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





                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
                                   .
                                   .
 1                                 .
                                   .
 2                                 .
                                   .
 3                                 .
                                   .
 4                                                                

 5

 6

 7

 8

 9

10                                                                

11  Senator Sullivan moved the following amendment to amendment

12  (540324):

13

14         Senate Amendment (with title amendment) 

15         On page 63, between lines 21 and 22,

16

17  insert:

18         Section 41.  Section 381.0403, Florida Statutes, is

19  amended to read:

20         381.0403  The Community Hospital Education Act.--

21         (1)  SHORT TITLE.--This section shall be known and

22  cited as "The Gerald L. Scheibler, M.D., Graduate Medical

23  Education Enhancement Community Hospital Education Act."

24         (2)  LEGISLATIVE INTENT.--

25         (a)  It is the intent of the Legislature that health

26  care services for the citizens of this state be upgraded and

27  that a program for continuing these services be maintained

28  through a plan for community medical education.  The program

29  is intended to provide additional outpatient and inpatient

30  services, a continuing supply of highly trained physicians,

31  and graduate medical education.

                                  1
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1         (b)  The Legislature further acknowledges the critical

 2  need for increased numbers of primary care family physicians

 3  to provide the necessary current and projected health and

 4  medical services.  In order to meet both present and

 5  anticipated needs, the Legislature supports an expansion in

 6  the number of family practice residency positions. Programs

 7  added after the 1997-1998 fiscal year must attain the

 8  requisite number of residents or interns within 5 years. The

 9  Legislature intends that the funding for graduate education in

10  family practice be maintained and that funding for all primary

11  care specialities be provided at a minimum of $10,000 per

12  resident per year.  Should funding for this act remain

13  constant or be reduced, it is intended that all programs

14  funded by this act be maintained or reduced proportionately.

15         (3)  PROGRAM FOR COMMUNITY HOSPITAL EDUCATION; STATE

16  AND LOCAL PLANNING.--

17         (a)  There is established under the Board of Regents a

18  program for statewide graduate medical education.  It is

19  intended that continuing graduate medical education programs

20  for interns and residents be established on a statewide basis.

21  The program shall provide financial support for primary care

22  specialty interns and residents based on policies recommended

23  and approved by the Community Hospital Education Council,

24  herein established, and the Board of Regents. Only those

25  programs with at least three residents or interns in each year

26  of the training program are qualified to apply for financial

27  support. Programs with fewer than three residents or interns

28  per training year are qualified to apply for financial

29  support, but only if the appropriate accrediting entity for

30  the particular specialty has approved the program for fewer

31  positions. Programs added after the 1997-1998 fiscal year must

                                  2
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1  attain the requisite number of residents or interns within 5

 2  years. When feasible and to the extent allowed through the

 3  General Appropriations Act, state funds shall be used to

 4  generate federal matching funds under Medicaid or other

 5  federal programs, and the resulting combined state and federal

 6  funds shall be allocated to participating hospitals for the

 7  support of graduate medical education and for administrative

 8  costs associated with the production of the annual report as

 9  specified in subsection (9) and the administration of the

10  committee.

11         (b)  For the purposes of this section, primary care

12  specialties include emergency medicine, family practice,

13  internal medicine, pediatrics, psychiatry,

14  obstetrics/gynecology, and combined pediatrics and internal

15  medicine, and other primary care specialties included by the

16  council and the Board of Regents.

17         (c)(b)  Medical institutions throughout the state may

18  apply to the Community Hospital Education Council for

19  grants-in-aid for financial support of their approved

20  programs.  Recommendations for funding of approved programs

21  shall be forwarded to the Board of Regents.

22         (d)(c)  The program shall provide a plan for community

23  clinical teaching and training with the cooperation of the

24  medical profession, hospitals, and clinics.  The plan shall

25  also include formal teaching opportunities for intern and

26  resident training.  In addition, the plan shall establish an

27  off-campus medical faculty with university faculty review to

28  be located throughout the state in local communities.

29         (4)  PROGRAM FOR GRADUATE MEDICAL EDUCATION

30  INNOVATIONS.--

31         (a)  There is established under the Board of Regents a

                                  3
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1  program for fostering graduate medical education innovations.

 2  Funds appropriated annually by the Legislature for this

 3  purpose shall be distributed to participating hospitals or

 4  consortia of participating hospitals and Florida medical

 5  schools on a competitive-grant or formula basis to achieve

 6  state health care workforce policy objectives, including, but

 7  not limited to:

 8         1.  Increasing the number of residents in primary care

 9  and other high demand specialties or fellowships;

10         2.  Enhancing retention of primary care physicians in

11  Florida practice;

12         3.  Promoting practice in medically under-served areas

13  of the state; 

14         4.  Encouraging racial and ethnic diversity within the

15  state's physician workforce; and

16         5.  Encouraging increased production of geriatricians.

17         (b)  Participating hospitals or consortia of

18  participating hospitals and Florida medical schools may apply

19  to the Community Hospital Education Council for funding under

20  this innovation program. Innovation program funding shall

21  provide funding based on policies recommended and approved by

22  the Community Hospital Education Council and the Board of

23  Regents.

24         (c)  Participating hospitals or consortia of

25  participating hospitals and Florida medical schools awarded an

26  innovation grant shall provide the Community Hospital

27  Education Council and Board of Regents with an annual report

28  on their project.

29         (5)(4)  FAMILY PRACTICE RESIDENCIES.--In addition to

30  the programs established in subsection (3), the Community

31  Hospital Education Council and the Board of Regents shall

                                  4
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1  establish an ongoing statewide program of family practice

 2  residencies.  The administration of this program shall be in

 3  the manner described in this section.

 4         (6)(5)  COUNCIL AND DIRECTOR.--

 5         (a)  There is established the Community Hospital

 6  Education Council, hereinafter referred to as the council,

 7  which shall consist of eleven members, as follows:

 8         1.  Seven members must be program directors of

 9  accredited graduate medical education programs or practicing

10  physicians who have faculty appointments in accredited

11  graduate medical education programs.  Six of these members

12  must be board certified or board eligible in family practice,

13  internal medicine, pediatrics, emergency medicine,

14  obstetrics-gynecology, and psychiatry, respectively, and

15  licensed pursuant to chapter 458. No more than one of these

16  members may be appointed from any one specialty.  One member

17  must be licensed pursuant to chapter 459.

18         2.  One member must be a representative of the

19  administration of a hospital with an approved community

20  hospital medical education program;

21         3.  One member must be the dean of a medical school in

22  this state; and

23         4.  Two members must be consumer representatives.

24

25  All of the members shall be appointed by the Governor for

26  terms of 4 years each.

27         (b)  Council membership shall cease when a member's

28  representative status no longer exists.  Members of similar

29  representative status shall be appointed to replace retiring

30  or resigning members of the council.

31         (c)  The Chancellor of the State University System

                                  5
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1  shall designate an administrator to serve as staff director.

 2  The council shall elect a chair from among its membership.

 3  Such other personnel as may be necessary to carry out the

 4  program shall be employed as authorized by the Board of

 5  Regents.

 6         (7)(6)  BOARD OF REGENTS; STANDARDS.--

 7         (a)  The Board of Regents, with recommendations from

 8  the council, shall establish standards and policies for the

 9  use and expenditure of graduate medical education funds

10  appropriated pursuant to subsection (8) (7) for a program of

11  community hospital education.  The board shall establish

12  requirements for hospitals to be qualified for participation

13  in the program which shall include, but not be limited to:

14         1.  Submission of an educational plan and a training

15  schedule.

16         2.  A determination by the council to ascertain that

17  each portion of the program of the hospital provides a high

18  degree of academic excellence and is accredited by the

19  Accreditation Council for Graduate Medical Education of the

20  American Medical Association or is accredited by the American

21  Osteopathic Association.

22         3.  Supervision of the educational program of the

23  hospital by a physician who is not the hospital administrator.

24         (b)  The Board of Regents shall periodically review the

25  educational program provided by a participating hospital to

26  assure that the program includes a reasonable amount of both

27  formal and practical training and that the formal sessions are

28  presented as scheduled in the plan submitted by each hospital.

29         (c)  In years that funds are transferred to the Agency

30  for Health Care Administration, the Board of Regents shall

31  certify to the Agency for Health Care Administration quarterly

                                  6
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1  the number of primary care specialty residents and interns at

 2  each of the participating hospitals for which the Community

 3  Hospital Education Council and the board recommend funding.

 4         (8)(7)  MATCHING FUNDS.--State funds shall be used to

 5  match funds from any local governmental or hospital source.

 6  The state shall provide up to 50 percent of the funds, and the

 7  community hospital medical education program shall provide the

 8  remainder.  However, except for fixed capital outlay, the

 9  provisions of this subsection shall not apply to any program

10  authorized under the provisions of subsection (5) (4) for the

11  first 3 years after such program is in operation.

12         (9)  ANNUAL REPORT.--The Board of Regents, the

13  Executive Office of the Governor, the Department of Health,

14  and the Agency for Health Care Administration shall

15  collaborate to establish a committee that shall produce an

16  annual report on graduate medical education. To the maximum

17  extent feasible, the committee shall have the same membership

18  as the Graduate Medical Education Study Committee, established

19  by the proviso accompanying Specific Appropriation 191 of the

20  fiscal year 1999-2000 General Appropriations Act. The report

21  shall be provided to the Governor, the President of the

22  Senate, and the Speaker of the House of Representatives by

23  January 15 of each year. Committee members shall serve without

24  compensation. From the funds provided in s. 381.0403(3), the

25  committee may expend a maximum of $75,000 per year to provide

26  for administrative costs and contractual services. The report

27  must address the following topics:

28         (a)  The role of residents and medical faculty in the

29  provision of health care.

30         (b)  The relationship of graduate medical education to

31  the state's physician workforce.

                                  7
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1         (c)  The costs of training medical residents for

 2  hospitals, medical schools, teaching hospitals, including all

 3  hospital-medical affiliations, practice plans at all of the

 4  medical schools, and municipalities.

 5         (d)  The availability and adequacy of all sources of

 6  revenue to support graduate medical education. The report must

 7  also recommend alternative sources of funding for graduate

 8  medical education.

 9         (e)  The use of state and federal appropriated funds

10  for graduate medical education by hospitals receiving such

11  funds.

12         Section 42.  Subsection (44) of section 408.07, Florida

13  Statutes, is amended to read:

14         408.07  Definitions.--As used in this chapter, with the

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

16         (44)  "Teaching hospital" means any Florida hospital

17  officially formally affiliated with an accredited medical

18  school which exhibits activity in the area of graduate medical

19  education as reflected by at least seven different graduate

20  medical education programs accredited by the Accreditation

21  Council for Graduate Medical Education resident physician

22  specialties and the presence of 100 or more

23  full-time-equivalent resident physicians. The Director of the

24  Agency for Health Care Administration shall be responsible for

25  determining which hospitals meet this definition.

26         Section 43.  Subsection (6) of section 409.905, Florida

27  Statutes, is amended to read:

28         409.905  Mandatory Medicaid services.--The agency may

29  make payments for the following services, which are required

30  of the state by Title XIX of the Social Security Act,

31  furnished by Medicaid providers to recipients who are

                                  8
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1  determined to be eligible on the dates on which the services

 2  were provided.  Any service under this section shall be

 3  provided only when medically necessary and in accordance with

 4  state and federal law. Nothing in this section shall be

 5  construed to prevent or limit the agency from adjusting fees,

 6  reimbursement rates, lengths of stay, number of visits, number

 7  of services, or any other adjustments necessary to comply with

 8  the availability of moneys and any limitations or directions

 9  provided for in the General Appropriations Act or chapter 216.

10         (6)  HOSPITAL OUTPATIENT SERVICES.--The agency shall

11  pay for preventive, diagnostic, therapeutic, or palliative

12  care and other services provided to a recipient in the

13  outpatient portion of a hospital licensed under part I of

14  chapter 395, and provided under the direction of a licensed

15  physician or licensed dentist, except that payment for such

16  care and services is limited to $1,500 $1,000 per state fiscal

17  year per recipient, unless an exception has been made by the

18  agency, and with the exception of a Medicaid recipient under

19  age 21, in which case the only limitation is medical

20  necessity.

21         Section 44.  Subsection (1) of section 409.908, Florida

22  Statutes, is amended to read:

23         409.908  Reimbursement of Medicaid providers.--Subject

24  to specific appropriations, the agency shall reimburse

25  Medicaid providers, in accordance with state and federal law,

26  according to methodologies set forth in the rules of the

27  agency and in policy manuals and handbooks incorporated by

28  reference therein.  These methodologies may include fee

29  schedules, reimbursement methods based on cost reporting,

30  negotiated fees, competitive bidding pursuant to s. 287.057,

31  and other mechanisms the agency considers efficient and

                                  9
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1  effective for purchasing services or goods on behalf of

 2  recipients.  Payment for Medicaid compensable services made on

 3  behalf of Medicaid eligible persons is subject to the

 4  availability of moneys and any limitations or directions

 5  provided for in the General Appropriations Act or chapter 216.

 6  Further, nothing in this section shall be construed to prevent

 7  or limit the agency from adjusting fees, reimbursement rates,

 8  lengths of stay, number of visits, or number of services, or

 9  making any other adjustments necessary to comply with the

10  availability of moneys and any limitations or directions

11  provided for in the General Appropriations Act, provided the

12  adjustment is consistent with legislative intent.

13         (1)  Reimbursement to hospitals licensed under part I

14  of chapter 395 must be made prospectively or on the basis of

15  negotiation.

16         (a)  Reimbursement for inpatient care is limited as

17  provided for in s. 409.905(5), except for:.

18         1.  The raising of rate reimbursement caps, excluding

19  rural hospitals.

20         2.  Recognition of the costs of graduate medical

21  education.

22         3.  Other methodologies recognized in the General

23  Appropriations Act.

24

25  In the years funds are transferred from the Board of Regents,

26  any reimbursement supported by such funds are subject to

27  certification from the Board of Regents that the hospital has

28  complied with s. 381.0403. The agency is authorized to receive

29  funds from state entities, including the Board of Regents,

30  local governments, and other local political subdivisions, for

31  the purpose of making special exception payments, including

                                  10
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1  federal matching funds, through the Medicaid inpatient

 2  reimbursement methodologies. Funds received from state

 3  entities or local governments for this purpose shall be

 4  separately accounted for and shall not be commingled with

 5  other state or local funds in any manner. Notwithstanding this

 6  section or s. 409.915, counties are exempt from contributing

 7  toward the cost of the special-exception reimbursement for

 8  hospitals serving a disproportionate share of low-income

 9  persons and providing graduate medical education.

10         (b)  Reimbursement for hospital outpatient care is

11  limited to $1,500 $1,000 per state fiscal year per recipient,

12  except for:

13         1.  Such care provided to a Medicaid recipient under

14  age 21, in which case the only limitation is medical

15  necessity.;

16         2.  Renal dialysis services.; and

17         3.  Other exceptions made by the agency.

18

19  The agency is authorized to receive funds from state entities,

20  including the Board of Regents, local governments, and other

21  local political subdivisions, for the purpose of making

22  payments, including federal matching funds, through the

23  Medicaid outpatient reimbursement methodologies. Funds

24  received from state entities and local governments for this

25  purpose shall be separately accounted for and shall not be

26  commingled with other state or local funds in any manner.

27         (c)(b)  Hospitals that provide services to a

28  disproportionate share of low-income Medicaid recipients, or

29  that participate in the regional perinatal intensive care

30  center program under chapter 383, or that participate in the

31  statutory teaching hospital disproportionate share program, or

                                  11
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1  that participate in the extraordinary disproportionate share

 2  program, may receive additional reimbursement. The total

 3  amount of payment for disproportionate share hospitals shall

 4  be fixed by the General Appropriations Act. The computation of

 5  these payments must be made in compliance with all federal

 6  regulations and the methodologies described in ss. 409.911,

 7  409.9112, and 409.9113.

 8         (d)(c)  The agency is authorized to limit inflationary

 9  increases for outpatient hospital services as directed by the

10  General Appropriations Act.

11

12  (Redesignate subsequent sections.)

13

14

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

16  And the title is amended as follows:

17         On page 68, line 8, following the semicolon

18

19  insert:

20         amending s. 381.0403, F.S.; redesignating "The

21         Community Hospital Education Act" as the

22         "Gerald L. Scheibler, M.D., Graduate Medical

23         Education Enhancement Act"; placing an emphasis

24         on primary care physicians rather than family

25         physicians; modifying the provisions relating

26         to the funding of graduate medical education;

27         defining primary care specialties; establishing

28         a program for graduate medical education

29         innovations; creating a process regarding the

30         release of funds; providing for a committee to

31         be established to produce an annual report on

                                  12
    6:06 PM   05/02/00                              s1028c1c-22b02




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1028

    Amendment No.    





 1         graduate medical education; specifying topics

 2         to be included in the report; amending s.

 3         408.07, F.S.; modifying the definition of the

 4         term "teaching hospital"; amending s. 409.905,

 5         F.S.; increasing the Medicaid reimbursement

 6         limitation for certain hospital outpatient

 7         services; amending s. 409.908, F.S.; providing

 8         exceptions to Medicaid reimbursement

 9         limitations for certain hospital inpatient

10         care; authorizing the agency to receive certain

11         funds for such exceptional reimbursements;

12         providing an exemption from county contribution

13         requirements; increasing the Medicaid

14         reimbursement limitation for certain hospital

15         outpatient care; authorizing the agency to

16         receive certain funds for such outpatient care;

17         removing authority for additional reimbursement

18         for hospitals participating in the

19         extraordinary disproportionate share program;

20         providing an exemption from county contribution

21         requirements;

22

23

24

25

26

27

28

29

30

31

                                  13
    6:06 PM   05/02/00                              s1028c1c-22b02