House Bill 3605c1

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    Florida House of Representatives - 1998             CS/HB 3605

        By the Committee on Governmental Operations and
    Representative Fasano





  1                      A bill to be entitled

  2         An act relating to public hospital meetings and

  3         records; amending s. 395.3035, F.S.; defining

  4         "strategic plan" for purposes of provisions

  5         which provide for the confidentiality of such

  6         plans and of meetings relating thereto;

  7         providing an exemption from open meetings

  8         requirements for meetings at which such plans

  9         are modified or approved by the hospital's

10         governing board; providing for a public meeting

11         and notice regarding strategic plans; providing

12         for future review and repeal; providing

13         conditions for the early release of transcripts

14         of meetings at which such plans are discussed;

15         providing a finding of public necessity;

16         providing an effective date.

17

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

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20         Section 1.  Subsection (4) of section 395.3035, Florida

21  Statutes, is amended, subsection (6) is renumbered as

22  subsection (8), and new subsections (6) and (7) are added to

23  said section, to read:

24         395.3035  Confidentiality of public hospital records

25  and meetings.--

26         (2)  The following public hospital records and

27  information are confidential and exempt from the provisions of

28  s. 119.07(1) and s. 24(a), Art. I of the State Constitution:

29         (b)  A public hospital's strategic plans, including

30  plans for marketing its services, which services are or may

31  reasonably be expected by the hospital's governing board to be

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    Florida House of Representatives - 1998             CS/HB 3605

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  1  provided by competitors of the hospital. However, documents

  2  that are submitted to the hospital's governing board as part

  3  of the board's approval of the hospital's budget, and the

  4  budget itself, are not confidential and exempt.

  5         (4)(a)  Those portions of a board meeting at which the

  6  written strategic plans, including written plans for marketing

  7  its services, are discussed or reported on are exempt from the

  8  provisions of s. 286.011 and s. 24(b), Art. I of the State

  9  Constitution.

10         (b)  Those portions of a board meeting at which written

11  strategic plans, including written plans for marketing its

12  services, are modified or approved by the governing board are

13  exempt from the provisions of s. 286.011 and s. 24(b), Art. I

14  of the State Constitution. This paragraph is subject to the

15  Open Government Sunset Review Act of 1995 in accordance with

16  s. 119.15 and shall stand repealed on October 2, 2003, unless

17  reviewed and saved from repeal through reenactment by the

18  Legislature.

19         (c)  All portions of any board meeting which are closed

20  to the public shall be recorded by a certified court reporter.

21  The reporter shall record the times of commencement and

22  termination of the meeting, all discussion and proceedings,

23  the names of all persons present at any time, and the names of

24  all persons speaking. No portion of the meeting shall be off

25  the record.  The court reporter's notes shall be fully

26  transcribed and maintained by the hospital records custodian

27  within a reasonable time after the meeting.  The transcript

28  shall become public 3 years after the date of the board

29  meeting or at an earlier date if the governing board

30  determines that the strategic plan discussed, reported on,

31  modified, or approved at the meeting has been fully

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    Florida House of Representatives - 1998             CS/HB 3605

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  1  implemented or the circumstances do not require the transcript

  2  of the meeting to remain confidential.

  3         (6)  For purposes of this section, the term "strategic

  4  plan" means any record which describes actions or activities

  5  to:

  6         (a)  Initiate or acquire an new health service;

  7         (b)  Expand an existing health service;

  8         (c)  Acquire additional facilities;

  9         (d)  Expand existing facilities;

10         (e)  Change all or part of the use of an existing

11  facility or a newly acquired facility;

12         (f)  Acquire, merge, or consolidate with another health

13  care facility or health care provider;

14         (g)  Enter into a shared service arrangement with

15  another health care provider;

16         (h)  Enter into a transaction permitted by s. 155.40;

17         (i)  Market the services of the hospital and its

18  ancillary facilities; or

19         (j)  Any combination of paragraphs (a)-(i);

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21  The term "strategic plan" does not include records that

22  describe the existing operations of a public hospital or other

23  public health care facility which implement or execute the

24  provisions of a strategic plan, unless disclosure of any such

25  document would disclose any part of a strategic plan which has

26  not been fully implemented or is a record that is otherwise

27  exempt from the public records laws.  Existing operations

28  include, but are not limited to, the hiring of employees, the

29  purchase of equipment, the placement of advertisement,

30  entering into contracts with physicians to perform medical

31  services, and other types of expenditures for the purpose of

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    Florida House of Representatives - 1998             CS/HB 3605

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  1  implementing a strategic plan.  Records that describe

  2  operations are not exempt, except as specifically provided

  3  herein.

  4         (7)  If the governing board of the entity that owns the

  5  hospital or other health care facility closes a portion of any

  6  board meeting pursuant to subsection (4), then, prior to

  7  placing the strategic plan or any discrete component thereof

  8  into operations, the governing board must notice and conduct a

  9  meeting in accordance with s. 286.011.  The notice of such

10  meeting shall specify that the implementation of all or a part

11  of a strategic plan will be discussed at the meeting.

12         Section 2.  (1)  The Legislature finds that it is a

13  public necessity that all contracts for managed care

14  arrangements under which a public hospital provides health

15  care services be held confidential and exempt. This exemption

16  is needed because, as with preferred provider organization

17  contracts and health maintenance organization contracts which

18  are currently confidential and exempt, other managed care

19  contracts, including exclusive provider organization contracts

20  and alliance network arrangements, contain, among other

21  things, payment methodologies and rates the disclosure of

22  which would negatively affect a public hospital in the

23  marketplace. Additionally, documents relating to the

24  negotiation, performance, and implementation of contracts,

25  including managed care arrangements, would also reveal such

26  proprietary and trade secret information. Furthermore, it is a

27  public necessity that portions of a public hospital's

28  governing board meetings be closed when contracts, contract

29  negotiations, or strategic plans that are exempt from the

30  public records laws are discussed. If such meetings ar not

31  closed, information contained in the confidential contracts,

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    Florida House of Representatives - 1998             CS/HB 3605

    192-969-98






  1  contract negotiations, and strategic plans would be revealed.

  2  The disclosure of any such confidential contracts, contract

  3  negotiations, and strategic plans would make it exceptionally

  4  difficult, if not impossible, for a public hospital to

  5  effectively compete in the marketplace against private

  6  hospitals, whose records and meeting are not required to be

  7  open to the public.

  8         (2)  It is also a public necessity that any records

  9  generated at closed public hospital board meetings, such as

10  tape recordings, notes, and minutes, memorializing the

11  discussions regarding such confidential contracts, documents,

12  and strategic plans, including marketing plans, also be held

13  confidential for a limited time as provided; otherwise,

14  confidential proprietary and trade secret information would

15  become public and impair a public hospital's ability to

16  effectively and efficiently compete in the marketplace.

17         (3)  The necessity for the strategic planning exemption

18  from public records and public meeting laws is critical to the

19  survival of Florida's public hospital delivery system, which

20  is often the last safety net for our less advantaged citizens

21  and visitors. "Strategic plan," as defined in this act, is

22  limited to plans for:  the initiation or expansion of health

23  services; the acquisition, expansion, or change in use of

24  health care facilities; team-up with another health care

25  facility; sale or lease of the facility to a private entity;

26  and marketing of the facility's services. Disclosure of

27  information on any or all of these subjects would place a

28  public hospital at a competitive disadvantage with respect to

29  its privately owned competitors and could allow those

30  competitors to disrupt the implementation of any strategic

31  plan or marketing plan.

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    Florida House of Representatives - 1998             CS/HB 3605

    192-969-98






  1         Section 3.  This act shall take effect upon becoming a

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