| 1 | A bill to be entitled |
| 2 | An act relating to fiscal intermediary services |
| 3 | organizations; amending s. 641.316, F.S.; redefining the |
| 4 | term "fiscal intermediary services organization" for |
| 5 | purposes of provisions governing organizations that manage |
| 6 | the business affairs of health care professionals; |
| 7 | providing an exception from the requirement to obtain a |
| 8 | bond; revising compliance requirements for registration as |
| 9 | a fiscal intermediary services organization; providing an |
| 10 | effective date. |
| 11 |
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| 12 | Be It Enacted by the Legislature of the State of Florida: |
| 13 |
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| 14 | Section 1. Paragraph (b) of subsection (2) and subsections |
| 15 | (4) and (6) of section 641.316, Florida Statutes, are amended to |
| 16 | read: |
| 17 | 641.316 Fiscal intermediary services.-- |
| 18 | (2) |
| 19 | (b) The term "fiscal intermediary services organization" |
| 20 | means a person or entity that which performs fiduciary or fiscal |
| 21 | intermediary services to health care professionals who contract |
| 22 | with health maintenance organizations other than a fiscal |
| 23 | intermediary services organization owned, operated, or |
| 24 | controlled by a hospital licensed under chapter 395, an insurer |
| 25 | licensed under chapter 624, a third-party administrator licensed |
| 26 | under chapter 626, a prepaid limited health service organization |
| 27 | licensed under chapter 636, a health maintenance organization |
| 28 | licensed under this chapter, or a physician group practice |
| 29 | practices as defined in s. 456.053(3)(h) which provides services |
| 30 | under the scope of licenses of the members of the group |
| 31 | practice. |
| 32 | (4) A fiscal intermediary services organization, as |
| 33 | described in subsection (3), shall secure and maintain a surety |
| 34 | bond on file with the office, naming the intermediary as |
| 35 | principal. The bond must be obtained from a company authorized |
| 36 | to write surety insurance in the state, and the office shall be |
| 37 | obligee on behalf of itself and third parties. The penal sum of |
| 38 | the bond may not be less than 5 percent of the funds handled by |
| 39 | the intermediary in connection with its fiscal and fiduciary |
| 40 | services during the prior year or $250,000, whichever is less. |
| 41 | The minimum bond amount must be $10,000. The condition of the |
| 42 | bond must be that the intermediary shall register with the |
| 43 | office and shall not misappropriate funds within its control or |
| 44 | custody as a fiscal intermediary or fiduciary. The aggregate |
| 45 | liability of the surety for any and all breaches of the |
| 46 | conditions of the bond may not exceed the penal sum of the bond. |
| 47 | The bond must be continuous in form, must be renewed annually by |
| 48 | a continuation certificate, and may be terminated by the surety |
| 49 | upon its giving 30 days' written notice of termination to the |
| 50 | office. This subsection does not apply to a fiscal intermediary |
| 51 | services organization that is owned, operated, or controlled by |
| 52 | a third-party administrator holding a certificate of authority |
| 53 | under part VII of chapter 626. |
| 54 | (6) Any fiscal intermediary services organization, other |
| 55 | than a fiscal intermediary services organization owned, |
| 56 | operated, or controlled by a hospital licensed under chapter |
| 57 | 395, an insurer licensed under chapter 624, a third-party |
| 58 | administrator licensed under chapter 626, a prepaid limited |
| 59 | health service organization licensed under chapter 636, a not- |
| 60 | for-profit corporation that provides health care services |
| 61 | directly to patients through employed, salaried physicians and |
| 62 | that is affiliated with an accredited hospital licensed in this |
| 63 | state, a health maintenance organization licensed under this |
| 64 | chapter, or a physician group practice practices as defined in |
| 65 | s. 456.053(3)(h) which provides services under the scope of |
| 66 | licenses of the members of the group practice, must register |
| 67 | with the office and meet the requirements of this section. In |
| 68 | order to register as a fiscal intermediary services |
| 69 | organization, the organization must comply with ss. |
| 70 | 641.21(1)(c), and (d), and (j), and 641.22(6), and 641.27. The |
| 71 | fiscal intermediary services organization must also comply with |
| 72 | the provisions of ss. 641.3155, 641.3156, and 641.51(4). Should |
| 73 | the office determine that the fiscal intermediary services |
| 74 | organization does not meet the requirements of this section, the |
| 75 | registration shall be denied. If In the event that the |
| 76 | registrant fails to maintain compliance with the provisions of |
| 77 | this section, the office may revoke or suspend the registration. |
| 78 | In lieu of revocation or suspension of the registration, the |
| 79 | office may levy an administrative penalty in accordance with s. |
| 80 | 641.25. |
| 81 | Section 2. This act shall take effect October 1, 2007. |