House Bill 2329er

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    2000 Legislature                     HB 2329, Second Engrossed



  1

  2         An act relating to health care; amending s.

  3         394.4615, F.S.; requiring that clinical records

  4         be furnished to the unit upon request; amending

  5         s. 395.3025, F.S.; allowing patient records to

  6         be furnished to the unit; amending s. 400.0077,

  7         F.S.; providing that certain confidentiality

  8         provisions do not limit the subpoena power of

  9         the Attorney General; amending s. 400.494,

10         F.S.; providing that certain confidentiality

11         provisions relating to home health agencies do

12         not apply to information requested by the unit;

13         amending s. 409.9071, F.S.; waiving

14         confidentiality and requiring that certain

15         information regarding Medicaid provider

16         agreements with school districts be provided to

17         the unit; amending s. 409.920, F.S.; clarifying

18         the Attorney General's power to subpoena

19         medical records relating to Medicaid

20         recipients; amending s. 409.9205, F.S.;

21         authorizing investigators employed by the unit

22         to serve process; amending s. 430.608, F.S.;

23         providing that certain confidentiality

24         provisions pertaining to the Department of

25         Elderly Affairs do not limit the subpoena

26         authority of the unit; amending s. 455.667,

27         F.S.; providing that certain confidential

28         records held by the Department of Health must

29         be provided to the unit; amending s. 409.212,

30         F.S.; providing for periodic increase in the

31         optional state supplementation rate; amending


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  1         s. 409.901, F.S.; amending definitions of terms

  2         used in ss. 409.910-409.920, F.S.; amending s.

  3         409.902, F.S.; providing that the Department of

  4         Children and Family Services is responsible for

  5         Medicaid eligibility determinations; amending

  6         s. 409.903, F.S.; providing responsibility for

  7         determinations of eligibility for payments for

  8         medical assistance and related services;

  9         amending s. 409.905, F.S.; increasing the

10         maximum amount that may be paid under Medicaid

11         for hospital outpatient services; amending s.

12         409.906, F.S.; allowing the Department of

13         Children and Family Services to transfer funds

14         to the Agency for Health Care Administration to

15         cover state match requirements as specified;

16         amending s. 409.907, F.S.; revising

17         requirements relating to the minimum amount of

18         the surety bond which each provider is required

19         to maintain; specifying grounds on which

20         provider applications may be denied; amending

21         s. 409.908, F.S.; increasing the maximum amount

22         of reimbursement allowable to Medicaid

23         providers for hospital inpatient care;

24         prohibiting interim rate adjustments that

25         reflect increases in the cost of general or

26         professional liability insurance; providing

27         legislative findings, intent, and

28         clarification; relating to reimbursement for

29         services to dually eligible Medicare

30         beneficiaries; providing applicability;

31         creating s. 409.9119, F.S.; creating a


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  1         disproportionate share program for specialty

  2         hospitals for children; providing formulas

  3         governing payments made to hospitals under the

  4         program; providing for withholding payments

  5         from a hospital that is not complying with

  6         agency rules; amending s. 409.912, F.S.;

  7         providing for the transfer of certain

  8         unexpended Medicaid funds from the Department

  9         of Elderly Affairs to the Agency for Health

10         Care Administration; authorizing the agency to

11         renew certain contracts for certain services

12         under certain circumstances; amending s.

13         409.919, F.S.; providing for the adoption and

14         the transfer of certain rules relating to the

15         determination of Medicaid eligibility;

16         authorizing developmental research schools to

17         participate in the Medicaid certified school

18         match program; providing for the Agency for

19         Health Care Administration to seek a federal

20         waiver allowing the agency to undertake a pilot

21         project that involves contracting with skilled

22         nursing facilities for the provision of

23         rehabilitation services to adult ventilator

24         dependent patients; providing for evaluation of

25         the pilot program; providing for a report;

26         designating Florida Alzheimer's Disease Day;

27         repealing s. 409.912(4)(b), F.S., relating to

28         the authorization of the agency to contract

29         with certain prepaid health care services

30         providers; amending s. 381.0403, F.S.; placing

31         an emphasis on primary care physicians rather


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  1         than family physicians; modifying the

  2         provisions relating to the funding of graduate

  3         medical education; defining primary care

  4         specialties; establishing a program for

  5         graduate medical education innovations;

  6         creating a process regarding the release of

  7         funds; requiring an annual report on graduate

  8         medical education; establishing a committee for

  9         report purposes; providing requirements for the

10         report; amending s. 408.07, F.S.; modifying the

11         definition of "teaching hospital"; amending s.

12         409.905, F.S.; increasing the Medicaid

13         reimbursement limitation for certain hospital

14         outpatient services; amending s. 409.908, F.S.;

15         providing exceptions to Medicaid reimbursement

16         limitations for certain hospital inpatient

17         care; authorizing the agency to receive certain

18         funds for such exceptional reimbursements;

19         providing an exemption from county contribution

20         requirements; increasing the Medicaid

21         reimbursement limitation for certain hospital

22         outpatient care; authorizing the agency to

23         receive certain funds for such outpatient care;

24         removing authority for additional reimbursement

25         for hospitals participating in the

26         extraordinary disproportionate share program;

27         providing an exemption from county contribution

28         requirements; providing an effective date.

29

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

31


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  1         Section 1.  Present subsections (6) through (10) of

  2  section 394.4615, Florida Statutes, are redesignated as

  3  subsections (7) through (11), respectively, and a new

  4  subsection (6) is added to that section to read:

  5         394.4615  Clinical records; confidentiality.--

  6         (6)  Clinical records relating to a Medicaid recipient

  7  shall be furnished to the Medicaid Fraud Control Unit in the

  8  Department of Legal Affairs, upon request.

  9         Section 2.  Paragraph (k) is added to subsection (4) of

10  section 395.3025, Florida Statutes, to read:

11         395.3025  Patient and personnel records; copies;

12  examination.--

13         (4)  Patient records are confidential and must not be

14  disclosed without the consent of the person to whom they

15  pertain, but appropriate disclosure may be made without such

16  consent to:

17         (k)  The Medicaid Fraud Control Unit in the Department

18  of Legal Affairs pursuant to s. 409.920.

19         Section 3.  Subsection (6) is added to section

20  400.0077, Florida Statutes, to read:

21         400.0077  Confidentiality.--

22         (6)  This section does not limit the subpoena power of

23  the Attorney General pursuant to s. 409.920(8)(b).

24         Section 4.  Section 400.494, Florida Statutes, is

25  amended to read:

26         400.494  Information about patients confidential.--

27         (1)  Information about patients received by persons

28  employed by, or providing services to, a home health agency or

29  received by the licensing agency through reports or inspection

30  shall be confidential and exempt from the provisions of s.

31  119.07(1) and shall not be disclosed to any person other than


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  1  the patient without the written consent of that patient or the

  2  patient's guardian.

  3         (2)  This section does not apply to information

  4  lawfully requested by the Medicaid Fraud Control Unit of the

  5  Department of Legal Affairs.

  6         Section 5.  Subsection (7) is added to section

  7  409.9071, Florida Statutes, to read:

  8         409.9071  Medicaid provider agreements for school

  9  districts certifying state match.--

10         (7)  The agency's and school districts' confidentiality

11  is waived. They shall provide any information or documents

12  relating to this section to the Medicaid Fraud Control Unit in

13  the Department of Legal Affairs, upon request pursuant to its

14  authority under s. 409.920.

15         Section 6.  Paragraph (b) of subsection (8) of section

16  409.920, Florida Statutes, is amended to read:

17         409.920  Medicaid provider fraud.--

18         (8)  In carrying out the duties and responsibilities

19  under this subsection, the Attorney General may:

20         (b)  Subpoena witnesses or materials, including medical

21  records relating to Medicaid recipients, within or outside the

22  state and, through any duly designated employee, administer

23  oaths and affirmations and collect evidence for possible use

24  in either civil or criminal judicial proceedings.

25         Section 7.  Section 409.9205, Florida Statutes, is

26  amended to read:

27         409.9205  Medicaid Fraud Control Unit; law enforcement

28  officers.--All investigators employed by the Medicaid Fraud

29  Control Unit who have been certified under s. 943.1395 are law

30  enforcement officers of the state.  Such investigators have

31  the authority to conduct criminal investigations, bear arms,


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  1  make arrests, and apply for, serve, and execute search

  2  warrants, arrest warrants, and capias, and other process

  3  throughout the state pertaining to Medicaid fraud as described

  4  in this chapter.  The Attorney General shall provide

  5  reasonable notice of criminal investigations conducted by the

  6  Medicaid Fraud Control Unit to, and coordinate those

  7  investigations with, the sheriffs of the respective counties.

  8  Investigators employed by the Medicaid Fraud Control Unit are

  9  not eligible for membership in the Special Risk Class of the

10  Florida Retirement System under s. 121.0515.

11         Section 8.  Section 430.608, Florida Statutes, is

12  amended to read:

13         430.608  Confidentiality of information.--Identifying

14  information about elderly persons who receive services under

15  ss. 430.601-430.606, which is received through files, reports,

16  inspection, or otherwise by the department or by authorized

17  departmental employees, by persons who volunteer services, or

18  by persons who provide services to elderly persons under ss.

19  430.601-430.606 through contracts with the department, is

20  confidential and exempt from the provisions of s. 119.07(1)

21  and s. 24(a), Art. I of the State Constitution. Such

22  information may not be disclosed publicly in such a manner as

23  to identify an elderly person, unless that person or the

24  person's legal guardian provides written consent.

25         (2)  This section does not, however, limit the subpoena

26  authority of the Medicaid Fraud Control Unit of the Department

27  of Legal Affairs pursuant to s. 409.920(8)(b).

28         Section 9.  Subsection (8) of subsection 455.667,

29  Florida Statutes, is amended to read:

30         455.667  Ownership and control of patient records;

31  report or copies of records to be furnished.--


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  1         (8)(a)  All patient records obtained by the department

  2  and any other documents maintained by the department which

  3  identify the patient by name are confidential and exempt from

  4  s. 119.07(1) and shall be used solely for the purpose of the

  5  department and the appropriate regulatory board in its

  6  investigation, prosecution, and appeal of disciplinary

  7  proceedings. The records shall not be available to the public

  8  as part of the record of investigation for and prosecution in

  9  disciplinary proceedings made available to the public by the

10  department or the appropriate board.

11         (b)  Notwithstanding paragraph (a), all patient records

12  obtained by the department and any other documents maintained

13  by the department which relate to a current or former Medicaid

14  recipient shall be provided to the Medicaid Fraud Control Unit

15  in the Department of Legal Affairs, upon request.

16         Section 10.  Subsection (6) of section 409.212, Florida

17  Statutes, is renumbered as subsection (7) and a new subsection

18  (6) is added to said section, to read:

19         409.212  Optional supplementation.--

20         (6)  The optional state supplementation rate shall be

21  increased by the cost-of-living adjustment to the federal

22  benefits rate provided the average state optional

23  supplementation contribution does not increase as a result.

24         Section 11.  Subsections (3), (15), and (18) of section

25  409.901, Florida Statutes, are amended to read:

26         409.901  Definitions.--As used in ss. 409.901-409.920,

27  except as otherwise specifically provided, the term:

28         (3)  "Applicant" means an individual whose written

29  application for medical assistance provided by Medicaid under

30  ss. 409.903-409.906 has been submitted to the Department of

31  Children and Family Services agency, or to the Social Security


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  1  Administration if the application is for Supplemental Security

  2  Income, but has not received final action.  This term includes

  3  an individual, who need not be alive at the time of

  4  application, whose application is submitted through a

  5  representative or a person acting for the individual.

  6         (15)  "Medicaid program" means the program authorized

  7  under Title XIX of the federal Social Security Act which

  8  provides for payments for medical items or services, or both,

  9  on behalf of any person who is determined by the Department of

10  Children and Family Services, or, for Supplemental Security

11  Income, by the Social Security Administration, to be eligible

12  on the date of service for Medicaid assistance.

13         (18)  "Medicaid recipient" or "recipient" means an

14  individual whom the Department of Children and Family

15  Services, or, for Supplemental Security Income, by the Social

16  Security Administration, determines is eligible, pursuant to

17  federal and state law, to receive medical assistance and

18  related services for which the agency may make payments under

19  the Medicaid program. For the purposes of determining

20  third-party liability, the term includes an individual

21  formerly determined to be eligible for Medicaid, an individual

22  who has received medical assistance under the Medicaid

23  program, or an individual on whose behalf Medicaid has become

24  obligated.

25         Section 12.  Section 409.902, Florida Statutes, is

26  amended to read:

27         409.902  Designated single state agency; payment

28  requirements; program title.--The Agency for Health Care

29  Administration is designated as the single state agency

30  authorized to make payments for medical assistance and related

31  services under Title XIX of the Social Security Act.  These


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  1  payments shall be made, subject to any limitations or

  2  directions provided for in the General Appropriations Act,

  3  only for services included in the program, shall be made only

  4  on behalf of eligible individuals, and shall be made only to

  5  qualified providers in accordance with federal requirements

  6  for Title XIX of the Social Security Act and the provisions of

  7  state law.  This program of medical assistance is designated

  8  the "Medicaid program." The Department of Children and Family

  9  Services is responsible for Medicaid eligibility

10  determinations, including, but not limited to, policy, rules,

11  and the agreement with the Social Security Administration for

12  Medicaid eligibility determinations for Supplemental Security

13  Income recipients, as well as the actual determination of

14  eligibility.

15         Section 13.  Section 409.903, Florida Statutes, is

16  amended to read:

17         409.903  Mandatory payments for eligible persons.--The

18  agency shall make payments for medical assistance and related

19  services on behalf of the following persons who the

20  department, or the Social Security Administration by contract

21  with the Department of Children and Family Services, agency

22  determines to be eligible, subject to the income, assets, and

23  categorical eligibility tests set forth in federal and state

24  law.  Payment on behalf of these Medicaid eligible persons is

25  subject to the availability of moneys and any limitations

26  established by the General Appropriations Act or chapter 216.

27         (1)  Low-income families with children are eligible for

28  Medicaid provided they meet the following requirements:

29         (a)  The family includes a dependent child who is

30  living with a caretaker relative.

31


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  1         (b)  The family's income does not exceed the gross

  2  income test limit.

  3         (c)  The family's countable income and resources do not

  4  exceed the applicable Aid to Families with Dependent Children

  5  (AFDC) income and resource standards under the AFDC state plan

  6  in effect in July 1996, except as amended in the Medicaid

  7  state plan to conform as closely as possible to the

  8  requirements of the WAGES Program as created in s. 414.015, to

  9  the extent permitted by federal law.

10         (2)  A person who receives payments from, who is

11  determined eligible for, or who was eligible for but lost cash

12  benefits from the federal program known as the Supplemental

13  Security Income program (SSI).  This category includes a

14  low-income person age 65 or over and a low-income person under

15  age 65 considered to be permanently and totally disabled.

16         (3)  A child under age 21 living in a low-income,

17  two-parent family, and a child under age 7 living with a

18  nonrelative, if the income and assets of the family or child,

19  as applicable, do not exceed the resource limits under the

20  WAGES Program.

21         (4)  A child who is eligible under Title IV-E of the

22  Social Security Act for subsidized board payments, foster

23  care, or adoption subsidies, and a child for whom the state

24  has assumed temporary or permanent responsibility and who does

25  not qualify for Title IV-E assistance but is in foster care,

26  shelter or emergency shelter care, or subsidized adoption.

27         (5)  A pregnant woman for the duration of her pregnancy

28  and for the post partum period as defined in federal law and

29  rule, or a child under age 1, if either is living in a family

30  that has an income which is at or below 150 percent of the

31  most current federal poverty level, or, effective January 1,


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  1  1992, that has an income which is at or below 185 percent of

  2  the most current federal poverty level.  Such a person is not

  3  subject to an assets test. Further, a pregnant woman who

  4  applies for eligibility for the Medicaid program through a

  5  qualified Medicaid provider must be offered the opportunity,

  6  subject to federal rules, to be made presumptively eligible

  7  for the Medicaid program.

  8         (6)  A child born after September 30, 1983, living in a

  9  family that has an income which is at or below 100 percent of

10  the current federal poverty level, who has attained the age of

11  6, but has not attained the age of 19.  In determining the

12  eligibility of such a child, an assets test is not required.

13         (7)  A child living in a family that has an income

14  which is at or below 133 percent of the current federal

15  poverty level, who has attained the age of 1, but has not

16  attained the age of 6.  In determining the eligibility of such

17  a child, an assets test is not required.

18         (8)  A person who is age 65 or over or is determined by

19  the agency to be disabled, whose income is at or below 100

20  percent of the most current federal poverty level and whose

21  assets do not exceed limitations established by the agency.

22  However, the agency may only pay for premiums, coinsurance,

23  and deductibles, as required by federal law, unless additional

24  coverage is provided for any or all members of this group by

25  s. 409.904(1).

26         Section 14.  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


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  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 15.  Subsection (5) of section 409.906, Florida

22  Statutes, is amended to read:

23         409.906  Optional Medicaid services.--Subject to

24  specific appropriations, the agency may make payments for

25  services which are optional to the state under Title XIX of

26  the Social Security Act and are furnished by Medicaid

27  providers to recipients who are determined to be eligible on

28  the dates on which the services were provided.  Any optional

29  service that is provided shall be provided only when medically

30  necessary and in accordance with state and federal law.

31  Nothing in this section shall be construed to prevent or limit


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  1  the agency from adjusting fees, reimbursement rates, lengths

  2  of stay, number of visits, or number of services, or making

  3  any other adjustments necessary to comply with the

  4  availability of moneys and any limitations or directions

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

  6  If necessary to safeguard the state's systems of providing

  7  services to elderly and disabled persons and subject to the

  8  notice and review provisions of s. 216.177, the Governor may

  9  direct the Agency for Health Care Administration to amend the

10  Medicaid state plan to delete the optional Medicaid service

11  known as "Intermediate Care Facilities for the Developmentally

12  Disabled."  Optional services may include:

13         (5)  CASE MANAGEMENT SERVICES.--The agency may pay for

14  primary care case management services rendered to a recipient

15  pursuant to a federally approved waiver, and targeted case

16  management services for specific groups of targeted

17  recipients, for which funding has been provided and which are

18  rendered pursuant to federal guidelines. The agency is

19  authorized to limit reimbursement for targeted case management

20  services in order to comply with any limitations or directions

21  provided for in the General Appropriations Act.

22  Notwithstanding s. 216.292, the Department of Children and

23  Family Services may transfer general funds to the Agency for

24  Health Care Administration to fund state match requirements

25  exceeding the amount specified in the General Appropriations

26  Act for targeted case management services.

27         Section 16.  Subsections (7), (9), and (10) of section

28  409.907, Florida Statutes, are amended to read:

29         409.907  Medicaid provider agreements.--The agency may

30  make payments for medical assistance and related services

31  rendered to Medicaid recipients only to an individual or


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  1  entity who has a provider agreement in effect with the agency,

  2  who is performing services or supplying goods in accordance

  3  with federal, state, and local law, and who agrees that no

  4  person shall, on the grounds of handicap, race, color, or

  5  national origin, or for any other reason, be subjected to

  6  discrimination under any program or activity for which the

  7  provider receives payment from the agency.

  8         (7)  The agency may require, as a condition of

  9  participating in the Medicaid program and before entering into

10  the provider agreement, that the provider submit information

11  concerning the professional, business, and personal background

12  of the provider and permit an onsite inspection of the

13  provider's service location by agency staff or other personnel

14  designated by the agency to perform assist in this function.

15  Before entering into the provider agreement, or as a condition

16  of continuing participation in the Medicaid program, the

17  agency and may also require that Medicaid providers reimbursed

18  on a fee-for-services basis or fee schedule basis which is not

19  cost-based, post a surety bond from the provider not to exceed

20  $50,000 or the total amount billed by the provider to the

21  program during the current or most recent calendar year,

22  whichever is greater. For new providers, the amount of the

23  surety bond shall be determined by the agency based on the

24  provider's estimate of its first year's billing. If the

25  provider's billing during the first year exceeds the bond

26  amount, the agency may require the provider to acquire an

27  additional bond equal to the actual billing level of the

28  provider. A provider's bond shall not exceed $50,000 if a

29  physician or group of physicians licensed under chapter 458,

30  chapter 459, or chapter 460 has a 50 percent or greater

31  ownership interest in the provider or if the provider is an


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  1  assisted living facility licensed under part III of chapter

  2  400. The bonds permitted by this section are in addition to

  3  the bonds referenced in s. 400.179(4)(d). If the provider is a

  4  corporation, partnership, association, or other entity, the

  5  agency may require the provider to submit information

  6  concerning the background of that entity and of any principal

  7  of the entity, including any partner or shareholder having an

  8  ownership interest in the entity equal to 5 percent or

  9  greater, and any treating provider who participates in or

10  intends to participate in Medicaid through the entity. The

11  information must include:

12         (a)  Proof of holding a valid license or operating

13  certificate, as applicable, if required by the state or local

14  jurisdiction in which the provider is located or if required

15  by the Federal Government.

16         (b)  Information concerning any prior violation, fine,

17  suspension, termination, or other administrative action taken

18  under the Medicaid laws, rules, or regulations of this state

19  or of any other state or the Federal Government; any prior

20  violation of the laws, rules, or regulations relating to the

21  Medicare program; any prior violation of the rules or

22  regulations of any other public or private insurer; and any

23  prior violation of the laws, rules, or regulations of any

24  regulatory body of this or any other state.

25         (c)  Full and accurate disclosure of any financial or

26  ownership interest that the provider, or any principal,

27  partner, or major shareholder thereof, may hold in any other

28  Medicaid provider or health care related entity or any other

29  entity that is licensed by the state to provide health or

30  residential care and treatment to persons.

31


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  1         (d)  If a group provider, identification of all members

  2  of the group and attestation that all members of the group are

  3  enrolled in or have applied to enroll in the Medicaid program.

  4         (9)  Upon receipt of a completed, signed, and dated

  5  application, and completion of any necessary background

  6  investigation and criminal history record check, the agency

  7  must either:

  8         (a)  Enroll the applicant as a Medicaid provider; or

  9         (b)  Deny the application if the agency finds that,

10  based on the grounds listed in subsection (10), it is in the

11  best interest of the Medicaid program to do so, specifying the

12  reasons for denial. The agency may consider the factors listed

13  in subsection (10), as well as any other factor that could

14  affect the effective and efficient administration of the

15  program, including, but not limited to, the current

16  availability of medical care, services, or supplies to

17  recipients, taking into account geographic location and

18  reasonable travel time.

19         (10)  The agency may consider whether deny enrollment

20  in the Medicaid program to a provider if the provider, or any

21  officer, director, agent, managing employee, or affiliated

22  person, or any partner or shareholder having an ownership

23  interest equal to 5 percent or greater in the provider if the

24  provider is a corporation, partnership, or other business

25  entity, has:

26         (a)  Made a false representation or omission of any

27  material fact in making the application, including the

28  submission of an application that conceals the controlling or

29  ownership interest of any officer, director, agent, managing

30  employee, affiliated person, or partner or shareholder who may

31  not be eligible to participate;


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  1         (b)  Been or is currently excluded, suspended,

  2  terminated from, or has involuntarily withdrawn from

  3  participation in, Florida's Medicaid program or any other

  4  state's Medicaid program, or from participation in any other

  5  governmental or private health care or health insurance

  6  program;

  7         (c)  Been convicted of a criminal offense relating to

  8  the delivery of any goods or services under Medicaid or

  9  Medicare or any other public or private health care or health

10  insurance program including the performance of management or

11  administrative services relating to the delivery of goods or

12  services under any such program;

13         (d)  Been convicted under federal or state law of a

14  criminal offense related to the neglect or abuse of a patient

15  in connection with the delivery of any health care goods or

16  services;

17         (e)  Been convicted under federal or state law of a

18  criminal offense relating to the unlawful manufacture,

19  distribution, prescription, or dispensing of a controlled

20  substance;

21         (f)  Been convicted of any criminal offense relating to

22  fraud, theft, embezzlement, breach of fiduciary

23  responsibility, or other financial misconduct;

24         (g)  Been convicted under federal or state law of a

25  crime punishable by imprisonment of a year or more which

26  involves moral turpitude;

27         (h)  Been convicted in connection with the interference

28  or obstruction of any investigation into any criminal offense

29  listed in this subsection;

30         (i)  Been found to have violated federal or state laws,

31  rules, or regulations governing Florida's Medicaid program or


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  1  any other state's Medicaid program, the Medicare program, or

  2  any other publicly funded federal or state health care or

  3  health insurance program, and been sanctioned accordingly;

  4         (j)  Been previously found by a licensing, certifying,

  5  or professional standards board or agency to have violated the

  6  standards or conditions relating to licensure or certification

  7  or the quality of services provided; or

  8         (k)  Failed to pay any fine or overpayment properly

  9  assessed under the Medicaid program in which no appeal is

10  pending or after resolution of the proceeding by stipulation

11  or agreement, unless the agency has issued a specific letter

12  of forgiveness or has approved a repayment schedule to which

13  the provider agrees to adhere.

14         Section 17.  Paragraph (a) of subsection (1), paragraph

15  (b) of subsection (2), and paragraph (c) of subsection (13) of

16  section 409.908, Florida Statutes, are amended to read:

17         409.908  Reimbursement of Medicaid providers.--Subject

18  to specific appropriations, the agency shall reimburse

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

20  according to methodologies set forth in the rules of the

21  agency and in policy manuals and handbooks incorporated by

22  reference therein.  These methodologies may include fee

23  schedules, reimbursement methods based on cost reporting,

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

25  and other mechanisms the agency considers efficient and

26  effective for purchasing services or goods on behalf of

27  recipients.  Payment for Medicaid compensable services made on

28  behalf of Medicaid eligible persons is subject to the

29  availability of moneys and any limitations or directions

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

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


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

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

  3  making any other adjustments necessary to comply with the

  4  availability of moneys and any limitations or directions

  5  provided for in the General Appropriations Act, provided the

  6  adjustment is consistent with legislative intent.

  7         (1)  Reimbursement to hospitals licensed under part I

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

  9  negotiation.

10         (a)  Reimbursement for inpatient care is limited as

11  provided for in s. 409.905(5). Reimbursement for hospital

12  outpatient care is limited to $1,500 $1,000 per state fiscal

13  year per recipient, except for:

14         1.  Such care provided to a Medicaid recipient under

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

16  necessity;

17         2.  Renal dialysis services; and

18         3.  Other exceptions made by the agency.

19         (b)  Hospitals that provide services to a

20  disproportionate share of low-income Medicaid recipients, or

21  that participate in the regional perinatal intensive care

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

23  statutory teaching hospital disproportionate share program, or

24  that participate in the extraordinary disproportionate share

25  program, may receive additional reimbursement. The total

26  amount of payment for disproportionate share hospitals shall

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

28  these payments must be made in compliance with all federal

29  regulations and the methodologies described in ss. 409.911,

30  409.9112, and 409.9113.

31


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  1         (c)  The agency is authorized to limit inflationary

  2  increases for outpatient hospital services as directed by the

  3  General Appropriations Act.

  4         (2)

  5         (b)  Subject to any limitations or directions provided

  6  for in the General Appropriations Act, the agency shall

  7  establish and implement a Florida Title XIX Long-Term Care

  8  Reimbursement Plan (Medicaid) for nursing home care in order

  9  to provide care and services in conformance with the

10  applicable state and federal laws, rules, regulations, and

11  quality and safety standards and to ensure that individuals

12  eligible for medical assistance have reasonable geographic

13  access to such care. Under the plan, interim rate adjustments

14  shall not be granted to reflect increases in the cost of

15  general or professional liability insurance for nursing homes

16  unless the following criteria are met: have at least a 65

17  percent Medicaid utilization in the the most recent cost

18  report submitted to the agency, and the increase in general or

19  professional liability costs to the facility for the most

20  recent policy period affects the total Medicaid per diem by at

21  least 5 percent. This rate adjustment shall not result in the

22  per diem exceeding the class ceiling. This provision shall

23  apply only to fiscal year 2000-2001 and shall be implemented

24  to the extent existing appropriations are available. The

25  agency shall report to the Governor, the Speaker of the House

26  of Representatives, and the President of the Senate by

27  December 31, 2000 on the cost of liability insurance for

28  Florida nursing homes for fiscal years 1999 and 2000 and the

29  extent to which these costs are not being compensated by the

30  Medicaid program. Medicaid participating nursing homes shall

31  be required to report to the agency information necessary to


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  1  compile this report. Effective no earlier than the

  2  rate-setting period beginning April 1, 1999, the agency shall

  3  establish a case-mix reimbursement methodology for the rate of

  4  payment for long-term care services for nursing home

  5  residents. The agency shall compute a per diem rate for

  6  Medicaid residents, adjusted for case mix, which is based on a

  7  resident classification system that accounts for the relative

  8  resource utilization by different types of residents and which

  9  is based on level-of-care data and other appropriate data. The

10  case-mix methodology developed by the agency shall take into

11  account the medical, behavioral, and cognitive deficits of

12  residents. In developing the reimbursement methodology, the

13  agency shall evaluate and modify other aspects of the

14  reimbursement plan as necessary to improve the overall

15  effectiveness of the plan with respect to the costs of patient

16  care, operating costs, and property costs. In the event

17  adequate data are not available, the agency is authorized to

18  adjust the patient's care component or the per diem rate to

19  more adequately cover the cost of services provided in the

20  patient's care component. The agency shall work with the

21  Department of Elderly Affairs, the Florida Health Care

22  Association, and the Florida Association of Homes for the

23  Aging in developing the methodology. It is the intent of the

24  Legislature that the reimbursement plan achieve the goal of

25  providing access to health care for nursing home residents who

26  require large amounts of care while encouraging diversion

27  services as an alternative to nursing home care for residents

28  who can be served within the community. The agency shall base

29  the establishment of any maximum rate of payment, whether

30  overall or component, on the available moneys as provided for

31  in the General Appropriations Act. The agency may base the


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  1  maximum rate of payment on the results of scientifically valid

  2  analysis and conclusions derived from objective statistical

  3  data pertinent to the particular maximum rate of payment.

  4         (13)  Medicare premiums for persons eligible for both

  5  Medicare and Medicaid coverage shall be paid at the rates

  6  established by Title XVIII of the Social Security Act.  For

  7  Medicare services rendered to Medicaid-eligible persons,

  8  Medicaid shall pay Medicare deductibles and coinsurance as

  9  follows:

10         (c)  Medicaid will pay no portion of Medicare

11  deductibles and coinsurance when payment that Medicare has

12  made for the service equals or exceeds what Medicaid would

13  have paid if it had been the sole payor.  The combined payment

14  of Medicare and Medicaid shall not exceed the amount Medicaid

15  would have paid had it been the sole payor. The Legislature

16  finds that there has been confusion regarding the

17  reimbursement for services rendered to dually eligible

18  Medicare beneficiaries. Accordingly, the Legislature clarifies

19  that it has always been the intent of the legislature before

20  and after 1991 that, in reimbursing in accordance with fees

21  established by Title XVIII for premiums, deductibles, and

22  coinsurance for Medicare services rendered by physicians to

23  Medicaid eligible persons, that physicians be reimbursed at

24  the lesser of the amount billed by the physician or the

25  Medicaid maximum allowable fee established by the Agency for

26  Health Care Administration, as is permitted by federal law. It

27  has never been the intent of the Legislature with regard to

28  such services rendered by physicians that Medicaid be required

29  to provide any payment for deductibles, coinsurance, or

30  copayments for Medicare cost-sharing, or any expenses incurred

31  relating thereto, in excess of the payment amount provided for


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  1  under the State Medicaid plan for such service. This payment

  2  methodology is applicable even in those situations in which

  3  the payment for Medicare cost-sharing for a qualified Medicare

  4  beneficiary with respect to an item or service is reduced or

  5  eliminated. This expression of the Legislature is in

  6  clarification of existing law and shall apply to payment for,

  7  and with respect to provider agreements with respect to, items

  8  or services furnished on or after the effective date of this

  9  act. This paragraph applies to payment by Medicaid for items

10  and services furnished before the effective date of this act

11  if such payment is the subject of a lawsuit that is based on

12  the provisions of s. 409.908, and that is pending as of, or is

13  initiated after, the effective date of this act.

14         Section 18.  Section 409.9119, Florida Statutes, is

15  created to read:

16         409.9119  Disproportionate share program for specialty

17  hospitals for children.--In addition to the payments made

18  under s. 409.911, the Agency for Health Care Administration

19  shall develop and implement a system under which

20  disproportionate share payments are made to those hospitals

21  that are licensed by the state as specialty hospitals for

22  children and were licensed on January 1, 2000, as specialty

23  hospitals for children. This system of payments must conform

24  to federal requirements and must distribute funds in each

25  fiscal year for which an appropriation is made by making

26  quarterly Medicaid payments. Notwithstanding s. 409.915,

27  counties are exempt from contributing toward the cost of this

28  special reimbursement for hospitals that serve a

29  disproportionate share of low-income patients.

30         (1)  The agency shall use the following formula to

31  calculate the total amount earned for hospitals that


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  1  participate in the specialty hospital for children

  2  disproportionate share program:

  3                      TAE = DSR x BMPD x MD

  4  Where:

  5         TAE = total amount earned by a specialty hospital for

  6  children.

  7         DSR = disproportionate share rate.

  8         BMPD = base Medicaid per diem.

  9         MD = Medicaid days.

10         (2)  The agency shall calculate the total additional

11  payment for hospitals that participate in the specialty

12  hospital for children disproportionate share program as

13  follows:

14

15                         TAP = (TAE x TA)

16                                         

17                               STAE

18  Where:

19         TAP = total additional payment for a specialty hospital

20  for children.

21         TAE = total amount earned by a specialty hospital for

22  children.

23         TA = total appropriation for the specialty hospital for

24  children disproportionate share program.

25         STAE = sum of total amount earned by each hospital that

26  participates in the specialty hospital for children

27  disproportionate share program.

28

29         (3)  A hospital may not receive any payments under this

30  section until it achieves full compliance with the applicable

31  rules of the agency. A hospital that is not in compliance for


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  1  two or more consecutive quarters may not receive its share of

  2  the funds. Any forfeited funds must be distributed to the

  3  remaining participating specialty hospitals for children that

  4  are in compliance.

  5         Section 19.  Subsection (9) of section 409.912, Florida

  6  Statutes, is amended, and subsection (37) is added to said

  7  section, to read:

  8         409.912  Cost-effective purchasing of health care.--The

  9  agency shall purchase goods and services for Medicaid

10  recipients in the most cost-effective manner consistent with

11  the delivery of quality medical care.  The agency shall

12  maximize the use of prepaid per capita and prepaid aggregate

13  fixed-sum basis services when appropriate and other

14  alternative service delivery and reimbursement methodologies,

15  including competitive bidding pursuant to s. 287.057, designed

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

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

18  minimize the exposure of recipients to the need for acute

19  inpatient, custodial, and other institutional care and the

20  inappropriate or unnecessary use of high-cost services.

21         (9)  The agency, after notifying the Legislature, may

22  apply for waivers of applicable federal laws and regulations

23  as necessary to implement more appropriate systems of health

24  care for Medicaid recipients and reduce the cost of the

25  Medicaid program to the state and federal governments and

26  shall implement such programs, after legislative approval,

27  within a reasonable period of time after federal approval.

28  These programs must be designed primarily to reduce the need

29  for inpatient care, custodial care and other long-term or

30  institutional care, and other high-cost services.

31


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  1         (a)  Prior to seeking legislative approval of such a

  2  waiver as authorized by this subsection, the agency shall

  3  provide notice and an opportunity for public comment.  Notice

  4  shall be provided to all persons who have made requests of the

  5  agency for advance notice and shall be published in the

  6  Florida Administrative Weekly not less than 28 days prior to

  7  the intended action.

  8         (b)  Notwithstanding s. 216.292, funds that are

  9  appropriated to the Department of Elderly Affairs for the

10  Assisted Living for the Elderly Medicaid waiver and are not

11  expended shall be transferred to the agency to fund

12  Medicaid-reimbursed nursing home care.

13         (37)  Notwithstanding the provisions of chapter 287,

14  the agency may at its discretion, renew a contract or

15  contracts for fiscal intermediary services one or more times

16  for such periods as the agency may decide; however, all such

17  renewals may not combine to exceed a total period longer than

18  the term of the original contract.

19         Section 20.  Section 409.919, Florida Statutes, is

20  amended to read:

21         409.919  Rules.--The agency shall adopt any rules

22  necessary to comply with or administer ss. 409.901-409.920 and

23  all rules necessary to comply with federal requirements. In

24  addition, the Department of Children and Family Services shall

25  adopt and accept transfer of any rules necessary to carry out

26  its responsibilities for receiving and processing Medicaid

27  applications and determining Medicaid eligibility, and for

28  assuring compliance with and administering ss. 409.901-409.906

29  and any other provisions related to responsibility for the

30  determination of Medicaid eligibility.

31


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  1         Section 21.  Notwithstanding the provisions of ss.

  2  236.0812, 409.9071, and 409.908(21), Florida Statutes,

  3  developmental research schools, as authorized under s.

  4  228.053, Florida Statutes, shall be authorized to participate

  5  in the Medicaid certified school match program subject to the

  6  provisions of ss. 236.0812, 409.9071, and 409.908(21), Florida

  7  Statutes.

  8         Section 22.  (1)  The Agency for Health Care

  9  Administration is directed to submit to the Health Care

10  Financing Administration a request for a waiver that will

11  allow the agency to undertake a pilot project that would

12  implement a coordinated system of care for adult ventilator

13  dependent patients. Under this pilot program, the agency shall

14  identify a network of skilled nursing facilities that have

15  respiratory departments geared towards intensive treatment and

16  rehabilitation of adult ventilator patients and will contract

17  with such a network for respiratory services under a

18  capitation arrangement. The pilot project must allow the

19  agency to evaluate a coordinated and focused system of care

20  for adult ventilator dependent patients to determine the

21  overall cost-effectiveness and improved outcomes for

22  participants.

23         (2)  The agency shall submit the waiver by September 1,

24  2000.  The agency shall forward a preliminary report of the

25  pilot project's findings to the Governor, the Speaker of the

26  House of Representatives, and the President of the Senate 6

27  months after project implementation.  The agency shall submit

28  a final report of the pilot project's findings to the

29  Governor, the Speaker of the House of Representatives, and the

30  President of the Senate no later than February 15, 2002.

31


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  1         Section 23.  Subsection (7) of section 430.703, Florida

  2  Statutes, is renumbered as subsection (8), and a new

  3  subsection (7) is added to said section to read:

  4         430.703  Definitions.--As used in this act, the term:

  5         (7)  "Other qualified provider" means an entity

  6  licensed under chapter 400 that demonstrates a long-term care

  7  continuum, posts a $500,000 performance bond, and meets all

  8  the financial and quality assurance requirements for a

  9  provider service network as specified in s. 409.912 and all

10  requirements pursuant to an interagency agreement between the

11  agency and the department.

12         Section 24.  Subsection (1) of section 430.707, Florida

13  Statutes, is amended to read:

14         430.707  Contracts.--

15         (1)  The department, in consultation with the agency,

16  shall select and contract with managed care organizations and,

17  on a prepaid basis, with other qualified providers as defined

18  in s. 430.703(7) to provide long-term care within community

19  diversion pilot project areas. The agency shall evaluate and

20  report quarterly to the department the compliance by other

21  qualified providers with all the financial and quality

22  assurance requirements of the contract.

23         Section 25.  February 6th of each year is designated as

24  Florida Alzheimer's Disease Day.

25         Section 26.  Paragraph (b) of subsection (4) of section

26  409.912, Florida Statutes, is repealed.

27         Section 27.  Section 381.0403, Florida Statutes, is

28  amended to read:

29         381.0403  The Community Hospital Education Act.--

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

31  cited as "The Community Hospital Education Act."


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  1         (2)  LEGISLATIVE INTENT.--

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

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

  4  that a program for continuing these services be maintained

  5  through a plan for community medical education.  The program

  6  is intended to provide additional outpatient and inpatient

  7  services, a continuing supply of highly trained physicians,

  8  and graduate medical education.

  9         (b)  The Legislature further acknowledges the critical

10  need for increased numbers of primary care family physicians

11  to provide the necessary current and projected health and

12  medical services.  In order to meet both present and

13  anticipated needs, the Legislature supports an expansion in

14  the number of family practice residency positions.  The

15  Legislature intends that the funding for graduate education in

16  family practice be maintained and that funding for all primary

17  care specialties be provided at a minimum of $10,000 per

18  resident per year.  Should funding for this act remain

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

20  funded by this act be maintained or reduced proportionately.

21         (3)  PROGRAM FOR COMMUNITY HOSPITAL EDUCATION; STATE

22  AND LOCAL PLANNING.--

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

24  program for statewide graduate medical education.  It is

25  intended that continuing graduate medical education programs

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

27  The program shall provide financial support for primary care

28  specialty interns and residents based on policies recommended

29  and approved by the Community Hospital Education Council,

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

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


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  1  of the training program are qualified to apply for financial

  2  support. Programs with fewer than three residents or interns

  3  per training year are qualified to apply for financial

  4  support, but only if the appropriate accrediting entity for

  5  the particular specialty has approved the program for fewer

  6  positions. Programs added after fiscal year 1997-1998 shall

  7  have 5 years to attain the requisite number of residents or

  8  interns. When feasible and to the extent allowed through the

  9  General Appropriations Act, state funds shall be used to

10  generate federal matching funds under Medicaid, or other

11  federal programs, and the resulting combined state and federal

12  funds shall be allocated to participating hospitals for the

13  support of graduate medical education, for administrative

14  costs associated with the production of the annual report as

15  specified in subsection (9), and for administration of the

16  council.

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

18  specialties include emergency medicine, family practice,

19  internal medicine, pediatrics, psychiatry,

20  obstetrics/gynecology, and combined pediatrics and internal

21  medicine, and other primary care specialties as may be

22  included by the council and Board of Regents.

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

24  apply to the Community Hospital Education Council for

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

26  programs.  Recommendations for funding of approved programs

27  shall be forwarded to the Board of Regents.

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

29  clinical teaching and training with the cooperation of the

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

31  also include formal teaching opportunities for intern and


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

  2  off-campus medical faculty with university faculty review to

  3  be located throughout the state in local communities.

  4         (4)  PROGRAM FOR GRADUATE MEDICAL EDUCATION

  5  INNOVATIONS.--

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

  7  program for fostering graduate medical education innovations.

  8  Funds appropriated annually by the Legislature for this

  9  purpose shall be distributed to participating hospitals or

10  consortia of participating hospitals and Florida medical

11  schools on a competitive grant or formula basis to achieve

12  state health care workforce policy objectives, including, but

13  not limited to:

14         1.  Increasing the number of residents in primary care

15  and other high demand specialties or fellowships;

16         2.  Enhancing retention of primary care physicians in

17  Florida practice;

18         3.  Promoting practice in medically underserved areas

19  of the state; 

20         4.  Encouraging racial and ethnic diversity within the

21  state's physician workforce; and

22         5.  Encouraging increased production of geriatricians.

23         (b)  Participating hospitals or consortia of

24  participating hospitals and Florida medical schools may apply

25  to the Community Hospital Education Council for funding under

26  this innovations program. Innovations program funding shall

27  provide funding based on policies recommended and approved by

28  the Community Hospital Education Council and the Board of

29  Regents.

30         (c)  Participating hospitals or consortia of

31  participating hospitals and Florida medical schools awarded an


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  1  innovations grant shall provide the Community Hospital

  2  Education Council and Board of Regents with an annual report

  3  on their project.

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

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

  6  Hospital Education Council and the Board of Regents shall

  7  establish an ongoing statewide program of family practice

  8  residencies.  The administration of this program shall be in

  9  the manner described in this section.

10         (6)(5)  COUNCIL AND DIRECTOR.--

11         (a)  There is established the Community Hospital

12  Education Council, hereinafter referred to as the council,

13  which shall consist of eleven members, as follows:

14         1.  Seven members must be program directors of

15  accredited graduate medical education programs or practicing

16  physicians who have faculty appointments in accredited

17  graduate medical education programs.  Six of these members

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

19  internal medicine, pediatrics, emergency medicine,

20  obstetrics-gynecology, and psychiatry, respectively, and

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

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

23  must be licensed pursuant to chapter 459.

24         2.  One member must be a representative of the

25  administration of a hospital with an approved community

26  hospital medical education program;

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

28  this state; and

29         4.  Two members must be consumer representatives.

30

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

  2  terms of 4 years each.

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

  4  representative status no longer exists.  Members of similar

  5  representative status shall be appointed to replace retiring

  6  or resigning members of the council.

  7         (c)  The Chancellor of the State University System

  8  shall designate an administrator to serve as staff director.

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

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

11  program shall be employed as authorized by the Board of

12  Regents.

13         (7)(6)  BOARD OF REGENTS; STANDARDS.--

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

15  the council, shall establish standards and policies for the

16  use and expenditure of graduate medical education funds

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

18  community hospital education.  The board shall establish

19  requirements for hospitals to be qualified for participation

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

21         1.  Submission of an educational plan and a training

22  schedule.

23         2.  A determination by the council to ascertain that

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

25  degree of academic excellence and is accredited by the

26  Accreditation Council for Graduate Medical Education of the

27  American Medical Association or is accredited by the American

28  Osteopathic Association.

29         3.  Supervision of the educational program of the

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

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

  2  educational program provided by a participating hospital to

  3  assure that the program includes a reasonable amount of both

  4  formal and practical training and that the formal sessions are

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

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

  7  for Health Care Administration, the Board of Regents shall

  8  certify to the Agency for Health Care Administration on a

  9  quarterly basis the number of primary care specialty residents

10  and interns at each of the participating hospitals for which

11  the Community Hospital Education Council and the board

12  recommends funding.

13         (8)(7)  MATCHING FUNDS.--State funds shall be used to

14  match funds from any local governmental or hospital source.

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

16  community hospital medical education program shall provide the

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

18  provisions of this subsection shall not apply to any program

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

20  first 3 years after such program is in operation.

21         (9)  ANNUAL REPORT ON GRADUATE MEDICAL EDUCATION;

22  COMMITTEE.--The Board of Regents, the Executive Office of the

23  Governor, the Department of Health, and the Agency for Health

24  Care Administration shall collaborate to establish a committee

25  that shall produce an annual report on graduate medical

26  education. To the maximum extent feasible, the committee shall

27  have the same membership as the Graduate Medical Education

28  Study Committee, established by proviso accompanying Specific

29  Appropriation 191 of the 1999-2000 General Appropriations Act.

30  The report shall be provided to the Governor, the President of

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


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  1  January 15 annually. Committee members shall serve without

  2  compensation. From the funds provided pursuant to s.

  3  381.0403(3), the committee is authorized to expend a maximum

  4  of $75,000 per year to provide for administrative costs and

  5  contractual services. The report shall address the following:

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

  7  provision of health care.

  8         (b)  The relationship of graduate medical education to

  9  the state's physician workforce.

10         (c)  The costs of training medical residents for

11  hospitals, medical schools, teaching hospitals, including all

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

13  medical schools, and municipalities.

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

15  revenue to support graduate medical education and recommend

16  alternative sources of funding for graduate medical education.

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

18  for graduate medical education by hospitals receiving such

19  funds.

20         Section 28.  Subsection (44) of section 408.07, Florida

21  Statutes, is amended to read:

22         408.07  Definitions.--As used in this chapter, with the

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

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

25  officially formally affiliated with an accredited Florida

26  medical school which exhibits activity in the area of graduate

27  medical education as reflected by at least seven different

28  graduate medical education programs accredited by the

29  Accreditation Council for Graduate Medical Education or the

30  Council on Postdoctoral Training of the American Osteopathic

31  Association resident physician specialties and the presence of


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  1  100 or more full-time equivalent resident physicians. The

  2  Director of the Agency for Health Care Administration shall be

  3  responsible for determining which hospitals meet this

  4  definition.

  5         Section 29.  Subsection (6) of section 409.905, Florida

  6  Statutes, is amended to read:

  7         409.905  Mandatory Medicaid services.--The agency may

  8  make payments for the following services, which are required

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

10  furnished by Medicaid providers to recipients who are

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

12  were provided.  Any service under this section shall be

13  provided only when medically necessary and in accordance with

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

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

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

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

18  the availability of moneys and any limitations or directions

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

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

21  pay for preventive, diagnostic, therapeutic, or palliative

22  care and other services provided to a recipient in the

23  outpatient portion of a hospital licensed under part I of

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

25  physician or licensed dentist, except that payment for such

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

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

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

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

30  necessity.

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  1         Section 30.  Subsection (1) of section 409.908, Florida

  2  Statutes, is amended to read:

  3         409.908  Reimbursement of Medicaid providers.--Subject

  4  to specific appropriations, the agency shall reimburse

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

  6  according to methodologies set forth in the rules of the

  7  agency and in policy manuals and handbooks incorporated by

  8  reference therein.  These methodologies may include fee

  9  schedules, reimbursement methods based on cost reporting,

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

11  and other mechanisms the agency considers efficient and

12  effective for purchasing services or goods on behalf of

13  recipients.  Payment for Medicaid compensable services made on

14  behalf of Medicaid eligible persons is subject to the

15  availability of moneys and any limitations or directions

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

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

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

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

20  making any other adjustments necessary to comply with the

21  availability of moneys and any limitations or directions

22  provided for in the General Appropriations Act, provided the

23  adjustment is consistent with legislative intent.

24         (1)  Reimbursement to hospitals licensed under part I

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

26  negotiation.

27         (a)  Reimbursement for inpatient care is limited as

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

29         1.  The raising of rate reimbursement caps, excluding

30  rural hospitals.

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  1         2.  Recognition of the costs of graduate medical

  2  education.

  3         3.  Other methodologies recognized in the General

  4  Appropriations Act.

  5

  6  During the years funds are transferred from the Board of

  7  Regents, any reimbursement supported by such funds shall be

  8  subject to certification by the Board of Regents that the

  9  hospital has complied with s. 381.0403. The agency is

10  authorized to receive funds from state entities, including,

11  but limited to, the Board of Regents, local governments, and

12  other local political subdivisions, for the purpose of making

13  special exception payments, including federal matching funds,

14  through the Medicaid inpatient reimbursement methodologies.

15  Funds received from state entities or local governments for

16  this purpose shall be separately accounted for and shall not

17  be commingled with other state or local funds in any manner.

18  Notwithstanding this section and s. 409.915, counties are

19  exempt from contributing toward the cost of the special

20  exception reimbursement for hospitals serving a

21  disproportionate share of low-income persons and providing

22  graduate medical education.

23         (b)  Reimbursement for hospital outpatient care is

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

25  except for:

26         1.  Such care provided to a Medicaid recipient under

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

28  necessity.;

29         2.  Renal dialysis services.; and

30         3.  Other exceptions made by the agency.

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

  2  including, but not limited to, the Board of Regents, local

  3  governments, and other local political subdivisions, for the

  4  purpose of making payments, including federal matching funds,

  5  through the Medicaid outpatient reimbursement methodologies.

  6  Funds received from state entities and local governments for

  7  this purpose shall be separately accounted for and shall not

  8  be commingled with other state or local funds in any manner.

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

10  disproportionate share of low-income Medicaid recipients, or

11  that participate in the regional perinatal intensive care

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

13  statutory teaching hospital disproportionate share program, or

14  that participate in the extraordinary disproportionate share

15  program, may receive additional reimbursement. The total

16  amount of payment for disproportionate share hospitals shall

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

18  these payments must be made in compliance with all federal

19  regulations and the methodologies described in ss. 409.911,

20  409.9112, and 409.9113.

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

22  increases for outpatient hospital services as directed by the

23  General Appropriations Act.

24         Section 31.  This act shall take effect July 1, 2000.

25

26

27

28

29

30

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