provide up to 50 percent of the funds, and the

 4  community hospital medical education program shall provide the

 5  remainder.  However, except for fixed capital outlay, the

 6  provisions of this subsection shall not apply to any program

 7  authorized under the provisions of subsection (5)(4) for the

 8  first 3 years after such program is in operation.

 9         (9)  ANNUAL REPORT ON GRADUATE MEDICAL EDUCATION;

10  COMMITTEE.--The Board of Regents, the Executive Office of the

11  Governor, the Department of Health, and the Agency for Health

12  Care Administration shall collaborate to establish a committee

13  that shall produce an annual report on graduate medical

14  education. To the maximum extent feasible, the committee shall

15  have the same membership as the Graduate Medical Education

16  Study Committee, established by proviso accompanying Specific

17  Appropriation 191 of the 1999-2000 General Appropriations Act.

18  The report shall be provided to the Governor, the President of

19  Senate, and the Speaker of the House of Representatives by

20  January 15 annually. Committee members shall serve without

21  compensation. From the funds provided pursuant to s.

22  381.0403(3), the committee is authorized to expend a maximum

23  of $75,000 per year to provide for administrative costs and

24  contractual services. The report shall address the following:

25         (a)  The role of residents and medical faculty in the

26  provision of health care.

27         (b)  The relationship of graduate medical education to

28  the state's physician workforce.

29         (c)  The costs of training medical residents for

30  hospitals, medical schools, teaching hospitals, including all

31  hospital-medical affiliations, practice plans at all of the

                                  7

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  medical schools, and municipalities.

 2         (d)  The availability and adequacy of all sources of

 3  revenue to support graduate medical education and recommend

 4  alternative sources of funding for graduate medical education.

 5         (e)  The use of state and federal appropriated funds

 6  for graduate medical education by hospitals receiving such

 7  funds.

 8         Section 27.  Subsection (44) of section 408.07, Florida

 9  Statutes, is amended to read:

10         408.07  Definitions.--As used in this chapter, with the

11  exception of ss. 408.031-408.045, the term:

12         (44)  "Teaching hospital" means any Florida hospital

13  officially formally affiliated with an accredited Florida

14  medical school which exhibits activity in the area of graduate

15  medical education as reflected by at least seven different

16  graduate medical education programs accredited by the

17  Accreditation Council for Graduate Medical Education or the

18  Council on Postdoctoral Training of the American Osteopathic

19  Association resident physician specialties and the presence of

20  100 or more full-time equivalent resident physicians. The

21  Director of the Agency for Health Care Administration shall be

22  responsible for determining which hospitals meet this

23  definition.

24         Section 28.  Subsection (6) of section 409.905, Florida

25  Statutes, is amended to read:

26         409.905  Mandatory Medicaid services.--The agency may

27  make payments for the following services, which are required

28  of the state by Title XIX of the Social Security Act,

29  furnished by Medicaid providers to recipients who are

30  determined to be eligible on the dates on which the services

31  were provided.  Any service under this section shall be

                                  8

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  provided only when medically necessary and in accordance with

 2  state and federal law. Nothing in this section shall be

 3  construed to prevent or limit the agency from adjusting fees,

 4  reimbursement rates, lengths of stay, number of visits, number

 5  of services, or any other adjustments necessary to comply with

 6  the availability of moneys and any limitations or directions

 7  provided for in the General Appropriations Act or chapter 216.

 8         (6)  HOSPITAL OUTPATIENT SERVICES.--The agency shall

 9  pay for preventive, diagnostic, therapeutic, or palliative

10  care and other services provided to a recipient in the

11  outpatient portion of a hospital licensed under part I of

12  chapter 395, and provided under the direction of a licensed

13  physician or licensed dentist, except that payment for such

14  care and services is limited to $1,500 $1,000 per state fiscal

15  year per recipient, unless an exception has been made by the

16  agency, and with the exception of a Medicaid recipient under

17  age 21, in which case the only limitation is medical

18  necessity.

19         Section 29.  Subsection (1) of section 409.908, Florida

20  Statutes, is amended to read:

21         409.908  Reimbursement of Medicaid providers.--Subject

22  to specific appropriations, the agency shall reimburse

23  Medicaid providers, in accordance with state and federal law,

24  according to methodologies set forth in the rules of the

25  agency and in policy manuals and handbooks incorporated by

26  reference therein.  These methodologies may include fee

27  schedules, reimbursement methods based on cost reporting,

28  negotiated fees, competitive bidding pursuant to s. 287.057,

29  and other mechanisms the agency considers efficient and

30  effective for purchasing services or goods on behalf of

31  recipients.  Payment for Medicaid compensable services made on

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  behalf of Medicaid eligible persons is subject to the

 2  availability of moneys and any limitations or directions

 3  provided for in the General Appropriations Act or chapter 216.

 4  Further, nothing in this section shall be construed to prevent

 5  or limit the agency from adjusting fees, reimbursement rates,

 6  lengths of stay, number of visits, or number of services, or

 7  making any other adjustments necessary to comply with the

 8  availability of moneys and any limitations or directions

 9  provided for in the General Appropriations Act, provided the

10  adjustment is consistent with legislative intent.

11         (1)  Reimbursement to hospitals licensed under part I

12  of chapter 395 must be made prospectively or on the basis of

13  negotiation.

14         (a)  Reimbursement for inpatient care is limited as

15  provided for in s. 409.905(5), except for:.

16         1.  The raising of rate reimbursement caps, excluding

17  rural hospitals.

18         2.  Recognition of the costs of graduate medical

19  education.

20         3.  Other methodologies recognized in the General

21  Appropriations Act.

22

23  During the years funds are transferred from the Board of

24  Regents, any reimbursement supported by such funds shall be

25  subject to certification by the Board of Regents that the

26  hospital has complied with s. 381.0403. The agency is

27  authorized to receive funds from state entities, including,

28  but limited to, the Board of Regents, local governments, and

29  other local political subdivisions, for the purpose of making

30  special exception payments, including federal matching funds,

31  through the Medicaid inpatient reimbursement methodologies.

                                  10

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  Funds received from state entities or local governments for

 2  this purpose shall be separately accounted for and shall not

 3  be commingled with other state or local funds in any manner.

 4  Notwithstanding this section and s. 409.915, counties are

 5  exempt from contributing toward the cost of the special

 6  exception reimbursement for hospitals serving a

 7  disproportionate share of low-income persons and providing

 8  graduate medical education.

 9         (b)  Reimbursement for hospital outpatient care is

10  limited to $1,500 $1,000 per state fiscal year per recipient,

11  except for:

12         1.  Such care provided to a Medicaid recipient under

13  age 21, in which case the only limitation is medical

14  necessity.;

15         2.  Renal dialysis services.; and

16         3.  Other exceptions made by the agency.

17

18  The agency is authorized to receive funds from state entities,

19  including, but not limited to, the Board of Regents, local

20  governments, and other local political subdivisions, for the

21  purpose of making payments, including federal matching funds,

22  through the Medicaid outpatient reimbursement methodologies.

23  Funds received from state entities and local governments for

24  this purpose shall be separately accounted for and shall not

25  be commingled with other state or local funds in any manner.

26         (c)(b)  Hospitals that provide services to a

27  disproportionate share of low-income Medicaid recipients, or

28  that participate in the regional perinatal intensive care

29  center program under chapter 383, or that participate in the

30  statutory teaching hospital disproportionate share program, or

31  that participate in the extraordinary disproportionate share

                                  11

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  program, may receive additional reimbursement. The total

 2  amount of payment for disproportionate share hospitals shall

 3  be fixed by the General Appropriations Act. The computation of

 4  these payments must be made in compliance with all federal

 5  regulations and the methodologies described in ss. 409.911,

 6  409.9112, and 409.9113.

 7         (d)(c)  The agency is authorized to limit inflationary

 8  increases for outpatient hospital services as directed by the

 9  General Appropriations Act.

10         Section 30.  The Board of Regents, the Executive Office

11  of the Governor, the Department of Health, and the Agency for

12  Health Care Administration shall collaborate to establish a

13  committee that shall produce an annual report on graduate

14  medical education. To the maximum extent feasible, the

15  committee shall have the same membership as the Graduate

16  Medical Education Study Committee, established by proviso

17  accompanying Specific Appropriation 191 of the fiscal year

18  1999-2000 General Appropriations Act. The report shall be

19  provided to the Governor, the President of the Senate, and the

20  Speaker of the House of Representatives by January 15 of each

21  year. Committee members shall serve without compensation. From

22  the funds provided in s. 381.0403(3), Florida Statutes, the

23  committee is authorized to expend a maximum of $75,000 per

24  year to provide for administrative costs and contractual

25  services. The report shall address the following topics:

26         (1)  The role of residents and medical faculty in the

27  provision of health care.

28         (2)  The relationship of graduate medical education to

29  the state's physician workforce.

30         (3)  The costs of training medical residents for

31  hospitals, medical schools, teaching hospitals, including all

                                  12

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  hospital-medical affiliations, practice plans at all of the

 2  medical schools, and municipalities.

 3         (4)  The availability and adequacy of all sources of

 4  revenue to support graduate medical education and recommend

 5  alternative sources of funding for graduate medical education.

 6         (5)  The use of state and federal appropriated funds

 7  for graduate medical education by hospitals receiving such

 8  funds.

 9         Section 31.  This act shall take effect July 1, 2000.

10

11

12  ================ T I T L E   A M E N D M E N T ===============

13  And the title is amended as follows:

14         On page 3, line 27,

15

16  after the semicolon, insert:

17         amending s. 381.0403, F.S.; placing an emphasis

18         on primary care physicians rather than family

19         physicians; modifying the provisions relating

20         to the funding of graduate medical education;

21         defining primary care specialties; establishing

22         a program for graduate medical education

23         innovations; creating a process regarding the

24         release of funds; requiring an annual report on

25         graduate medical education; establishing a

26         committee for report purposes; providing

27         requirements for the report; amending s.

28         408.07, F.S.; modifying the definition of

29         "teaching hospital"; amending s. 409.905, F.S.;

30         increasing the Medicaid reimbursement

31         limitation for certain hospital outpatient

                                  13

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                                                   HOUSE AMENDMENT

                                        Bill No. HB 2329, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         services; amending s. 409.908, F.S.; providing

 2         exceptions to Medicaid reimbursement

 3         limitations for certain hospital inpatient

 4         care; authorizing the agency to receive certain

 5         funds for such exceptional reimbursements;

 6         providing an exemption from county contribution

 7         requirements; increasing the Medicaid

 8         reimbursement limitation for certain hospital

 9         outpatient care; authorizing the agency to

10         receive certain funds for such outpatient care;

11         removing authority for additional reimbursement

12         for hospitals participating in the

13         extraordinary disproportionate share program;

14         providing an exemption from county contribution

15         requirements;

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

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