House Bill 0591e2

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                                    CS/CS/HB 591, Second Engrossed



  1                      A bill to be entitled

  2         An act relating to health care services;

  3         amending s. 400.471, F.S.; deleting the

  4         certificate-of-need requirement for licensure

  5         of Medicare-certified home health agencies;

  6         amending s. 400.606, F.S.; conforming to the

  7         act provisions relating to certificate-of-need

  8         requirements for hospice licensure; amending s.

  9         408.032, F.S.; revising definitions; amending

10         s. 408.033, F.S.; deleting references to the

11         state health plan; amending s. 408.034, F.S.;

12         deleting a reference to licensing of home

13         health agencies by the Agency for Health Care

14         Administration; amending s. 408.035, F.S.;

15         deleting obsolete certificate-of-need review

16         criteria and revising other criteria; amending

17         s. 408.036, F.S.; revising provisions relating

18         to projects subject to review; deleting

19         references to Medicare-certified home health

20         agencies; deleting the review of certain

21         acquisitions; specifying the types of bed

22         increases subject to review; deleting cost

23         overruns from review; deleting review of

24         combinations or division of nursing home

25         certificates of need; providing for expedited

26         review of certain conversions of licensed

27         hospital beds; deleting the requirement for an

28         exemption for initiation or expansion of

29         obstetric services, provision of respite care

30         services, establishment of a Medicare-certified

31         home health agency, or provision of a health


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                                    CS/CS/HB 591, Second Engrossed



  1         service exclusively on an outpatient basis;

  2         providing exemption for combinations or

  3         divisions of nursing home certificates of need

  4         and additions of certain hospital beds and

  5         nursing home beds within specified limitations;

  6         providing an additional exemption for

  7         construction of certain skilled nursing

  8         facilities; requiring a fee for each request

  9         for exemption; amending s. 408.037, F.S.;

10         deleting reference to the state health plan;

11         amending ss. 408.038, 408.039, 408.044, and

12         408.045, F.S.; replacing "department" with

13         "agency"; clarifying the opportunity to

14         challenge an intended award of a certificate of

15         need; amending s. 408.040, F.S.; deleting an

16         obsolete reference; revising the format of

17         conditions related to Medicaid; creating a

18         certificate-of-need workgroup within the Agency

19         for Health Care Administration; providing for

20         expenses; providing membership, duties, and

21         meetings; providing for termination; amending

22         s. 651.118, F.S.; excluding a specified number

23         of beds from a time limit imposed on extension

24         of authorization for continuing care

25         residential community providers to use

26         sheltered beds for nonresidents; requiring a

27         facility to report such use after the

28         expiration of the extension; creating the

29         Public Cord Blood Tissue Bank as a statewide

30         consortium; providing purposes, membership, and

31         duties of the consortium; providing duties of


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                                    CS/CS/HB 591, Second Engrossed



  1         the Agency for Health Care Administration and

  2         the Department of Health; providing an

  3         exception from provisions of the act; requiring

  4         specified written disclosure by certain health

  5         care facilities and providers; specifying that

  6         donation under the act is voluntary;

  7         authorizing the consortium to charge fees;

  8         repealing s. 400.464(3), F.S., relating to home

  9         health agency licenses provided to

10         certificate-of-need exempt entities; reducing

11         allocation of positions and funds; providing

12         effective dates.

13

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

15

16         Section 1.  Subsections (2) and (11) of section

17  400.471, Florida Statutes, are amended to read:

18         400.471  Application for license; fee; provisional

19  license; temporary permit.--

20         (2)  The applicant must file with the application

21  satisfactory proof that the home health agency is in

22  compliance with this part and applicable rules, including:

23         (a)  A listing of services to be provided, either

24  directly by the applicant or through contractual arrangements

25  with existing providers;

26         (b)  The number and discipline of professional staff to

27  be employed; and

28         (c)  Proof of financial ability to operate.

29

30  If the applicant has applied for a certificate of need under

31  ss. 408.0331-408.045 within the preceding 12 months, the


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                                    CS/CS/HB 591, Second Engrossed



  1  applicant may submit the proof required during the

  2  certificate-of-need process along with an attestation that

  3  there has been no substantial change in the facts and

  4  circumstances underlying the original submission.

  5         (11)  The agency may not issue a license designated as

  6  certified to a home health agency that fails to receive a

  7  certificate of need under ss. 408.031-408.045 or that fails to

  8  satisfy the requirements of a Medicare certification survey

  9  from the agency.

10         Section 2.  Subsections (5) and (6) of section 400.606,

11  Florida Statutes, are amended to read:

12         400.606  License; application; renewal; conditional

13  license or permit; certificate of need.--

14         (5)  The agency shall not issue a license to a hospice

15  that fails to receive a certificate of need if required under

16  the provisions of ss. 408.031-408.045. A licensed hospice is a

17  health care facility as that term is used in s. 408.039(5) and

18  is entitled to initiate or intervene in an administrative

19  hearing.

20         (6)  A freestanding hospice facility that is primarily

21  engaged in providing inpatient and related services and that

22  is not otherwise licensed as a health care facility shall be

23  required to obtain a certificate of need if required under the

24  provisions of ss. 408.031-408.045. However, a freestanding

25  hospice facility with six or fewer beds shall not be required

26  to comply with institutional standards such as, but not

27  limited to, standards requiring sprinkler systems, emergency

28  electrical systems, or special lavatory devices.

29         Section 3.  Section 408.032, Florida Statutes, is

30  amended to read:

31


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                                    CS/CS/HB 591, Second Engrossed



  1         408.032  Definitions.--As used in ss. 408.031-408.045,

  2  the term:

  3         (1)  "Agency" means the Agency for Health Care

  4  Administration.

  5         (2)  "Capital expenditure" means an expenditure,

  6  including an expenditure for a construction project undertaken

  7  by a health care facility as its own contractor, which, under

  8  generally accepted accounting principles, is not properly

  9  chargeable as an expense of operation and maintenance, which

10  is made to change the bed capacity of the facility, or

11  substantially change the services or service area of the

12  health care facility, health service provider, or hospice, and

13  which includes the cost of the studies, surveys, designs,

14  plans, working drawings, specifications, initial financing

15  costs, and other activities essential to acquisition,

16  improvement, expansion, or replacement of the plant and

17  equipment.

18         (3)  "Certificate of need" means a written statement

19  issued by the agency evidencing community need for a new,

20  converted, expanded, or otherwise significantly modified

21  health care facility, health service, or hospice.

22         (4)  "Commenced construction" means initiation of and

23  continuous activities beyond site preparation associated with

24  erecting or modifying a health care facility, including

25  procurement of a building permit applying the use of

26  agency-approved construction documents, proof of an executed

27  owner/contractor agreement or an irrevocable or binding forced

28  account, and actual undertaking of foundation forming with

29  steel installation and concrete placing.

30         (5)  "District" means a health service planning

31  district composed of the following counties:


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                                    CS/CS/HB 591, Second Engrossed



  1         District 1.--Escambia, Santa Rosa, Okaloosa, and Walton

  2  Counties.

  3         District 2.--Holmes, Washington, Bay, Jackson,

  4  Franklin, Gulf, Gadsden, Liberty, Calhoun, Leon, Wakulla,

  5  Jefferson, Madison, and Taylor Counties.

  6         District 3.--Hamilton, Suwannee, Lafayette, Dixie,

  7  Columbia, Gilchrist, Levy, Union, Bradford, Putnam, Alachua,

  8  Marion, Citrus, Hernando, Sumter, and Lake Counties.

  9         District 4.--Baker, Nassau, Duval, Clay, St. Johns,

10  Flagler, and Volusia Counties.

11         District 5.--Pasco and Pinellas Counties.

12         District 6.--Hillsborough, Manatee, Polk, Hardee, and

13  Highlands Counties.

14         District 7.--Seminole, Orange, Osceola, and Brevard

15  Counties.

16         District 8.--Sarasota, DeSoto, Charlotte, Lee, Glades,

17  Hendry, and Collier Counties.

18         District 9.--Indian River, Okeechobee, St. Lucie,

19  Martin, and Palm Beach Counties.

20         District 10.--Broward County.

21         District 11.--Dade and Monroe Counties.

22         (6)  "Exemption" means the process by which a proposal

23  that would otherwise require a certificate of need may proceed

24  without a certificate of need.

25         (7)(6)  "Expedited review" means the process by which

26  certain types of applications are not subject to the review

27  cycle requirements contained in s. 408.039(1), and the letter

28  of intent requirements contained in s. 408.039(2).

29         (8)(7)  "Health care facility" means a hospital,

30  long-term care hospital, skilled nursing facility, hospice,

31  intermediate care facility, or intermediate care facility for


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                                    CS/CS/HB 591, Second Engrossed



  1  the developmentally disabled. A facility relying solely on

  2  spiritual means through prayer for healing is not included as

  3  a health care facility.

  4         (9)(8)  "Health services" means diagnostic, curative,

  5  or rehabilitative services and includes alcohol treatment,

  6  drug abuse treatment, and mental health services. Obstetric

  7  services are not health services for purposes of ss.

  8  408.031-408.045.

  9         (9)  "Home health agency" means an organization, as

10  defined in s. 400.462(4), that is certified or seeks

11  certification as a Medicare home health service provider.

12         (10)  "Hospice" or "hospice program" means a hospice as

13  defined in part VI of chapter 400.

14         (11)  "Hospital" means a health care facility licensed

15  under chapter 395.

16         (12)  "Institutional health service" means a health

17  service which is provided by or through a health care facility

18  and which entails an annual operating cost of $500,000 or

19  more.  The agency shall, by rule, adjust the annual operating

20  cost threshold annually using an appropriate inflation index.

21         (13)  "Intermediate care facility" means an institution

22  which provides, on a regular basis, health-related care and

23  services to individuals who do not require the degree of care

24  and treatment which a hospital or skilled nursing facility is

25  designed to provide, but who, because of their mental or

26  physical condition, require health-related care and services

27  above the level of room and board.

28         (12)(14)  "Intermediate care facility for the

29  developmentally disabled" means a residential facility

30  licensed under chapter 393 and certified by the Federal

31  Government pursuant to the Social Security Act as a provider


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                                    CS/CS/HB 591, Second Engrossed



  1  of Medicaid services to persons who are mentally retarded or

  2  who have a related condition.

  3         (13)(15)  "Long-term care hospital" means a hospital

  4  licensed under chapter 395 which meets the requirements of 42

  5  C.F.R. s. 412.23(e) and seeks exclusion from the Medicare

  6  prospective payment system for inpatient hospital services.

  7         (14)  "Mental health services" means inpatient services

  8  provided in a hospital licensed under chapter 395 and listed

  9  on the hospital license as psychiatric beds for adults;

10  psychiatric beds for children and adolescents; intensive

11  residential treatment beds for children and adolescents;

12  substance abuse beds for adults; or substance abuse beds for

13  children and adolescents.

14         (16)  "Multifacility project" means an integrated

15  residential and health care facility consisting of independent

16  living units, assisted living facility units, and nursing home

17  beds certificated on or after January 1, 1987, where:

18         (a)  The aggregate total number of independent living

19  units and assisted living facility units exceeds the number of

20  nursing home beds.

21         (b)  The developer of the project has expended the sum

22  of $500,000 or more on the certificated and noncertificated

23  elements of the project combined, exclusive of land costs, by

24  the conclusion of the 18th month of the life of the

25  certificate of need.

26         (c)  The total aggregate cost of construction of the

27  certificated element of the project, when combined with other,

28  noncertificated elements, is $10 million or more.

29         (d)  All elements of the project are contiguous or

30  immediately adjacent to each other and construction of all

31  elements will be continuous.


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                                    CS/CS/HB 591, Second Engrossed



  1         (15)(17)  "Nursing home geographically underserved

  2  area" means:

  3         (a)  A county in which there is no existing or approved

  4  nursing home;

  5         (b)  An area with a radius of at least 20 miles in

  6  which there is no existing or approved nursing home; or

  7         (c)  An area with a radius of at least 20 miles in

  8  which all existing nursing homes have maintained at least a 95

  9  percent occupancy rate for the most recent 6 months or a 90

10  percent occupancy rate for the most recent 12 months.

11         (18)  "Respite care" means short-term care in a

12  licensed health care facility which is personal or custodial

13  and is provided for chronic illness, physical infirmity, or

14  advanced age for the purpose of temporarily relieving family

15  members of the burden of providing care and attendance.

16         (16)(19)  "Skilled nursing facility" means an

17  institution, or a distinct part of an institution, which is

18  primarily engaged in providing, to inpatients, skilled nursing

19  care and related services for patients who require medical or

20  nursing care, or rehabilitation services for the

21  rehabilitation of injured, disabled, or sick persons.

22         (17)(20)  "Tertiary health service" means a health

23  service which, due to its high level of intensity, complexity,

24  specialized or limited applicability, and cost, should be

25  limited to, and concentrated in, a limited number of hospitals

26  to ensure the quality, availability, and cost-effectiveness of

27  such service. Examples of such service include, but are not

28  limited to, organ transplantation, specialty burn units,

29  neonatal intensive care units, comprehensive rehabilitation,

30  and medical or surgical services which are experimental or

31  developmental in nature to the extent that the provision of


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                                    CS/CS/HB 591, Second Engrossed



  1  such services is not yet contemplated within the commonly

  2  accepted course of diagnosis or treatment for the condition

  3  addressed by a given service.  The agency shall establish by

  4  rule a list of all tertiary health services.

  5         (18)(21)  "Regional area" means any of those regional

  6  health planning areas established by the agency to which local

  7  and district health planning funds are directed to local

  8  health councils through the General Appropriations Act.

  9         Section 4.  Paragraph (b) of subsection (1) and

10  paragraph (a) of subsection (3) of section 408.033, Florida

11  Statutes, are amended to read:

12         408.033  Local and state health planning.--

13         (1)  LOCAL HEALTH COUNCILS.--

14         (b)  Each local health council may:

15         1.  Develop a district or regional area health plan

16  that permits is consistent with the objectives and strategies

17  in the state health plan, but that shall permit each local

18  health council to develop strategies and set priorities for

19  implementation based on its unique local health needs.  The

20  district or regional area health plan must contain preferences

21  for the development of health services and facilities, which

22  may be considered by the agency in its review of

23  certificate-of-need applications.  The district health plan

24  shall be submitted to the agency and updated periodically. The

25  district health plans shall use a uniform format and be

26  submitted to the agency according to a schedule developed by

27  the agency in conjunction with the local health councils. The

28  schedule must provide for coordination between the development

29  of the state health plan and the district health plans and for

30  the development of district health plans by major sections

31  over a multiyear period.  The elements of a district plan


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                                    CS/CS/HB 591, Second Engrossed



  1  which are necessary to the review of certificate-of-need

  2  applications for proposed projects within the district may be

  3  adopted by the agency as a part of its rules.

  4         2.  Advise the agency on health care issues and

  5  resource allocations.

  6         3.  Promote public awareness of community health needs,

  7  emphasizing health promotion and cost-effective health service

  8  selection.

  9         4.  Collect data and conduct analyses and studies

10  related to health care needs of the district, including the

11  needs of medically indigent persons, and assist the agency and

12  other state agencies in carrying out data collection

13  activities that relate to the functions in this subsection.

14         5.  Monitor the onsite construction progress, if any,

15  of certificate-of-need approved projects and report council

16  findings to the agency on forms provided by the agency.

17         6.  Advise and assist any regional planning councils

18  within each district that have elected to address health

19  issues in their strategic regional policy plans with the

20  development of the health element of the plans to address the

21  health goals and policies in the State Comprehensive Plan.

22         7.  Advise and assist local governments within each

23  district on the development of an optional health plan element

24  of the comprehensive plan provided in chapter 163, to assure

25  compatibility with the health goals and policies in the State

26  Comprehensive Plan and district health plan.  To facilitate

27  the implementation of this section, the local health council

28  shall annually provide the local governments in its service

29  area, upon request, with:

30         a.  A copy and appropriate updates of the district

31  health plan;


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                                    CS/CS/HB 591, Second Engrossed



  1         b.  A report of hospital and nursing home utilization

  2  statistics for facilities within the local government

  3  jurisdiction; and

  4         c.  Applicable agency rules and calculated need

  5  methodologies for health facilities and services regulated

  6  under s. 408.034 for the district served by the local health

  7  council.

  8         8.  Monitor and evaluate the adequacy, appropriateness,

  9  and effectiveness, within the district, of local, state,

10  federal, and private funds distributed to meet the needs of

11  the medically indigent and other underserved population

12  groups.

13         9.  In conjunction with the Agency for Health Care

14  Administration, plan for services at the local level for

15  persons infected with the human immunodeficiency virus.

16         10.  Provide technical assistance to encourage and

17  support activities by providers, purchasers, consumers, and

18  local, regional, and state agencies in meeting the health care

19  goals, objectives, and policies adopted by the local health

20  council.

21         11.  Provide the agency with data required by rule for

22  the review of certificate-of-need applications and the

23  projection of need for health services and facilities in the

24  district.

25         (3)  DUTIES AND RESPONSIBILITIES OF THE AGENCY.--

26         (a)  The agency, in conjunction with the local health

27  councils, is responsible for the coordinated planning of all

28  health care services in the state and for the preparation of

29  the state health plan.

30         Section 5.  Subsection (2) of section 408.034, Florida

31  Statutes, is amended to read:


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                                    CS/CS/HB 591, Second Engrossed



  1         408.034  Duties and responsibilities of agency;

  2  rules.--

  3         (2)  In the exercise of its authority to issue licenses

  4  to health care facilities and health service providers, as

  5  provided under chapters 393, 395, and parts II, IV, and VI of

  6  chapter 400, the agency may not issue a license to any health

  7  care facility, health service provider, hospice, or part of a

  8  health care facility which fails to receive a certificate of

  9  need or an exemption for the licensed facility or service.

10         Section 6.  Section 408.035, Florida Statutes, is

11  amended to read:

12         408.035  Review criteria.--

13         (1)  The agency shall determine the reviewability of

14  applications and shall review applications for

15  certificate-of-need determinations for health care facilities

16  and health services in context with the following criteria:

17         (1)(a)  The need for the health care facilities and

18  health services being proposed in relation to the applicable

19  district health plan, except in emergency circumstances that

20  pose a threat to the public health.

21         (2)(b)  The availability, quality of care, efficiency,

22  appropriateness, accessibility, and extent of utilization of,

23  and adequacy of like and existing health care facilities and

24  health services in the service district of the applicant.

25         (3)(c)  The ability of the applicant to provide quality

26  of care and the applicant's record of providing quality of

27  care.

28         (d)  The availability and adequacy of other health care

29  facilities and health services in the service district of the

30  applicant, such as outpatient care and ambulatory or home care

31  services, which may serve as alternatives for the health care


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                                    CS/CS/HB 591, Second Engrossed



  1  facilities and health services to be provided by the

  2  applicant.

  3         (e)  Probable economies and improvements in service

  4  which may be derived from operation of joint, cooperative, or

  5  shared health care resources.

  6         (4)(f)  The need in the service district of the

  7  applicant for special health care equipment and services that

  8  are not reasonably and economically accessible in adjoining

  9  areas.

10         (5)(g)  The needs of need for research and educational

11  facilities, including, but not limited to, facilities with

12  institutional training programs and community training

13  programs for health care practitioners and for doctors of

14  osteopathic medicine and medicine at the student, internship,

15  and residency training levels.

16         (6)(h)  The availability of resources, including health

17  personnel, management personnel, and funds for capital and

18  operating expenditures, for project accomplishment and

19  operation.; the effects the project will have on clinical

20  needs of health professional training programs in the service

21  district; the extent to which the services will be accessible

22  to schools for health professions in the service district for

23  training purposes if such services are available in a limited

24  number of facilities; the availability of alternative uses of

25  such resources for the provision of other health services; and

26         (7)  The extent to which the proposed services will

27  enhance access to health care for be accessible to all

28  residents of the service district.

29         (8)(i)  The immediate and long-term financial

30  feasibility of the proposal.

31


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                                    CS/CS/HB 591, Second Engrossed



  1         (j)  The special needs and circumstances of health

  2  maintenance organizations.

  3         (k)  The needs and circumstances of those entities that

  4  provide a substantial portion of their services or resources,

  5  or both, to individuals not residing in the service district

  6  in which the entities are located or in adjacent service

  7  districts.  Such entities may include medical and other health

  8  professions, schools, multidisciplinary clinics, and specialty

  9  services such as open-heart surgery, radiation therapy, and

10  renal transplantation.

11         (9)(l)  The extent to which the proposal will foster

12  competition that promotes quality and cost-effectiveness. The

13  probable impact of the proposed project on the costs of

14  providing health services proposed by the applicant, upon

15  consideration of factors including, but not limited to, the

16  effects of competition on the supply of health services being

17  proposed and the improvements or innovations in the financing

18  and delivery of health services which foster competition and

19  service to promote quality assurance and cost-effectiveness.

20         (10)(m)  The costs and methods of the proposed

21  construction, including the costs and methods of energy

22  provision and the availability of alternative, less costly, or

23  more effective methods of construction.

24         (11)(n)  The applicant's past and proposed provision of

25  health care services to Medicaid patients and the medically

26  indigent.

27         (o)  The applicant's past and proposed provision of

28  services that promote a continuum of care in a multilevel

29  health care system, which may include, but are not limited to,

30  acute care, skilled nursing care, home health care, and

31  assisted living facilities.


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                                    CS/CS/HB 591, Second Engrossed



  1         (12)(p)  The applicant's designation as a Gold Seal

  2  Program nursing facility pursuant to s. 400.235, when the

  3  applicant is requesting additional nursing home beds at that

  4  facility.

  5         (2)  In cases of capital expenditure proposals for the

  6  provision of new health services to inpatients, the agency

  7  shall also reference each of the following in its findings of

  8  fact:

  9         (a)  That less costly, more efficient, or more

10  appropriate alternatives to such inpatient services are not

11  available and the development of such alternatives has been

12  studied and found not practicable.

13         (b)  That existing inpatient facilities providing

14  inpatient services similar to those proposed are being used in

15  an appropriate and efficient manner.

16         (c)  In the case of new construction or replacement

17  construction, that alternatives to the construction, for

18  example, modernization or sharing arrangements, have been

19  considered and have been implemented to the maximum extent

20  practicable.

21         (d)  That patients will experience serious problems in

22  obtaining inpatient care of the type proposed, in the absence

23  of the proposed new service.

24         (e)  In the case of a proposal for the addition of beds

25  for the provision of skilled nursing or intermediate care

26  services, that the addition will be consistent with the plans

27  of other agencies of the state responsible for the provision

28  and financing of long-term care, including home health

29  services.

30         Section 7.  Section 408.036, Florida Statutes, is

31  amended to read:


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                                    CS/CS/HB 591, Second Engrossed



  1         408.036  Projects subject to review.--

  2         (1)  APPLICABILITY.--Unless exempt under subsection

  3  (3), all health-care-related projects, as described in

  4  paragraphs (a)-(h)(k), are subject to review and must file an

  5  application for a certificate of need with the agency. The

  6  agency is exclusively responsible for determining whether a

  7  health-care-related project is subject to review under ss.

  8  408.031-408.045.

  9         (a)  The addition of beds by new construction or

10  alteration.

11         (b)  The new construction or establishment of

12  additional health care facilities, including a replacement

13  health care facility when the proposed project site is not

14  located on the same site as the existing health care facility.

15         (c)  The conversion from one type of health care

16  facility to another, including the conversion from one level

17  of care to another, in a skilled or intermediate nursing

18  facility, if the conversion effects a change in the level of

19  care of 10 beds or 10 percent of total bed capacity of the

20  skilled or intermediate nursing facility within a 2-year

21  period.  If the nursing facility is certified for both skilled

22  and intermediate nursing care, the provisions of this

23  paragraph do not apply.

24         (d)  An Any increase in the total licensed bed capacity

25  of a health care facility.

26         (e)  Subject to the provisions of paragraph (3)(i), the

27  establishment of a Medicare-certified home health agency, The

28  establishment of a hospice or hospice inpatient facility, or

29  the direct provision of such services by a health care

30  facility or health maintenance organization for those other

31  than the subscribers of the health maintenance organization;


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                                    CS/CS/HB 591, Second Engrossed



  1  except that this paragraph does not apply to the establishment

  2  of a Medicare-certified home health agency by a facility

  3  described in paragraph (3)(h).

  4         (f)  An acquisition by or on behalf of a health care

  5  facility or health maintenance organization, by any means,

  6  which acquisition would have required review if the

  7  acquisition had been by purchase.

  8         (f)(g)  The establishment of inpatient institutional

  9  health services by a health care facility, or a substantial

10  change in such services.

11         (h)  The acquisition by any means of an existing health

12  care facility by any person, unless the person provides the

13  agency with at least 30 days' written notice of the proposed

14  acquisition, which notice is to include the services to be

15  offered and the bed capacity of the facility, and unless the

16  agency does not determine, within 30 days after receipt of

17  such notice, that the services to be provided and the bed

18  capacity of the facility will be changed.

19         (i)  An increase in the cost of a project for which a

20  certificate of need has been issued when the increase in cost

21  exceeds 20 percent of the originally approved cost of the

22  project, except that a cost overrun review is not necessary

23  when the cost overrun is less than $20,000.

24         (g)(j)  An increase in the number of beds for acute

25  care, specialty burn units, neonatal intensive care units,

26  comprehensive rehabilitation, mental health services, or

27  hospital-based distinct part skilled nursing units, or at a

28  long-term care hospital psychiatric or rehabilitation beds.

29         (h)(k)  The establishment of tertiary health services.

30

31


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                                    CS/CS/HB 591, Second Engrossed



  1         (2)  PROJECTS SUBJECT TO EXPEDITED REVIEW.--Unless

  2  exempt pursuant to subsection (3), projects subject to an

  3  expedited review shall include, but not be limited to:

  4         (a)  Cost overruns, as defined in paragraph (1)(i).

  5         (a)(b)  Research, education, and training programs.

  6         (b)(c)  Shared services contracts or projects.

  7         (c)(d)  A transfer of a certificate of need.

  8         (d)(e)  A 50-percent increase in nursing home beds for

  9  a facility incorporated and operating in this state for at

10  least 60 years on or before July 1, 1988, which has a licensed

11  nursing home facility located on a campus providing a variety

12  of residential settings and supportive services.  The

13  increased nursing home beds shall be for the exclusive use of

14  the campus residents.  Any application on behalf of an

15  applicant meeting this requirement shall be subject to the

16  base fee of $5,000 provided in s. 408.038.

17         (f)  Combination within one nursing home facility of

18  the beds or services authorized by two or more certificates of

19  need issued in the same planning subdistrict.

20         (g)  Division into two or more nursing home facilities

21  of beds or services authorized by one certificate of need

22  issued in the same planning subdistrict.  Such division shall

23  not be approved if it would adversely affect the original

24  certificate's approved cost.

25         (e)(h)  Replacement of a health care facility when the

26  proposed project site is located in the same district and

27  within a 1-mile radius of the replaced health care facility.

28         (f)  The conversion of mental health services beds

29  licensed under chapter 395 or hospital-based distinct part

30  skilled nursing unit beds to general acute care beds; the

31  conversion of mental health services beds between or among the


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                                    CS/CS/HB 591, Second Engrossed



  1  licensed bed categories defined as beds for mental health

  2  services; or the conversion of general acute care beds to beds

  3  for mental health services.

  4         1.  Conversion under this paragraph shall not establish

  5  a new licensed bed category at the hospital but shall apply

  6  only to categories of beds licensed at that hospital.

  7         2.  Beds converted under this paragraph must be

  8  licensed and operational for at least 12 months before the

  9  hospital may apply for additional conversion affecting beds of

10  the same type.

11

12  The agency shall develop rules to implement the provisions for

13  expedited review, including time schedule, application content

14  which may be reduced from the full requirements of s.

15  408.037(1), and application processing.

16         (3)  EXEMPTIONS.--Upon request, the following projects

17  are subject to supported by such documentation as the agency

18  requires, the agency shall grant an exemption from the

19  provisions of subsection (1):

20         (a)  For the initiation or expansion of obstetric

21  services.

22         (a)(b)  For replacement of any expenditure to replace

23  or renovate any part of a licensed health care facility on the

24  same site, provided that the number of licensed beds in each

25  licensed bed category will not increase and, in the case of a

26  replacement facility, the project site is the same as the

27  facility being replaced.

28         (c)  For providing respite care services. An individual

29  may be admitted to a respite care program in a hospital

30  without regard to inpatient requirements relating to admitting

31  order and attendance of a member of a medical staff.


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                                    CS/CS/HB 591, Second Engrossed



  1         (b)(d)  For hospice services or home health services

  2  provided by a rural hospital, as defined in s. 395.602, or for

  3  swing beds in such rural hospital in a number that does not

  4  exceed one-half of its licensed beds.

  5         (c)(e)  For the conversion of licensed acute care

  6  hospital beds to Medicare and Medicaid certified skilled

  7  nursing beds in a rural hospital as defined in s. 395.602, so

  8  long as the conversion of the beds does not involve the

  9  construction of new facilities. The total number of skilled

10  nursing beds, including swing beds, may not exceed one-half of

11  the total number of licensed beds in the rural hospital as of

12  July 1, 1993. Certified skilled nursing beds designated under

13  this paragraph, excluding swing beds, shall be included in the

14  community nursing home bed inventory.  A rural hospital which

15  subsequently decertifies any acute care beds exempted under

16  this paragraph shall notify the agency of the decertification,

17  and the agency shall adjust the community nursing home bed

18  inventory accordingly.

19         (d)(f)  For the addition of nursing home beds at a

20  skilled nursing facility that is part of a retirement

21  community that provides a variety of residential settings and

22  supportive services and that has been incorporated and

23  operated in this state for at least 65 years on or before July

24  1, 1994. All nursing home beds must not be available to the

25  public but must be for the exclusive use of the community

26  residents.

27         (e)(g)  For an increase in the bed capacity of a

28  nursing facility licensed for at least 50 beds as of January

29  1, 1994, under part II of chapter 400 which is not part of a

30  continuing care facility if, after the increase, the total

31  licensed bed capacity of that facility is not more than 60


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                                    CS/CS/HB 591, Second Engrossed



  1  beds and if the facility has been continuously licensed since

  2  1950 and has received a superior rating on each of its two

  3  most recent licensure surveys.

  4         (h)  For the establishment of a Medicare-certified home

  5  health agency by a facility certified under chapter 651; a

  6  retirement community, as defined in s. 400.404(2)(g); or a

  7  residential facility that serves only retired military

  8  personnel, their dependents, and the surviving dependents of

  9  deceased military personnel. Medicare-reimbursed home health

10  services provided through such agency shall be offered

11  exclusively to residents of the facility or retirement

12  community or to residents of facilities or retirement

13  communities owned, operated, or managed by the same corporate

14  entity. Each visit made to deliver Medicare-reimbursable home

15  health services to a home health patient who, at the time of

16  service, is not a resident of the facility or retirement

17  community shall be a deceptive and unfair trade practice and

18  constitutes a violation of ss. 501.201-501.213.

19         (i)  For the establishment of a Medicare-certified home

20  health agency. This paragraph shall take effect 90 days after

21  the adjournment sine die of the next regular session of the

22  Legislature occurring after the legislative session in which

23  the Legislature receives a report from the Director of Health

24  Care Administration certifying that the federal Health Care

25  Financing Administration has implemented a per-episode

26  prospective pay system for Medicare-certified home health

27  agencies.

28         (f)(j)  For an inmate health care facility built by or

29  for the exclusive use of the Department of Corrections as

30  provided in chapter 945. This exemption expires when such

31  facility is converted to other uses.


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                                    CS/CS/HB 591, Second Engrossed



  1         (k)  For an expenditure by or on behalf of a health

  2  care facility to provide a health service exclusively on an

  3  outpatient basis.

  4         (g)(l)  For the termination of an inpatient a health

  5  care service, upon 30 days' written notice to the agency.

  6         (h)(m)  For the delicensure of beds, upon 30 days'

  7  written notice to the agency. A request for exemption An

  8  application submitted under this paragraph must identify the

  9  number, the category of beds classification, and the name of

10  the facility in which the beds to be delicensed are located.

11         (i)(n)  For the provision of adult inpatient diagnostic

12  cardiac catheterization services in a hospital.

13         1.  In addition to any other documentation otherwise

14  required by the agency, a request for an exemption submitted

15  under this paragraph must comply with the following criteria:

16         a.  The applicant must certify it will not provide

17  therapeutic cardiac catheterization pursuant to the grant of

18  the exemption.

19         b.  The applicant must certify it will meet and

20  continuously maintain the minimum licensure requirements

21  adopted by the agency governing such programs pursuant to

22  subparagraph 2.

23         c.  The applicant must certify it will provide a

24  minimum of 2 percent of its services to charity and Medicaid

25  patients.

26         2.  The agency shall adopt licensure requirements by

27  rule which govern the operation of adult inpatient diagnostic

28  cardiac catheterization programs established pursuant to the

29  exemption provided in this paragraph. The rules shall ensure

30  that such programs:

31


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                                    CS/CS/HB 591, Second Engrossed



  1         a.  Perform only adult inpatient diagnostic cardiac

  2  catheterization services authorized by the exemption and will

  3  not provide therapeutic cardiac catheterization or any other

  4  services not authorized by the exemption.

  5         b.  Maintain sufficient appropriate equipment and

  6  health personnel to ensure quality and safety.

  7         c.  Maintain appropriate times of operation and

  8  protocols to ensure availability and appropriate referrals in

  9  the event of emergencies.

10         d.  Maintain appropriate program volumes to ensure

11  quality and safety.

12         e.  Provide a minimum of 2 percent of its services to

13  charity and Medicaid patients each year.

14         3.a.  The exemption provided by this paragraph shall

15  not apply unless the agency determines that the program is in

16  compliance with the requirements of subparagraph 1. and that

17  the program will, after beginning operation, continuously

18  comply with the rules adopted pursuant to subparagraph 2.  The

19  agency shall monitor such programs to ensure compliance with

20  the requirements of subparagraph 2.

21         b.(I)  The exemption for a program shall expire

22  immediately when the program fails to comply with the rules

23  adopted pursuant to sub-subparagraphs 2.a., b., and c.

24         (II)  Beginning 18 months after a program first begins

25  treating patients, the exemption for a program shall expire

26  when the program fails to comply with the rules adopted

27  pursuant to sub-subparagraphs 2.d. and e.

28         (III)  If the exemption for a program expires pursuant

29  to sub-sub-subparagraph (I) or sub-sub-subparagraph (II), the

30  agency shall not grant an exemption pursuant to this paragraph

31  for an adult inpatient diagnostic cardiac catheterization


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                                    CS/CS/HB 591, Second Engrossed



  1  program located at the same hospital until 2 years following

  2  the date of the determination by the agency that the program

  3  failed to comply with the rules adopted pursuant to

  4  subparagraph 2.

  5         4.  The agency shall not grant any exemption under this

  6  paragraph until the adoption of the rules required under this

  7  paragraph, or until March 1, 1998, whichever comes first.

  8  However, if final rules have not been adopted by March 1,

  9  1998, the proposed rules governing the exemptions shall be

10  used by the agency to grant exemptions under the provisions of

11  this paragraph until final rules become effective.

12         (j)(o)  For any expenditure to provide mobile surgical

13  facilities and related health care services provided under

14  contract with the Department of Corrections or a private

15  correctional facility operating pursuant to chapter 957.

16         (k)(p)  For state veterans' nursing homes operated by

17  or on behalf of the Florida Department of Veterans' Affairs in

18  accordance with part II of chapter 296 for which at least 50

19  percent of the construction cost is federally funded and for

20  which the Federal Government pays a per diem rate not to

21  exceed one-half of the cost of the veterans' care in such

22  state nursing homes. These beds shall not be included in the

23  nursing home bed inventory.

24         (l)  For combination within one nursing home facility

25  of the beds or services authorized by two or more certificates

26  of need issued in the same planning subdistrict.  An exemption

27  granted under this paragraph shall extend the validity period

28  of the certificates of need to be consolidated by the length

29  of the period beginning upon submission of the exemption

30  request and ending with issuance of the exemption.  The

31


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                                    CS/CS/HB 591, Second Engrossed



  1  longest validity period among the certificates shall be

  2  applicable to each of the combined certificates.

  3         (m)  For division into two or more nursing home

  4  facilities of beds or services authorized by one certificate

  5  of need issued in the same planning subdistrict.  An exemption

  6  granted under this paragraph shall extend the validity period

  7  of the certificate of need to be divided by the length of the

  8  period beginning upon submission of the exemption request and

  9  ending with issuance of the exemption.

10         (n)  For the addition of hospital beds licensed under

11  chapter 395 for acute care, mental health services, or a

12  hospital-based distinct part skilled nursing unit in a number

13  that may not exceed 10 total beds or 10 percent of the

14  licensed capacity of the bed category being expanded,

15  whichever is greater. Beds for specialty burn units, neonatal

16  intensive care units, or comprehensive rehabilitation, or at a

17  long-term care hospital, may not be increased under this

18  paragraph.

19         1.  In addition to any other documentation otherwise

20  required by the agency, a request for exemption submitted

21  under this paragraph must:

22         a.  Certify that the prior 12-month average occupancy

23  rate for the category of licensed beds being expanded at the

24  facility meets or exceeds 80 percent or, for a hospital-based

25  distinct part skilled nursing unit, the prior 12-month average

26  occupancy rate meets or exceeds 96 percent.

27         b.  Certify that any beds of the same type authorized

28  for the facility under this paragraph before the date of the

29  current request for an exemption have been licensed and

30  operational for at least 12 months.

31


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                                    CS/CS/HB 591, Second Engrossed



  1         2.  The timeframes and monitoring process specified in

  2  s. 408.040(2)(a)-(c) apply to any exemption issued under this

  3  paragraph.

  4         3.  The agency shall count beds authorized under this

  5  paragraph as approved beds in the published inventory of

  6  hospital beds until the beds are licensed.

  7         (o)  For the addition of acute care beds, as authorized

  8  by rule consistent with s. 395.003(4), in a number that may

  9  not exceed 10 total beds or 10 percent of licensed bed

10  capacity, whichever is greater, for temporary beds in a

11  hospital which has experienced high seasonal occupancy within

12  the prior 12-month period or in a hospital that must respond

13  to emergency circumstances.

14         (p)  For the addition of nursing home beds licensed

15  under chapter 400 in a number not exceeding 10 total beds or

16  10 percent of the number of beds licensed in the facility

17  being expanded, whichever is greater.

18         1.  In addition to any other documentation required by

19  the agency, a request for exemption submitted under this

20  paragraph must:

21         a.  Certify that the facility has not had any class I

22  or class II deficiencies within the 30 months preceding the

23  request for addition.

24         b.  Certify that the prior 12-month average occupancy

25  rate for the nursing home beds at the facility meets or

26  exceeds 96 percent.

27         c.  Certify that any beds authorized for the facility

28  under this paragraph before the date of the current request

29  for an exemption have been licensed and operational for at

30  least 12 months.

31


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                                    CS/CS/HB 591, Second Engrossed



  1         2.  The timeframes and monitoring process specified in

  2  s. 408.040(2)(a)-(c) apply to any exemption issued under this

  3  paragraph.

  4         3.  The agency shall count beds authorized under this

  5  paragraph as approved beds in the published inventory of

  6  nursing home beds until the beds are licensed.

  7         (q)  For the construction of a skilled nursing facility

  8  of up to 60 beds to be used to serve only retired or disabled

  9  military personnel and their surviving spouses. The facility

10  must be constructed by a foundation that was incorporated and

11  operating in this state on or before December 19, 1997, to

12  serve the same population.

13         (4)  A request for exemption under this subsection (3)

14  may be made at any time and is not subject to the batching

15  requirements of this section. The request shall be supported

16  by such documentation as the agency requires by rule. The

17  agency shall assess a fee of $250 for each request for

18  exemption submitted under subsection (3).

19         Section 8.  Paragraph (a) of subsection (1) of section

20  408.037, Florida Statutes, is amended to read:

21         408.037  Application content.--

22         (1)  An application for a certificate of need must

23  contain:

24         (a)  A detailed description of the proposed project and

25  statement of its purpose and need in relation to the district

26  local health plan and the state health plan.

27         Section 9.  Section 408.038, Florida Statutes, is

28  amended to read:

29         408.038  Fees.--The agency department shall assess fees

30  on certificate-of-need applications.  Such fees shall be for

31  the purpose of funding the functions of the local health


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                                    CS/CS/HB 591, Second Engrossed



  1  councils and the activities of the agency department and shall

  2  be allocated as provided in s. 408.033. The fee shall be

  3  determined as follows:

  4         (1)  A minimum base fee of $5,000.

  5         (2)  In addition to the base fee of $5,000, 0.015 of

  6  each dollar of proposed expenditure, except that a fee may not

  7  exceed $22,000.

  8         Section 10.  Subsections (3) and (4), paragraph (c) of

  9  subsection (5), and paragraphs (a) and (b) of subsection (6)

10  of section 408.039, Florida Statutes, are amended to read:

11         408.039  Review process.--The review process for

12  certificates of need shall be as follows:

13         (3)  APPLICATION PROCESSING.--

14         (a)  An applicant shall file an application with the

15  agency department, and shall furnish a copy of the application

16  to the local health council and the agency department. Within

17  15 days after the applicable application filing deadline

18  established by agency department rule, the staff of the agency

19  department shall determine if the application is complete.  If

20  the application is incomplete, the staff shall request

21  specific information from the applicant necessary for the

22  application to be complete; however, the staff may make only

23  one such request. If the requested information is not filed

24  with the agency department within 21 days of the receipt of

25  the staff's request, the application shall be deemed

26  incomplete and deemed withdrawn from consideration.

27         (b)  Upon the request of any applicant or substantially

28  affected person within 14 days after notice that an

29  application has been filed, a public hearing may be held at

30  the agency's department's discretion if the agency department

31  determines that a proposed project involves issues of great


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                                    CS/CS/HB 591, Second Engrossed



  1  local public interest. The public hearing shall allow

  2  applicants and other interested parties reasonable time to

  3  present their positions and to present rebuttal information. A

  4  recorded verbatim record of the hearing shall be maintained.

  5  The public hearing shall be held at the local level within 21

  6  days after the application is deemed complete.

  7         (4)  STAFF RECOMMENDATIONS.--

  8         (a)  The agency's department's review of and final

  9  agency action on applications shall be in accordance with the

10  district health plan, and statutory criteria, and the

11  implementing administrative rules.  In the application review

12  process, the agency department shall give a preference, as

13  defined by rule of the agency department, to an applicant

14  which proposes to develop a nursing home in a nursing home

15  geographically underserved area.

16         (b)  Within 60 days after all the applications in a

17  review cycle are determined to be complete, the agency

18  department shall issue its State Agency Action Report and

19  Notice of Intent to grant a certificate of need for the

20  project in its entirety, to grant a certificate of need for

21  identifiable portions of the project, or to deny a certificate

22  of need.  The State Agency Action Report shall set forth in

23  writing its findings of fact and determinations upon which its

24  decision is based.  If a finding of fact or determination by

25  the agency department is counter to the district health plan

26  of the local health council, the agency department shall

27  provide in writing its reason for its findings, item by item,

28  to the local health council.  If the agency department intends

29  to grant a certificate of need, the State Agency Action Report

30  or the Notice of Intent shall also include any conditions

31  which the agency department intends to attach to the


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                                    CS/CS/HB 591, Second Engrossed



  1  certificate of need. The agency department shall designate by

  2  rule a senior staff person, other than the person who issues

  3  the final order, to issue State Agency Action Reports and

  4  Notices of Intent.

  5         (c)  The agency department shall publish its proposed

  6  decision set forth in the Notice of Intent in the Florida

  7  Administrative Weekly within 14 days after the Notice of

  8  Intent is issued.

  9         (d)  If no administrative hearing is requested pursuant

10  to subsection (5), the State Agency Action Report and the

11  Notice of Intent shall become the final order of the agency

12  department.  The agency department shall provide a copy of the

13  final order to the appropriate local health council.

14         (5)  ADMINISTRATIVE HEARINGS.--

15         (c)  In administrative proceedings challenging the

16  issuance or denial of a certificate of need, only applicants

17  considered by the agency in the same batching cycle are

18  entitled to a comparative hearing on their applications.

19  Existing health care facilities may initiate or intervene in

20  an administrative hearing upon a showing that an established

21  program will be substantially affected by the issuance of any

22  certificate of need, whether reviewed under s. 408.036(1) or

23  (2), to a competing proposed facility or program within the

24  same district.

25         (6)  JUDICIAL REVIEW.--

26         (a)  A party to an administrative hearing for an

27  application for a certificate of need has the right, within

28  not more than 30 days after the date of the final order, to

29  seek judicial review in the District Court of Appeal pursuant

30  to s. 120.68.  The agency department shall be a party in any

31  such proceeding.


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                                    CS/CS/HB 591, Second Engrossed



  1         (b)  In such judicial review, the court shall affirm

  2  the final order of the agency department, unless the decision

  3  is arbitrary, capricious, or not in compliance with ss.

  4  408.031-408.045.

  5         Section 11.  Subsections (1) and (2) of section

  6  408.040, Florida Statutes, are amended to read:

  7         408.040  Conditions and monitoring.--

  8         (1)(a)  The agency may issue a certificate of need

  9  predicated upon statements of intent expressed by an applicant

10  in the application for a certificate of need. Any conditions

11  imposed on a certificate of need based on such statements of

12  intent shall be stated on the face of the certificate of need.

13         1.  Any certificate of need issued for construction of

14  a new hospital or for the addition of beds to an existing

15  hospital shall include a statement of the number of beds

16  approved by category of service, including rehabilitation or

17  psychiatric service, for which the agency has adopted by rule

18  a specialty-bed-need methodology. All beds that are approved,

19  but are not covered by any specialty-bed-need methodology,

20  shall be designated as general.

21         (b)2.  The agency may consider, in addition to the

22  other criteria specified in s. 408.035, a statement of intent

23  by the applicant that a specified to designate a percentage of

24  the annual patient days at beds of the facility will be

25  utilized for use by patients eligible for care under Title XIX

26  of the Social Security Act. Any certificate of need issued to

27  a nursing home in reliance upon an applicant's statements that

28  to provide a specified percentage number of annual patient

29  days will be utilized beds for use by residents eligible for

30  care under Title XIX of the Social Security Act must include a

31  statement that such certification is a condition of issuance


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                                    CS/CS/HB 591, Second Engrossed



  1  of the certificate of need. The certificate-of-need program

  2  shall notify the Medicaid program office and the Department of

  3  Elderly Affairs when it imposes conditions as authorized in

  4  this paragraph subparagraph in an area in which a community

  5  diversion pilot project is implemented.

  6         (c)(b)  A certificateholder may apply to the agency for

  7  a modification of conditions imposed under paragraph (a) or

  8  paragraph (b). If the holder of a certificate of need

  9  demonstrates good cause why the certificate should be

10  modified, the agency shall reissue the certificate of need

11  with such modifications as may be appropriate.  The agency

12  shall by rule define the factors constituting good cause for

13  modification.

14         (d)(c)  If the holder of a certificate of need fails to

15  comply with a condition upon which the issuance of the

16  certificate was predicated, the agency may assess an

17  administrative fine against the certificateholder in an amount

18  not to exceed $1,000 per failure per day.  In assessing the

19  penalty, the agency shall take into account as mitigation the

20  relative lack of severity of a particular failure.  Proceeds

21  of such penalties shall be deposited in the Public Medical

22  Assistance Trust Fund.

23         (2)(a)  Unless the applicant has commenced

24  construction, if the project provides for construction, unless

25  the applicant has incurred an enforceable capital expenditure

26  commitment for a project, if the project does not provide for

27  construction, or unless subject to paragraph (b), a

28  certificate of need shall terminate 18 months after the date

29  of issuance, except in the case of a multifacility project, as

30  defined in s. 408.032, where the certificate of need shall

31  terminate 2 years after the date of issuance. The agency shall


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                                    CS/CS/HB 591, Second Engrossed



  1  monitor the progress of the holder of the certificate of need

  2  in meeting the timetable for project development specified in

  3  the application with the assistance of the local health

  4  council as specified in s. 408.033(1)(b)5., and may revoke the

  5  certificate of need, if the holder of the certificate is not

  6  meeting such timetable and is not making a good faith effort,

  7  as defined by rule, to meet it.

  8         (b)  A certificate of need issued to an applicant

  9  holding a provisional certificate of authority under chapter

10  651 shall terminate 1 year after the applicant receives a

11  valid certificate of authority from the Department of

12  Insurance.

13         (c)  The certificate-of-need validity period for a

14  project shall be extended by the agency, to the extent that

15  the applicant demonstrates to the satisfaction of the agency

16  that good faith commencement of the project is being delayed

17  by litigation or by governmental action or inaction with

18  respect to regulations or permitting precluding commencement

19  of the project.

20         (d)  If an application is filed to consolidate two or

21  more certificates as authorized by s. 408.036(2)(f) or to

22  divide a certificate of need into two or more facilities as

23  authorized by s. 408.036(2)(g), the validity period of the

24  certificate or certificates of need to be consolidated or

25  divided shall be extended for the period beginning upon

26  submission of the application and ending when final agency

27  action and any appeal from such action has been concluded.

28  However, no such suspension shall be effected if the

29  application is withdrawn by the applicant.

30         Section 12.  Section 408.044, Florida Statutes, is

31  amended to read:


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                                    CS/CS/HB 591, Second Engrossed



  1         408.044  Injunction.--Notwithstanding the existence or

  2  pursuit of any other remedy, the agency department may

  3  maintain an action in the name of the state for injunction or

  4  other process against any person to restrain or prevent the

  5  pursuit of a project subject to review under ss.

  6  408.031-408.045, in the absence of a valid certificate of

  7  need.

  8         Section 13.  Section 408.045, Florida Statutes, is

  9  amended to read:

10         408.045  Certificate of need; competitive sealed

11  proposals.--

12         (1)  The application, review, and issuance procedures

13  for a certificate of need for an intermediate care facility

14  for the developmentally disabled may be made by the agency

15  department by competitive sealed proposals.

16         (2)  The agency department shall make a decision

17  regarding the issuance of the certificate of need in

18  accordance with the provisions of s. 287.057(15), rules

19  adopted by the agency department relating to intermediate care

20  facilities for the developmentally disabled, and the criteria

21  in s. 408.035, as further defined by rule.

22         (3)  Notification of the decision shall be issued to

23  all applicants not later than 28 calendar days after the date

24  responses to a request for proposal are due.

25         (4)  The procedures provided for under this section are

26  exempt from the batching cycle requirements and the public

27  hearing requirement of s. 408.039.

28         (5)  The agency department may use the competitive

29  sealed proposal procedure for determining a certificate of

30  need for other types of health care facilities and services if

31  the agency department identifies an unmet health care need and


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                                    CS/CS/HB 591, Second Engrossed



  1  when funding in whole or in part for such health care

  2  facilities or services is authorized by the Legislature.

  3         Section 14.  (1)(a)  There is created a

  4  certificate-of-need workgroup staffed by the Agency for Health

  5  Care Administration.

  6         (b)  Workgroup participants shall be responsible for

  7  only the expenses that they generate individually through

  8  workgroup participation.  The agency shall be responsible for

  9  expenses incidental to the production of any required data or

10  reports.

11         (2)  The workgroup shall consist of 30 members, 10

12  appointed by the Governor, 10 appointed by the President of

13  the Senate, and 10 appointed by the Speaker of the House of

14  Representatives. The workgroup chair shall be selected by

15  majority vote of a quorum present. Sixteen members shall

16  constitute a quorum. The membership shall include, but not be

17  limited to, representatives from health care provider

18  organizations, health care facilities, individual health care

19  practitioners, local health councils, and consumer

20  organizations, and persons with health care market expertise

21  as private-sector consultants.

22         (3)  Appointment to the workgroup shall be as follows:

23         (a)  The Governor shall appoint one representative each

24  from the hospital industry; nursing home industry; hospice

25  industry; local health councils; a consumer organization; and

26  three health care market consultants, one of whom is a

27  recognized expert on hospital markets, one of whom is a

28  recognized expert on nursing home or long-term-care markets,

29  and one of whom is a recognized expert on hospice markets; one

30  representative from the Medicaid program; and one

31


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                                    CS/CS/HB 591, Second Engrossed



  1  representative from a health care facility that provides a

  2  tertiary service.

  3         (b)  The President of the Senate shall appoint a

  4  representative of a for-profit hospital, a representative of a

  5  not-for-profit hospital, a representative of a public

  6  hospital, two representatives of the nursing home industry,

  7  two representatives of the hospice industry, a representative

  8  of a consumer organization, a representative from the

  9  Department of Elderly Affairs involved with the implementation

10  of a long-term-care community diversion program, and a health

11  care market consultant with expertise in health care

12  economics.

13         (c)  The Speaker of the House of Representatives shall

14  appoint a representative from the Florida Hospital

15  Association, a representative of the Association of Community

16  Hospitals and Health Systems of Florida, a representative of

17  the Florida League of Health Systems, a representative of the

18  Florida Health Care Association, a representative of the

19  Florida Association of Homes for the Aging, three

20  representatives of Florida Hospices and Palliative Care, one

21  representative of local health councils, and one

22  representative of a consumer organization.

23         (4)  The workgroup shall study issues pertaining to the

24  certificate-of-need program, including the impact of trends in

25  health care delivery and financing. The workgroup shall study

26  issues relating to implementation of the certificate-of-need

27  program.

28         (5)  The workgroup shall meet at least annually, at the

29  request of the chair. The workgroup shall submit an interim

30  report by December 31, 2001, and a final report by December

31  31, 2002. The workgroup is abolished effective July 1, 2003.


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                                    CS/CS/HB 591, Second Engrossed



  1         Section 15.  Subsection (7) of section 651.118, Florida

  2  Statutes, is amended to read:

  3         651.118  Agency for Health Care Administration;

  4  certificates of need; sheltered beds; community beds.--

  5         (7)  Notwithstanding the provisions of subsection (2),

  6  at the discretion of the continuing care provider, sheltered

  7  nursing home beds may be used for persons who are not

  8  residents of the facility and who are not parties to a

  9  continuing care contract for a period of up to 5 years after

10  the date of issuance of the initial nursing home license.  A

11  provider whose 5-year period has expired or is expiring may

12  request the Agency for Health Care Administration for an

13  extension, not to exceed 30 percent of the total sheltered

14  nursing home beds, if the utilization by residents of the

15  facility in the sheltered beds will not generate sufficient

16  income to cover facility expenses, as evidenced by one of the

17  following:

18         (a)  The facility has a net loss for the most recent

19  fiscal year as determined under generally accepted accounting

20  principles, excluding the effects of extraordinary or unusual

21  items, as demonstrated in the most recently audited financial

22  statement; or

23         (b)  The facility would have had a pro forma loss for

24  the most recent fiscal year, excluding the effects of

25  extraordinary or unusual items, if revenues were reduced by

26  the amount of revenues from persons in sheltered beds who were

27  not residents, as reported on by a certified public

28  accountant.

29

30  The agency shall be authorized to grant an extension to the

31  provider based on the evidence required in this subsection.


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                                    CS/CS/HB 591, Second Engrossed



  1  The agency may request a facility to use up to 25 percent of

  2  the patient days generated by new admissions of nonresidents

  3  during the extension period to serve Medicaid recipients for

  4  those beds authorized for extended use if there is a

  5  demonstrated need in the respective service area and if funds

  6  are available. A provider who obtains an extension is

  7  prohibited from applying for additional sheltered beds under

  8  the provision of subsection (2), unless additional residential

  9  units are built or the provider can demonstrate need by

10  facility residents to the Agency for Health Care

11  Administration. The 5-year limit does not apply to up to 5

12  sheltered beds designated for inpatient hospice care as part

13  of a contractual arrangement with a hospice licensed under

14  part VI of chapter 400. A facility that uses such beds after

15  the 5-year period shall report such use to the Agency for

16  Health Care Administration. For purposes of this subsection,

17  "resident" means a person who, upon admission to the facility,

18  initially resides in a part of the facility not licensed under

19  part II of chapter 400.

20         Section 16.  PUBLIC CORD BLOOD TISSUE BANK.--

21         (1)  There is established a statewide consortium to be

22  known as the Public Cord Blood Tissue Bank. The Public Cord

23  Blood Tissue Bank is established as a nonprofit legal entity

24  to collect, screen for infectious and genetic diseases,

25  perform tissue typing, cryopreserve, and store umbilical cord

26  blood as a resource to the public.  The University of Florida,

27  the University of South Florida, the University of Miami, and

28  the Mayo Clinic, Jacksonville shall jointly form the

29  collaborative consortium, each working with community

30  resources such as regional blood banks, hospitals, and other

31  health care providers to develop local and regional coalitions


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                                    CS/CS/HB 591, Second Engrossed



  1  for the purposes set forth in this act.  The consortium

  2  participants shall align their outreach programs and

  3  activities to all geographic areas of the state, covering the

  4  entire state.  The consortium is encouraged to conduct

  5  outreach and research for Hispanics, African Americans, Native

  6  Americans, and other ethnic and racial minorities.

  7         (2)  The Agency for Health Care Administration and the

  8  Department of Health shall encourage health care providers,

  9  including, but not limited to, hospitals, birthing facilities,

10  county health departments, physicians, midwives, and nurses,

11  to disseminate information about the Public Cord Blood Tissue

12  Bank.

13         (3)  Nothing in this section creates a requirement of

14  any health care or services program that is directly

15  affiliated with a bona fide religious denomination that

16  includes as an integral part of its beliefs and practices the

17  tenet that blood transfer is contrary to the moral principles

18  the denomination considers to be an essential part of its

19  beliefs.

20         (4)  Any health care facility or health care provider

21  receiving financial remuneration for the collection of

22  umbilical cord blood shall provide written disclosure of this

23  information to any woman postpartum or parent of a newborn

24  from whom the umbilical cord blood is collected prior to the

25  harvesting of the umbilical cord blood.

26         (5)  A woman admitted to a hospital or birthing

27  facility for obstetrical services may be offered the

28  opportunity to donate umbilical cord blood to the Public Cord

29  Blood Tissue Bank.  A woman may not be required to make such a

30  donation.

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                                    CS/CS/HB 591, Second Engrossed



  1         (6)  The consortium may charge reasonable rates and

  2  fees to recipients of cord blood tissue bank products.

  3         (7)  In order to fund the provisions of this section

  4  the consortium participants, the Agency for Health Care

  5  Administration, and the Department of Health shall seek

  6  private or federal funds to initiate program actions for

  7  fiscal year 2000-2001.

  8         Section 17.  Subsection (3) of section 400.464, Florida

  9  Statutes, is repealed.

10         Section 18.  The General Appropriations Act for Fiscal

11  Year 2000-2001 shall be reduced by 4 full time equivalent

12  positions and $260,719 from the Health Care Trust Fund in the

13  Agency for Health Care Administration for purposes of

14  implementing the provisions of this act.

15         Section 19.  Except as otherwise provided herein, this

16  act shall take effect July 1, 2000.

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