CODING: Words stricken are deletions; words underlined are additions.
                                                  SENATE AMENDMENT
    Bill No. CS for SB 420
    Amendment No. ___
                            CHAMBER ACTION
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11  Senator Sullivan moved the following amendment:
12
13         Senate Amendment (with title amendment) 
14         On page 38, between lines 19 and 20,
15
16  insert:
17         Section 15.  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 Gerald L. Scheibler, M.D., Graduate Medical
22  Education Enhancement Community Hospital Education Act."
23         (2)  LEGISLATIVE INTENT.--
24         (a)  It is the intent of the Legislature that health
25  care services for the citizens of this state be upgraded and
26  that a program for continuing these services be maintained
27  through a plan for community medical education.  The program
28  is intended to provide additional outpatient and inpatient
29  services, a continuing supply of highly trained physicians,
30  and graduate medical education.
31         (b)  The Legislature further acknowledges the critical
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                                                  SENATE AMENDMENT
    Bill No. CS for SB 420
    Amendment No. ___
  1  need for increased numbers of primary care family physicians
  2  to provide the necessary current and projected health and
  3  medical services.  In order to meet both present and
  4  anticipated needs, the Legislature supports an expansion in
  5  the number of family practice residency positions. Programs
  6  added after the 1997-1998 fiscal year must attain the
  7  requisite number of residents or interns within 5 years. The
  8  Legislature intends that the funding for graduate education in
  9  family practice be maintained and that funding for all primary
10  care specialities be provided at a minimum of $10,000 per
11  resident per year.  Should funding for this act remain
12  constant or be reduced, it is intended that all programs
13  funded by this act be maintained or reduced proportionately.
14         (3)  PROGRAM FOR COMMUNITY HOSPITAL EDUCATION; STATE
15  AND LOCAL PLANNING.--
16         (a)  There is established under the Board of Regents a
17  program for statewide graduate medical education.  It is
18  intended that continuing graduate medical education programs
19  for interns and residents be established on a statewide basis.
20  The program shall provide financial support for primary care
21  specialty interns and residents based on policies recommended
22  and approved by the Community Hospital Education Council,
23  herein established, and the Board of Regents. Only those
24  programs with at least three residents or interns in each year
25  of the training program are qualified to apply for financial
26  support. Programs with fewer than three residents or interns
27  per training year are qualified to apply for financial
28  support, but only if the appropriate accrediting entity for
29  the particular specialty has approved the program for fewer
30  positions. Programs added after the 1997-1998 fiscal year must
31  attain the requisite number of residents or interns within 5
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                                                  SENATE AMENDMENT
    Bill No. CS for SB 420
    Amendment No. ___
  1  years. When feasible and to the extent allowed through the
  2  General Appropriations Act, state funds shall be used to
  3  generate federal matching funds under Medicaid or other
  4  federal programs, and the resulting combined state and federal
  5  funds shall be allocated to participating hospitals for the
  6  support of graduate medical education and for administrative
  7  costs associated with the production of the annual report as
  8  specified in subsection (9) and the administration of the
  9  committee.
10         (b)  For the purposes of this section, primary care
11  specialties include emergency medicine, family practice,
12  internal medicine, pediatrics, psychiatry,
13  obstetrics/gynecology, and combined pediatrics and internal
14  medicine, and other primary care specialties included by the
15  council and the Board of Regents.
16         (c)(b)  Medical institutions throughout the state may
17  apply to the Community Hospital Education Council for
18  grants-in-aid for financial support of their approved
19  programs.  Recommendations for funding of approved programs
20  shall be forwarded to the Board of Regents.
21         (d)(c)  The program shall provide a plan for community
22  clinical teaching and training with the cooperation of the
23  medical profession, hospitals, and clinics.  The plan shall
24  also include formal teaching opportunities for intern and
25  resident training.  In addition, the plan shall establish an
26  off-campus medical faculty with university faculty review to
27  be located throughout the state in local communities.
28         (4)  PROGRAM FOR GRADUATE MEDICAL EDUCATION
29  INNOVATIONS.--
30         (a)  There is established under the Board of Regents a
31  program for fostering graduate medical education innovations.
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                                                  SENATE AMENDMENT
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    Amendment No. ___
  1  Funds appropriated annually by the Legislature for this
  2  purpose shall be distributed to participating hospitals or
  3  consortia of participating hospitals and Florida medical
  4  schools on a competitive-grant or formula basis to achieve
  5  state health care workforce policy objectives, including, but
  6  not limited to:
  7         1.  Increasing the number of residents in primary care
  8  and other high demand specialties or fellowships;
  9         2.  Enhancing retention of primary care physicians in
10  Florida practice;
11         3.  Promoting practice in medically under-served areas
12  of the state; 
13         4.  Encouraging racial and ethnic diversity within the
14  state's physician workforce; and
15         5.  Encouraging increased production of geriatricians.
16         (b)  Participating hospitals or consortia of
17  participating hospitals and Florida medical schools may apply
18  to the Community Hospital Education Council for funding under
19  this innovation program. Innovation program funding shall
20  provide funding based on policies recommended and approved by
21  the Community Hospital Education Council and the Board of
22  Regents.
23         (c)  Participating hospitals or consortia of
24  participating hospitals and Florida medical schools awarded an
25  innovation grant shall provide the Community Hospital
26  Education Council and Board of Regents with an annual report
27  on their project.
28         (5)(4)  FAMILY PRACTICE RESIDENCIES.--In addition to
29  the programs established in subsection (3), the Community
30  Hospital Education Council and the Board of Regents shall
31  establish an ongoing statewide program of family practice
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                                                  SENATE AMENDMENT
    Bill No. CS for SB 420
    Amendment No. ___
  1  residencies.  The administration of this program shall be in
  2  the manner described in this section.
  3         (6)(5)  COUNCIL AND DIRECTOR.--
  4         (a)  There is established the Community Hospital
  5  Education Council, hereinafter referred to as the council,
  6  which shall consist of eleven members, as follows:
  7         1.  Seven members must be program directors of
  8  accredited graduate medical education programs or practicing
  9  physicians who have faculty appointments in accredited
10  graduate medical education programs.  Six of these members
11  must be board certified or board eligible in family practice,
12  internal medicine, pediatrics, emergency medicine,
13  obstetrics-gynecology, and psychiatry, respectively, and
14  licensed pursuant to chapter 458. No more than one of these
15  members may be appointed from any one specialty.  One member
16  must be licensed pursuant to chapter 459.
17         2.  One member must be a representative of the
18  administration of a hospital with an approved community
19  hospital medical education program;
20         3.  One member must be the dean of a medical school in
21  this state; and
22         4.  Two members must be consumer representatives.
23
24  All of the members shall be appointed by the Governor for
25  terms of 4 years each.
26         (b)  Council membership shall cease when a member's
27  representative status no longer exists.  Members of similar
28  representative status shall be appointed to replace retiring
29  or resigning members of the council.
30         (c)  The Chancellor of the State University System
31  shall designate an administrator to serve as staff director.
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    Bill No. CS for SB 420
    Amendment No. ___
  1  The council shall elect a chair from among its membership.
  2  Such other personnel as may be necessary to carry out the
  3  program shall be employed as authorized by the Board of
  4  Regents.
  5         (7)(6)  BOARD OF REGENTS; STANDARDS.--
  6         (a)  The Board of Regents, with recommendations from
  7  the council, shall establish standards and policies for the
  8  use and expenditure of graduate medical education funds
  9  appropriated pursuant to subsection (8) (7) for a program of
10  community hospital education.  The board shall establish
11  requirements for hospitals to be qualified for participation
12  in the program which shall include, but not be limited to:
13         1.  Submission of an educational plan and a training
14  schedule.
15         2.  A determination by the council to ascertain that
16  each portion of the program of the hospital provides a high
17  degree of academic excellence and is accredited by the
18  Accreditation Council for Graduate Medical Education of the
19  American Medical Association or is accredited by the American
20  Osteopathic Association.
21         3.  Supervision of the educational program of the
22  hospital by a physician who is not the hospital administrator.
23         (b)  The Board of Regents shall periodically review the
24  educational program provided by a participating hospital to
25  assure that the program includes a reasonable amount of both
26  formal and practical training and that the formal sessions are
27  presented as scheduled in the plan submitted by each hospital.
28         (c)  In years that funds are transferred to the Agency
29  for Health Care Administration, the Board of Regents shall
30  certify to the Agency for Health Care Administration quarterly
31  the number of primary care specialty residents and interns at
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                                                  SENATE AMENDMENT
    Bill No. CS for SB 420
    Amendment No. ___
  1  each of the participating hospitals for which the Community
  2  Hospital Education Council and the board recommend funding.
  3         (8)(7)  MATCHING FUNDS.--State funds shall be used to
  4  match funds from any local governmental or hospital source.
  5  The state shall provide up to 50 percent of the funds, and the
  6  community hospital medical education program shall provide the
  7  remainder.  However, except for fixed capital outlay, the
  8  provisions of this subsection shall not apply to any program
  9  authorized under the provisions of subsection (5) (4) for the
10  first 3 years after such program is in operation.
11         (9)  ANNUAL REPORT.--The Board of Regents, the
12  Executive Office of the Governor, the Department of Health,
13  and the Agency for Health Care Administration shall
14  collaborate to establish a committee that shall produce an
15  annual report on graduate medical education. To the maximum
16  extent feasible, the committee shall have the same membership
17  as the Graduate Medical Education Study Committee, established
18  by the proviso accompanying Specific Appropriation 191 of the
19  fiscal year 1999-2000 General Appropriations Act. The report
20  shall be provided to the Governor, the President of the
21  Senate, and the Speaker of the House of Representatives by
22  January 15 of each year. Committee members shall serve without
23  compensation. From the funds provided in s. 381.0403(3), the
24  committee may expend a maximum of $75,000 per year to provide
25  for administrative costs and contractual services. The report
26  must address the following topics:
27         (a)  The role of residents and medical faculty in the
28  provision of health care.
29         (b)  The relationship of graduate medical education to
30  the state's physician workforce.
31         (c)  The costs of training medical residents for
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    Amendment No. ___
  1  hospitals, medical schools, teaching hospitals, including all
  2  hospital-medical affiliations, practice plans at all of the
  3  medical schools, and municipalities.
  4         (d)  The availability and adequacy of all sources of
  5  revenue to support graduate medical education. The report must
  6  also recommend alternative sources of funding for graduate
  7  medical education.
  8         (e)  The use of state and federal appropriated funds
  9  for graduate medical education by hospitals receiving such
10  funds.
11         Section 16.  Subsection (44) of section 408.07, Florida
12  Statutes, is amended to read:
13         408.07  Definitions.--As used in this chapter, with the
14  exception of ss. 408.031-408.045, the term:
15         (44)  "Teaching hospital" means any Florida hospital
16  officially formally affiliated with an accredited medical
17  school which exhibits activity in the area of graduate medical
18  education as reflected by at least seven different graduate
19  medical education programs accredited by the Accreditation
20  Council for Graduate Medical Education resident physician
21  specialties and the presence of 100 or more
22  full-time-equivalent resident physicians. The Director of the
23  Agency for Health Care Administration shall be responsible for
24  determining which hospitals meet this definition.
25         Section 17.  Subsection (6) of section 409.905, Florida
26  Statutes, is amended to read:
27         409.905  Mandatory Medicaid services.--The agency may
28  make payments for the following services, which are required
29  of the state by Title XIX of the Social Security Act,
30  furnished by Medicaid providers to recipients who are
31  determined to be eligible on the dates on which the services
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    Amendment No. ___
  1  were provided.  Any service under this section shall be
  2  provided only when medically necessary and in accordance with
  3  state and federal law. Nothing in this section shall be
  4  construed to prevent or limit the agency from adjusting fees,
  5  reimbursement rates, lengths of stay, number of visits, number
  6  of services, or any other adjustments necessary to comply with
  7  the availability of moneys and any limitations or directions
  8  provided for in the General Appropriations Act or chapter 216.
  9         (6)  HOSPITAL OUTPATIENT SERVICES.--The agency shall
10  pay for preventive, diagnostic, therapeutic, or palliative
11  care and other services provided to a recipient in the
12  outpatient portion of a hospital licensed under part I of
13  chapter 395, and provided under the direction of a licensed
14  physician or licensed dentist, except that payment for such
15  care and services is limited to $1,500 $1,000 per state fiscal
16  year per recipient, unless an exception has been made by the
17  agency, and with the exception of a Medicaid recipient under
18  age 21, in which case the only limitation is medical
19  necessity.
20         Section 18.  Subsection (1) of section 409.908, Florida
21  Statutes, is amended to read:
22         409.908  Reimbursement of Medicaid providers.--Subject
23  to specific appropriations, the agency shall reimburse
24  Medicaid providers, in accordance with state and federal law,
25  according to methodologies set forth in the rules of the
26  agency and in policy manuals and handbooks incorporated by
27  reference therein.  These methodologies may include fee
28  schedules, reimbursement methods based on cost reporting,
29  negotiated fees, competitive bidding pursuant to s. 287.057,
30  and other mechanisms the agency considers efficient and
31  effective for purchasing services or goods on behalf of
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  1  recipients.  Payment for Medicaid compensable services made on
  2  behalf of Medicaid eligible persons is subject to the
  3  availability of moneys and any limitations or directions
  4  provided for in the General Appropriations Act or chapter 216.
  5  Further, nothing in this section shall be construed to prevent
  6  or limit the agency from adjusting fees, reimbursement rates,
  7  lengths of stay, number of visits, or number of services, or
  8  making any other adjustments necessary to comply with the
  9  availability of moneys and any limitations or directions
10  provided for in the General Appropriations Act, provided the
11  adjustment is consistent with legislative intent.
12         (1)  Reimbursement to hospitals licensed under part I
13  of chapter 395 must be made prospectively or on the basis of
14  negotiation.
15         (a)  Reimbursement for inpatient care is limited as
16  provided for in s. 409.905(5), except for:.
17         1.  The raising of rate reimbursement caps, excluding
18  rural hospitals.
19         2.  Recognition of the costs of graduate medical
20  education.
21         3.  Other methodologies recognized in the General
22  Appropriations Act.
23
24  In the years funds are transferred from the Board of Regents,
25  any reimbursement supported by such funds are subject to
26  certification from the Board of Regents that the hospital has
27  complied with s. 381.0403. The agency is authorized to receive
28  funds from state entities, including the Board of Regents,
29  local governments, and other local political subdivisions, for
30  the purpose of making special exception payments, including
31  federal matching funds, through the Medicaid inpatient
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    Amendment No. ___
  1  reimbursement methodologies. Funds received from state
  2  entities or local governments for this purpose shall be
  3  separately accounted for and shall not be commingled with
  4  other state or local funds in any manner. Notwithstanding this
  5  section or s. 409.915, counties are exempt from contributing
  6  toward the cost of the special-exception reimbursement for
  7  hospitals serving a disproportionate share of low-income
  8  persons and providing 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 the Board of Regents, local governments, and other
20  local political subdivisions, for the purpose of making
21  payments, including federal matching funds, through the
22  Medicaid outpatient reimbursement methodologies. Funds
23  received from state entities and local governments for this
24  purpose shall be separately accounted for and shall not be
25  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
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    Amendment No. ___
  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
11  (Redesignate subsequent sections.)
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14  ================ T I T L E   A M E N D M E N T ===============
15  And the title is amended as follows:
16         On page 1, line 2, delete that line
17
18  and insert:
19         An act relating to health care; amending s.
20         381.0403, F.S.; redesignating "The Community
21         Hospital Education Act" as the "Gerald L.
22         Scheibler, M.D., Graduate Medical Education
23         Enhancement Act"; placing an emphasis on
24         primary care physicians rather than family
25         physicians; modifying the provisions relating
26         to the funding of graduate medical education;
27         defining primary care specialties; establishing
28         a program for graduate medical education
29         innovations; creating a process regarding the
30         release of funds; providing for a committee to
31         be established to produce an annual report on
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    Amendment No. ___
  1         graduate medical education; specifying topics
  2         to be included in the report; amending s.
  3         408.07, F.S.; modifying the definition of the
  4         term "teaching hospital"; amending s. 409.905,
  5         F.S.; increasing the Medicaid reimbursement
  6         limitation for certain hospital outpatient
  7         services; amending s. 409.908, F.S.; providing
  8         exceptions to Medicaid reimbursement
  9         limitations for certain hospital inpatient
10         care; authorizing the agency to receive certain
11         funds for such exceptional reimbursements;
12         providing an exemption from county contribution
13         requirements; increasing the Medicaid
14         reimbursement limitation for certain hospital
15         outpatient care; authorizing the agency to
16         receive certain funds for such outpatient care;
17         removing authority for additional reimbursement
18         for hospitals participating in the
19         extraordinary disproportionate share program;
20         providing an exemption from county contribution
21         requirements;
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