Senate Bill 1728c2

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    Florida Senate - 1998                    CS for CS for SB 1728

    By the Committees on Health Care, Criminal Justice and Senator
    Bronson




    317-2121-98

  1                      A bill to be entitled

  2         An act relating to mobile surgical facilities;

  3         amending s. 395.001, F.S.; providing

  4         legislative intent; amending s. 395.002, F.S.;

  5         revising definitions; defining "mobile surgical

  6         facility"; amending s. 395.003, F.S.; requiring

  7         the licensure of mobile surgical facilities

  8         under ch. 395, F.S.; amending s. 395.004, F.S.;

  9         requiring a license fee upon application for

10         licensure as a mobile surgical facility;

11         amending s. 395.0161, F.S.; requiring licensure

12         inspections of such facilities under specified

13         circumstances; providing an exception; amending

14         s. 395.0163, F.S.; requiring construction

15         inspections of such facilities under specified

16         circumstances; providing an exception; amending

17         s. 395.1055, F.S.; authorizing the

18         establishment of separate standards for mobile

19         surgical facilities; amending s. 408.036, F.S.;

20         providing an exemption from review and

21         application for certificate of need for mobile

22         surgical facilities; amending s. 395.7015,

23         F.S.; providing for the imposition of an annual

24         assessment upon mobile surgical facilities;

25         providing application; requiring specified

26         mobile surgical facilities in operation prior

27         to the effective date of the act to continue to

28         operate and be subject to the provisions of the

29         act only after the effective date of rules

30         established by the Agency for Health Care

31         Administration; providing an effective date.

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    Florida Senate - 1998                    CS for CS for SB 1728
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  1  Be It Enacted by the Legislature of the State of Florida:

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  3         Section 1.  Section 395.001, Florida Statutes, is

  4  amended to read:

  5         395.001  Legislative intent.--It is the intent of the

  6  Legislature to provide for the protection of public health and

  7  safety in the establishment, construction, maintenance, and

  8  operation of hospitals, and ambulatory surgical centers, and

  9  mobile surgical facilities by providing for licensure of same

10  and for the development, establishment, and enforcement of

11  minimum standards with respect thereto.

12         Section 2.  Subsections (4) and (17) of section

13  395.002, Florida Statutes, are amended, subsections (21)

14  through (31) are redesignated as subsections (22) through

15  (32), respectively, present subsection (22) is redesignated

16  and amended, and a new subsection (21) is added to said

17  section, to read:

18         395.002  Definitions.--As used in this chapter:

19         (4)  "Ambulatory surgical center" or "mobile surgical

20  facility" means a facility the primary purpose of which is to

21  provide elective surgical care, in which the patient is

22  admitted to and discharged from such facility within the same

23  working day and is not permitted to stay overnight, and which

24  is not part of a hospital. However, a facility existing for

25  the primary purpose of performing terminations of pregnancy,

26  an office maintained by a physician for the practice of

27  medicine, or an office maintained for the practice of

28  dentistry shall not be construed to be an ambulatory surgical

29  center, provided that any facility or office which is

30  certified or seeks certification as a Medicare ambulatory

31  surgical center shall be licensed as an ambulatory surgical

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  1  center pursuant to s. 395.003. Any structure or vehicle in

  2  which a physician maintains an office and practices surgery,

  3  and which can appear to the public to be a mobile office

  4  because the structure or vehicle operates at more than one

  5  address, shall be construed to be a mobile surgical facility.

  6         (17)  "Licensed facility" means a hospital, or

  7  ambulatory surgical center, or mobile surgical facility

  8  licensed in accordance with this chapter.

  9         (21)  "Mobile surgical facility" is a mobile facility

10  in which licensed health care professionals provide elective

11  surgical care under contract with the Department of

12  Corrections or a private correctional facility operating

13  pursuant to chapter 957 and in which inmate patients are

14  admitted to and discharged from said facility within the same

15  working day and are not permitted to stay overnight. However,

16  mobile surgical facilities may provide health care services

17  only to the inmate patients of the Department of Corrections,

18  or inmate patients of a private correctional facility

19  operating pursuant to chapter 957, and not to the general

20  public.

21         (23)(22)  "Premises" means those buildings, beds, and

22  equipment located at the address of the licensed facility and

23  all other buildings, beds, and equipment for the provision of

24  hospital, or ambulatory surgical, or mobile surgical care

25  located in such reasonable proximity to the address of the

26  licensed facility as to appear to the public to be under the

27  dominion and control of the licensee.

28         Section 3.  Subsection (1) of section 395.003, Florida

29  Statutes, is amended to read:

30         395.003  Licensure; issuance, renewal, denial, and

31  revocation.--

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    Florida Senate - 1998                    CS for CS for SB 1728
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  1         (1)(a)  No person shall establish, conduct, or maintain

  2  a hospital, or ambulatory surgical center, or mobile surgical

  3  facility in this state without first obtaining a license under

  4  this part.

  5         (b)1.  It is unlawful for any person to use or

  6  advertise to the public, in any way or by any medium

  7  whatsoever, any facility as a "hospital," or "ambulatory

  8  surgical center," or "mobile surgical facility" unless such

  9  facility has first secured a license under the provisions of

10  this part.

11         2.  Nothing in this part applies to veterinary

12  hospitals or to commercial business establishments using the

13  word "hospital," or "ambulatory surgical center," or "mobile

14  surgical facility" as a part of a trade name if no treatment

15  of human beings is performed on the premises of such

16  establishments.

17         Section 4.  Section 395.004, Florida Statutes, is

18  amended to read:

19         395.004  Application for license, disposition of fees;

20  expenses.--

21         (1)  An application for a license or renewal thereof

22  shall be made under oath to the agency, upon forms provided by

23  it, and shall contain such information as the agency

24  reasonably requires, which may include affirmative evidence of

25  ability to comply with applicable laws and rules.

26         (2)  Each application for a general hospital license,

27  specialty hospital license, or ambulatory surgical center

28  license, or mobile surgical facility license, or renewal

29  thereof, shall be accompanied by a license fee, in accordance

30  with the following schedule:

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    Florida Senate - 1998                    CS for CS for SB 1728
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  1         (a)  The biennial license, provisional license, and

  2  license renewal fee required of a facility licensed under this

  3  part shall be reasonably calculated to cover the cost of

  4  regulation under this part and shall be established by rule at

  5  the rate of not less than $9.50 per hospital bed, nor more

  6  than $30 per hospital bed, except that the minimum license fee

  7  shall be $1,500 and the total fees collected from all licensed

  8  facilities may not exceed the cost of properly carrying out

  9  the provisions of this part.

10         (b)  Such fees shall be paid to the agency and shall be

11  deposited in the Planning and Regulation Trust Fund of the

12  agency, which is hereby created, for the sole purpose of

13  carrying out the provisions of this part.

14         Section 5.  Paragraph (f) is added to subsection (1) of

15  section 395.0161, Florida Statutes, to read:

16         395.0161  Licensure inspection.--

17         (1)  The agency shall make or cause to be made such

18  inspections and investigations as it deems necessary,

19  including:

20         (f)  Inspections of mobile surgical facilities at each

21  time a facility establishes a new location, prior to the

22  admission of patients. However, such inspections shall not be

23  required when a mobile surgical facility is moved temporarily

24  to a location where medical treatment will not be provided.

25         Section 6.  Section 395.0163, Florida Statutes, is

26  amended to read:

27         395.0163  Construction inspections; plan submission and

28  approval; fees.--

29         (1)  The agency shall make, or cause to be made, such

30  construction inspections and investigations as it deems

31  necessary. The agency may prescribe by rule that any licensee

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    Florida Senate - 1998                    CS for CS for SB 1728
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  1  or applicant desiring to make specified types of alterations

  2  or additions to its facilities or to construct new facilities

  3  shall, before commencing such alteration, addition, or new

  4  construction, submit plans and specifications therefor to the

  5  agency for preliminary inspection and approval or

  6  recommendation with respect to compliance with agency rules

  7  and standards.  The agency shall approve or disapprove the

  8  plans and specifications within 60 days after receipt of the

  9  fee for review of plans as required in subsection (2).  The

10  agency may be granted one 15-day extension for the review

11  period if the director of the agency approves the extension.

12  If the agency fails to act within the specified time, it shall

13  be deemed to have approved the plans and specifications.  When

14  the agency disapproves plans and specifications, it shall set

15  forth in writing the reasons for its disapproval.  Conferences

16  and consultations may be provided as necessary.

17         (2)(a)  The agency is authorized to charge an initial

18  fee of $2,000 for review of plans and construction on all

19  projects, no part of which is refundable.  The agency may also

20  collect a fee, not to exceed 1 percent of the estimated

21  construction cost or the actual cost of review, whichever is

22  less, for the portion of the review which encompasses initial

23  review through the initial revised construction document

24  review.  The agency is further authorized to collect its

25  actual costs on all subsequent portions of the review and

26  construction inspections. The initial fee payment shall

27  accompany the initial submission of plans and specifications.

28  Any subsequent payment that is due is payable upon receipt of

29  the invoice from the agency.

30         (b)  Notwithstanding any other provisions of law to the

31  contrary, all moneys received by the agency pursuant to the

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    Florida Senate - 1998                    CS for CS for SB 1728
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  1  provisions of this section shall be deposited in the Planning

  2  and Regulation Trust Fund, as created by s. 395.004, to be

  3  held and applied solely for the operations required under this

  4  section.

  5         (3)  The agency shall inspect a mobile surgical

  6  facility at initial licensure and at each time the facility

  7  establishes a new location, prior to admission of patients.

  8  However, such inspections shall not be required when a mobile

  9  surgical facility is moved temporarily to a location where

10  medical treatment will not be provided.

11         Section 7.  Subsection (2) of section 395.1055, Florida

12  Statutes, is amended to read:

13         395.1055  Rules and enforcement.--

14         (2)  Separate standards may be provided for general and

15  specialty hospitals, ambulatory surgical centers, mobile

16  surgical facilities, and statutory rural hospitals as defined

17  in s. 395.602.

18         Section 8.  Subsections (1) and (2) of section 408.036,

19  Florida Statutes, are amended, and paragraph (o) is added to

20  subsection (3) of that section, to read:

21         408.036  Projects subject to review.--

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

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

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

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

26  agency is exclusively responsible for determining whether a

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

28  408.031-408.045.

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

30  alteration.

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    Florida Senate - 1998                    CS for CS for SB 1728
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  1         (b)  The new construction or establishment of

  2  additional health care facilities, including a replacement

  3  health care facility when the proposed project site is not

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

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

  6  facility to another, including the conversion from one level

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

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

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

10  skilled or intermediate nursing facility within a 2-year

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

12  and intermediate nursing care, the provisions of this

13  paragraph do not apply.

14         (d)  Any increase in licensed bed capacity.

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

16  establishment of a Medicare-certified home health agency, the

17  establishment of a hospice, or the direct provision of such

18  services by a health care facility or health maintenance

19  organization for those other than the subscribers of the

20  health maintenance organization; except that this paragraph

21  does not apply to the establishment of a Medicare-certified

22  home health agency by a facility described in paragraph

23  (3)(h).

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

25  facility or health maintenance organization, by any means,

26  which acquisition would have required review if the

27  acquisition had been by purchase.

28         (g)  The establishment of inpatient institutional

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

30  change in such services.

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    Florida Senate - 1998                    CS for CS for SB 1728
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  1         (h)  The acquisition by any means of an existing health

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

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

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

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

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

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

  8  capacity of the facility will be changed.

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

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

11  exceeds 20 percent of the originally approved cost of the

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

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

14         (j)  An increase in the number of psychiatric or

15  rehabilitation beds.

16         (k)  The establishment of tertiary health services.

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

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

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

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

21         (b)  Research, education, and training programs.

22         (c)  Shared services contracts or projects.

23         (d)  A transfer of a certificate of need.

24         (e)  A 50-percent increase in nursing home beds for a

25  facility incorporated and operating in this state for at least

26  60 years on or before July 1, 1988, which has a licensed

27  nursing home facility located on a campus providing a variety

28  of residential settings and supportive services.  The

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

30  the campus residents.  Any application on behalf of an

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    Florida Senate - 1998                    CS for CS for SB 1728
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  1  applicant meeting this requirement shall be subject to the

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

  3         (f)  Combination within one nursing home facility of

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

  5  need issued in the same planning subdistrict.

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

  7  of beds or services authorized by one certificate of need

  8  issued in the same planning subdistrict.  Such division shall

  9  not be approved if it would adversely affect the original

10  certificate's approved cost.

11         (h)  Replacement of a health care facility when the

12  proposed project site is located in the same district and

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

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15  The agency shall develop rules to implement the provisions for

16  expedited review, including time schedule, application

17  content, and application processing.

18         (3)  EXEMPTIONS.--Upon request, supported by such

19  documentation as the agency requires, the agency shall grant

20  an exemption from the provisions of subsection (1):

21         (o)  For any expenditure to provide mobile surgical

22  facilities and related health care services under contract

23  with the Department of Corrections or a private correctional

24  facility operating pursuant to chapter 957.

25

26  A request for exemption under this subsection may be made at

27  any time and is not subject to the batching requirements of

28  this section.

29         Section 9.  Paragraph (b) of subsection (2) of section

30  395.7015, Florida Statutes, is amended to read:

31         395.7015  Annual assessment on health care entities.--

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    Florida Senate - 1998                    CS for CS for SB 1728
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  1         (2)  There is hereby imposed an annual assessment

  2  against certain health care entities as described in this

  3  section:

  4         (b)  For the purpose of this section, "health care

  5  entities" include the following:

  6         1.  Ambulatory surgical centers and mobile surgical

  7  facilities licensed under s. 395.003. This subsection shall

  8  apply only to mobile surgical facilities operating under

  9  contracts entered into on or after July 1, 1998 licensed under

10  s. 395.003.

11         2.  Clinical laboratories licensed under s. 483.091,

12  excluding any hospital laboratory defined under s. 483.041(5),

13  any clinical laboratory operated by the state or a political

14  subdivision of the state, any clinical laboratory which

15  qualifies as an exempt organization under s. 501(c)(3) of the

16  Internal Revenue Code of 1986, as amended, and which receives

17  70 percent or more of its gross revenues from services to

18  charity patients or Medicaid patients, and any blood, plasma,

19  or tissue bank procuring, storing, or distributing blood,

20  plasma, or tissue either for future manufacture or research or

21  distributed on a nonprofit basis, and further excluding any

22  clinical laboratory which is wholly owned and operated by 6 or

23  fewer physicians who are licensed pursuant to chapter 458 or

24  chapter 459 and who practice in the same group practice, and

25  at which no clinical laboratory work is performed for patients

26  referred by any health care provider who is not a member of

27  the same group.

28         3.  Freestanding radiation therapy centers providing

29  treatment through the use of radiation therapy machines that

30  are registered under s. 404.22 and rules 10D-91.902,

31  10D-91.903, and 10D-91.904 of the Florida Administrative Code.

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  1         4.  Diagnostic-imaging centers that are freestanding

  2  outpatient facilities that provide specialized services for

  3  the identification or determination of a disease through

  4  examination and also provide sophisticated radiological

  5  services, and in which services are rendered by a physician

  6  licensed by the Board of Medicine under s. 458.311, s.

  7  458.313, or s. 458.317, or by an osteopathic physician

  8  licensed by the Board of Osteopathic Medicine under s.

  9  459.006, s. 459.007, or s. 459.0075.  For purposes of this

10  paragraph, "sophisticated radiological services" means the

11  following:  magnetic resonance imaging; nuclear medicine;

12  angiography; arteriography; computed tomography; positron

13  emission tomography; digital vascular imaging; bronchography;

14  lymphangiography; splenography; ultrasound, excluding

15  ultrasound providers that are part of a private physician's

16  office practice or when ultrasound is provided by two or more

17  physicians licensed under chapter 458 or chapter 459 who are

18  members of the same professional association and who practice

19  in the same medical specialties; and such other sophisticated

20  radiological services, excluding mammography, as adopted in

21  rule by the board.

22         Section 10.  Mobile surgical facilities in operation

23  pursuant to a contract with the Department of Corrections

24  entered into prior to the effective date of this act shall

25  continue to operate pursuant to such contract and shall only

26  be subject to the provisions of this act subsequent to the

27  effective date of any rules promulgated by the Agency for

28  Health Care Administration relating to mobile surgical

29  facilities.

30         Section 11.  This act shall take effect upon becoming a

31  law.

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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                          CS for SB 1728

  3

  4  The definition of "ambulatory surgical center" is further
    modified to provide for distinguishing characteristics of a
  5  mobile surgical facility based on public perception of a
    structure or vehicle that operates at more than one address in
  6  which a physician maintains an office and practices surgery.
    Mobile surgical facilities are explicitly restricted to
  7  providing health care services to inmate patients of specified
    correctional entities, and not to the general public. An
  8  exception is provided to the requirement for licensure and
    construction inspections of a mobile surgical facility when it
  9  establishes a new location to exclude instances when such a
    facility is temporarily moved to a location where medical
10  treatment will not be provided. Mobile surgical facilities
    operating under contracts that were entered into after July 1,
11  1998, are made subject to the Public Medical Assistance Trust
    Fund assessment. Mobile surgical facilities in operation under
12  a contract with the Department of Corrections that was entered
    into prior to the effective date of the bill are authorized to
13  continue operation under the contract and are subject to the
    requirements of the bill only after the Agency for Health Care
14  Administration adopts rules to implement the provisions of the
    bill.
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