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





                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

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10                                                                

11  The Committee on Health Care Services offered the following:

12

13         Amendment (with title amendment) 

14  Remove from the bill:  Everything after the enacting clause

15

16  and insert in lieu thereof:

17         Section 1.  Section 395.607, Florida Statutes, is

18  created to read:

19         395.607  Statutory Rural Hospital Capital Improvement

20  and Medical Services Technologies Grant Program.--

21         (1)  LEGISLATIVE FINDINGS AND INTENT.--The Legislature

22  finds and declares that statutory rural hospitals serve a

23  critical role in the delivery of health care services to the

24  elderly, the poor, and those in rural communities and to

25  citizens and visitors traveling through Florida. The

26  Legislature finds that there exists a serious need for trained

27  primary care physicians to serve the needs of the elderly and

28  those residing in rural communities throughout the state. The

29  Legislature finds that most statutory rural hospitals are in

30  serious need of capital improvements and new technologies,

31  such as telemedicine and distance learning, to attract primary

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1  care physicians and to improve the delivery of quality medical

 2  care to the poor, elderly, and others in Florida's rural

 3  communities. The Legislature finds that Florida's statutory

 4  rural hospitals, citizens of rural communities, and citizens

 5  traveling through rural areas would gain from improved

 6  physician services, medical information, and knowledge as a

 7  result of grant programs to statutory rural hospitals for

 8  planning, capital improvement, and medical technology

 9  advancements.

10         (2)  SHORT TITLE.--This section may be cited as the

11  "Florida Statutory Rural Hospital Capital Improvement and

12  Medical Services Technology Act of 1999."

13         (3)  CREATION, PURPOSE, AND PROGRAM.--

14         (a)  The Statutory Rural Hospital Capital Improvement

15  and Medical Services Technologies Grant Program is hereby

16  created within the department. The purpose of this program is

17  to provide funds for acquisition, repair, renovation,

18  improvement, or construction and upgrades to system,

19  facilities, and equipment for statutory rural hospitals, and

20  the department shall ensure that the funds provided are used

21  solely for such purposes. Under this program, a rural hospital

22  provided funds under this section must reimburse the

23  department for the total amount of any funds used for a

24  purpose not authorized by this section or have such amount

25  deducted from a future distribution, and such reimbursed or

26  deducted funds shall be distributed to other rural hospitals

27  that qualify under this program.

28         (b)  The department shall accept and administer moneys

29  appropriated to it for providing grants to statutory rural

30  hospitals, as defined in s. 395.602, which meet the

31  qualifications as set forth in this section.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1         (c)  Each statutory rural hospital may submit an

 2  application to the department, on forms prepared by the

 3  department, for grant funds appropriated under this section.

 4  Such application shall be in the name of the licenseholder of

 5  the facility and shall identify the statutory rural hospital

 6  for which the funding is sought.

 7         (4)  ELIGIBILITY.--A rural hospital may apply for a

 8  grant available under this section after submission of an

 9  application to the department. The application shall provide

10  information that includes:

11         (a)  A statement that the applicant is a statutory

12  rural hospital as defined in s. 395.602.

13         (b)  A problem statement indicating the problem the

14  rural hospital proposes to solve with the grant funds.

15         (c)  The goals of the proposed solution.

16         (d)  The organizational structure, financial system,

17  and facilities that are essential to the proposed solution.

18         (e)  The projected longevity of the proposed solution

19  after the grant funds are expended.

20         (f)  Evidence of collaboration with other Florida

21  community health care providers in achieving the proposed

22  solution.

23         (g)  Evidence that funds for the proposed solution are

24  not available from another source or the statutory rural

25  hospital has difficulty in obtaining funding.

26         (h)  Evidence that the grant funds would assist in

27  returning the hospital to an economically stable condition or

28  that any plan for closure or realignment of services involves

29  development of innovative alternatives for the discontinued

30  services.

31         (i)  Evidence of a satisfactory recordkeeping system to

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1  account for grant fund expenditures within the rural county.

 2         (j)  A community health survival plan describing how

 3  the plan was developed, the goals of the plan, the links with

 4  existing health care providers under the plan, and the

 5  implementation process, including quantification of indicators

 6  of the hospital's financial well-being, measurable outcome

 7  targets, and the current condition of such hospital.

 8         (k)  The age of the existing facility or structures.

 9         (l)  Whether the statutory rural hospital is the sole

10  provider in the county.

11         (m)  The distance of the statutory rural hospital from

12  a larger tertiary care hospital or nonstatutory rural

13  hospital.

14

15  The criteria in paragraphs (a)-(m) shall be used in evaluating

16  the grant applicant's request for funding. None of the

17  individual grant criteria shall be solely determinative of

18  whether or not a grant is awarded. The grants under this

19  subsection shall be limited to $500,000 maximum per rural

20  hospital per year.

21         (5)  MEDICAL SERVICES TECHNOLOGY MATCHING GRANT

22  PROGRAM.--Notwithstanding subsection (4), each statutory rural

23  hospital may submit a separate application seeking matching

24  additional grant moneys for planning and acquisition of

25  medical services technology. The term "medical services

26  technology" means systems, technologies, equipment, computer

27  programs, diagnostic or treatment equipment, or other

28  medically acceptable device or mechanism which improves or

29  enhances existing health care delivery, treatment, or

30  diagnosis or introduces a new diagnostic or treatment

31  capability to a rural community. The department shall award

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1  annually up to five matching grants, of no more than $100,000

 2  each, to statutory rural hospitals. Each grant awarded under

 3  this program must be contingent upon the statutory rural

 4  hospital obtaining a matching contribution from a governmental

 5  unit, county government, special district, municipality, or

 6  philanthropic nonprofit organization. The matching nonstate

 7  dollars shall be matched on a one-for-one basis, up to the

 8  maximum grant allowed in accordance with this subsection.

 9         (6)  RULES.--The department is granted authority to

10  adopt rules pursuant to ss. 120.536(1) and 120.54, for the

11  specific purposes of developing grant application forms,

12  timely award selection based on the sum total of the specific

13  criteria set forth in this section, and procedures for

14  distribution of the grants, and to adopt rules for grants

15  annually awarded to the statutory rural hospitals and for

16  monitoring and evaluating these programs.

17         Section 2.  Section 395.608, Florida Statutes, is

18  created to read:

19         395.608  The Florida State University Statutory Rural

20  Hospital Medical Services and Technology Development

21  Program.--

22         (1)  LEGISLATIVE FINDINGS AND INTENT.--The Legislature

23  finds and declares that rural areas of this state are

24  medically underserved due to a declining number of primary

25  care physicians willing to serve in rural communities. The

26  Legislature finds that a serious shortage of primary care

27  physicians in rural areas is due in large part to a lack of

28  emphasis on medical education directed at encouraging medical

29  students to practice primary care in rural and smaller

30  communities of this state. The Legislature further finds that

31  statutory rural hospitals have suffered from a lack of

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1  statewide coordination of information, technology, and medical

 2  knowledge. The Legislature intends to provide, promote, and

 3  encourage programs which improve the delivery of health care

 4  in rural communities through cooperative arrangements between

 5  statutory rural hospitals and the Florida State University.

 6  Such cooperative arrangements shall utilize grant programs and

 7  other efforts to provide statutory rural hospitals with

 8  improved systems of health care delivery. The Legislature

 9  finds that statutory rural hospitals, citizens of rural

10  communities, and citizens traveling throughout the state would

11  gain from improved physician services, medical information,

12  and knowledge as a result of programs and research initiated

13  or administered through a partnership with the Florida State

14  University to enhance health care delivery systems.

15         (2)  CREATION.--There is hereby created the Florida

16  State University Statutory Rural Hospital Medical Services and

17  Technology Development Program, with the goal of improving the

18  delivery of primary care through innovative technology,

19  improved medical services, strategic planning, recruitment of

20  allied health professionals and physicians, and to assist

21  rural hospitals in the reduction of duplicative costs.

22         (3)  ADMINISTRATION.--This program shall be developed,

23  implemented, and administered by the President of the Florida

24  State University, or his or her designee, and representatives

25  of statutory rural hospitals as defined in s. 395.602.

26         (4)  ADVISORY AND GRANT REVIEW BOARD.--An advisory and

27  grant review board shall be appointed for the purpose of

28  advising the Florida State University on the implementation of

29  this program, up to and including making recommendations on

30  partnerships and other opportunities to advance rural health

31  care in Florida. The board shall establish criteria and

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1  annually award grants as provided for under this section. The

 2  board shall make an annual report to the President of the

 3  Florida State University, the Governor, the Speaker of the

 4  House of Representatives, and the President of the Senate on

 5  the status of rural health care in this state. The board shall

 6  consist of nine members. One member shall be appointed by the

 7  Speaker of the House of Representatives; one member shall be

 8  appointed by the Governor; one member shall be appointed by

 9  the President of the Senate. The President of the Florida

10  State University shall appoint five members, three of which

11  shall be selected from a list of individuals submitted by the

12  Florida Hospital Association. It shall not be a conflict of

13  interest for a representative of a statutory rural hospital to

14  serve on the board or otherwise participate in this program.

15  The Secretary of Health or his or her designee shall also

16  serve on the board.

17         (5)  PURPOSE.--The purpose of the program is to study,

18  develop, recommend, improve, and encourage improvements in the

19  advancement of technologies and delivery of primary care

20  medicine in rural communities in partnership with statutory

21  rural hospitals as defined in s. 395.602. The program shall

22  promote training of primary care physicians and an increased

23  primary care physician workforce in rural hospitals and in

24  rural health clinics that are affiliated with statutory rural

25  hospitals, and introduction of new medical procedures and

26  advances in medical technologies. The Florida State University

27  shall research and promote the introduction of new

28  technologies and medical procedures and develop and promote

29  partnerships and networks with the university, regional acute

30  care hospitals, and statutory rural hospitals.

31         (6)  ESSENTIAL ELEMENTS.--

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1         (a)  The program shall be directed to geographic areas

 2  of the state where statutory rural hospitals are located and

 3  where there is a demonstrated need for health manpower,

 4  technology, and improvement in the health status of the

 5  residents of that region.

 6         (b)  The program shall develop linkages between and

 7  among the Florida State University, statutory rural hospitals,

 8  rural health networks, and other healthcare providers, to

 9  promote the delivery of health care in rural and underserved

10  regions of the state.

11         (c)  The program shall develop linkages and cooperative

12  agreements with statutory rural hospitals to promote the

13  acquisition and introduction of new medical technologies in

14  statutory rural hospitals.

15         (d)  The program shall provide statutory rural

16  hospitals with research, data, technical advice, and

17  information to assist each facility in strategic planning

18  aimed at improvement in the delivery of primary and rural

19  health care in each community.

20         (7)  IMPLEMENTATION.--The program shall:

21         (a)  Fund, evaluate, and monitor a pilot project

22  developed by the Florida State University, which creates

23  informational and technological networks and linkages between

24  the university and four or more statutory rural hospitals.

25  This pilot program shall emphasize two or more of the

26  following areas:

27         1.  A program for improving the transfer of medical

28  information and research between the university and statutory

29  rural hospitals.

30         2.  Providing technical assistance and funding to

31  establish telecommunication, telemedicine, and other

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1  technology linkages with regional acute care hospitals for the

 2  purpose of sharing diagnostic and treatment information with

 3  primary care physicians in statutory rural hospitals.

 4         3.  Developing and assisting primary care physicians in

 5  rural areas with continuing medical education programs and

 6  distance learning curriculum.

 7         4.  Promoting programs which encourage the recruitment

 8  of primary care physicians in statutory rural hospitals.

 9         5.  Developing and implementing a process for

10  evaluating programs initiated under this section.

11         6.  Developing programs which assist in the provision

12  of women's, children's and seniors' health.

13         (b)  Establish a grant program whereby statutory rural

14  hospitals which treat a significant number of indigent

15  patients or provide uncompensated care may enter into

16  cooperative pilot programs which are community-based and

17  developed jointly with the Florida State University and each

18  participating statutory rural hospital. Such grants shall be

19  available to:

20         1.  Facilities suffering from serious liquidity or

21  cash-flow problems or serious net income problems or serious

22  debt burdens;

23         2.  Facilities which develop proposals for innovative

24  health care delivery in rural areas, which include, but are

25  not limited to, one or more of the following areas: elder

26  care, women's health, migrant workers' health, and children's

27  wellness; or

28         3.  Facilities which submit proposals for enhanced

29  delivery of medical information between the statutory rural

30  hospital and larger tertiary care hospitals licensed under

31  this chapter.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1         Section 3.  Subsection (42) of section 408.07, Florida

 2  Statutes, 1998 Supplement, is amended to read.

 3         408.07  Definitions.--As used in this chapter, with the

 4  exception of ss. 408.031-408.045, the term:

 5         (42)  "Rural hospital" means an acute care hospital

 6  licensed under chapter 395, having 100 or fewer licensed beds

 7  and an emergency room, located in an area defined as rural by

 8  the United States Census, and which is:

 9         (a)  The sole provider within a county with a

10  population density of no greater than 100 persons per square

11  mile;

12         (b)  An acute care hospital, in a county with a

13  population density of no greater than 100 persons per square

14  mile, which is at least 30 minutes of travel time, on normally

15  traveled roads under normal traffic conditions, from another

16  acute care hospital within the same county; or

17         (c)  A hospital supported by a tax district or

18  subdistrict whose boundaries encompass a population of 100

19  persons or fewer per square mile; or

20         (d)  A hospital in a constitutional charter county with

21  a population of over 1 million persons that has imposed a

22  local option health service tax pursuant to law and in an area

23  that was directly impacted by a catastrophic event on August

24  24, 1992, for which the Governor of Florida declared a state

25  of emergency pursuant to chapter 125, and has 120 beds or less

26  that serves an agricultural community with an emergency room

27  utilization of no less than 20,000 visits and a Medicaid

28  in-patient utilization rate greater than 15 percent.

29

30  Population densities used in this subsection must be based

31  upon the most recently completed United States census.

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1         Section 4.  This act shall take effect July 1, 1999.

 2

 3

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

 5  And the title is amended as follows:

 6  remove from the title of the bill:  the entire title

 7

 8  and insert in lieu thereof:

 9                  A bill to be entitled

10         An act relating to statutory rural hospitals;

11         creating s. 395.607, F.S.; creating the

12         Statutory Rural Hospital Capital Improvement

13         and Medical Services Technologies Grant Program

14         within the Department of Health; providing

15         purpose; providing for reimbursement or

16         deductions, and subsequent redistribution, of

17         amounts used for unauthorized purposes;

18         providing grant eligibility under the program;

19         creating the Medical Services Technology

20         Matching Grant Program; providing for annual

21         grant awards; providing for rules; creating s.

22         395.608, F.S.; creating the Florida State

23         University Statutory Rural Hospital Medical

24         Services and Technology Development Program;

25         providing for administration by the President

26         of Florida State University and representatives

27         of rural hospitals; providing for an advisory

28         and grant review board; requiring an annual

29         report; providing program elements; providing

30         for a pilot program; providing for a grant

31         program; amending s. 408.07, F.S.; redefining

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 741

    Amendment No.     (for drafter's use only)





 1         the term "rural hospital" for the purpose of

 2         state law governing health care administration

 3         to include certain hospitals in charter

 4         counties; providing an effective date.

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