Senate Bill sb2092c2

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    Florida Senate - 2001                    CS for CS for SB 2092

    By the Committees on Appropriations; Health, Aging and
    Long-Term Care; and Senator Sanderson




    309-1897-01

  1                      A bill to be entitled

  2         An act relating to health care; amending s.

  3         154.306, F.S.; providing procedures for

  4         computing the maximum amount that specified

  5         counties must pay for the treatment of an

  6         indigent resident of the county at a hospital

  7         located outside the county; providing for the

  8         exclusion of active-duty military personnel and

  9         certain institutionalized county residents from

10         state population estimates when calculating a

11         county's financial responsibility for such

12         hospital care; requiring the county of

13         residence to accept the hospital's

14         documentation of financial eligibility and

15         county residence; requiring that the

16         documentation meet specified criteria; amending

17         s. 381.0403, F.S.; transferring the community

18         hospital education program from the Board of

19         Regents to the Department of Health;

20         prescribing membership of a committee reporting

21         on graduate medical education; amending s.

22         409.908, F.S.; revising provisions relating to

23         the reimbursement of Medicaid providers to

24         conform to the transfer of the Community

25         Hospital Education Program from the Board of

26         Regents to the Department of Health; providing

27         for the certification of local matching funds;

28         providing requirements for the distribution of

29         federal funds earned as a result of local

30         matching funds; requiring an impact statement;

31         providing rulemaking authority to the

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  1         Department of Health; amending s. 409.911,

  2         F.S.; redefining the term "charity care" or

  3         "uncompensated charity care" for purposes of

  4         the disproportionate share program; amending s.

  5         409.9117, F.S.; revising eligibility criteria

  6         for payments under the primary care

  7         disproportionate share program; providing an

  8         effective date.

  9

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

11

12         Section 1.  Present subsections (3) and (4) of section

13  154.306, Florida Statutes, are redesignated as subsections (4)

14  and (5), respectively, and a new subsection (3) is added to

15  that section, to read:

16         154.306  Financial responsibility for certified

17  residents who are qualified indigent patients treated at an

18  out-of-county participating hospital or regional referral

19  hospital.--Ultimate financial responsibility for treatment

20  received at a participating hospital or a regional referral

21  hospital by a qualified indigent patient who is a certified

22  resident of a county in the State of Florida, but is not a

23  resident of the county in which the participating hospital or

24  regional referral hospital is located, is the obligation of

25  the county of which the qualified indigent patient is a

26  resident. Each county shall reimburse participating hospitals

27  or regional referral hospitals as provided for in this part,

28  and shall provide or arrange for indigent eligibility

29  determination procedures and resident certification

30  determination procedures as provided for in rules developed to

31  implement this part.  The agency, or any county determining

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  1  eligibility of a qualified indigent, shall provide to the

  2  county of residence, upon request, a copy of any documents,

  3  forms, or other information, as determined by rule, which may

  4  be used in making an eligibility determination.

  5         (3)  For the purpose of computing the maximum amount

  6  that a county having a population of 100,000 or less may be

  7  required to pay, the agency must reduce the official state

  8  population estimates by the number of inmates and patients

  9  residing in the county in institutions operated by the Federal

10  Government, the Department of Corrections, the Department of

11  Health, or the Department of Children and Family Services, and

12  by the number of active-duty military personnel residing in

13  the county, all of whom shall not be considered residents of

14  the county. However, a county is entitled to receive the

15  benefit of such a reduction in estimated population figures

16  only if the county accepts as valid and true, and does not

17  require any reverification of, the documentation of financial

18  eligibility and county residency which is provided to it by

19  the participating hospital or regional referral hospital. The

20  participating hospital or regional referral hospital must

21  provide documentation that is complete and in the form

22  required by s. 154.3105.

23         Section 2.  Subsections (3), (4), (5), (6), (7), and

24  (9) of section 381.0403, Florida Statutes, are amended, and

25  subsection (10) is added to that section, to read:

26         381.0403  The Community Hospital Education Act.--

27         (3)  PROGRAM FOR COMMUNITY HOSPITAL EDUCATION; STATE

28  AND LOCAL PLANNING.--

29         (a)  There is established under the Department of

30  Health Board of Regents a program for statewide graduate

31  medical education.  It is intended that continuing graduate

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  1  medical education programs for interns and residents be

  2  established on a statewide basis. The program shall provide

  3  financial support for primary care specialty interns and

  4  residents based on policies recommended and approved by the

  5  Community Hospital Education Council, herein established, and

  6  the Department of Health Board of Regents. Only those programs

  7  with at least three residents or interns in each year of the

  8  training program are qualified to apply for financial support.

  9  Programs with fewer than three residents or interns per

10  training year are qualified to apply for financial support,

11  but only if the appropriate accrediting entity for the

12  particular specialty has approved the program for fewer

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

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

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

16  General Appropriations Act, state funds shall be used to

17  generate federal matching funds under Medicaid, or other

18  federal programs, and the resulting combined state and federal

19  funds shall be allocated to participating hospitals for the

20  support of graduate medical education. The department may

21  spend up to $75,000 of the state appropriation, for

22  administrative costs associated with the production of the

23  annual report as specified in subsection (9), and for

24  administration of the program council.

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

26  specialties include emergency medicine, family practice,

27  internal medicine, pediatrics, psychiatry,

28  obstetrics/gynecology, and combined pediatrics and internal

29  medicine, and other primary care specialties as may be

30  included by the council and Department of Health Board of

31  Regents.

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  1         (c)  Medical institutions throughout the state may

  2  apply to the Community Hospital Education Council for

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

  4  programs.  Recommendations for funding of approved programs

  5  shall be forwarded to the Department of Health Board of

  6  Regents.

  7         (d)  The program shall provide a plan for community

  8  clinical teaching and training with the cooperation of the

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

10  also include formal teaching opportunities for intern and

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

12  off-campus medical faculty with university faculty review to

13  be located throughout the state in local communities.

14         (4)  PROGRAM FOR GRADUATE MEDICAL EDUCATION

15  INNOVATIONS.--

16         (a)  There is established under the Department of

17  Health Board of Regents a program for fostering graduate

18  medical education innovations. Funds appropriated annually by

19  the Legislature for this purpose shall be distributed to

20  participating hospitals or consortia of participating

21  hospitals and Florida medical schools or to a Florida medical

22  school for the direct costs of providing graduate medical

23  education in community-based clinical settings on a

24  competitive grant or formula basis to achieve state health

25  care workforce policy objectives, including, but not limited

26  to:

27         1.  Increasing the number of residents in primary care

28  and other high demand specialties or fellowships;

29         2.  Enhancing retention of primary care physicians in

30  Florida practice;

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  1         3.  Promoting practice in medically underserved areas

  2  of the state;

  3         4.  Encouraging racial and ethnic diversity within the

  4  state's physician workforce; and

  5         5.  Encouraging increased production of geriatricians.

  6         (b)  Participating hospitals or consortia of

  7  participating hospitals and Florida medical schools or a

  8  Florida medical school providing graduate medical education in

  9  community-based clinical settings may apply to the Community

10  Hospital Education Council for funding under this innovations

11  program, except when such innovations directly compete with

12  services or programs provided by participating hospitals or

13  consortia of participating hospitals, or by both hospitals and

14  consortia. Innovations program funding shall provide funding

15  based on policies recommended and approved by the Community

16  Hospital Education Council and the Department of Health Board

17  of Regents.

18         (c)  Participating hospitals or consortia of

19  participating hospitals and Florida medical schools or Florida

20  medical schools awarded an innovations grant shall provide the

21  Community Hospital Education Council and Department of Health

22  Board of Regents with an annual report on their project.

23         (5)  FAMILY PRACTICE RESIDENCIES.--In addition to the

24  programs established in subsection (3), the Community Hospital

25  Education Council and the Department of Health Board of

26  Regents shall establish an ongoing statewide program of family

27  practice residencies.  The administration of this program

28  shall be in the manner described in this section.

29         (6)  COUNCIL AND DIRECTOR.--

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  1         (a)  There is established the Community Hospital

  2  Education Council, hereinafter referred to as the council,

  3  which shall consist of 11 members, as follows:

  4         1.  Seven members must be program directors of

  5  accredited graduate medical education programs or practicing

  6  physicians who have faculty appointments in accredited

  7  graduate medical education programs.  Six of these members

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

  9  internal medicine, pediatrics, emergency medicine,

10  obstetrics-gynecology, and psychiatry, respectively, and

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

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

13  must be licensed pursuant to chapter 459.

14         2.  One member must be a representative of the

15  administration of a hospital with an approved community

16  hospital medical education program;

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

18  this state; and

19         4.  Two members must be consumer representatives.

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

22  terms of 4 years each.

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

24  representative status no longer exists.  Members of similar

25  representative status shall be appointed to replace retiring

26  or resigning members of the council.

27         (c)  The Secretary of the Department of Health

28  Chancellor of the State University System shall designate an

29  administrator to serve as staff director.  The council shall

30  elect a chair from among its membership.  Such other personnel

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  1  as may be necessary to carry out the program shall be employed

  2  as authorized by the Department of Health Board of Regents.

  3         (7)  DEPARTMENT OF HEALTH BOARD OF REGENTS;

  4  STANDARDS.--

  5         (a)  The Department of Health Board of Regents, with

  6  recommendations from the council, shall establish standards

  7  and policies for the use and expenditure of graduate medical

  8  education funds appropriated pursuant to subsection (8) for a

  9  program of community hospital education.  The Department of

10  Health board shall establish requirements for hospitals to be

11  qualified for participation in the program which shall

12  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 Department of Health Board of Regents shall

24  periodically review the educational program provided by a

25  participating hospital to assure that the program includes a

26  reasonable amount of both formal and practical training and

27  that the formal sessions are presented as scheduled in the

28  plan submitted by each hospital.

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

30  for Health Care Administration, the Department of Health Board

31  of Regents shall certify to the Agency for Health Care

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  1  Administration on a quarterly basis the number of primary care

  2  specialty residents and interns at each of the participating

  3  hospitals for which the Community Hospital Education Council

  4  and the board recommends funding.

  5         (9)  ANNUAL REPORT ON GRADUATE MEDICAL EDUCATION;

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

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

  8  Care Administration shall collaborate to establish a committee

  9  that shall produce an annual report on graduate medical

10  education. The committee shall be comprised of 11 members:

11  five members shall be deans of the medical schools or their

12  designees; the Governor shall appoint two members, one of whom

13  must be a representative of the Florida Medical Association

14  who has supervised or currently supervises residents or

15  interns and one of whom must be a representative of the

16  Florida Hospital Association; the Secretary of Health Care

17  Administration shall appoint two members, one of whom must be

18  a representative of a statutory teaching hospital and one of

19  whom must be a physician who has supervised or is currently

20  supervising residents or interns; and the Secretary of Health

21  shall appoint two members, one of whom must be a

22  representative of a statutory family practice teaching

23  hospital and one of whom must be a physician who has

24  supervised or is currently supervising residents or interns.

25  With the exception of the deans, members shall serve 4-year

26  terms. In order to stagger the terms, the Governor's

27  appointees shall serve initial terms of 4 years, the Secretary

28  of Health's appointees shall serve initial terms of 3 years,

29  and the Secretary of Health Care Administration's appointees

30  shall serve initial terms of 2 years. A member's term shall be

31  deemed terminated when the member's representative status no

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  1  longer exists. Once the committee is appointed, it shall elect

  2  a chair to serve for a 1-year term. To the maximum extent

  3  feasible, the committee shall have the same membership as the

  4  Graduate Medical Education Study Committee, established by

  5  proviso accompanying Specific Appropriation 191 of the

  6  1999-2000 General Appropriations Act. The report shall be

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

  8  Speaker of the House of Representatives by January 15

  9  annually. Committee members shall serve without compensation.

10  From the funds provided pursuant to subsection (3), the

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

12  year to provide for administrative costs and contractual

13  services. The report shall address the following:

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

15  provision of health care.

16         (b)  The relationship of graduate medical education to

17  the state's physician workforce.

18         (c)  The costs of training medical residents for

19  hospitals, medical schools, teaching hospitals, including all

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

21  medical schools, and municipalities.

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

23  revenue to support graduate medical education and recommend

24  alternative sources of funding for graduate medical education.

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

26  for graduate medical education by hospitals receiving such

27  funds.

28         (10)  RULEMAKING.--The department has authority to

29  adopt rules pursuant to ss. 120.536(1) and 120.54 to implement

30  the provisions of this section.

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  1         Section 3.  All statutory powers, duties, and functions

  2  and the records, personnel, property, and unexpended balances

  3  of appropriations, allocations, or other funds of the

  4  Community Hospital Education Program are transferred from the

  5  Board of Regents to the Department of Health by a type two

  6  transfer as defined in section 20.06, Florida Statutes.

  7         Section 4.  Paragraph (a) of subsection (1) of section

  8  409.908, Florida Statutes, is amended to read:

  9         409.908  Reimbursement of Medicaid providers.--Subject

10  to specific appropriations, the agency shall reimburse

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

12  according to methodologies set forth in the rules of the

13  agency and in policy manuals and handbooks incorporated by

14  reference therein. These methodologies may include fee

15  schedules, reimbursement methods based on cost reporting,

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

17  and other mechanisms the agency considers efficient and

18  effective for purchasing services or goods on behalf of

19  recipients. Payment for Medicaid compensable services made on

20  behalf of Medicaid eligible persons is subject to the

21  availability of moneys and any limitations or directions

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

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

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

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

26  making any other adjustments necessary to comply with the

27  availability of moneys and any limitations or directions

28  provided for in the General Appropriations Act, provided the

29  adjustment is consistent with legislative intent.

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  1         (1)  Reimbursement to hospitals licensed under part I

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

  3  negotiation.

  4         (a)  Reimbursement for inpatient care is limited as

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

  6         1.  The raising of rate reimbursement caps, excluding

  7  rural hospitals.

  8         2.  Recognition of the costs of graduate medical

  9  education.

10         3.  Other methodologies recognized in the General

11  Appropriations Act.

12

13  During the years funds are transferred from the Department of

14  Health Board of Regents, any reimbursement supported by such

15  funds shall be subject to certification by the Department of

16  Health Board of Regents that the hospital has complied with s.

17  381.0403. The agency is authorized to receive funds from state

18  entities, including, but not limited to, the Department of

19  Health, the Board of Regents, local governments, and other

20  local political subdivisions, for the purpose of making

21  special exception payments, including federal matching funds,

22  through the Medicaid inpatient reimbursement methodologies.

23  Funds received from state entities or local governments for

24  this purpose shall be separately accounted for and shall not

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

26  The agency may certify all local governmental funds used as

27  state match under Title XIX of the Social Security Act, to the

28  extent that the identified local health care provider that is

29  otherwise entitled to and is contracted to receive such local

30  funds is the benefactor under the state's Medicaid program as

31  determined under the General Appropriations Act and pursuant

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  1  to an agreement between the Agency for Health Care

  2  Administration and the local governmental entity. The local

  3  governmental entity shall use a certification form prescribed

  4  by the agency. At a minimum, the certification form shall

  5  identify the amount being certified and describe the

  6  relationship between the certifying local governmental entity

  7  and the local health care provider. The agency shall prepare

  8  an annual statement of impact which documents the specific

  9  activities undertaken during the previous fiscal year pursuant

10  to this paragraph, to be submitted to the Legislature no later

11  than January 1, annually. Notwithstanding this section and s.

12  409.915, counties are exempt from contributing toward the cost

13  of the special exception reimbursement for hospitals serving a

14  disproportionate share of low-income persons and providing

15  graduate medical education.

16         (b)  Reimbursement for hospital outpatient care is

17  limited to $1,500 per state fiscal year per recipient, except

18  for:

19         1.  Such care provided to a Medicaid recipient under

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

21  necessity.

22         2.  Renal dialysis services.

23         3.  Other exceptions made by the agency.

24

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

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

27  governments, and other local political subdivisions, for the

28  purpose of making payments, including federal matching funds,

29  through the Medicaid outpatient reimbursement methodologies.

30  Funds received from state entities and local governments for

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  1  this purpose shall be separately accounted for and shall not

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

  3         (c)  Hospitals that provide services to a

  4  disproportionate share of low-income Medicaid recipients, or

  5  that participate in the regional perinatal intensive care

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

  7  statutory teaching hospital disproportionate share program may

  8  receive additional reimbursement. The total amount of payment

  9  for disproportionate share hospitals shall be fixed by the

10  General Appropriations Act. The computation of these payments

11  must be made in compliance with all federal regulations and

12  the methodologies described in ss. 409.911, 409.9112, and

13  409.9113.

14         (d)  The agency is authorized to limit inflationary

15  increases for outpatient hospital services as directed by the

16  General Appropriations Act.

17         Section 5.  Paragraph (d) of subsection (1) of section

18  409.911, Florida Statutes, is amended to read:

19         409.911  Disproportionate share program.--Subject to

20  specific allocations established within the General

21  Appropriations Act and any limitations established pursuant to

22  chapter 216, the agency shall distribute, pursuant to this

23  section, moneys to hospitals providing a disproportionate

24  share of Medicaid or charity care services by making quarterly

25  Medicaid payments as required. Notwithstanding the provisions

26  of s. 409.915, counties are exempt from contributing toward

27  the cost of this special reimbursement for hospitals serving a

28  disproportionate share of low-income patients.

29         (1)  Definitions.--As used in this section and s.

30  409.9112:

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  1         (d)  "Charity care" or "uncompensated charity care"

  2  means that portion of hospital charges reported to the Agency

  3  for Health Care Administration for which there is no

  4  compensation, other than restricted or unrestricted revenues

  5  provided to a hospital by local governments or tax districts

  6  regardless of the method of payment, for care provided to a

  7  patient whose family income for the 12 months preceding the

  8  determination is less than or equal to 200 150 percent of the

  9  federal poverty level, unless the amount of hospital charges

10  due from the patient exceeds 25 percent of the annual family

11  income.  However, in no case shall the hospital charges for a

12  patient whose family income exceeds four times the federal

13  poverty level for a family of four be considered charity.

14         Section 6.  Paragraph (c) of subsection (2) of section

15  409.9117, Florida Statutes, is amended to read:

16         409.9117  Primary care disproportionate share

17  program.--

18         (2)  In the establishment and funding of this program,

19  the agency shall use the following criteria in addition to

20  those specified in s. 409.911, payments may not be made to a

21  hospital unless the hospital agrees to:

22         (c)  Coordinate and provide primary care services free

23  of charge, except copayments, to all persons with incomes up

24  to 100 percent of the federal poverty level who are not

25  otherwise covered by Medicaid or another program administered

26  by a governmental entity, and to provide such services based

27  on a sliding fee scale to all persons with incomes up to 200

28  percent of the federal poverty level who are not otherwise

29  covered by Medicaid or another program administered by a

30  governmental entity, except that eligibility may be limited to

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  1  persons who reside within a more limited area, as agreed to by

  2  the agency and the hospital.

  3         Section 7.  This act shall take effect July 1, 2001.

  4

  5          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  6                          CS for SB 2092

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  8  Specifies procedures for computing the maximum amount that
    specified counties must pay for the treatment of indigent
  9  residents of the county at a hospital located outside the
    county.  Provides for the exclusion of active-duty military
10  personnel and certain institutionalized county residents from
    the state population estimates when calculating a county's
11  financial responsibility for the hospital care. Requires the
    county of residence to accept the hospital's documentation of
12  financial eligibility and county residence and requires that
    the documentation meet specified criteria.
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    Provides that the Agency for Health Care Administration may
14  certify local governmental funds as match to the Medicaid
    Program (Title XIX) and specifies certain policies and
15  procedures and documentation requirements. Requires annual
    reports to the legislature documenting the specific activities
16  undertaken pursuant to this provision.

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