Senate Bill sb1116c1
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    Florida Senate - 2007                           CS for SB 1116
    By the Committee on Health and Human Services Appropriations;
    and Senator Peaden
    603-2261-07
  1                      A bill to be entitled
  2         An act relating to health care; amending s.
  3         409.911, F.S.; providing for the calculation of
  4         payments made to hospitals serving a
  5         disproportionate share of low-income patients;
  6         amending s. 409.9112, F.S.; prohibiting the
  7         Agency for Health Care Administration from
  8         distributing moneys under the regional
  9         perinatal intensive care centers
10         disproportionate share program for the
11         2007-2008 fiscal year; amending s. 409.9113,
12         F.S.; requiring the agency to distribute moneys
13         provided in the General Appropriations Act to
14         statutorily defined teaching hospitals and
15         family practice teaching hospitals under the
16         teaching hospital disproportionate share
17         program for the 2007-2008 fiscal year; amending
18         s. 409.9117, F.S.; prohibiting the agency from
19         distributing moneys under the primary care
20         disproportionate share program for the
21         2007-2008 fiscal year; providing an effective
22         date.
23  
24  Be It Enacted by the Legislature of the State of Florida:
25  
26         Section 1.  Paragraph (a) of subsection (2) of section
27  409.911, Florida Statutes, is amended to read:
28         409.911  Disproportionate share program.--Subject to
29  specific allocations established within the General
30  Appropriations Act and any limitations established pursuant to
31  chapter 216, the agency shall distribute, pursuant to this
                                  1
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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07
 1  section, moneys to hospitals providing a disproportionate
 2  share of Medicaid or charity care services by making quarterly
 3  Medicaid payments as required. Notwithstanding the provisions
 4  of s. 409.915, counties are exempt from contributing toward
 5  the cost of this special reimbursement for hospitals serving a
 6  disproportionate share of low-income patients.
 7         (2)  The Agency for Health Care Administration shall
 8  use the following actual audited data to determine the
 9  Medicaid days and charity care to be used in calculating the
10  disproportionate share payment:
11         (a)  The average of the 2000, 2001, and 2002, and 2003
12  audited disproportionate share data to determine each
13  hospital's Medicaid days and charity care for the 2007-2008
14  2006-2007 state fiscal year.
15         Section 2.  Section 409.9112, Florida Statutes, is
16  amended to read:
17         409.9112  Disproportionate share program for regional
18  perinatal intensive care centers.--In addition to the payments
19  made under s. 409.911, the Agency for Health Care
20  Administration shall design and implement a system of making
21  disproportionate share payments to those hospitals that
22  participate in the regional perinatal intensive care center
23  program established pursuant to chapter 383. This system of
24  payments shall conform with federal requirements and shall
25  distribute funds in each fiscal year for which an
26  appropriation is made by making quarterly Medicaid payments.
27  Notwithstanding the provisions of s. 409.915, counties are
28  exempt from contributing toward the cost of this special
29  reimbursement for hospitals serving a disproportionate share
30  of low-income patients. For the state fiscal year 2007-2008
31  2005-2006, the agency shall not distribute moneys under the
                                  2
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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07
 1  regional perinatal intensive care centers disproportionate
 2  share program.
 3         (1)  The following formula shall be used by the agency
 4  to calculate the total amount earned for hospitals that
 5  participate in the regional perinatal intensive care center
 6  program:
 7  
 8                         TAE = HDSP/THDSP
 9  
10  Where:
11         TAE = total amount earned by a regional perinatal
12  intensive care center.
13         HDSP = the prior state fiscal year regional perinatal
14  intensive care center disproportionate share payment to the
15  individual hospital.
16         THDSP = the prior state fiscal year total regional
17  perinatal intensive care center disproportionate share
18  payments to all hospitals.
19  
20         (2)  The total additional payment for hospitals that
21  participate in the regional perinatal intensive care center
22  program shall be calculated by the agency as follows:
23  
24                          TAP = TAE x TA
25  
26  Where:
27         TAP = total additional payment for a regional perinatal
28  intensive care center.
29         TAE = total amount earned by a regional perinatal
30  intensive care center.
31  
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    Florida Senate - 2007                           CS for SB 1116
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 1         TA = total appropriation for the regional perinatal
 2  intensive care center disproportionate share program.
 3  
 4         (3)  In order to receive payments under this section, a
 5  hospital must be participating in the regional perinatal
 6  intensive care center program pursuant to chapter 383 and must
 7  meet the following additional requirements:
 8         (a)  Agree to conform to all departmental and agency
 9  requirements to ensure high quality in the provision of
10  services, including criteria adopted by departmental and
11  agency rule concerning staffing ratios, medical records,
12  standards of care, equipment, space, and such other standards
13  and criteria as the department and agency deem appropriate as
14  specified by rule.
15         (b)  Agree to provide information to the department and
16  agency, in a form and manner to be prescribed by rule of the
17  department and agency, concerning the care provided to all
18  patients in neonatal intensive care centers and high-risk
19  maternity care.
20         (c)  Agree to accept all patients for neonatal
21  intensive care and high-risk maternity care, regardless of
22  ability to pay, on a functional space-available basis.
23         (d)  Agree to develop arrangements with other maternity
24  and neonatal care providers in the hospital's region for the
25  appropriate receipt and transfer of patients in need of
26  specialized maternity and neonatal intensive care services.
27         (e)  Agree to establish and provide a developmental
28  evaluation and services program for certain high-risk
29  neonates, as prescribed and defined by rule of the department.
30  
31  
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    Florida Senate - 2007                           CS for SB 1116
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 1         (f)  Agree to sponsor a program of continuing education
 2  in perinatal care for health care professionals within the
 3  region of the hospital, as specified by rule.
 4         (g)  Agree to provide backup and referral services to
 5  the department's county health departments and other
 6  low-income perinatal providers within the hospital's region,
 7  including the development of written agreements between these
 8  organizations and the hospital.
 9         (h)  Agree to arrange for transportation for high-risk
10  obstetrical patients and neonates in need of transfer from the
11  community to the hospital or from the hospital to another more
12  appropriate facility.
13         (4)  Hospitals which fail to comply with any of the
14  conditions in subsection (3) or the applicable rules of the
15  department and agency shall not receive any payments under
16  this section until full compliance is achieved.  A hospital
17  which is not in compliance in two or more consecutive quarters
18  shall not receive its share of the funds.  Any forfeited funds
19  shall be distributed by the remaining participating regional
20  perinatal intensive care center program hospitals.
21         Section 3.  Section 409.9113, Florida Statutes, is
22  amended to read:
23         409.9113  Disproportionate share program for teaching
24  hospitals.--In addition to the payments made under ss. 409.911
25  and 409.9112, the Agency for Health Care Administration shall
26  make disproportionate share payments to statutorily defined
27  teaching hospitals for their increased costs associated with
28  medical education programs and for tertiary health care
29  services provided to the indigent. This system of payments
30  shall conform with federal requirements and shall distribute
31  funds in each fiscal year for which an appropriation is made
                                  5
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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07
 1  by making quarterly Medicaid payments. Notwithstanding s.
 2  409.915, counties are exempt from contributing toward the cost
 3  of this special reimbursement for hospitals serving a
 4  disproportionate share of low-income patients. For the state
 5  fiscal year 2007-2008 2006-2007, the agency shall distribute
 6  the moneys provided in the General Appropriations Act to
 7  statutorily defined teaching hospitals and family practice
 8  teaching hospitals under the teaching hospital
 9  disproportionate share program. The funds provided for
10  statutorily defined teaching hospitals shall be distributed in
11  the same proportion as the state fiscal year 2003-2004
12  teaching hospital disproportionate share funds were
13  distributed. The funds provided for family practice teaching
14  hospitals shall be distributed equally among family practice
15  teaching hospitals.
16         (1)  On or before September 15 of each year, the Agency
17  for Health Care Administration shall calculate an allocation
18  fraction to be used for distributing funds to state statutory
19  teaching hospitals. Subsequent to the end of each quarter of
20  the state fiscal year, the agency shall distribute to each
21  statutory teaching hospital, as defined in s. 408.07, an
22  amount determined by multiplying one-fourth of the funds
23  appropriated for this purpose by the Legislature times such
24  hospital's allocation fraction.  The allocation fraction for
25  each such hospital shall be determined by the sum of three
26  primary factors, divided by three. The primary factors are:
27         (a)  The number of nationally accredited graduate
28  medical education programs offered by the hospital, including
29  programs accredited by the Accreditation Council for Graduate
30  Medical Education and the combined Internal Medicine and
31  Pediatrics programs acceptable to both the American Board of
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    Florida Senate - 2007                           CS for SB 1116
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 1  Internal Medicine and the American Board of Pediatrics at the
 2  beginning of the state fiscal year preceding the date on which
 3  the allocation fraction is calculated. The numerical value of
 4  this factor is the fraction that the hospital represents of
 5  the total number of programs, where the total is computed for
 6  all state statutory teaching hospitals.
 7         (b)  The number of full-time equivalent trainees in the
 8  hospital, which comprises two components:
 9         1.  The number of trainees enrolled in nationally
10  accredited graduate medical education programs, as defined in
11  paragraph (a).  Full-time equivalents are computed using the
12  fraction of the year during which each trainee is primarily
13  assigned to the given institution, over the state fiscal year
14  preceding the date on which the allocation fraction is
15  calculated. The numerical value of this factor is the fraction
16  that the hospital represents of the total number of full-time
17  equivalent trainees enrolled in accredited graduate programs,
18  where the total is computed for all state statutory teaching
19  hospitals.
20         2.  The number of medical students enrolled in
21  accredited colleges of medicine and engaged in clinical
22  activities, including required clinical clerkships and
23  clinical electives.  Full-time equivalents are computed using
24  the fraction of the year during which each trainee is
25  primarily assigned to the given institution, over the course
26  of the state fiscal year preceding the date on which the
27  allocation fraction is calculated. The numerical value of this
28  factor is the fraction that the given hospital represents of
29  the total number of full-time equivalent students enrolled in
30  accredited colleges of medicine, where the total is computed
31  for all state statutory teaching hospitals.
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 1  
 2  The primary factor for full-time equivalent trainees is
 3  computed as the sum of these two components, divided by two.
 4         (c)  A service index that comprises three components:
 5         1.  The Agency for Health Care Administration Service
 6  Index, computed by applying the standard Service Inventory
 7  Scores established by the Agency for Health Care
 8  Administration to services offered by the given hospital, as
 9  reported on Worksheet A-2 for the last fiscal year reported to
10  the agency before the date on which the allocation fraction is
11  calculated.  The numerical value of this factor is the
12  fraction that the given hospital represents of the total
13  Agency for Health Care Administration Service Index values,
14  where the total is computed for all state statutory teaching
15  hospitals.
16         2.  A volume-weighted service index, computed by
17  applying the standard Service Inventory Scores established by
18  the Agency for Health Care Administration to the volume of
19  each service, expressed in terms of the standard units of
20  measure reported on Worksheet A-2 for the last fiscal year
21  reported to the agency before the date on which the allocation
22  factor is calculated.  The numerical value of this factor is
23  the fraction that the given hospital represents of the total
24  volume-weighted service index values, where the total is
25  computed for all state statutory teaching hospitals.
26         3.  Total Medicaid payments to each hospital for direct
27  inpatient and outpatient services during the fiscal year
28  preceding the date on which the allocation factor is
29  calculated.  This includes payments made to each hospital for
30  such services by Medicaid prepaid health plans, whether the
31  plan was administered by the hospital or not.  The numerical
                                  8
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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07
 1  value of this factor is the fraction that each hospital
 2  represents of the total of such Medicaid payments, where the
 3  total is computed for all state statutory teaching hospitals.
 4  
 5  The primary factor for the service index is computed as the
 6  sum of these three components, divided by three.
 7         (2)  By October 1 of each year, the agency shall use
 8  the following formula to calculate the maximum additional
 9  disproportionate share payment for statutorily defined
10  teaching hospitals:
11  
12                          TAP = THAF x A
13  
14  Where:
15         TAP = total additional payment.
16         THAF = teaching hospital allocation factor.
17         A = amount appropriated for a teaching hospital
18  disproportionate share program.
19         Section 4.  Section 409.9117, Florida Statutes, is
20  amended to read:
21         409.9117  Primary care disproportionate share
22  program.--For the state fiscal year 2007-2008 2006-2007, the
23  agency shall not distribute moneys under the primary care
24  disproportionate share program.
25         (1)  If federal funds are available for
26  disproportionate share programs in addition to those otherwise
27  provided by law, there shall be created a primary care
28  disproportionate share program.
29         (2)  The following formula shall be used by the agency
30  to calculate the total amount earned for hospitals that
31  
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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07
 1  participate in the primary care disproportionate share
 2  program:
 3  
 4                         TAE = HDSP/THDSP
 5  
 6  Where:
 7         TAE = total amount earned by a hospital participating
 8  in the primary care disproportionate share program.
 9         HDSP = the prior state fiscal year primary care
10  disproportionate share payment to the individual hospital.
11         THDSP = the prior state fiscal year total primary care
12  disproportionate share payments to all hospitals.
13  
14         (3)  The total additional payment for hospitals that
15  participate in the primary care disproportionate share program
16  shall be calculated by the agency as follows:
17  
18                          TAP = TAE x TA
19  
20  Where:
21         TAP = total additional payment for a primary care
22  hospital.
23         TAE = total amount earned by a primary care hospital.
24         TA = total appropriation for the primary care
25  disproportionate share program.
26  
27         (4)  In the establishment and funding of this program,
28  the agency shall use the following criteria in addition to
29  those specified in s. 409.911, payments may not be made to a
30  hospital unless the hospital agrees to:
31  
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 1         (a)  Cooperate with a Medicaid prepaid health plan, if
 2  one exists in the community.
 3         (b)  Ensure the availability of primary and specialty
 4  care physicians to Medicaid recipients who are not enrolled in
 5  a prepaid capitated arrangement and who are in need of access
 6  to such physicians.
 7         (c)  Coordinate and provide primary care services free
 8  of charge, except copayments, to all persons with incomes up
 9  to 100 percent of the federal poverty level who are not
10  otherwise covered by Medicaid or another program administered
11  by a governmental entity, and to provide such services based
12  on a sliding fee scale to all persons with incomes up to 200
13  percent of the federal poverty level who are not otherwise
14  covered by Medicaid or another program administered by a
15  governmental entity, except that eligibility may be limited to
16  persons who reside within a more limited area, as agreed to by
17  the agency and the hospital.
18         (d)  Contract with any federally qualified health
19  center, if one exists within the agreed geopolitical
20  boundaries, concerning the provision of primary care services,
21  in order to guarantee delivery of services in a nonduplicative
22  fashion, and to provide for referral arrangements, privileges,
23  and admissions, as appropriate.  The hospital shall agree to
24  provide at an onsite or offsite facility primary care services
25  within 24 hours to which all Medicaid recipients and persons
26  eligible under this paragraph who do not require emergency
27  room services are referred during normal daylight hours.
28         (e)  Cooperate with the agency, the county, and other
29  entities to ensure the provision of certain public health
30  services, case management, referral and acceptance of
31  patients, and sharing of epidemiological data, as the agency
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    Florida Senate - 2007                           CS for SB 1116
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 1  and the hospital find mutually necessary and desirable to
 2  promote and protect the public health within the agreed
 3  geopolitical boundaries.
 4         (f)  In cooperation with the county in which the
 5  hospital resides, develop a low-cost, outpatient, prepaid
 6  health care program to persons who are not eligible for the
 7  Medicaid program, and who reside within the area.
 8         (g)  Provide inpatient services to residents within the
 9  area who are not eligible for Medicaid or Medicare, and who do
10  not have private health insurance, regardless of ability to
11  pay, on the basis of available space, except that nothing
12  shall prevent the hospital from establishing bill collection
13  programs based on ability to pay.
14         (h)  Work with the Florida Healthy Kids Corporation,
15  the Florida Health Care Purchasing Cooperative, and business
16  health coalitions, as appropriate, to develop a feasibility
17  study and plan to provide a low-cost comprehensive health
18  insurance plan to persons who reside within the area and who
19  do not have access to such a plan.
20         (i)  Work with public health officials and other
21  experts to provide community health education and prevention
22  activities designed to promote healthy lifestyles and
23  appropriate use of health services.
24         (j)  Work with the local health council to develop a
25  plan for promoting access to affordable health care services
26  for all persons who reside within the area, including, but not
27  limited to, public health services, primary care services,
28  inpatient services, and affordable health insurance generally.
29  
30  Any hospital that fails to comply with any of the provisions
31  of this subsection, or any other contractual condition, may
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    Florida Senate - 2007                           CS for SB 1116
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 1  not receive payments under this section until full compliance
 2  is achieved.
 3         Section 5.  This act shall take effect July 1, 2007.
 4  
 5          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 6                         Senate Bill 1116
 7                                 
 8  Updates the years of audited data used to determine Medicaid
    and charity care days for each hospital in the
 9  Disproportionate Share Program for Fiscal Year 2007-2008.
10  Continues language that does not allow for distribution of
    funds through the Regional Perinatal Intensive Care Centers
11  and the Primary Care Disproportionate Share Programs in Fiscal
    Year 2007-2008.
12  
    Updates the year and requires disproportionate share payments
13  to teaching hospitals in Fiscal Year 2007-2008.
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