CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB 484

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
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11  Senator Bankhead moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 7, line 13, through

15            page 9, line 12, delete those lines

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17  and insert:

18         Section 2.  Paragraph (c) of subsection (4) of section

19  409.912, Florida Statutes, is repealed, paragraph (d) of

20  subsection (3) and subsection (13) of that section are

21  amended, and subsections (34) and (35) are added to that

22  section, to read:

23         409.912  Cost-effective purchasing of health care.--The

24  agency shall purchase goods and services for Medicaid

25  recipients in the most cost-effective manner consistent with

26  the delivery of quality medical care.  The agency shall

27  maximize the use of prepaid per capita and prepaid aggregate

28  fixed-sum basis services when appropriate and other

29  alternative service delivery and reimbursement methodologies,

30  including competitive bidding pursuant to s. 287.057, designed

31  to facilitate the cost-effective purchase of a case-managed

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB 484

    Amendment No.    





 1  continuum of care. The agency shall also require providers to

 2  minimize the exposure of recipients to the need for acute

 3  inpatient, custodial, and other institutional care and the

 4  inappropriate or unnecessary use of high-cost services.

 5         (3)  The agency may contract with:

 6         (d)  No more than four provider service networks for

 7  demonstration projects to test Medicaid direct contracting.

 8  However, no such demonstration project shall be established

 9  with a federally qualified health center nor shall any

10  provider service network under contract with the agency

11  pursuant to this paragraph include a federally qualified

12  health center in its provider network. One demonstration

13  project must be located in Orange County.  The demonstration

14  projects may be reimbursed on a fee-for-service or prepaid

15  basis.  A provider service network which is reimbursed by the

16  agency on a prepaid basis shall be exempt from parts I and III

17  of chapter 641, but must meet appropriate financial reserve,

18  quality assurance, and patient rights requirements as

19  established by the agency.  The agency shall award contracts

20  on a competitive bid basis and shall select bidders based upon

21  price and quality of care. Medicaid recipients assigned to a

22  demonstration project shall be chosen equally from those who

23  would otherwise have been assigned to prepaid plans and

24  MediPass.  The agency is authorized to seek federal Medicaid

25  waivers as necessary to implement the provisions of this

26  section.  A demonstration project awarded pursuant to this

27  paragraph shall be for 2 years from the date of

28  implementation.

29         (13)  The agency shall identify health care utilization

30  and price patterns within the Medicaid program which that are

31  not cost-effective or medically appropriate and assess the

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB 484

    Amendment No.    





 1  effectiveness of new or alternate methods of providing and

 2  monitoring service, and may implement such methods as it

 3  considers appropriate. Such methods may include

 4  disease-management initiatives, an integrated and systematic

 5  approach for managing the health care needs of recipients who

 6  are at risk of or diagnosed with a specific disease by using

 7  best practices, prevention strategies, clinical-practice

 8  improvement, clinical interventions and protocols, outcomes

 9  research, information technology, and other tools and

10  resources to reduce overall costs and improve measurable

11  outcomes.

12         (34)  The agency may provide for cost-effective

13  purchasing of home health services through competitive

14  negotiation pursuant to s. 287.057. The agency may request

15  appropriate waivers from the federal Health Care Financing

16  Administration in order to competitively bid home health

17  services.

18         (35)  The Agency for Health Care Administration is

19  directed to issue a request for proposal or intent to

20  negotiate to implement on a demonstration basis an outpatient

21  specialty services pilot project in a rural and urban county

22  in the state.  As used in this subsection, the term

23  "outpatient specialty services" means clinical laboratory,

24  diagnostic imaging, and specified home medical services to

25  include durable medical equipment, prosthetics and orthotics,

26  and infusion therapy.

27         (a)  The entity that is awarded the contract to provide

28  Medicaid managed care outpatient specialty services must, at a

29  minimum, meet the following criteria:

30         1.  The entity must be licensed by the Department of

31  Insurance under part II of chapter 641.

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB 484

    Amendment No.    





 1         2.  The entity must be experienced in providing

 2  outpatient specialty services.

 3         3.  The entity must demonstrate to the satisfaction of

 4  the agency that it provides high-quality services to its

 5  patients.

 6         4.  The entity must demonstrate that it has in place a

 7  complaints and grievance process to assist Medicaid recipients

 8  enrolled in the pilot managed care program to resolve

 9  complaints and grievances.

10         (b)  The pilot managed care program shall operate for a

11  period of 3 years.  The objective of the pilot program shall

12  be to determine the cost-effectiveness and effects on

13  utilization, access, and quality of providing outpatient

14  specialty services to Medicaid recipients on a prepaid,

15  capitated basis.

16         (c)  The agency shall conduct a quality-assurance

17  review of the prepaid health clinic each year that the

18  demonstration program is in effect. The prepaid health clinic

19  is responsible for all expenses incurred by the agency in

20  conducting a quality assurance review.

21         (d)  The entity that is awarded the contract to provide

22  outpatient specialty services to Medicaid recipients shall

23  report data required by the agency in a format specified by

24  the agency, for the purpose of conducting the evaluation

25  required in paragraph (e).

26         (e)  The agency shall conduct an evaluation of the

27  pilot managed care program and report its findings to the

28  Governor and the Legislature by no later than January 1, 2001.

29         (f)  Nothing in this subsection is intended to conflict

30  with the provision of the 1997-1998 General Appropriations Act

31  which authorizes competitive bidding for Medicaid home health,

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB 484

    Amendment No.    





 1  clinical laboratory, or x-ray services.

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 4  ================ T I T L E   A M E N D M E N T ===============

 5  And the title is amended as follows:

 6         On page 1, line 19, after the semicolon,

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 8  insert:

 9         directing the Agency for Health Care

10         Administration to establish an outpatient

11         specialty services pilot project; providing

12         definitions; providing criteria for

13         participation; requiring an evaluation and a

14         report to the Governor and Legislature;

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