| 1 | A bill to be entitled | 
| 2 | An act relating to health care; amending s. 409.911, F.S.; | 
| 3 | revising the method for calculating disproportionate share | 
| 4 | payments to hospitals; amending s. 409.9112, F.S.; | 
| 5 | revising the time period during which the Agency for | 
| 6 | Health Care Administration is prohibited from distributing | 
| 7 | disproportionate share payments to regional perinatal | 
| 8 | intensive care centers; amending s. 409.9113, F.S.; | 
| 9 | revising the time period for distribution of | 
| 10 | disproportionate share payments to teaching hospitals; | 
| 11 | amending s. 409.9117, F.S.; revising the time period | 
| 12 | during which the agency is prohibited from distributing | 
| 13 | certain moneys under the primary care disproportionate | 
| 14 | share program; providing an effective date. | 
| 15 | 
 | 
| 16 | Be It Enacted by the Legislature of the State of Florida: | 
| 17 | 
 | 
| 18 | Section 1.  Subsection (2) of section 409.911, Florida | 
| 19 | Statutes, is amended to read: | 
| 20 | 409.911  Disproportionate share program.--Subject to | 
| 21 | specific allocations established within the General | 
| 22 | Appropriations Act and any limitations established pursuant to | 
| 23 | chapter 216, the agency shall distribute, pursuant to this | 
| 24 | section, moneys to hospitals providing a disproportionate share | 
| 25 | of Medicaid or charity care services by making quarterly | 
| 26 | Medicaid payments as required. Notwithstanding the provisions of | 
| 27 | s. 409.915, counties are exempt from contributing toward the | 
| 28 | cost of this special reimbursement for hospitals serving a | 
| 29 | disproportionate share of low-income patients. | 
| 30 | (2)  The Agency for Health Care Administration shall use | 
| 31 | the following actual audited data to determine the Medicaid days | 
| 32 | and charity care to be used in calculating the disproportionate | 
| 33 | share payment: | 
| 34 | (a)  The average of the 2001, 2002, and 2003 2000, 2001, | 
| 35 | and 2002audited disproportionate share data to determine each | 
| 36 | hospital's Medicaid days and charity care for the 2007-2008 | 
| 37 | 2006-2007state fiscal year. | 
| 38 | (b)  If the Agency for Health Care Administration does not | 
| 39 | have the prescribed 3 years of audited disproportionate share | 
| 40 | data as noted in paragraph (a) for a hospital, the agency shall | 
| 41 | use the average of the years of the audited disproportionate | 
| 42 | share data as noted in paragraph (a) which is available. | 
| 43 | (c)  In accordance with s. 1923(b) of the Social Security | 
| 44 | Act, a hospital with a Medicaid inpatient utilization rate | 
| 45 | greater than one standard deviation above the statewide mean or | 
| 46 | a hospital with a low-income utilization rate of 25 percent or | 
| 47 | greater shall qualify for reimbursement. | 
| 48 | Section 2.  Section 409.9112, Florida Statutes, is amended | 
| 49 | to read: | 
| 50 | 409.9112  Disproportionate share program for regional | 
| 51 | perinatal intensive care centers.--In addition to the payments | 
| 52 | made under s. 409.911, the Agency for Health Care Administration | 
| 53 | shall design and implement a system of making disproportionate | 
| 54 | share payments to those hospitals that participate in the | 
| 55 | regional perinatal intensive care center program established | 
| 56 | pursuant to chapter 383. This system of payments shall conform | 
| 57 | with federal requirements and shall distribute funds in each | 
| 58 | fiscal year for which an appropriation is made by making | 
| 59 | quarterly Medicaid payments. Notwithstanding the provisions of | 
| 60 | s. 409.915, counties are exempt from contributing toward the | 
| 61 | cost of this special reimbursement for hospitals serving a | 
| 62 | disproportionate share of low-income patients. For the state | 
| 63 | fiscal year 2007-2008 2005-2006, the agency shall not distribute | 
| 64 | moneys under the regional perinatal intensive care centers | 
| 65 | disproportionate share program. | 
| 66 | (1)  The following formula shall be used by the agency to | 
| 67 | calculate the total amount earned for hospitals that participate | 
| 68 | in the regional perinatal intensive care center program: | 
| 69 | 
 | 
| 70 | TAE = HDSP/THDSP | 
| 71 | 
 | 
| 72 | Where: | 
| 73 | TAE = total amount earned by a regional perinatal intensive | 
| 74 | care center. | 
| 75 | HDSP = the prior state fiscal year regional perinatal | 
| 76 | intensive care center disproportionate share payment to the | 
| 77 | individual hospital. | 
| 78 | THDSP = the prior state fiscal year total regional | 
| 79 | perinatal intensive care center disproportionate share payments | 
| 80 | to all hospitals. | 
| 81 | (2)  The total additional payment for hospitals that | 
| 82 | participate in the regional perinatal intensive care center | 
| 83 | program shall be calculated by the agency as follows: | 
| 84 | 
 | 
| 85 | TAP = TAE x TA | 
| 86 | 
 | 
| 87 | Where: | 
| 88 | TAP = total additional payment for a regional perinatal | 
| 89 | intensive care center. | 
| 90 | TAE = total amount earned by a regional perinatal intensive | 
| 91 | care center. | 
| 92 | TA = total appropriation for the regional perinatal | 
| 93 | intensive care center disproportionate share program. | 
| 94 | (3)  In order to receive payments under this section, a | 
| 95 | hospital must be participating in the regional perinatal | 
| 96 | intensive care center program pursuant to chapter 383 and must | 
| 97 | meet the following additional requirements: | 
| 98 | (a)  Agree to conform to all departmental and agency | 
| 99 | requirements to ensure high quality in the provision of | 
| 100 | services, including criteria adopted by departmental and agency | 
| 101 | rule concerning staffing ratios, medical records, standards of | 
| 102 | care, equipment, space, and such other standards and criteria as | 
| 103 | the department and agency deem appropriate as specified by rule. | 
| 104 | (b)  Agree to provide information to the department and | 
| 105 | agency, in a form and manner to be prescribed by rule of the | 
| 106 | department and agency, concerning the care provided to all | 
| 107 | patients in neonatal intensive care centers and high-risk | 
| 108 | maternity care. | 
| 109 | (c)  Agree to accept all patients for neonatal intensive | 
| 110 | care and high-risk maternity care, regardless of ability to pay, | 
| 111 | on a functional space-available basis. | 
| 112 | (d)  Agree to develop arrangements with other maternity and | 
| 113 | neonatal care providers in the hospital's region for the | 
| 114 | appropriate receipt and transfer of patients in need of | 
| 115 | specialized maternity and neonatal intensive care services. | 
| 116 | (e)  Agree to establish and provide a developmental | 
| 117 | evaluation and services program for certain high-risk neonates, | 
| 118 | as prescribed and defined by rule of the department. | 
| 119 | (f)  Agree to sponsor a program of continuing education in | 
| 120 | perinatal care for health care professionals within the region | 
| 121 | of the hospital, as specified by rule. | 
| 122 | (g)  Agree to provide backup and referral services to the | 
| 123 | department's county health departments and other low-income | 
| 124 | perinatal providers within the hospital's region, including the | 
| 125 | development of written agreements between these organizations | 
| 126 | and the hospital. | 
| 127 | (h)  Agree to arrange for transportation for high-risk | 
| 128 | obstetrical patients and neonates in need of transfer from the | 
| 129 | community to the hospital or from the hospital to another more | 
| 130 | appropriate facility. | 
| 131 | (4)  Hospitals which fail to comply with any of the | 
| 132 | conditions in subsection (3) or the applicable rules of the | 
| 133 | department and agency shall not receive any payments under this | 
| 134 | section until full compliance is achieved. A hospital which is | 
| 135 | not in compliance in two or more consecutive quarters shall not | 
| 136 | receive its share of the funds. Any forfeited funds shall be | 
| 137 | distributed by the remaining participating regional perinatal | 
| 138 | intensive care center program hospitals. | 
| 139 | Section 3.  Section 409.9113, Florida Statutes, is amended | 
| 140 | to read: | 
| 141 | 409.9113  Disproportionate share program for teaching | 
| 142 | hospitals.--In addition to the payments made under ss. 409.911 | 
| 143 | and 409.9112, the Agency for Health Care Administration shall | 
| 144 | make disproportionate share payments to statutorily defined | 
| 145 | teaching hospitals for their increased costs associated with | 
| 146 | medical education programs and for tertiary health care services | 
| 147 | provided to the indigent. This system of payments shall conform | 
| 148 | with federal requirements and shall distribute funds in each | 
| 149 | fiscal year for which an appropriation is made by making | 
| 150 | quarterly Medicaid payments. Notwithstanding s. 409.915, | 
| 151 | counties are exempt from contributing toward the cost of this | 
| 152 | special reimbursement for hospitals serving a disproportionate | 
| 153 | share of low-income patients. For the state fiscal year 2007- | 
| 154 | 2008 2006-2007, the agency shall distribute the moneys provided | 
| 155 | in the General Appropriations Act to statutorily defined | 
| 156 | teaching hospitals and family practice teaching hospitals under | 
| 157 | the teaching hospital disproportionate share program. The funds | 
| 158 | provided for statutorily defined teaching hospitals shall be | 
| 159 | distributed in the same proportion as the state fiscal year | 
| 160 | 2003-2004 teaching hospital disproportionate share funds were | 
| 161 | distributed. The funds provided for family practice teaching | 
| 162 | hospitals shall be distributed equally among family practice | 
| 163 | teaching hospitals. | 
| 164 | (1)  On or before September 15 of each year, the Agency for | 
| 165 | Health Care Administration shall calculate an allocation | 
| 166 | fraction to be used for distributing funds to state statutory | 
| 167 | teaching hospitals. Subsequent to the end of each quarter of the | 
| 168 | state fiscal year, the agency shall distribute to each statutory | 
| 169 | teaching hospital, as defined in s. 408.07, an amount determined | 
| 170 | by multiplying one-fourth of the funds appropriated for this | 
| 171 | purpose by the Legislature times such hospital's allocation | 
| 172 | fraction. The allocation fraction for each such hospital shall | 
| 173 | be determined by the sum of three primary factors, divided by | 
| 174 | three. The primary factors are: | 
| 175 | (a)  The number of nationally accredited graduate medical | 
| 176 | education programs offered by the hospital, including programs | 
| 177 | accredited by the Accreditation Council for Graduate Medical | 
| 178 | Education and the combined Internal Medicine and Pediatrics | 
| 179 | programs acceptable to both the American Board of Internal | 
| 180 | Medicine and the American Board of Pediatrics at the beginning | 
| 181 | of the state fiscal year preceding the date on which the | 
| 182 | allocation fraction is calculated. The numerical value of this | 
| 183 | factor is the fraction that the hospital represents of the total | 
| 184 | number of programs, where the total is computed for all state | 
| 185 | statutory teaching hospitals. | 
| 186 | (b)  The number of full-time equivalent trainees in the | 
| 187 | hospital, which comprises two components: | 
| 188 | 1.  The number of trainees enrolled in nationally | 
| 189 | accredited graduate medical education programs, as defined in | 
| 190 | paragraph (a). Full-time equivalents are computed using the | 
| 191 | fraction of the year during which each trainee is primarily | 
| 192 | assigned to the given institution, over the state fiscal year | 
| 193 | preceding the date on which the allocation fraction is | 
| 194 | calculated. The numerical value of this factor is the fraction | 
| 195 | that the hospital represents of the total number of full-time | 
| 196 | equivalent trainees enrolled in accredited graduate programs, | 
| 197 | where the total is computed for all state statutory teaching | 
| 198 | hospitals. | 
| 199 | 2.  The number of medical students enrolled in accredited | 
| 200 | colleges of medicine and engaged in clinical activities, | 
| 201 | including required clinical clerkships and clinical electives. | 
| 202 | Full-time equivalents are computed using the fraction of the | 
| 203 | year during which each trainee is primarily assigned to the | 
| 204 | given institution, over the course of the state fiscal year | 
| 205 | preceding the date on which the allocation fraction is | 
| 206 | calculated. The numerical value of this factor is the fraction | 
| 207 | that the given hospital represents of the total number of full- | 
| 208 | time equivalent students enrolled in accredited colleges of | 
| 209 | medicine, where the total is computed for all state statutory | 
| 210 | teaching hospitals. | 
| 211 | 
 | 
| 212 | The primary factor for full-time equivalent trainees is computed | 
| 213 | as the sum of these two components, divided by two. | 
| 214 | (c)  A service index that comprises three components: | 
| 215 | 1.  The Agency for Health Care Administration Service | 
| 216 | Index, computed by applying the standard Service Inventory | 
| 217 | Scores established by the Agency for Health Care Administration | 
| 218 | to services offered by the given hospital, as reported on | 
| 219 | Worksheet A-2 for the last fiscal year reported to the agency | 
| 220 | before the date on which the allocation fraction is calculated. | 
| 221 | The numerical value of this factor is the fraction that the | 
| 222 | given hospital represents of the total Agency for Health Care | 
| 223 | Administration Service Index values, where the total is computed | 
| 224 | for all state statutory teaching hospitals. | 
| 225 | 2.  A volume-weighted service index, computed by applying | 
| 226 | the standard Service Inventory Scores established by the Agency | 
| 227 | for Health Care Administration to the volume of each service, | 
| 228 | expressed in terms of the standard units of measure reported on | 
| 229 | Worksheet A-2 for the last fiscal year reported to the agency | 
| 230 | before the date on which the allocation factor is calculated. | 
| 231 | The numerical value of this factor is the fraction that the | 
| 232 | given hospital represents of the total volume-weighted service | 
| 233 | index values, where the total is computed for all state | 
| 234 | statutory teaching hospitals. | 
| 235 | 3.  Total Medicaid payments to each hospital for direct | 
| 236 | inpatient and outpatient services during the fiscal year | 
| 237 | preceding the date on which the allocation factor is calculated. | 
| 238 | This includes payments made to each hospital for such services | 
| 239 | by Medicaid prepaid health plans, whether the plan was | 
| 240 | administered by the hospital or not. The numerical value of this | 
| 241 | factor is the fraction that each hospital represents of the | 
| 242 | total of such Medicaid payments, where the total is computed for | 
| 243 | all state statutory teaching hospitals. | 
| 244 | 
 | 
| 245 | The primary factor for the service index is computed as the sum | 
| 246 | of these three components, divided by three. | 
| 247 | (2)  By October 1 of each year, the agency shall use the | 
| 248 | following formula to calculate the maximum additional | 
| 249 | disproportionate share payment for statutorily defined teaching | 
| 250 | hospitals: | 
| 251 | 
 | 
| 252 | TAP = THAF x A | 
| 253 | 
 | 
| 254 | Where: | 
| 255 | TAP = total additional payment. | 
| 256 | THAF = teaching hospital allocation factor. | 
| 257 | A = amount appropriated for a teaching hospital | 
| 258 | disproportionate share program. | 
| 259 | Section 4.  Section 409.9117, Florida Statutes, is amended | 
| 260 | to read: | 
| 261 | 409.9117  Primary care disproportionate share program.--For | 
| 262 | the state fiscal year 2007-2008 2006-2007, the agency shall not | 
| 263 | distribute moneys under the primary care disproportionate share | 
| 264 | program. | 
| 265 | (1)  If federal funds are available for disproportionate | 
| 266 | share programs in addition to those otherwise provided by law, | 
| 267 | there shall be created a primary care disproportionate share | 
| 268 | program. | 
| 269 | (2)  The following formula shall be used by the agency to | 
| 270 | calculate the total amount earned for hospitals that participate | 
| 271 | in the primary care disproportionate share program: | 
| 272 | 
 | 
| 273 | TAE = HDSP/THDSP | 
| 274 | 
 | 
| 275 | Where: | 
| 276 | TAE = total amount earned by a hospital participating in | 
| 277 | the primary care disproportionate share program. | 
| 278 | HDSP = the prior state fiscal year primary care | 
| 279 | disproportionate share payment to the individual hospital. | 
| 280 | THDSP = the prior state fiscal year total primary care | 
| 281 | disproportionate share payments to all hospitals. | 
| 282 | (3)  The total additional payment for hospitals that | 
| 283 | participate in the primary care disproportionate share program | 
| 284 | shall be calculated by the agency as follows: | 
| 285 | 
 | 
| 286 | TAP = TAE x TA | 
| 287 | 
 | 
| 288 | Where: | 
| 289 | TAP = total additional payment for a primary care hospital. | 
| 290 | TAE = total amount earned by a primary care hospital. | 
| 291 | TA = total appropriation for the primary care | 
| 292 | disproportionate share program. | 
| 293 | (4)  In the establishment and funding of this program, the | 
| 294 | agency shall use the following criteria in addition to those | 
| 295 | specified in s. 409.911, payments may not be made to a hospital | 
| 296 | unless the hospital agrees to: | 
| 297 | (a)  Cooperate with a Medicaid prepaid health plan, if one | 
| 298 | exists in the community. | 
| 299 | (b)  Ensure the availability of primary and specialty care | 
| 300 | physicians to Medicaid recipients who are not enrolled in a | 
| 301 | prepaid capitated arrangement and who are in need of access to | 
| 302 | such physicians. | 
| 303 | (c)  Coordinate and provide primary care services free of | 
| 304 | charge, except copayments, to all persons with incomes up to 100 | 
| 305 | percent of the federal poverty level who are not otherwise | 
| 306 | covered by Medicaid or another program administered by a | 
| 307 | governmental entity, and to provide such services based on a | 
| 308 | sliding fee scale to all persons with incomes up to 200 percent | 
| 309 | of the federal poverty level who are not otherwise covered by | 
| 310 | Medicaid or another program administered by a governmental | 
| 311 | entity, except that eligibility may be limited to persons who | 
| 312 | reside within a more limited area, as agreed to by the agency | 
| 313 | and the hospital. | 
| 314 | (d)  Contract with any federally qualified health center, | 
| 315 | if one exists within the agreed geopolitical boundaries, | 
| 316 | concerning the provision of primary care services, in order to | 
| 317 | guarantee delivery of services in a nonduplicative fashion, and | 
| 318 | to provide for referral arrangements, privileges, and | 
| 319 | admissions, as appropriate. The hospital shall agree to provide | 
| 320 | at an onsite or offsite facility primary care services within 24 | 
| 321 | hours to which all Medicaid recipients and persons eligible | 
| 322 | under this paragraph who do not require emergency room services | 
| 323 | are referred during normal daylight hours. | 
| 324 | (e)  Cooperate with the agency, the county, and other | 
| 325 | entities to ensure the provision of certain public health | 
| 326 | services, case management, referral and acceptance of patients, | 
| 327 | and sharing of epidemiological data, as the agency and the | 
| 328 | hospital find mutually necessary and desirable to promote and | 
| 329 | protect the public health within the agreed geopolitical | 
| 330 | boundaries. | 
| 331 | (f)  In cooperation with the county in which the hospital | 
| 332 | resides, develop a low-cost, outpatient, prepaid health care | 
| 333 | program to persons who are not eligible for the Medicaid | 
| 334 | program, and who reside within the area. | 
| 335 | (g)  Provide inpatient services to residents within the | 
| 336 | area who are not eligible for Medicaid or Medicare, and who do | 
| 337 | not have private health insurance, regardless of ability to pay, | 
| 338 | on the basis of available space, except that nothing shall | 
| 339 | prevent the hospital from establishing bill collection programs | 
| 340 | based on ability to pay. | 
| 341 | (h)  Work with the Florida Healthy Kids Corporation, the | 
| 342 | Florida Health Care Purchasing Cooperative, and business health | 
| 343 | coalitions, as appropriate, to develop a feasibility study and | 
| 344 | plan to provide a low-cost comprehensive health insurance plan | 
| 345 | to persons who reside within the area and who do not have access | 
| 346 | to such a plan. | 
| 347 | (i)  Work with public health officials and other experts to | 
| 348 | provide community health education and prevention activities | 
| 349 | designed to promote healthy lifestyles and appropriate use of | 
| 350 | health services. | 
| 351 | (j)  Work with the local health council to develop a plan | 
| 352 | for promoting access to affordable health care services for all | 
| 353 | persons who reside within the area, including, but not limited | 
| 354 | to, public health services, primary care services, inpatient | 
| 355 | services, and affordable health insurance generally. | 
| 356 | 
 | 
| 357 | Any hospital that fails to comply with any of the provisions of | 
| 358 | this subsection, or any other contractual condition, may not | 
| 359 | receive payments under this section until full compliance is | 
| 360 | achieved. | 
| 361 | Section 5.  This act shall take effect July 1, 2007. |