House Bill 2339

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    Florida House of Representatives - 2000                HB 2339

        By Representatives Feeney, Waters, Peaden, Fasano,
    Maygarden and Farkas





  1                      A bill to be entitled

  2         An act relating to comprehensive health care;

  3         providing a short title; amending s. 400.471,

  4         F.S.; deleting the certificate-of-need

  5         requirement for licensure of Medicare-certified

  6         home health agencies; amending s. 408.032,

  7         F.S.; adding definitions of "exemption" and

  8         "mental health services"; deleting the

  9         definitions of "home health agency,"

10         "institutional health service," "intermediate

11         care facility," "multifacility project," and

12         "respite care"; revising the definition of

13         "health services"; amending s. 408.033, F.S.;

14         deleting references to the state health plan;

15         amending s. 408.034, F.S.; deleting a reference

16         to licensing of home health agencies by the

17         Agency for Health Care Administration; amending

18         s. 408.035, F.S.; deleting obsolete

19         certificate-of-need review criteria and

20         revising other criteria; amending s. 408.036,

21         F.S.; revising provisions relating to projects

22         subject to review; deleting references to

23         Medicare-certified home health agencies;

24         deleting the review of certain acquisitions;

25         specifying the types of bed increases subject

26         to review; deleting cost overruns from review;

27         deleting review of combinations or division of

28         nursing home certificates of need; providing

29         for expedited review of certain conversions of

30         licensed hospital beds; deleting the

31         requirement for an exemption for initiation or

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  1         expansion of obstetric services, provision of

  2         respite care services, establishment of a

  3         Medicare-certified home health agency, or

  4         provision of a health service exclusively on an

  5         outpatient basis; providing a sunset date for

  6         review of the establishment of a hospice

  7         program or hospice inpatient facility;

  8         providing exemptions for combinations or

  9         divisions of nursing home certificates of need

10         and additions of certain hospital beds and

11         nursing home beds within specified limitations;

12         providing exemptions for the addition of

13         temporary acute care beds in certain hospitals

14         and for the establishment of certain types of

15         specialty hospitals through transfer of beds

16         and services from certain existing hospitals;

17         requiring a fee for each request for exemption;

18         amending s. 408.037, F.S.; deleting reference

19         to the state health plan; amending ss. 408.038,

20         408.039, 408.044, and 408.045, F.S.; replacing

21         "department" with "agency"; clarifying the

22         opportunity to challenge an intended award of a

23         certificate of need; amending s. 408.040, F.S.;

24         deleting an obsolete reference; revising the

25         format of conditions related to Medicaid;

26         creating a certificate-of-need workgroup within

27         the Agency for Health Care Administration;

28         providing for expenses; providing membership,

29         duties, and meetings; requiring reports;

30         providing for termination; amending s. 651.118,

31         F.S.; excluding a specified number of beds from

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  1         a time limit imposed on extension of

  2         authorization for continuing care residential

  3         community providers to use sheltered beds for

  4         nonresidents; requiring a facility to report

  5         such use after the expiration of the extension;

  6         amending s. 395.701, F.S.; reducing the annual

  7         assessment on hospitals to fund public medical

  8         assistance; providing for contingent effect;

  9         amending s. 408.904, F.S.; increasing certain

10         benefits for hospital outpatient services;

11         amending s. 409.912, F.S.; providing for a

12         contract with and reimbursement of an entity in

13         Pasco or Pinellas Counties that provides

14         in-home physician services to Medicaid

15         recipients with degenerative neurological

16         diseases; providing for future repeal;

17         providing appropriations; providing for the

18         transfer of certain unexpended Medicaid funds

19         from the Department of Elderly Affairs to the

20         Agency for Health Care Administration; amending

21         ss. 641.31, 641.315, and 641.3155, F.S.;

22         prohibiting a health maintenance organization

23         from restricting a provider's ability to

24         provide inpatient hospital services to a

25         subscriber; requiring payment for medically

26         necessary inpatient hospital services;

27         providing applicability; amending s. 641.51,

28         F.S.; relating to quality assurance program

29         requirements for certain managed care

30         organizations; allowing the rendering of

31         adverse determinations by physicians licensed

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  1         in any state; requiring the submission of facts

  2         and documentation pertaining to rendered

  3         adverse determinations; providing timeframe for

  4         organizations to submit facts and documentation

  5         to providers and subscribers in writing;

  6         requiring an authorized representative to sign

  7         the notification; creating s. 381.7351, F.S.;

  8         creating the "Reducing Racial and Ethnic Health

  9         Disparities: Closing the Gap Act"; creating s.

10         381.7352, F.S.; providing legislative findings

11         and intent; creating s. 381.7353, F.S.;

12         providing for the creation of the Reducing

13         Racial and Ethnic Health Disparities: Closing

14         the Gap grant program, to be administered by

15         the Department of Health; providing department

16         duties and responsibilities; authorizing

17         appointment of an advisory committee; creating

18         s. 381.7354, F.S.; providing eligibility for

19         grant awards; creating s. 381.7355, F.S.;

20         providing project requirements, an application

21         process, and review criteria; creating s.

22         381.7356, F.S.; providing for Closing the Gap

23         grant awards; providing for local matching

24         funds; providing factors for determination of

25         the amount of grant awards; providing for award

26         of grants to begin by a specified date, subject

27         to specific appropriation; providing for annual

28         renewal of grants; creating the Florida

29         Commission on Excellence in Health Care;

30         providing legislative findings and intent;

31         providing definitions; providing duties and

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  1         responsibilities; providing for membership,

  2         organization, meetings, procedures, and staff;

  3         providing for reimbursement of travel and

  4         related expenses of certain members; providing

  5         certain evidentiary prohibitions; requiring a

  6         report to the Governor, the President of the

  7         Senate, and the Speaker of the House of

  8         Representatives; providing for termination of

  9         the commission; amending s. 408.7056, F.S.;

10         providing additional definitions for the

11         Statewide Provider and Subscriber Assistance

12         Program; amending s. 627.654, F.S.; providing

13         for insuring small employers under policies

14         issued to small employer health alliances;

15         providing requirements for participation;

16         providing limitations; providing for insuring

17         spouses and dependent children; allowing a

18         single master policy to include alternative

19         health plans; amending s. 627.6571, F.S.;

20         including small employer health alliances

21         within policy nonrenewal or discontinuance,

22         coverage modification, and application

23         provisions; amending s. 627.6699, F.S.;

24         revising restrictions relating to premium rates

25         to authorize small employer carriers to modify

26         rates under certain circumstances and to

27         authorize carriers to issue group health

28         insurance policies to small employer health

29         alliances under certain circumstances;

30         requiring carriers issuing a policy to an

31         alliance to allow appointed agents to sell such

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  1         a policy; amending ss. 240.2995, 240.2996,

  2         240.512, 381.0406, 395.3035, and 627.4301,

  3         F.S.; conforming cross references; defining the

  4         term "managed care"; creating s. 641.185, F.S.;

  5         providing health maintenance organization

  6         subscriber protections; specifying the

  7         principles to serve as standards for the

  8         Department of Insurance and the Agency for

  9         Health Care Administration exercising their

10         duties and responsibilities; requiring that a

11         health maintenance organization observe certain

12         standards in providing health care for

13         subscribers; providing for subscribers to

14         receive quality care from a broad panel of

15         providers, referrals, preventive care,

16         emergency screening services, and second

17         opinions; providing for assurance of

18         independent accreditation by a national review

19         organization and financial security of the

20         organization; providing for continuity of

21         health care; providing for timely, concise

22         information regarding reimbursement to

23         providers and services; providing for

24         flexibility to transfer to another health

25         maintenance organization within the state;

26         providing for eligibility without

27         discrimination based on health status;

28         providing requirements for health maintenance

29         organizations that issue group health contracts

30         relating to preexisting conditions, contract

31         renewability, cancellation, extension,

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  1         termination, and conversion; providing for

  2         timely, urgent grievances and appeals within

  3         the organization; providing for timely and

  4         urgent review of grievances and appeals by an

  5         independent state external review agency;

  6         providing for notice of rate changes; providing

  7         for information regarding contract provisions,

  8         services, medical conditions, providers, and

  9         service delivery; providing that no civil cause

10         of action is created; amending s. 641.511,

11         F.S.; requiring posting of certain consumer

12         assistance notices; providing requirements;

13         amending s. 627.6699, F.S.; revising a

14         definition; requiring small employer carriers

15         to begin to offer and issue all small employer

16         benefit plans on a specified date; deleting a

17         requirement that basic and standard small

18         employer health benefit plans be issued;

19         providing additional requirements for

20         determining premium rates for benefit plans;

21         providing for application to plans provided by

22         certain small employer carriers under certain

23         circumstances; amending s. 409.212, F.S.;

24         providing for periodic increase in the optional

25         state supplementation rate; amending s.

26         409.901, F.S.; amending definitions of terms

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

28         409.902, F.S.; providing that the Department of

29         Children and Family Services is responsible for

30         Medicaid eligibility determinations; amending

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

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  1         determinations of eligibility for payments for

  2         medical assistance and related services;

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

  4         maximum amount that may be paid under Medicaid

  5         for hospital outpatient services; amending s.

  6         409.906, F.S.; allowing the Department of

  7         Children and Family Services to transfer funds

  8         to the Agency for Health Care Administration to

  9         cover state match requirements as specified;

10         amending s. 409.907, F.S.; specifying grounds

11         on which provider applications may be denied;

12         amending s. 409.908, F.S.; increasing the

13         maximum amount of reimbursement allowable to

14         Medicaid providers for hospital inpatient care;

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

16         disproportionate share program for children's

17         hospitals; providing formulas governing

18         payments made to hospitals under the program;

19         providing for withholding payments from a

20         hospital that is not complying with agency

21         rules; amending s. 409.919, F.S.; providing for

22         the adoption and the transfer of certain rules

23         relating to the determination of Medicaid

24         eligibility; authorizing developmental research

25         schools to participate in Medicaid certified

26         school match program; providing for the Agency

27         for Health Care Administration to seek a

28         federal waiver allowing the agency to undertake

29         a pilot project that involves contracting with

30         skilled nursing facilities for the provision of

31         rehabilitation services to adult ventilator

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  1         dependent patients; providing for evaluation of

  2         the pilot program; repealing s. 395.7015, F.S.,

  3         to eliminate the annual assessment on certain

  4         health care entities; repealing s. 400.464(3),

  5         F.S., relating to home health agency licenses

  6         provided to certificate-of-need exempt

  7         entities; repealing ss. 408.70(3), 408.701,

  8         408.702, 408.703, 408.704, 408.7041, 408.7042,

  9         408.7045, 408.7055, and 408.706, F.S., relating

10         to community health purchasing alliances;

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

12         the authorization of the agency to contract

13         with certain prepaid health care services

14         providers; providing appropriations; providing

15         effective dates.

16

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

18

19         Section 1.  This act may be cited as the "Patient

20  Protection Act of 2000."

21         Section 2.  Subsections (2) and (11) of section

22  400.471, Florida Statutes, are amended to read:

23         400.471  Application for license; fee; provisional

24  license; temporary permit.--

25         (2)  The applicant must file with the application

26  satisfactory proof that the home health agency is in

27  compliance with this part and applicable rules, including:

28         (a)  A listing of services to be provided, either

29  directly by the applicant or through contractual arrangements

30  with existing providers;

31

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  1         (b)  The number and discipline of professional staff to

  2  be employed; and

  3         (c)  Proof of financial ability to operate.

  4

  5  If the applicant has applied for a certificate of need under

  6  ss. 408.0331-408.045 within the preceding 12 months, the

  7  applicant may submit the proof required during the

  8  certificate-of-need process along with an attestation that

  9  there has been no substantial change in the facts and

10  circumstances underlying the original submission.

11         (11)  The agency may not issue a license designated as

12  certified to a home health agency that fails to receive a

13  certificate of need under ss. 408.031-408.045 or that fails to

14  satisfy the requirements of a Medicare certification survey

15  from the agency.

16         Section 3.  Section 408.032, Florida Statutes, is

17  amended to read:

18         408.032  Definitions.--As used in ss. 408.031-408.045,

19  the term:

20         (1)  "Agency" means the Agency for Health Care

21  Administration.

22         (2)  "Capital expenditure" means an expenditure,

23  including an expenditure for a construction project undertaken

24  by a health care facility as its own contractor, which, under

25  generally accepted accounting principles, is not properly

26  chargeable as an expense of operation and maintenance, which

27  is made to change the bed capacity of the facility, or

28  substantially change the services or service area of the

29  health care facility, health service provider, or hospice, and

30  which includes the cost of the studies, surveys, designs,

31  plans, working drawings, specifications, initial financing

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  1  costs, and other activities essential to acquisition,

  2  improvement, expansion, or replacement of the plant and

  3  equipment.

  4         (3)  "Certificate of need" means a written statement

  5  issued by the agency evidencing community need for a new,

  6  converted, expanded, or otherwise significantly modified

  7  health care facility, health service, or hospice.

  8         (4)  "Commenced construction" means initiation of and

  9  continuous activities beyond site preparation associated with

10  erecting or modifying a health care facility, including

11  procurement of a building permit applying the use of

12  agency-approved construction documents, proof of an executed

13  owner/contractor agreement or an irrevocable or binding forced

14  account, and actual undertaking of foundation forming with

15  steel installation and concrete placing.

16         (5)  "District" means a health service planning

17  district composed of the following counties:

18         District 1.--Escambia, Santa Rosa, Okaloosa, and Walton

19  Counties.

20         District 2.--Holmes, Washington, Bay, Jackson,

21  Franklin, Gulf, Gadsden, Liberty, Calhoun, Leon, Wakulla,

22  Jefferson, Madison, and Taylor Counties.

23         District 3.--Hamilton, Suwannee, Lafayette, Dixie,

24  Columbia, Gilchrist, Levy, Union, Bradford, Putnam, Alachua,

25  Marion, Citrus, Hernando, Sumter, and Lake Counties.

26         District 4.--Baker, Nassau, Duval, Clay, St. Johns,

27  Flagler, and Volusia Counties.

28         District 5.--Pasco and Pinellas Counties.

29         District 6.--Hillsborough, Manatee, Polk, Hardee, and

30  Highlands Counties.

31

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  1         District 7.--Seminole, Orange, Osceola, and Brevard

  2  Counties.

  3         District 8.--Sarasota, DeSoto, Charlotte, Lee, Glades,

  4  Hendry, and Collier Counties.

  5         District 9.--Indian River, Okeechobee, St. Lucie,

  6  Martin, and Palm Beach Counties.

  7         District 10.--Broward County.

  8         District 11.--Dade and Monroe Counties.

  9         (6)  "Exemption" means the process by which a proposal

10  that would otherwise require a certificate of need may proceed

11  without a certificate of need.

12         (7)(6)  "Expedited review" means the process by which

13  certain types of applications are not subject to the review

14  cycle requirements contained in s. 408.039(1), and the letter

15  of intent requirements contained in s. 408.039(2).

16         (8)(7)  "Health care facility" means a hospital,

17  long-term care hospital, skilled nursing facility, hospice,

18  intermediate care facility, or intermediate care facility for

19  the developmentally disabled. A facility relying solely on

20  spiritual means through prayer for healing is not included as

21  a health care facility.

22         (9)(8)  "Health services" means diagnostic, curative,

23  or rehabilitative services and includes alcohol treatment,

24  drug abuse treatment, and mental health services. Obstetric

25  services are not health services for purposes of ss.

26  408.031-408.045.

27         (9)  "Home health agency" means an organization, as

28  defined in s. 400.462(4), that is certified or seeks

29  certification as a Medicare home health service provider.

30         (10)  "Hospice" or "hospice program" means a hospice as

31  defined in part VI of chapter 400.

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  1         (11)  "Hospital" means a health care facility licensed

  2  under chapter 395.

  3         (12)  "Institutional health service" means a health

  4  service which is provided by or through a health care facility

  5  and which entails an annual operating cost of $500,000 or

  6  more.  The agency shall, by rule, adjust the annual operating

  7  cost threshold annually using an appropriate inflation index.

  8         (13)  "Intermediate care facility" means an institution

  9  which provides, on a regular basis, health-related care and

10  services to individuals who do not require the degree of care

11  and treatment which a hospital or skilled nursing facility is

12  designed to provide, but who, because of their mental or

13  physical condition, require health-related care and services

14  above the level of room and board.

15         (12)(14)  "Intermediate care facility for the

16  developmentally disabled" means a residential facility

17  licensed under chapter 393 and certified by the Federal

18  Government pursuant to the Social Security Act as a provider

19  of Medicaid services to persons who are mentally retarded or

20  who have a related condition.

21         (13)(15)  "Long-term care hospital" means a hospital

22  licensed under chapter 395 which meets the requirements of 42

23  C.F.R. s. 412.23(e) and seeks exclusion from the Medicare

24  prospective payment system for inpatient hospital services.

25         (14)  "Mental health services" means inpatient services

26  provided in a hospital licensed under chapter 395 and listed

27  on the hospital license as psychiatric beds for adults;

28  psychiatric beds for children and adolescents; intensive

29  residential treatment beds for children and adolescents;

30  substance abuse beds for adults; or substance abuse beds for

31  children and adolescents.

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  1         (16)  "Multifacility project" means an integrated

  2  residential and health care facility consisting of independent

  3  living units, assisted living facility units, and nursing home

  4  beds certificated on or after January 1, 1987, where:

  5         (a)  The aggregate total number of independent living

  6  units and assisted living facility units exceeds the number of

  7  nursing home beds.

  8         (b)  The developer of the project has expended the sum

  9  of $500,000 or more on the certificated and noncertificated

10  elements of the project combined, exclusive of land costs, by

11  the conclusion of the 18th month of the life of the

12  certificate of need.

13         (c)  The total aggregate cost of construction of the

14  certificated element of the project, when combined with other,

15  noncertificated elements, is $10 million or more.

16         (d)  All elements of the project are contiguous or

17  immediately adjacent to each other and construction of all

18  elements will be continuous.

19         (15)(17)  "Nursing home geographically underserved

20  area" means:

21         (a)  A county in which there is no existing or approved

22  nursing home;

23         (b)  An area with a radius of at least 20 miles in

24  which there is no existing or approved nursing home; or

25         (c)  An area with a radius of at least 20 miles in

26  which all existing nursing homes have maintained at least a 95

27  percent occupancy rate for the most recent 6 months or a 90

28  percent occupancy rate for the most recent 12 months.

29         (18)  "Respite care" means short-term care in a

30  licensed health care facility which is personal or custodial

31  and is provided for chronic illness, physical infirmity, or

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  1  advanced age for the purpose of temporarily relieving family

  2  members of the burden of providing care and attendance.

  3         (16)(19)  "Skilled nursing facility" means an

  4  institution, or a distinct part of an institution, which is

  5  primarily engaged in providing, to inpatients, skilled nursing

  6  care and related services for patients who require medical or

  7  nursing care, or rehabilitation services for the

  8  rehabilitation of injured, disabled, or sick persons.

  9         (17)(20)  "Tertiary health service" means a health

10  service which, due to its high level of intensity, complexity,

11  specialized or limited applicability, and cost, should be

12  limited to, and concentrated in, a limited number of hospitals

13  to ensure the quality, availability, and cost-effectiveness of

14  such service. Examples of such service include, but are not

15  limited to, organ transplantation, specialty burn units,

16  neonatal intensive care units, comprehensive rehabilitation,

17  and medical or surgical services which are experimental or

18  developmental in nature to the extent that the provision of

19  such services is not yet contemplated within the commonly

20  accepted course of diagnosis or treatment for the condition

21  addressed by a given service.  The agency shall establish by

22  rule a list of all tertiary health services.

23         (18)(21)  "Regional area" means any of those regional

24  health planning areas established by the agency to which local

25  and district health planning funds are directed to local

26  health councils through the General Appropriations Act.

27         Section 4.  Paragraph (b) of subsection (1) and

28  paragraph (a) of subsection (3) of section 408.033, Florida

29  Statutes, are amended to read:

30         408.033  Local and state health planning.--

31         (1)  LOCAL HEALTH COUNCILS.--

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  1         (b)  Each local health council may:

  2         1.  Develop a district or regional area health plan

  3  that permits is consistent with the objectives and strategies

  4  in the state health plan, but that shall permit each local

  5  health council to develop strategies and set priorities for

  6  implementation based on its unique local health needs.  The

  7  district or regional area health plan must contain preferences

  8  for the development of health services and facilities, which

  9  may be considered by the agency in its review of

10  certificate-of-need applications.  The district health plan

11  shall be submitted to the agency and updated periodically. The

12  district health plans shall use a uniform format and be

13  submitted to the agency according to a schedule developed by

14  the agency in conjunction with the local health councils. The

15  schedule must provide for coordination between the development

16  of the state health plan and the district health plans and for

17  the development of district health plans by major sections

18  over a multiyear period.  The elements of a district plan

19  which are necessary to the review of certificate-of-need

20  applications for proposed projects within the district may be

21  adopted by the agency as a part of its rules.

22         2.  Advise the agency on health care issues and

23  resource allocations.

24         3.  Promote public awareness of community health needs,

25  emphasizing health promotion and cost-effective health service

26  selection.

27         4.  Collect data and conduct analyses and studies

28  related to health care needs of the district, including the

29  needs of medically indigent persons, and assist the agency and

30  other state agencies in carrying out data collection

31  activities that relate to the functions in this subsection.

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  1         5.  Monitor the onsite construction progress, if any,

  2  of certificate-of-need approved projects and report council

  3  findings to the agency on forms provided by the agency.

  4         6.  Advise and assist any regional planning councils

  5  within each district that have elected to address health

  6  issues in their strategic regional policy plans with the

  7  development of the health element of the plans to address the

  8  health goals and policies in the State Comprehensive Plan.

  9         7.  Advise and assist local governments within each

10  district on the development of an optional health plan element

11  of the comprehensive plan provided in chapter 163, to assure

12  compatibility with the health goals and policies in the State

13  Comprehensive Plan and district health plan.  To facilitate

14  the implementation of this section, the local health council

15  shall annually provide the local governments in its service

16  area, upon request, with:

17         a.  A copy and appropriate updates of the district

18  health plan;

19         b.  A report of hospital and nursing home utilization

20  statistics for facilities within the local government

21  jurisdiction; and

22         c.  Applicable agency rules and calculated need

23  methodologies for health facilities and services regulated

24  under s. 408.034 for the district served by the local health

25  council.

26         8.  Monitor and evaluate the adequacy, appropriateness,

27  and effectiveness, within the district, of local, state,

28  federal, and private funds distributed to meet the needs of

29  the medically indigent and other underserved population

30  groups.

31

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  1         9.  In conjunction with the Agency for Health Care

  2  Administration, plan for services at the local level for

  3  persons infected with the human immunodeficiency virus.

  4         10.  Provide technical assistance to encourage and

  5  support activities by providers, purchasers, consumers, and

  6  local, regional, and state agencies in meeting the health care

  7  goals, objectives, and policies adopted by the local health

  8  council.

  9         11.  Provide the agency with data required by rule for

10  the review of certificate-of-need applications and the

11  projection of need for health services and facilities in the

12  district.

13         (3)  DUTIES AND RESPONSIBILITIES OF THE AGENCY.--

14         (a)  The agency, in conjunction with the local health

15  councils, is responsible for the coordinated planning of all

16  health care services in the state and for the preparation of

17  the state health plan.

18         Section 5.  Subsection (2) of section 408.034, Florida

19  Statutes, is amended to read:

20         408.034  Duties and responsibilities of agency;

21  rules.--

22         (2)  In the exercise of its authority to issue licenses

23  to health care facilities and health service providers, as

24  provided under chapters 393, 395, and parts II, IV, and VI of

25  chapter 400, the agency may not issue a license to any health

26  care facility, health service provider, hospice, or part of a

27  health care facility which fails to receive a certificate of

28  need or an exemption for the licensed facility or service.

29         Section 6.  Section 408.035, Florida Statutes, is

30  amended to read:

31         408.035  Review criteria.--

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  1         (1)  The agency shall determine the reviewability of

  2  applications and shall review applications for

  3  certificate-of-need determinations for health care facilities

  4  and health services in context with the following criteria:

  5         (1)(a)  The need for the health care facilities and

  6  health services being proposed in relation to the applicable

  7  district health plan, except in emergency circumstances that

  8  pose a threat to the public health.

  9         (2)(b)  The availability, quality of care, efficiency,

10  appropriateness, accessibility, and extent of utilization of,

11  and adequacy of like and existing health care facilities and

12  health services in the service district of the applicant.

13         (3)(c)  The ability of the applicant to provide quality

14  of care and the applicant's record of providing quality of

15  care.

16         (d)  The availability and adequacy of other health care

17  facilities and health services in the service district of the

18  applicant, such as outpatient care and ambulatory or home care

19  services, which may serve as alternatives for the health care

20  facilities and health services to be provided by the

21  applicant.

22         (e)  Probable economies and improvements in service

23  which may be derived from operation of joint, cooperative, or

24  shared health care resources.

25         (4)(f)  The need in the service district of the

26  applicant for special health care equipment and services that

27  are not reasonably and economically accessible in adjoining

28  areas.

29         (5)(g)  The needs of need for research and educational

30  facilities, including, but not limited to, facilities with

31  institutional training programs and community training

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  1  programs for health care practitioners and for doctors of

  2  osteopathic medicine and medicine at the student, internship,

  3  and residency training levels.

  4         (6)(h)  The availability of resources, including health

  5  personnel, management personnel, and funds for capital and

  6  operating expenditures, for project accomplishment and

  7  operation.; the effects the project will have on clinical

  8  needs of health professional training programs in the service

  9  district; the extent to which the services will be accessible

10  to schools for health professions in the service district for

11  training purposes if such services are available in a limited

12  number of facilities; the availability of alternative uses of

13  such resources for the provision of other health services; and

14         (7)  The extent to which the proposed services will

15  enhance access to health care for be accessible to all

16  residents of the service district.

17         (8)(i)  The immediate and long-term financial

18  feasibility of the proposal.

19         (j)  The special needs and circumstances of health

20  maintenance organizations.

21         (k)  The needs and circumstances of those entities that

22  provide a substantial portion of their services or resources,

23  or both, to individuals not residing in the service district

24  in which the entities are located or in adjacent service

25  districts.  Such entities may include medical and other health

26  professions, schools, multidisciplinary clinics, and specialty

27  services such as open-heart surgery, radiation therapy, and

28  renal transplantation.

29         (9)(l)  The extent to which the proposal will foster

30  competition that promotes quality and cost-effectiveness. The

31  probable impact of the proposed project on the costs of

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  1  providing health services proposed by the applicant, upon

  2  consideration of factors including, but not limited to, the

  3  effects of competition on the supply of health services being

  4  proposed and the improvements or innovations in the financing

  5  and delivery of health services which foster competition and

  6  service to promote quality assurance and cost-effectiveness.

  7         (10)(m)  The costs and methods of the proposed

  8  construction, including the costs and methods of energy

  9  provision and the availability of alternative, less costly, or

10  more effective methods of construction.

11         (11)(n)  The applicant's past and proposed provision of

12  health care services to Medicaid patients and the medically

13  indigent.

14         (o)  The applicant's past and proposed provision of

15  services that promote a continuum of care in a multilevel

16  health care system, which may include, but are not limited to,

17  acute care, skilled nursing care, home health care, and

18  assisted living facilities.

19         (12)(p)  The applicant's designation as a Gold Seal

20  Program nursing facility pursuant to s. 400.235, when the

21  applicant is requesting additional nursing home beds at that

22  facility.

23         (2)  In cases of capital expenditure proposals for the

24  provision of new health services to inpatients, the agency

25  shall also reference each of the following in its findings of

26  fact:

27         (a)  That less costly, more efficient, or more

28  appropriate alternatives to such inpatient services are not

29  available and the development of such alternatives has been

30  studied and found not practicable.

31

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  1         (b)  That existing inpatient facilities providing

  2  inpatient services similar to those proposed are being used in

  3  an appropriate and efficient manner.

  4         (c)  In the case of new construction or replacement

  5  construction, that alternatives to the construction, for

  6  example, modernization or sharing arrangements, have been

  7  considered and have been implemented to the maximum extent

  8  practicable.

  9         (d)  That patients will experience serious problems in

10  obtaining inpatient care of the type proposed, in the absence

11  of the proposed new service.

12         (e)  In the case of a proposal for the addition of beds

13  for the provision of skilled nursing or intermediate care

14  services, that the addition will be consistent with the plans

15  of other agencies of the state responsible for the provision

16  and financing of long-term care, including home health

17  services.

18         Section 7.  Section 408.036, Florida Statutes, is

19  amended to read:

20         408.036  Projects subject to review.--

21         (1)  APPLICABILITY.--Unless exempt under subsection

22  (3), all health-care-related projects, as described in

23  paragraphs (a)-(h)(k), are subject to review and must file an

24  application for a certificate of need with the agency. The

25  agency is exclusively responsible for determining whether a

26  health-care-related project is subject to review under ss.

27  408.031-408.045.

28         (a)  The addition of beds by new construction or

29  alteration.

30         (b)  The new construction or establishment of

31  additional health care facilities, including a replacement

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  1  health care facility when the proposed project site is not

  2  located on the same site as the existing health care facility.

  3         (c)  The conversion from one type of health care

  4  facility to another, including the conversion from one level

  5  of care to another, in a skilled or intermediate nursing

  6  facility, if the conversion effects a change in the level of

  7  care of 10 beds or 10 percent of total bed capacity of the

  8  skilled or intermediate nursing facility within a 2-year

  9  period.  If the nursing facility is certified for both skilled

10  and intermediate nursing care, the provisions of this

11  paragraph do not apply.

12         (d)  An Any increase in the total licensed bed capacity

13  of a health care facility.

14         (e)  Subject to the provisions of paragraph (3)(i), The

15  establishment of a Medicare-certified home health agency, the

16  establishment of a hospice or hospice inpatient facility, or

17  the direct provision of such services by a health care

18  facility or health maintenance organization for those other

19  than the subscribers of the health maintenance organization;

20  except that this paragraph does not apply to the establishment

21  of a Medicare-certified home health agency by a facility

22  described in paragraph (3)(h).

23         (f)  An acquisition by or on behalf of a health care

24  facility or health maintenance organization, by any means,

25  which acquisition would have required review if the

26  acquisition had been by purchase.

27         (f)(g)  The establishment of inpatient institutional

28  health services by a health care facility, or a substantial

29  change in such services.

30         (h)  The acquisition by any means of an existing health

31  care facility by any person, unless the person provides the

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  1  agency with at least 30 days' written notice of the proposed

  2  acquisition, which notice is to include the services to be

  3  offered and the bed capacity of the facility, and unless the

  4  agency does not determine, within 30 days after receipt of

  5  such notice, that the services to be provided and the bed

  6  capacity of the facility will be changed.

  7         (i)  An increase in the cost of a project for which a

  8  certificate of need has been issued when the increase in cost

  9  exceeds 20 percent of the originally approved cost of the

10  project, except that a cost overrun review is not necessary

11  when the cost overrun is less than $20,000.

12         (g)(j)  An increase in the number of beds for acute

13  care, specialty burn units, neonatal intensive care units,

14  comprehensive rehabilitation, mental health services, or

15  hospital-based distinct part skilled nursing units, or at a

16  long-term care hospital psychiatric or rehabilitation beds.

17         (h)(k)  The establishment of tertiary health services.

18         (2)  PROJECTS SUBJECT TO EXPEDITED REVIEW.--Unless

19  exempt pursuant to subsection (3), projects subject to an

20  expedited review shall include, but not be limited to:

21         (a)  Cost overruns, as defined in paragraph (1)(i).

22         (a)(b)  Research, education, and training programs.

23         (b)(c)  Shared services contracts or projects.

24         (c)(d)  A transfer of a certificate of need.

25         (d)(e)  A 50-percent increase in nursing home beds for

26  a facility incorporated and operating in this state for at

27  least 60 years on or before July 1, 1988, which has a licensed

28  nursing home facility located on a campus providing a variety

29  of residential settings and supportive services.  The

30  increased nursing home beds shall be for the exclusive use of

31  the campus residents.  Any application on behalf of an

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  1  applicant meeting this requirement shall be subject to the

  2  base fee of $5,000 provided in s. 408.038.

  3         (f)  Combination within one nursing home facility of

  4  the beds or services authorized by two or more certificates of

  5  need issued in the same planning subdistrict.

  6         (g)  Division into two or more nursing home facilities

  7  of beds or services authorized by one certificate of need

  8  issued in the same planning subdistrict.  Such division shall

  9  not be approved if it would adversely affect the original

10  certificate's approved cost.

11         (e)(h)  Replacement of a health care facility when the

12  proposed project site is located in the same district and

13  within a 1-mile radius of the replaced health care facility.

14         (f)  The conversion of mental health services beds

15  licensed under chapter 395 or hospital-based distinct part

16  skilled nursing unit beds to general acute care beds; the

17  conversion of mental health services beds between or among the

18  licensed bed categories defined as beds for mental health

19  services; or the conversion of general acute care beds to beds

20  for mental health services.

21         1.  Conversion under this paragraph shall not establish

22  a new licensed bed category at the hospital but shall apply

23  only to categories of beds licensed at that hospital.

24         2.  Beds converted under this paragraph must be

25  licensed and operational for at least 12 months before the

26  hospital may apply for additional conversion affecting beds of

27  the same type.

28

29  The agency shall develop rules to implement the provisions for

30  expedited review, including time schedule, application content

31

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  1  which may be reduced from the full requirements of s.

  2  408.037(1), and application processing.

  3         (3)  EXEMPTIONS.--Upon request, the following projects

  4  are subject to supported by such documentation as the agency

  5  requires, the agency shall grant an exemption from the

  6  provisions of subsection (1):

  7         (a)  For the initiation or expansion of obstetric

  8  services.

  9         (a)(b)  For replacement of any expenditure to replace

10  or renovate any part of a licensed health care facility on the

11  same site, provided that the number of licensed beds in each

12  licensed bed category will not increase and, in the case of a

13  replacement facility, the project site is the same as the

14  facility being replaced.

15         (c)  For providing respite care services. An individual

16  may be admitted to a respite care program in a hospital

17  without regard to inpatient requirements relating to admitting

18  order and attendance of a member of a medical staff.

19         (b)(d)  For hospice services or home health services

20  provided by a rural hospital, as defined in s. 395.602, or for

21  swing beds in such rural hospital in a number that does not

22  exceed one-half of its licensed beds.

23         (c)(e)  For the conversion of licensed acute care

24  hospital beds to Medicare and Medicaid certified skilled

25  nursing beds in a rural hospital as defined in s. 395.602, so

26  long as the conversion of the beds does not involve the

27  construction of new facilities. The total number of skilled

28  nursing beds, including swing beds, may not exceed one-half of

29  the total number of licensed beds in the rural hospital as of

30  July 1, 1993. Certified skilled nursing beds designated under

31  this paragraph, excluding swing beds, shall be included in the

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  1  community nursing home bed inventory.  A rural hospital which

  2  subsequently decertifies any acute care beds exempted under

  3  this paragraph shall notify the agency of the decertification,

  4  and the agency shall adjust the community nursing home bed

  5  inventory accordingly.

  6         (d)(f)  For the addition of nursing home beds at a

  7  skilled nursing facility that is part of a retirement

  8  community that provides a variety of residential settings and

  9  supportive services and that has been incorporated and

10  operated in this state for at least 65 years on or before July

11  1, 1994. All nursing home beds must not be available to the

12  public but must be for the exclusive use of the community

13  residents.

14         (e)(g)  For an increase in the bed capacity of a

15  nursing facility licensed for at least 50 beds as of January

16  1, 1994, under part II of chapter 400 which is not part of a

17  continuing care facility if, after the increase, the total

18  licensed bed capacity of that facility is not more than 60

19  beds and if the facility has been continuously licensed since

20  1950 and has received a superior rating on each of its two

21  most recent licensure surveys.

22         (h)  For the establishment of a Medicare-certified home

23  health agency by a facility certified under chapter 651; a

24  retirement community, as defined in s. 400.404(2)(g); or a

25  residential facility that serves only retired military

26  personnel, their dependents, and the surviving dependents of

27  deceased military personnel. Medicare-reimbursed home health

28  services provided through such agency shall be offered

29  exclusively to residents of the facility or retirement

30  community or to residents of facilities or retirement

31  communities owned, operated, or managed by the same corporate

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  1  entity. Each visit made to deliver Medicare-reimbursable home

  2  health services to a home health patient who, at the time of

  3  service, is not a resident of the facility or retirement

  4  community shall be a deceptive and unfair trade practice and

  5  constitutes a violation of ss. 501.201-501.213.

  6         (i)  For the establishment of a Medicare-certified home

  7  health agency. This paragraph shall take effect 90 days after

  8  the adjournment sine die of the next regular session of the

  9  Legislature occurring after the legislative session in which

10  the Legislature receives a report from the Director of Health

11  Care Administration certifying that the federal Health Care

12  Financing Administration has implemented a per-episode

13  prospective pay system for Medicare-certified home health

14  agencies.

15         (f)(j)  For an inmate health care facility built by or

16  for the exclusive use of the Department of Corrections as

17  provided in chapter 945. This exemption expires when such

18  facility is converted to other uses.

19         (k)  For an expenditure by or on behalf of a health

20  care facility to provide a health service exclusively on an

21  outpatient basis.

22         (g)(l)  For the termination of an inpatient a health

23  care service, upon 30 days' written notice to the agency.

24         (h)(m)  For the delicensure of beds, upon 30 days'

25  written notice to the agency. A request for exemption An

26  application submitted under this paragraph must identify the

27  number, the category of beds classification, and the name of

28  the facility in which the beds to be delicensed are located.

29         (i)(n)  For the provision of adult inpatient diagnostic

30  cardiac catheterization services in a hospital.

31

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  1         1.  In addition to any other documentation otherwise

  2  required by the agency, a request for an exemption submitted

  3  under this paragraph must comply with the following criteria:

  4         a.  The applicant must certify it will not provide

  5  therapeutic cardiac catheterization pursuant to the grant of

  6  the exemption.

  7         b.  The applicant must certify it will meet and

  8  continuously maintain the minimum licensure requirements

  9  adopted by the agency governing such programs pursuant to

10  subparagraph 2.

11         c.  The applicant must certify it will provide a

12  minimum of 2 percent of its services to charity and Medicaid

13  patients.

14         2.  The agency shall adopt licensure requirements by

15  rule which govern the operation of adult inpatient diagnostic

16  cardiac catheterization programs established pursuant to the

17  exemption provided in this paragraph. The rules shall ensure

18  that such programs:

19         a.  Perform only adult inpatient diagnostic cardiac

20  catheterization services authorized by the exemption and will

21  not provide therapeutic cardiac catheterization or any other

22  services not authorized by the exemption.

23         b.  Maintain sufficient appropriate equipment and

24  health personnel to ensure quality and safety.

25         c.  Maintain appropriate times of operation and

26  protocols to ensure availability and appropriate referrals in

27  the event of emergencies.

28         d.  Maintain appropriate program volumes to ensure

29  quality and safety.

30         e.  Provide a minimum of 2 percent of its services to

31  charity and Medicaid patients each year.

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  1         3.a.  The exemption provided by this paragraph shall

  2  not apply unless the agency determines that the program is in

  3  compliance with the requirements of subparagraph 1. and that

  4  the program will, after beginning operation, continuously

  5  comply with the rules adopted pursuant to subparagraph 2.  The

  6  agency shall monitor such programs to ensure compliance with

  7  the requirements of subparagraph 2.

  8         b.(I)  The exemption for a program shall expire

  9  immediately when the program fails to comply with the rules

10  adopted pursuant to sub-subparagraphs 2.a., b., and c.

11         (II)  Beginning 18 months after a program first begins

12  treating patients, the exemption for a program shall expire

13  when the program fails to comply with the rules adopted

14  pursuant to sub-subparagraphs 2.d. and e.

15         (III)  If the exemption for a program expires pursuant

16  to sub-sub-subparagraph (I) or sub-sub-subparagraph (II), the

17  agency shall not grant an exemption pursuant to this paragraph

18  for an adult inpatient diagnostic cardiac catheterization

19  program located at the same hospital until 2 years following

20  the date of the determination by the agency that the program

21  failed to comply with the rules adopted pursuant to

22  subparagraph 2.

23         4.  The agency shall not grant any exemption under this

24  paragraph until the adoption of the rules required under this

25  paragraph, or until March 1, 1998, whichever comes first.

26  However, if final rules have not been adopted by March 1,

27  1998, the proposed rules governing the exemptions shall be

28  used by the agency to grant exemptions under the provisions of

29  this paragraph until final rules become effective.

30         (j)(o)  For any expenditure to provide mobile surgical

31  facilities and related health care services provided under

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  1  contract with the Department of Corrections or a private

  2  correctional facility operating pursuant to chapter 957.

  3         (k)(p)  For state veterans' nursing homes operated by

  4  or on behalf of the Florida Department of Veterans' Affairs in

  5  accordance with part II of chapter 296 for which at least 50

  6  percent of the construction cost is federally funded and for

  7  which the Federal Government pays a per diem rate not to

  8  exceed one-half of the cost of the veterans' care in such

  9  state nursing homes. These beds shall not be included in the

10  nursing home bed inventory.

11         (l)  For combination within one nursing home facility

12  of the beds or services authorized by two or more certificates

13  of need issued in the same planning subdistrict.  An exemption

14  granted under this paragraph shall extend the validity period

15  of the certificates of need to be consolidated by the length

16  of the period beginning upon submission of the exemption

17  request and ending with issuance of the exemption.  The

18  longest validity period among the certificates shall be

19  applicable to each of the combined certificates.

20         (m)  For division into two or more nursing home

21  facilities of beds or services authorized by one certificate

22  of need issued in the same planning subdistrict.  An exemption

23  granted under this paragraph shall extend the validity period

24  of the certificate of need to be divided by the length of the

25  period beginning upon submission of the exemption request and

26  ending with issuance of the exemption.

27         (n)  For the addition of hospital beds licensed under

28  chapter 395 for acute care, mental health services, or a

29  hospital-based distinct part skilled nursing unit in a number

30  that may not exceed 10 total beds or 10 percent of the

31  licensed capacity of the bed category being expanded,

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  1  whichever is greater. Beds for specialty burn units, neonatal

  2  intensive care units, or comprehensive rehabilitation, or at a

  3  long-term care hospital, may not be increased under this

  4  paragraph.

  5         1.  In addition to any other documentation otherwise

  6  required by the agency, a request for exemption submitted

  7  under this paragraph must:

  8         a.  Certify that the prior 12-month average occupancy

  9  rate for the category of licensed beds being expanded at the

10  facility meets or exceeds 80 percent or, for a hospital-based

11  distinct part skilled nursing unit, the prior 12-month average

12  occupancy rate meets or exceeds 96 percent.

13         b.  Certify that any beds of the same type authorized

14  for the facility under this paragraph before the date of the

15  current request for an exemption have been licensed and

16  operational for at least 12 months.

17         2.  The timeframes and monitoring process specified in

18  s. 408.040(2)(a)-(c) apply to any exemption issued under this

19  paragraph.

20         3.  The agency shall count beds authorized under this

21  paragraph as approved beds in the published inventory of

22  hospital beds until the beds are licensed.

23         (o)  For the addition of acute care beds, as authorized

24  by rule consistent with s. 395.003(4), in a number that may

25  not exceed 10 total beds or 10 percent of licensed bed

26  capacity, whichever is greater, for temporary beds in a

27  hospital which has experienced high seasonal occupancy within

28  the prior 12-month period or in a hospital that must respond

29  to emergency or exigent circumstances.

30         (p)  For the addition of nursing home beds licensed

31  under chapter 400 in a number not exceeding 10 total beds or

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  1  10 percent of the number of beds licensed in the facility

  2  being expanded, whichever is greater.

  3         1.  In addition to any other documentation required by

  4  the agency, a request for exemption submitted under this

  5  paragraph must:

  6         a.  Certify that the facility has not had any class I

  7  or class II deficiencies within the 30 months preceding the

  8  request for addition.

  9         b.  Certify that the prior 12-month average occupancy

10  rate for the nursing home beds at the facility meets or

11  exceeds 96 percent.

12         c.  Certify that any beds authorized for the facility

13  under this paragraph before the date of the current request

14  for an exemption have been licensed and operational for at

15  least 12 months.

16         2.  The timeframes and monitoring process specified in

17  s. 408.040(2)(a)-(c) apply to any exemption issued under this

18  paragraph.

19         3.  The agency shall count beds authorized under this

20  paragraph as approved beds in the published inventory of

21  nursing home beds until the beds are licensed.

22         (q)  For establishment of a specialty hospital offering

23  a range of medical service restricted to a defined age or

24  gender group of the population or a restricted range of

25  services appropriate to the diagnosis, care, and treatment of

26  patients with specific categories of medical illnesses or

27  disorders, through the transfer of beds and services from an

28  existing hospital in the same county.

29         (4)  A request for exemption under this subsection (3)

30  may be made at any time and is not subject to the batching

31  requirements of this section. The request shall be supported

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  1  by such documentation as the agency requires by rule. The

  2  agency shall assess a fee of $250 for each request for

  3  exemption submitted under subsection (3).

  4         Section 8.  Paragraph (a) of subsection (1) of section

  5  408.037, Florida Statutes, is amended to read:

  6         408.037  Application content.--

  7         (1)  An application for a certificate of need must

  8  contain:

  9         (a)  A detailed description of the proposed project and

10  statement of its purpose and need in relation to the district

11  local health plan and the state health plan.

12         Section 9.  Section 408.038, Florida Statutes, is

13  amended to read:

14         408.038  Fees.--The agency department shall assess fees

15  on certificate-of-need applications.  Such fees shall be for

16  the purpose of funding the functions of the local health

17  councils and the activities of the agency department and shall

18  be allocated as provided in s. 408.033. The fee shall be

19  determined as follows:

20         (1)  A minimum base fee of $5,000.

21         (2)  In addition to the base fee of $5,000, 0.015 of

22  each dollar of proposed expenditure, except that a fee may not

23  exceed $22,000.

24         Section 10.  Subsections (3) and (4), paragraph (c) of

25  subsection (5), and paragraphs (a) and (b) of subsection (6)

26  of section 408.039, Florida Statutes, are amended to read:

27         408.039  Review process.--The review process for

28  certificates of need shall be as follows:

29         (3)  APPLICATION PROCESSING.--

30         (a)  An applicant shall file an application with the

31  agency department, and shall furnish a copy of the application

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  1  to the local health council and the agency department. Within

  2  15 days after the applicable application filing deadline

  3  established by agency department rule, the staff of the agency

  4  department shall determine if the application is complete.  If

  5  the application is incomplete, the staff shall request

  6  specific information from the applicant necessary for the

  7  application to be complete; however, the staff may make only

  8  one such request. If the requested information is not filed

  9  with the agency department within 21 days of the receipt of

10  the staff's request, the application shall be deemed

11  incomplete and deemed withdrawn from consideration.

12         (b)  Upon the request of any applicant or substantially

13  affected person within 14 days after notice that an

14  application has been filed, a public hearing may be held at

15  the agency's department's discretion if the agency department

16  determines that a proposed project involves issues of great

17  local public interest. The public hearing shall allow

18  applicants and other interested parties reasonable time to

19  present their positions and to present rebuttal information. A

20  recorded verbatim record of the hearing shall be maintained.

21  The public hearing shall be held at the local level within 21

22  days after the application is deemed complete.

23         (4)  STAFF RECOMMENDATIONS.--

24         (a)  The agency's department's review of and final

25  agency action on applications shall be in accordance with the

26  district health plan, and statutory criteria, and the

27  implementing administrative rules.  In the application review

28  process, the agency department shall give a preference, as

29  defined by rule of the agency department, to an applicant

30  which proposes to develop a nursing home in a nursing home

31  geographically underserved area.

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  1         (b)  Within 60 days after all the applications in a

  2  review cycle are determined to be complete, the agency

  3  department shall issue its State Agency Action Report and

  4  Notice of Intent to grant a certificate of need for the

  5  project in its entirety, to grant a certificate of need for

  6  identifiable portions of the project, or to deny a certificate

  7  of need.  The State Agency Action Report shall set forth in

  8  writing its findings of fact and determinations upon which its

  9  decision is based.  If a finding of fact or determination by

10  the agency department is counter to the district health plan

11  of the local health council, the agency department shall

12  provide in writing its reason for its findings, item by item,

13  to the local health council.  If the agency department intends

14  to grant a certificate of need, the State Agency Action Report

15  or the Notice of Intent shall also include any conditions

16  which the agency department intends to attach to the

17  certificate of need. The agency department shall designate by

18  rule a senior staff person, other than the person who issues

19  the final order, to issue State Agency Action Reports and

20  Notices of Intent.

21         (c)  The agency department shall publish its proposed

22  decision set forth in the Notice of Intent in the Florida

23  Administrative Weekly within 14 days after the Notice of

24  Intent is issued.

25         (d)  If no administrative hearing is requested pursuant

26  to subsection (5), the State Agency Action Report and the

27  Notice of Intent shall become the final order of the agency

28  department.  The agency department shall provide a copy of the

29  final order to the appropriate local health council.

30         (5)  ADMINISTRATIVE HEARINGS.--

31

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  1         (c)  In administrative proceedings challenging the

  2  issuance or denial of a certificate of need, only applicants

  3  considered by the agency in the same batching cycle are

  4  entitled to a comparative hearing on their applications.

  5  Existing health care facilities may initiate or intervene in

  6  an administrative hearing upon a showing that an established

  7  program will be substantially affected by the issuance of any

  8  certificate of need, whether reviewed under s. 408.036(1) or

  9  (2), to a competing proposed facility or program within the

10  same district.

11         (6)  JUDICIAL REVIEW.--

12         (a)  A party to an administrative hearing for an

13  application for a certificate of need has the right, within

14  not more than 30 days after the date of the final order, to

15  seek judicial review in the District Court of Appeal pursuant

16  to s. 120.68.  The agency department shall be a party in any

17  such proceeding.

18         (b)  In such judicial review, the court shall affirm

19  the final order of the agency department, unless the decision

20  is arbitrary, capricious, or not in compliance with ss.

21  408.031-408.045.

22         Section 11.  Subsections (1) and (2) of section

23  408.040, Florida Statutes, are amended to read:

24         408.040  Conditions and monitoring.--

25         (1)(a)  The agency may issue a certificate of need

26  predicated upon statements of intent expressed by an applicant

27  in the application for a certificate of need. Any conditions

28  imposed on a certificate of need based on such statements of

29  intent shall be stated on the face of the certificate of need.

30         1.  Any certificate of need issued for construction of

31  a new hospital or for the addition of beds to an existing

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  1  hospital shall include a statement of the number of beds

  2  approved by category of service, including rehabilitation or

  3  psychiatric service, for which the agency has adopted by rule

  4  a specialty-bed-need methodology. All beds that are approved,

  5  but are not covered by any specialty-bed-need methodology,

  6  shall be designated as general.

  7         (b)2.  The agency may consider, in addition to the

  8  other criteria specified in s. 408.035, a statement of intent

  9  by the applicant that a specified to designate a percentage of

10  the annual patient days at beds of the facility will be

11  utilized for use by patients eligible for care under Title XIX

12  of the Social Security Act. Any certificate of need issued to

13  a nursing home in reliance upon an applicant's statements that

14  to provide a specified percentage number of annual patient

15  days will be utilized beds for use by residents eligible for

16  care under Title XIX of the Social Security Act must include a

17  statement that such certification is a condition of issuance

18  of the certificate of need. The certificate-of-need program

19  shall notify the Medicaid program office and the Department of

20  Elderly Affairs when it imposes conditions as authorized in

21  this paragraph subparagraph in an area in which a community

22  diversion pilot project is implemented.

23         (c)(b)  A certificateholder may apply to the agency for

24  a modification of conditions imposed under paragraph (a) or

25  paragraph (b). If the holder of a certificate of need

26  demonstrates good cause why the certificate should be

27  modified, the agency shall reissue the certificate of need

28  with such modifications as may be appropriate.  The agency

29  shall by rule define the factors constituting good cause for

30  modification.

31

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  1         (d)(c)  If the holder of a certificate of need fails to

  2  comply with a condition upon which the issuance of the

  3  certificate was predicated, the agency may assess an

  4  administrative fine against the certificateholder in an amount

  5  not to exceed $1,000 per failure per day.  In assessing the

  6  penalty, the agency shall take into account as mitigation the

  7  relative lack of severity of a particular failure.  Proceeds

  8  of such penalties shall be deposited in the Public Medical

  9  Assistance Trust Fund.

10         (2)(a)  Unless the applicant has commenced

11  construction, if the project provides for construction, unless

12  the applicant has incurred an enforceable capital expenditure

13  commitment for a project, if the project does not provide for

14  construction, or unless subject to paragraph (b), a

15  certificate of need shall terminate 18 months after the date

16  of issuance, except in the case of a multifacility project, as

17  defined in s. 408.032, where the certificate of need shall

18  terminate 2 years after the date of issuance. The agency shall

19  monitor the progress of the holder of the certificate of need

20  in meeting the timetable for project development specified in

21  the application with the assistance of the local health

22  council as specified in s. 408.033(1)(b)5., and may revoke the

23  certificate of need, if the holder of the certificate is not

24  meeting such timetable and is not making a good faith effort,

25  as defined by rule, to meet it.

26         (b)  A certificate of need issued to an applicant

27  holding a provisional certificate of authority under chapter

28  651 shall terminate 1 year after the applicant receives a

29  valid certificate of authority from the Department of

30  Insurance.

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  1         (c)  The certificate-of-need validity period for a

  2  project shall be extended by the agency, to the extent that

  3  the applicant demonstrates to the satisfaction of the agency

  4  that good faith commencement of the project is being delayed

  5  by litigation or by governmental action or inaction with

  6  respect to regulations or permitting precluding commencement

  7  of the project.

  8         (d)  If an application is filed to consolidate two or

  9  more certificates as authorized by s. 408.036(2)(f) or to

10  divide a certificate of need into two or more facilities as

11  authorized by s. 408.036(2)(g), the validity period of the

12  certificate or certificates of need to be consolidated or

13  divided shall be extended for the period beginning upon

14  submission of the application and ending when final agency

15  action and any appeal from such action has been concluded.

16  However, no such suspension shall be effected if the

17  application is withdrawn by the applicant.

18         Section 12.  Section 408.044, Florida Statutes, is

19  amended to read:

20         408.044  Injunction.--Notwithstanding the existence or

21  pursuit of any other remedy, the agency department may

22  maintain an action in the name of the state for injunction or

23  other process against any person to restrain or prevent the

24  pursuit of a project subject to review under ss.

25  408.031-408.045, in the absence of a valid certificate of

26  need.

27         Section 13.  Section 408.045, Florida Statutes, is

28  amended to read:

29         408.045  Certificate of need; competitive sealed

30  proposals.--

31

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  1         (1)  The application, review, and issuance procedures

  2  for a certificate of need for an intermediate care facility

  3  for the developmentally disabled may be made by the agency

  4  department by competitive sealed proposals.

  5         (2)  The agency department shall make a decision

  6  regarding the issuance of the certificate of need in

  7  accordance with the provisions of s. 287.057(15), rules

  8  adopted by the agency department relating to intermediate care

  9  facilities for the developmentally disabled, and the criteria

10  in s. 408.035, as further defined by rule.

11         (3)  Notification of the decision shall be issued to

12  all applicants not later than 28 calendar days after the date

13  responses to a request for proposal are due.

14         (4)  The procedures provided for under this section are

15  exempt from the batching cycle requirements and the public

16  hearing requirement of s. 408.039.

17         (5)  The agency department may use the competitive

18  sealed proposal procedure for determining a certificate of

19  need for other types of health care facilities and services if

20  the agency department identifies an unmet health care need and

21  when funding in whole or in part for such health care

22  facilities or services is authorized by the Legislature.

23         Section 14.  (1)(a)  There is created a

24  certificate-of-need workgroup staffed by the Agency for Health

25  Care Administration.

26         (b)  Workgroup participants shall be responsible for

27  only the expenses that they generate individually through

28  workgroup participation.  The agency shall be responsible for

29  expenses incidental to the production of any required data or

30  reports.

31

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  1         (2)  The workgroup shall consist of 30 members, 10

  2  appointed by the Governor, 10 appointed by the President of

  3  the Senate, and 10 appointed by the Speaker of the House of

  4  Representatives. The workgroup chair shall be selected by

  5  majority vote of a quorum present. Sixteen members shall

  6  constitute a quorum. The membership shall include, but not be

  7  limited to, representatives from health care provider

  8  organizations, health care facilities, individual health care

  9  practitioners, local health councils, and consumer

10  organizations, and persons with health care market expertise

11  as private-sector consultants.

12         (3)  Appointment to the workgroup shall be as follows:

13         (a)  The Governor shall appoint one representative each

14  from the hospital industry, the nursing home industry, the

15  hospice industry, the local health councils, and a consumer

16  organization; three health care market consultants, one of

17  whom is a recognized expert on hospital markets, one of whom

18  is a recognized expert on nursing home or long-term care

19  markets, and one of whom is a recognized expert on hospice

20  markets; one representative from the Medicaid program; and one

21  representative from a health care facility that provides a

22  tertiary service.

23         (b)  The President of the Senate shall appoint a

24  representative of a for-profit hospital, a representative of a

25  not-for-profit hospital, a representative of a public

26  hospital, two representatives of the nursing home industry,

27  two representatives of the hospice industry, a representative

28  of a consumer organization, a representative from the

29  Department of Elderly Affairs involved with the implementation

30  of a long-term care community diversion program, and a health

31

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  1  care market consultant with expertise in health care

  2  economics.

  3         (c)  The Speaker of the House of Representatives shall

  4  appoint a representative from the Florida Hospital

  5  Association, a representative of the Association of Community

  6  Hospitals and Health Systems of Florida, a representative of

  7  the Florida League of Health Systems, a representative of the

  8  Florida Health Care Association, a representative of the

  9  Florida Association of Homes for the Aging, three

10  representatives of Florida Hospices and Palliative Care, one

11  representative of local health councils, and one

12  representative of a consumer organization.

13         (4)  The workgroup shall study issues pertaining to the

14  certificate-of-need program, including the impact of trends in

15  health care delivery and financing. The workgroup shall study

16  issues relating to implementation of the certificate-of-need

17  program.

18         (5)  The workgroup shall meet at least annually, at the

19  request of the chair. The workgroup shall submit an interim

20  report by December 31, 2001, and a final report by December

21  31, 2002. The workgroup is abolished effective July 1, 2003.

22         Section 15.  Subsection (7) of section 651.118, Florida

23  Statutes, is amended to read:

24         651.118  Agency for Health Care Administration;

25  certificates of need; sheltered beds; community beds.--

26         (7)  Notwithstanding the provisions of subsection (2),

27  at the discretion of the continuing care provider, sheltered

28  nursing home beds may be used for persons who are not

29  residents of the facility and who are not parties to a

30  continuing care contract for a period of up to 5 years after

31  the date of issuance of the initial nursing home license.  A

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  1  provider whose 5-year period has expired or is expiring may

  2  request the Agency for Health Care Administration for an

  3  extension, not to exceed 30 percent of the total sheltered

  4  nursing home beds, if the utilization by residents of the

  5  facility in the sheltered beds will not generate sufficient

  6  income to cover facility expenses, as evidenced by one of the

  7  following:

  8         (a)  The facility has a net loss for the most recent

  9  fiscal year as determined under generally accepted accounting

10  principles, excluding the effects of extraordinary or unusual

11  items, as demonstrated in the most recently audited financial

12  statement; or

13         (b)  The facility would have had a pro forma loss for

14  the most recent fiscal year, excluding the effects of

15  extraordinary or unusual items, if revenues were reduced by

16  the amount of revenues from persons in sheltered beds who were

17  not residents, as reported on by a certified public

18  accountant.

19

20  The agency shall be authorized to grant an extension to the

21  provider based on the evidence required in this subsection.

22  The agency may request a facility to use up to 25 percent of

23  the patient days generated by new admissions of nonresidents

24  during the extension period to serve Medicaid recipients for

25  those beds authorized for extended use if there is a

26  demonstrated need in the respective service area and if funds

27  are available. A provider who obtains an extension is

28  prohibited from applying for additional sheltered beds under

29  the provision of subsection (2), unless additional residential

30  units are built or the provider can demonstrate need by

31  facility residents to the Agency for Health Care

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  1  Administration. The 5-year limit does not apply to up to five

  2  sheltered beds designated for inpatient hospice care as part

  3  of a contractural arrangement with a hospice licensed under

  4  part VI of chapter 400. A facility that uses such beds after

  5  the 5-year period shall report such use to the Agency for

  6  Health Care Administration.  For purposes of this subsection,

  7  "resident" means a person who, upon admission to the facility,

  8  initially resides in a part of the facility not licensed under

  9  part II of chapter 400.

10         Section 16.  Subsection (2) of section 395.701, Florida

11  Statutes, is amended to read:

12         395.701  Annual assessments on net operating revenues

13  for inpatient services to fund public medical assistance;

14  administrative fines for failure to pay assessments when due;

15  exemption.--

16         (2)  There is imposed upon each hospital an assessment

17  in an amount equal to 1.5 percent of the annual net operating

18  revenue for inpatient services for each hospital, such revenue

19  to be determined by the agency, based on the actual experience

20  of the hospital as reported to the agency.  Within 6 months

21  after the end of each hospital fiscal year, the agency shall

22  certify the amount of the assessment for each hospital.  The

23  assessment shall be payable to and collected by the agency in

24  equal quarterly amounts, on or before the first day of each

25  calendar quarter, beginning with the first full calendar

26  quarter that occurs after the agency certifies the amount of

27  the assessment for each hospital. All moneys collected

28  pursuant to this subsection shall be deposited into the Public

29  Medical Assistance Trust Fund.

30         Section 17.  The amendment to s. 395.701, Florida

31  Statutes, by this act shall take effect only upon the Agency

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  1  for Health Care Administration receiving written confirmation

  2  from the federal Health Care Financing Administration that the

  3  changes contained in such amendment will not adversely affect

  4  the use of the remaining assessments as state match for the

  5  state's Medicaid program.

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

  7  408.904, Florida Statutes, is amended to read:

  8         408.904  Benefits.--

  9         (2)  Covered health services include:

10         (c)  Hospital outpatient services.  Those services

11  provided to a member in the outpatient portion of a hospital

12  licensed under part I of chapter 395, up to a limit of $1,500

13  $1,000 per calendar year per member, that are preventive,

14  diagnostic, therapeutic, or palliative.

15         Section 19.  Paragraph (e) is added to subsection (3)

16  of section 409.912, Florida Statutes, and subsection (9) of

17  said section is amended, to read:

18         409.912  Cost-effective purchasing of health care.--The

19  agency shall purchase goods and services for Medicaid

20  recipients in the most cost-effective manner consistent with

21  the delivery of quality medical care.  The agency shall

22  maximize the use of prepaid per capita and prepaid aggregate

23  fixed-sum basis services when appropriate and other

24  alternative service delivery and reimbursement methodologies,

25  including competitive bidding pursuant to s. 287.057, designed

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

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

28  minimize the exposure of recipients to the need for acute

29  inpatient, custodial, and other institutional care and the

30  inappropriate or unnecessary use of high-cost services.

31         (3)  The agency may contract with:

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  1         (e)  An entity in Pasco County or Pinellas County that

  2  provides in-home physician services to Medicaid recipients

  3  with degenerative neurological diseases in order to test the

  4  cost-effectiveness of enhanced home-based medical care. The

  5  entity providing the services shall be reimbursed on a

  6  fee-for-service basis at a rate not less than comparable

  7  Medicare reimbursement rates. The agency may apply for waivers

  8  of federal regulations necessary to implement such program.

  9  This paragraph shall be repealed on July 1, 2002.

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

11  apply for waivers of applicable federal laws and regulations

12  as necessary to implement more appropriate systems of health

13  care for Medicaid recipients and reduce the cost of the

14  Medicaid program to the state and federal governments and

15  shall implement such programs, after legislative approval,

16  within a reasonable period of time after federal approval.

17  These programs must be designed primarily to reduce the need

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

19  institutional care, and other high-cost services.

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

21  waiver as authorized by this subsection, the agency shall

22  provide notice and an opportunity for public comment.  Notice

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

24  agency for advance notice and shall be published in the

25  Florida Administrative Weekly not less than 28 days prior to

26  the intended action.

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

28  appropriated to the Department of Elderly Affairs for the

29  Assisted Living for the Elderly Medicaid waiver and are not

30  expended shall be transferred to the agency to fund

31  Medicaid-reimbursed nursing home care.

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  1         Section 20.  The Legislature shall appropriate each

  2  fiscal year from either the General Revenue Fund or the Agency

  3  for Health Care Administration Tobacco Settlement Trust Fund

  4  an amount sufficient to replace the funds lost due to repeal

  5  by this act of the assessment on other health care entities

  6  under former s. 395.7015, Florida Statutes, and the reduction

  7  by this act in the assessment on hospitals under s. 395.701,

  8  Florida Statutes, and to maintain federal approval of the

  9  reduced amount of funds deposited into the Public Medical

10  Assistance Trust Fund under s. 395.701, Florida Statutes, as

11  state match for the state's Medicaid program.

12         Section 21.  Effective July 1, 2000, and applicable to

13  provider contracts entered into or renewed on or after that

14  date, subsection (39) is added to section 641.31, Florida

15  Statutes, to read:

16         641.31  Health maintenance contracts.--

17         (39)  A health maintenance organization contract may

18  not prohibit or restrict a subscriber from receiving inpatient

19  services in a contracted hospital from a contracted primary

20  care or admitting physician if such services are determined by

21  the organization to be medically necessary and covered

22  services under the organization's contract with the contract

23  holder.

24         Section 22.  Effective July 1, 2000, and applicable to

25  provider contracts entered into or renewed on or after that

26  date, subsection (11) is added to section 641.315, Florida

27  Statutes, to read:

28         641.315  Provider contracts.--

29         (11)  A contract between a health maintenance

30  organization and a contracted primary care or admitting

31  physician may not contain any provision that prohibits such

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  1  physician from providing inpatient services in a contracted

  2  hospital to a subscriber if such services are determined by

  3  the organization to be medically necessary and covered

  4  services under the organization's contract with the contract

  5  holder.

  6         Section 23.  Effective July 1, 2000, and applicable to

  7  provider contracts entered into or renewed on or after that

  8  date, subsection (5) is added to section 641.3155, Florida

  9  Statutes, to read:

10         641.3155  Provider contracts; payment of claims.--

11         (5)  A health maintenance organization shall pay a

12  contracted primary care or admitting physician, pursuant to

13  such physician's contract, for providing inpatient services in

14  a contracted hospital to a subscriber, if such services are

15  determined by the organization to be medically necessary and

16  covered services under the organization's contract with the

17  contract holder.

18         Section 24.  Present subsections (4) through (10) of

19  section 641.51, Florida Statutes, are renumbered as

20  subsections (5) through (11), respectively, and a new

21  subsection (4) is added to said section to read:

22         641.51 Quality assurance program; second medical

23  opinion requirement.--

24         (4)  The organization shall ensure that only a

25  physician licensed under chapter 458 or chapter 459, or a

26  medical doctor or doctor of osteopathy with an active,

27  unencumbered license in another state with similar licensing

28  requirements may render an adverse determination regarding a

29  service provided by a physician licensed in this state. The

30  organization shall submit to the treating provider and the

31  subscriber written notification regarding the organization's

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  1  adverse determination within 2 working days after the

  2  subscriber or provider is notified of the adverse

  3  determination. The written notification must include the

  4  utilization review criteria or benefits provisions used in the

  5  adverse determination, and be signed by an authorized

  6  representative of the organization or the physician who

  7  renders the adverse determination. The organization must

  8  include with the notification of an adverse determination

  9  information concerning the appeal process for adverse

10  determinations.

11         Section 25.  Section 381.7351, Florida Statutes, is

12  created to read:

13         381.7351  Short title.--Sections 381.7351-381.7356 may

14  be cited as the "Reducing Racial and Ethnic Health

15  Disparities:  Closing the Gap Act."

16         Section 26.  Section 381.7352, Florida Statutes, is

17  created to read:

18         381.7352  Legislative findings and intent.--

19         (1)  The Legislature finds that despite state

20  investments in health care programs, certain racial and ethnic

21  populations in Florida continue to have significantly poorer

22  health outcomes when compared to non-Hispanic whites.  The

23  Legislature finds that local solutions to health care problems

24  can have a dramatic and positive effect on the health status

25  of these populations.  Local governments and communities are

26  best equipped to identify the health education, health

27  promotion, and disease prevention needs of the racial and

28  ethnic populations in their communities, mobilize the

29  community to address health outcome disparities, enlist and

30  organize local public and private resources, and faith-based

31

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  1  organizations to address these disparities, and evaluate the

  2  effectiveness of interventions.

  3         (2)  It is therefore the intent of the Legislature to

  4  provide funds within Florida counties and Front Porch Florida

  5  Communities, in the form of Reducing Racial and Ethnic Health

  6  Disparities: Closing the Gap grants, to stimulate the

  7  development of community-based and neighborhood-based projects

  8  which will improve the health outcomes of racial and ethnic

  9  populations.  Further, it is the intent of the Legislature

10  that these programs foster the development of coordinated,

11  collaborative, and broad-based participation by public and

12  private entities, and faith-based organizations.  Finally, it

13  is the intent of the Legislature that the grant program

14  function as a partnership between state and local governments,

15  faith-based organizations, and private-sector health care

16  providers, including managed care, voluntary health care

17  resources, social service providers, and nontraditional

18  partners.

19         Section 27.  Section 381.7353, Florida Statutes, is

20  created to read:

21         381.7353  Reducing Racial and Ethnic Health

22  Disparities:  Closing the Gap grant program; administration;

23  department duties.--

24         (1)  The Reducing Racial and Ethnic Health Disparities:

25  Closing the Gap grant program shall be administered by the

26  Department of Health.

27         (2)  The department shall:

28         (a)  Publicize the availability of funds and establish

29  an application process for submitting a grant proposal.

30

31

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  1         (b)  Provide technical assistance and training,

  2  including a statewide meeting promoting best practice

  3  programs, as requested, to grant recipients.

  4         (c)  Develop uniform data reporting requirements for

  5  the purpose of evaluating the performance of the grant

  6  recipients and demonstrating improved health outcomes.

  7         (d)  Develop a monitoring process to evaluate progress

  8  toward meeting grant objectives.

  9         (e)  Coordinate with existing community-based programs,

10  such as chronic disease community intervention programs,

11  cancer prevention and control programs, diabetes control

12  programs, the Healthy Start program, the Florida KidCare

13  Program, the HIV/AIDS program, immunization programs, and

14  other related programs at the state and local levels, to avoid

15  duplication of effort and promote consistency.

16         (3)  Pursuant to s. 20.43(6), the secretary may appoint

17  an ad hoc advisory committee to: examine areas where public

18  awareness, public education, research, and coordination

19  regarding racial and ethnic health outcome disparities are

20  lacking; consider access and transportation issues which

21  contribute to health status disparities; and make

22  recommendations for closing gaps in health outcomes and

23  increasing the public's awareness and understanding of health

24  disparities that exist between racial and ethnic populations.

25         Section 28.  Section 381.7354, Florida Statutes, is

26  created to read:

27         381.7354  Eligibility.--

28         (1)  Any person, entity, or organization within a

29  county may apply for a Closing the Gap grant and may serve as

30  the lead agency to administer and coordinate project

31

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  1  activities within the county and develop community

  2  partnerships necessary to implement the grant.

  3         (2)  Persons, entities, or organizations within

  4  adjoining counties with populations of less than 100,000,

  5  based on the annual estimates produced by the Population

  6  Program of the University of Florida Bureau of Economic and

  7  Business Research, may jointly submit a multicounty Closing

  8  the Gap grant proposal.  However, the proposal must clearly

  9  identify a single lead agency with respect to program

10  accountability and administration.

11         (3)  In addition to the grants awarded under

12  subsections (1) and (2), up to 20 percent of the funding for

13  the Reducing Racial and Ethnic Health Disparities: Closing the

14  Gap grant program shall be dedicated to projects that address

15  improving racial and ethnic health status within specific

16  Front Porch Florida Communities, as designated pursuant to s.

17  14.2015(9)(b).

18         (4)  Nothing in ss. 381.7351-381.7356 shall prevent a

19  person, entity, or organization within a county or group of

20  counties from separately contracting for the provision of

21  racial and ethnic health promotion, health awareness, and

22  disease prevention services.

23         Section 29.  Section 381.7355, Florida Statutes, is

24  created to read:

25         381.7355  Project requirements; review criteria.--

26         (1)  Closing the Gap grant proposals shall be submitted

27  to the Department of Health for review.

28         (2)  A proposal must include each of the following

29  elements:

30         (a)  The purpose and objectives of the proposal,

31  including identification of the particular racial or ethnic

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  1  disparity the project will address. The proposal must address

  2  one or more of the following priority areas:

  3         1.  Decreasing racial and ethnic disparities in

  4  maternal and infant mortality rates.

  5         2.  Decreasing racial and ethnic disparities in

  6  morbidity and mortality rates relating to cancer.

  7         3.  Decreasing racial and ethnic disparities in

  8  morbidity and mortality rates relating to HIV/AIDS.

  9         4.  Decreasing racial and ethnic disparities in

10  morbidity and mortality rates relating to cardiovascular

11  disease.

12         5.  Decreasing racial and ethnic disparities in

13  morbidity and mortality rates relating to diabetes.

14         6.  Increasing adult and child immunization rates in

15  certain racial and ethnic populations.

16         (b)  Identification and relevance of the target

17  population.

18         (c)  Methods for obtaining baseline health status data

19  and assessment of community health needs.

20         (d)  Mechanisms for mobilizing community resources and

21  gaining local commitment.

22         (e)  Development and implementation of health promotion

23  and disease prevention interventions.

24         (f)  Mechanisms and strategies for evaluating the

25  project's objectives, procedures, and outcomes.

26         (g)  A proposed work plan, including a timeline for

27  implementing the project.

28         (h)  Likelihood that project activities will occur and

29  continue in the absence of funding.

30         (3) Priority shall be given to proposals that:

31

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  1         (a)  Represent areas with the greatest documented

  2  racial and ethnic health status disparities.

  3         (b)  Exceed the minimum local contribution requirements

  4  specified in s. 381.7356.

  5         (c)  Demonstrate broad-based local support and

  6  commitment from entities representing racial and ethnic

  7  populations, including non-Hispanic whites. Indicators of

  8  support and commitment may include agreements to participate

  9  in the program, letters of endorsement, letters of commitment,

10  interagency agreements, or other forms of support.

11         (d)  Demonstrate a high degree of participation by the

12  health care community in clinical preventive service

13  activities and community-based health promotion and disease

14  prevention interventions.

15         (e)  Have been submitted from counties with a high

16  proportion of residents living in poverty and with poor health

17  status indicators.

18         (f)  Demonstrate a coordinated community approach to

19  addressing racial and ethnic health issues within existing

20  publicly financed health care programs.

21         (g)  Incorporate intervention mechanisms which have a

22  high probability of improving the targeted population's health

23  status.

24         (h)  Demonstrate a commitment to quality management in

25  all aspects of project administration and implementation.

26         Section 30.  Section 381.7356, Florida Statutes, is

27  created to read:

28         381.7356  Local matching funds; grant awards.--

29         (1)  One or more Closing the Gap grants may be awarded

30  in a county, or in a group of adjoining counties from which a

31  multicounty application is submitted. Front Porch Florida

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  1  Communities grants may also be awarded in a county or group of

  2  adjoining counties that are also receiving a grant award.

  3         (2)  Closing the Gap grants shall be awarded on a

  4  matching basis.  One dollar in local matching funds must be

  5  provided for each $3 grant payment made by the state, except

  6  that:

  7         (a)  In counties with populations greater than 50,000,

  8  up to 50 percent of the local match may be in kind in the form

  9  of free services or human resources. Fifty percent of the

10  local match must be in the form of cash.

11         (b)  In counties with populations of 50,000 or less,

12  the required local matching funds may be provided entirely

13  through in-kind contributions.

14         (c)  Grant awards to Front Porch Florida Communities

15  shall not be required to have a matching requirement.

16         (3)  The amount of the grant award shall be based on

17  the county or neighborhood's population, or on the combined

18  population in a group of adjoining counties from which a

19  multicounty application is submitted, and on other factors, as

20  determined by the department.

21         (4)  Dissemination of grant awards shall begin no later

22  than January 1, 2001.

23         (5)  A Closing the Gap grant shall be funded for 1 year

24  and may be renewed annually upon application to and approval

25  by the department, subject to the achievement of quality

26  standards, objectives, and outcomes and to the availability of

27  funds.

28         (6)  Implementation of the Reducing Racial and Ethnic

29  Health Disparities: Closing the Gap grant program shall be

30  subject to a specific appropriation provided in the General

31  Appropriations Act.

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  1         Section 31.  Florida Commission on Excellence in Health

  2  Care.--

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

  4  finds that the health care delivery industry is one of the

  5  largest and most complex industries in Florida. The

  6  Legislature finds that the current system of regulating health

  7  care practitioners and health care providers is one of blame

  8  and punishment and does not encourage voluntary admission of

  9  errors and immediate corrective action on a large scale. The

10  Legislature finds that previous attempts to identify and

11  address areas which impact the quality of care provided by the

12  health care industry have suffered from a lack of coordination

13  among the industry's stakeholders and regulators. The

14  Legislature finds that additional focus on strengthening

15  health care delivery systems by eliminating avoidable mistakes

16  in the diagnosis and treatment of Floridians holds tremendous

17  promise to increase the quality of health care services

18  available to Floridians, thereby reducing the costs associated

19  with medical mistakes and malpractice and in turn increasing

20  access to health care in the state. To achieve this enhanced

21  focus, it is the intent of the Legislature to create the

22  Florida Commission on Excellence in Health Care to facilitate

23  the development of a comprehensive statewide strategy for

24  improving health care delivery systems through meaningful

25  reporting standards, data collection and review, and quality

26  measurement.

27         (2)  DEFINITIONS.--As used in this act, the term:

28         (a)  "Agency" means the Agency for Health Care

29  Administration.

30         (b)  "Commission" means the Florida Commission on

31  Excellence in Health Care.

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  1         (c)  "Department" means the Department of Health.

  2         (d)  "Error," with respect to health care, means an

  3  unintended act, by omission or commission.

  4         (e)  "Health care practitioner" means any person

  5  licensed under chapter 457; chapter 458; chapter 459; chapter

  6  460; chapter 461; chapter 462; chapter 463; chapter 464;

  7  chapter 465; chapter 466; chapter 467; part I, part II, part

  8  III, part V, part X, part XIII, or part XIV of chapter 468;

  9  chapter 478; chapter 480; part III or part IV of chapter 483;

10  chapter 484; chapter 486; chapter 490; or chapter 491, Florida

11  Statutes.

12         (f)  "Health care provider" means any health care

13  facility or other health care organization licensed or

14  certified to provide approved medical and allied health

15  services in this state, or any entity licensed by the

16  Department of Insurance as a prepaid health care plan or

17  health maintenance organization or as an insurer to provide

18  coverage for health care services through a network of

19  providers.

20         (3)  COMMISSION; DUTIES AND RESPONSIBILITIES.--There is

21  hereby created the Florida Commission on Excellence in Health

22  Care. The commission shall:

23         (a)  Identify existing data sources that evaluate

24  quality of care in Florida and collect, analyze, and evaluate

25  this data.

26         (b)  Establish guidelines for data sharing and

27  coordination.

28         (c)  Identify core sets of quality measures for

29  standardized reporting by appropriate components of the health

30  care continuum.

31

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  1         (d)  Recommend a framework for quality measurement and

  2  outcome reporting.

  3         (e)  Develop quality measures that enhance and improve

  4  the ability to evaluate and improve care.

  5         (f)  Make recommendations regarding research and

  6  development needed to advance quality measurement and

  7  reporting.

  8         (g)  Evaluate regulatory issues relating to the

  9  pharmacy profession and recommend changes necessary to

10  optimize patient safety.

11         (h)  Facilitate open discussion of a process to ensure

12  that comparative information on health care quality is valid,

13  reliable, comprehensive, understandable, and widely available

14  in the public domain.

15         (i)  Sponsor public hearings to share information and

16  expertise, identify "best practices," and recommend methods to

17  promote their acceptance.

18         (j)  Evaluate current regulatory programs to determine

19  what changes, if any, need to be made to facilitate patient

20  safety.

21         (k)  Review public and private health care purchasing

22  systems to determine if there are sufficient mandates and

23  incentives to facilitate continuous improvement in patient

24  safety.

25         (l)  Analyze how effective existing regulatory systems

26  are in ensuring continuous competence and knowledge of

27  effective safety practices.

28         (m)  Develop a framework for organizations that

29  license, accredit, or credential health care practitioners and

30  health care providers to more quickly and effectively identify

31  unsafe providers and practitioners and to take action

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  1  necessary to remove the unsafe provider or practitioner from

  2  practice or operation until such time as the practitioner or

  3  provider has proven safe to practice or operate.

  4         (n)  Recommend procedures for development of a

  5  curriculum on patient safety and methods of incorporating such

  6  curriculum into training, licensure, and certification

  7  requirements.

  8         (o)  Develop a framework for regulatory bodies to

  9  disseminate information on patient safety to health care

10  practitioners, health care providers, and consumers through

11  conferences, journal articles and editorials, newsletters,

12  publications, and Internet websites.

13         (p)  Recommend procedures to incorporate recognized

14  patient safety considerations into practice guidelines and

15  into standards related to the introduction and diffusion of

16  new technologies, therapies, and drugs.

17         (q)  Recommend a framework for development of

18  community-based collaborative initiatives for error reporting

19  and analysis and implementation of patient safety

20  improvements.

21         (r)  Evaluate the role of advertising in promoting or

22  adversely affecting patient safety.

23         (s)  Evaluate and make recommendations regarding the

24  need for licensure of additional persons who participate in

25  the delivery of health care to Floridians, including, but not

26  limited to, surgical technologists and pharmacy technicians.

27         (t)  Evaluate the benefits and problems of the current

28  disciplinary systems and make recommendations regarding

29  alternatives and improvements.

30         (4)  MEMBERSHIP, ORGANIZATION, MEETINGS, PROCEDURES,

31  STAFF.--

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  1         (a)  The commission shall consist of:

  2         1.  The Secretary of Health and the Executive Director

  3  of the Agency for Health Care Administration.

  4         2.  One representative each from the following agencies

  5  or organizations:  the Board of Medicine, the Board of

  6  Osteopathic Medicine, the Board of Pharmacy, the Board of

  7  Nursing, the Board of Dentistry, the Florida Dental

  8  Association, the Florida Medical Association, the Florida

  9  Osteopathic Medical Association, the Florida Nurses

10  Association, the Florida Organization of Nursing Executives,

11  the Florida Pharmacy Association, the Florida Society of

12  Health System Pharmacists, Inc., the Florida Hospital

13  Association, the Association of Community Hospitals and Health

14  Systems of Florida, Inc., the Florida League of Health Care

15  Systems, the Florida Health Care Risk Management Advisory

16  Council, the Florida Health Care Association, and the Florida

17  Association of Homes for the Aging;

18         3.  One licensed clinical laboratory director,

19  appointed by the Secretary of Health;

20         4.  Two health lawyers, appointed by the Secretary of

21  Health, one of whom shall be a member of The Florida Bar

22  Health Law Section who defends physicians and one of whom

23  shall be a member of the Florida Academy of Trial Lawyers;

24         5.  One representative of the medical malpractice

25  professional liability insurance industry, appointed by the

26  Secretary of Health;

27         6.  Two representatives of the health insurance

28  industry, appointed by the Executive Director of the Agency

29  for Health Care Administration, one of whom shall represent

30  indemnity plans and one of whom shall represent managed care;

31

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  1         7.  Five consumer advocates, consisting of one from the

  2  Association for Responsible Medicine, two appointed by the

  3  Governor, one appointed by the President of the Senate, and

  4  one appointed by the Speaker of the House of Representatives;

  5  and

  6         8.  Two legislators, one appointed by the President of

  7  the Senate and one appointed by the Speaker of the House of

  8  Representatives.

  9

10  Commission membership shall reflect the geographic and

11  demographic diversity of the state.

12         (b)  The Secretary of Health and the Executive Director

13  of the Agency for Health Care Administration shall jointly

14  chair the commission. Subcommittees shall be formed by the

15  joint chairs, as needed, to make recommendations to the full

16  commission on the subjects assigned. However, all votes on

17  work products of the commission shall be at the full

18  commission level, and all recommendations to the Governor, the

19  President of the Senate, and the Speaker of the House of

20  Representatives must pass by a two-thirds vote of the full

21  commission. Sponsoring agencies and organizations may

22  designate an alternative member who may attend and vote on

23  behalf of the sponsoring agency or organization in the event

24  the appointed member is unable to attend a meeting of the

25  commission or any subcommittee. The commission shall be

26  staffed by employees of the Department of Health and the

27  Agency for Health Care Administration. Sponsoring agencies or

28  organizations must fund the travel and related expenses of

29  their appointed members on the commission. Travel and related

30  expenses for the consumer members of the commission shall be

31  reimbursed by the state pursuant to s. 112.061, Florida

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  1  Statutes. The commission shall hold its first meeting no later

  2  than July 15, 2000.

  3         (5)  EVIDENTIARY PROHIBITIONS.--

  4         (a)  The findings, recommendations, evaluations,

  5  opinions, investigations, proceedings, records, reports,

  6  minutes, testimony, correspondence, work product, and actions

  7  of the commission shall be available to the public, but may

  8  not be introduced into evidence at any civil, criminal,

  9  special, or administrative proceeding against a health care

10  practitioner or health care provider arising out of the

11  matters which are the subject of the findings of the

12  commission. Moreover, no member of the commission shall be

13  examined in any civil, criminal, special, or administrative

14  proceeding against a health care practitioner or health care

15  provider as to any evidence or other matters produced or

16  presented during the proceedings of this commission or as to

17  any findings, recommendations, evaluations, opinions,

18  investigations, proceedings, records, reports, minutes,

19  testimony, correspondence, work product, or other actions of

20  the commission or any members thereof. However, nothing in

21  this section shall be construed to mean that information,

22  documents, or records otherwise available and obtained from

23  original sources are immune from discovery or use in any

24  civil, criminal, special, or administrative proceeding merely

25  because they were presented during proceedings of the

26  commission. Nor shall any person who testifies before the

27  commission or who is a member of the commission be prevented

28  from testifying as to matters within his or her knowledge in a

29  subsequent civil, criminal, special, or administrative

30  proceeding merely because such person testified in front of

31  the commission.

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  1         (b)  The findings, recommendations, evaluations,

  2  opinions, investigations, proceedings, records, reports,

  3  minutes, testimony, correspondence, work product, and actions

  4  of the commission shall be used as a guide and resource and

  5  shall not be construed as establishing or advocating the

  6  standard of care for health care practitioners or health care

  7  providers unless subsequently enacted into law or adopted in

  8  rule. Nor shall any findings, recommendations, evaluations,

  9  opinions, investigations, proceedings, records, reports,

10  minutes, testimony, correspondence, work product, or actions

11  of the commission be admissible as evidence in any way,

12  directly or indirectly, by introduction of documents or as a

13  basis of an expert opinion as to the standard of care

14  applicable to health care practitioners or health care

15  providers in any civil, criminal, special, or administrative

16  proceeding unless subsequently enacted into law or adopted in

17  rule.

18         (c)  No person who testifies before the commission or

19  who is a member of the commission may specifically identify

20  any patient, health care practitioner, or health care provider

21  by name. Moreover, the findings, recommendations, evaluations,

22  opinions, investigations, proceedings, records, reports,

23  minutes, testimony, correspondence, work product, and actions

24  of the commission may not specifically identify any patient,

25  health care practitioner, or health care provider by name.

26         (6)  REPORT; TERMINATION.--The commission shall provide

27  a report of its findings and recommendations to the Governor,

28  the President of the Senate, and the Speaker of the House of

29  Representatives no later than February 1, 2001. After

30  submission of the report, the commission shall continue to

31  exist for the purpose of assisting the Department of Health,

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  1  the Agency for Health Care Administration, and the regulatory

  2  boards in their drafting of proposed legislation and rules to

  3  implement its recommendations and for the purpose of providing

  4  information to the health care industry on its

  5  recommendations. The commission shall be terminated June 1,

  6  2001.

  7         Section 32.  Subsection (1) of section 408.7056,

  8  Florida Statutes, is amended to read:

  9         408.7056  Statewide Provider and Subscriber Assistance

10  Program.--

11         (1)  As used in this section, the term:

12         (a)  "Agency" means the Agency for Health Care

13  Administration.

14         (b)  "Department" means the Department of Insurance.

15         (c)  "Grievance procedure" means an established set of

16  rules that specify a process for appeal of an organizational

17  decision.

18         (d)  "Health care provider" or "provider" means a

19  state-licensed or state-authorized facility, a facility

20  principally supported by a local government or by funds from a

21  charitable organization that holds a current exemption from

22  federal income tax under s. 501(c)(3) of the Internal Revenue

23  Code, a licensed practitioner, a county health department

24  established under part I of chapter 154, a prescribed

25  pediatric extended care center defined in s. 400.902, a

26  federally supported primary care program such as a migrant

27  health center or a community health center authorized under s.

28  329 or s. 330 of the United States Public Health Services Act

29  that delivers health care services to individuals, or a

30  community facility that receives funds from the state under

31

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  1  the Community Alcohol, Drug Abuse, and Mental Health Services

  2  Act and provides mental health services to individuals.

  3         (e)(a)  "Managed care entity" means a health

  4  maintenance organization or a prepaid health clinic certified

  5  under chapter 641, a prepaid health plan authorized under s.

  6  409.912, or an exclusive provider organization certified under

  7  s. 627.6472.

  8         (f)(b)  "Panel" means a statewide provider and

  9  subscriber assistance panel selected as provided in subsection

10  (11).

11         Section 33.  Section 627.654, Florida Statutes, is

12  amended to read:

13         627.654  Labor union, and association, and small

14  employer health alliance groups.--

15         (1)(a)  A group of individuals may be insured under a

16  policy issued to an association, including a labor union,

17  which association has a constitution and bylaws and not less

18  than 25 individual members and which has been organized and

19  has been maintained in good faith for a period of 1 year for

20  purposes other than that of obtaining insurance, or to the

21  trustees of a fund established by such an association, which

22  association or trustees shall be deemed the policyholder,

23  insuring at least 15 individual members of the association for

24  the benefit of persons other than the officers of the

25  association, the association or trustees.

26         (b)  A small employer, as defined in s. 627.6699 and

27  including the employer's eligible employees and the spouses

28  and dependents of such employees, may be insured under a

29  policy issued to a small employer health alliance by a carrier

30  as defined in s. 627.6699.  A small employer health alliance

31  must be organized as a not-for-profit corporation under

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  1  chapter 617. Notwithstanding any other law, if a small

  2  employer member of an alliance loses eligibility to purchase

  3  health care through the alliance solely because the business

  4  of the small employer member expands to more than 50 and fewer

  5  than 75 eligible employees, the small employer member may, at

  6  its next renewal date, purchase coverage through the alliance

  7  for not more than 1 additional year.  A small employer health

  8  alliance shall establish conditions of participation in the

  9  alliance by a small employer, including, but not limited to:

10         1.  Assurance that the small employer is not formed for

11  the purpose of securing health benefit coverage.

12         2.  Assurance that the employees of a small employer

13  have not been added for the purpose of securing health benefit

14  coverage.

15         (2)  No such policy of insurance as defined in

16  subsection (1) may be issued to any such association or

17  alliance, unless all individual members of such association,

18  or all small employer members of an alliance, or all of any

19  class or classes thereof, are declared eligible and acceptable

20  to the insurer at the time of issuance of the policy.

21         (3)  Any such policy issued under paragraph (1)(a) may

22  insure the spouse or dependent children with or without the

23  member being insured.

24         (4)  A single master policy issued to an association,

25  labor union, or small employer health alliance may include

26  more than one health plan from the same insurer or affiliated

27  insurer group as alternatives for an employer, employee, or

28  member to select.

29         Section 34.  Paragraph (f) of subsection (2), paragraph

30  (b) of subsection (4), and subsection (6) of section 627.6571,

31  Florida Statutes, are amended to read:

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  1         627.6571  Guaranteed renewability of coverage.--

  2         (2)  An insurer may nonrenew or discontinue a group

  3  health insurance policy based only on one or more of the

  4  following conditions:

  5         (f)  In the case of health insurance coverage that is

  6  made available only through one or more bona fide associations

  7  as defined in subsection (5) or through one or more small

  8  employer health alliances as described in s. 627.654(1)(b),

  9  the membership of an employer in the association or in the

10  small employer health alliance, on the basis of which the

11  coverage is provided, ceases, but only if such coverage is

12  terminated under this paragraph uniformly without regard to

13  any health-status-related factor that relates to any covered

14  individuals.

15         (4)  At the time of coverage renewal, an insurer may

16  modify the health insurance coverage for a product offered:

17         (b)  In the small-group market if, for coverage that is

18  available in such market other than only through one or more

19  bona fide associations as defined in subsection (5) or through

20  one or more small employer health alliances as described in s.

21  627.654(1)(b), such modification is consistent with s.

22  627.6699 and effective on a uniform basis among group health

23  plans with that product.

24         (6)  In applying this section in the case of health

25  insurance coverage that is made available by an insurer in the

26  small-group market or large-group market to employers only

27  through one or more associations or through one or more small

28  employer health alliances as described in s. 627.654(1)(b), a

29  reference to "policyholder" is deemed, with respect to

30  coverage provided to an employer member of the association, to

31  include a reference to such employer.

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  1         Section 35.  Paragraph (h) of subsection (5), paragraph

  2  (b) of subsection (6), and paragraph (a) of subsection (12) of

  3  section 627.6699, Florida Statutes, are amended to read:

  4         627.6699  Employee Health Care Access Act.--

  5         (5)  AVAILABILITY OF COVERAGE.--

  6         (h)  All health benefit plans issued under this section

  7  must comply with the following conditions:

  8         1.  For employers who have fewer than two employees, a

  9  late enrollee may be excluded from coverage for no longer than

10  24 months if he or she was not covered by creditable coverage

11  continually to a date not more than 63 days before the

12  effective date of his or her new coverage.

13         2.  Any requirement used by a small employer carrier in

14  determining whether to provide coverage to a small employer

15  group, including requirements for minimum participation of

16  eligible employees and minimum employer contributions, must be

17  applied uniformly among all small employer groups having the

18  same number of eligible employees applying for coverage or

19  receiving coverage from the small employer carrier, except

20  that a small employer carrier that participates in,

21  administers, or issues health benefits pursuant to s. 381.0406

22  which do not include a preexisting condition exclusion may

23  require as a condition of offering such benefits that the

24  employer has had no health insurance coverage for its

25  employees for a period of at least 6 months.  A small employer

26  carrier may vary application of minimum participation

27  requirements and minimum employer contribution requirements

28  only by the size of the small employer group.

29         3.  In applying minimum participation requirements with

30  respect to a small employer, a small employer carrier shall

31  not consider as an eligible employee employees or dependents

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  1  who have qualifying existing coverage in an employer-based

  2  group insurance plan or an ERISA qualified self-insurance plan

  3  in determining whether the applicable percentage of

  4  participation is met. However, a small employer carrier may

  5  count eligible employees and dependents who have coverage

  6  under another health plan that is sponsored by that employer

  7  except if such plan is offered pursuant to s. 408.706.

  8         4.  A small employer carrier shall not increase any

  9  requirement for minimum employee participation or any

10  requirement for minimum employer contribution applicable to a

11  small employer at any time after the small employer has been

12  accepted for coverage, unless the employer size has changed,

13  in which case the small employer carrier may apply the

14  requirements that are applicable to the new group size.

15         5.  If a small employer carrier offers coverage to a

16  small employer, it must offer coverage to all the small

17  employer's eligible employees and their dependents.  A small

18  employer carrier may not offer coverage limited to certain

19  persons in a group or to part of a group, except with respect

20  to late enrollees.

21         6.  A small employer carrier may not modify any health

22  benefit plan issued to a small employer with respect to a

23  small employer or any eligible employee or dependent through

24  riders, endorsements, or otherwise to restrict or exclude

25  coverage for certain diseases or medical conditions otherwise

26  covered by the health benefit plan.

27         7.  An initial enrollment period of at least 30 days

28  must be provided.  An annual 30-day open enrollment period

29  must be offered to each small employer's eligible employees

30  and their dependents. A small employer carrier must provide

31  special enrollment periods as required by s. 627.65615.

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  1         (6)  RESTRICTIONS RELATING TO PREMIUM RATES.--

  2         (b)  For all small employer health benefit plans that

  3  are subject to this section and are issued by small employer

  4  carriers on or after January 1, 1994, premium rates for health

  5  benefit plans subject to this section are subject to the

  6  following:

  7         1.  Small employer carriers must use a modified

  8  community rating methodology in which the premium for each

  9  small employer must be determined solely on the basis of the

10  eligible employee's and eligible dependent's gender, age,

11  family composition, tobacco use, or geographic area as

12  determined under paragraph (5)(j).

13         2.  Rating factors related to age, gender, family

14  composition, tobacco use, or geographic location may be

15  developed by each carrier to reflect the carrier's experience.

16  The factors used by carriers are subject to department review

17  and approval.

18         3.  Small employer carriers may not modify the rate for

19  a small employer for 12 months from the initial issue date or

20  renewal date, unless the composition of the group changes or

21  benefits are changed. However, a small employer carrier may

22  modify the rate one time prior to 12 months after the initial

23  issue date for a small employer who enrolls under a previously

24  issued group policy that has a common anniversary date for all

25  employers covered under the policy if:

26         a.  The carrier discloses to the employer in a clear

27  and conspicuous manner the date of the first renewal and the

28  fact that the premium may increase on or after that date.

29         b.  The insurer demonstrates to the department that

30  efficiencies in administration are achieved and reflected in

31  the rates charged to small employers covered under the policy.

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  1         4.  A carrier may issue a group health insurance policy

  2  to a small employer health alliance or other group association

  3  with rates that reflect a premium credit for expense savings

  4  attributable to administrative activities being performed by

  5  the alliance or group association if such expense savings are

  6  specifically documented in the insurer's rate filing and are

  7  approved by the department. Any such credit may not be based

  8  on different morbidity assumptions or on any other factor

  9  related to the health status or claims experience of any

10  person covered under the policy. Nothing in this subparagraph

11  exempts an alliance or group association from licensure for

12  any activities that require licensure under the Insurance

13  Code. A carrier issuing a group health insurance policy to a

14  small employer health alliance or other group association

15  shall allow any properly licensed and appointed agent of that

16  carrier to market and sell the small employer health alliance

17  or other group association policy. Such agent shall be paid

18  the usual and customary commission paid to any agent selling

19  the policy. Carriers participating in the alliance program, in

20  accordance with ss. 408.70-408.706, may apply a different

21  community rate to business written in that program.

22         (12)  STANDARD, BASIC, AND LIMITED HEALTH BENEFIT

23  PLANS.--

24         (a)1.  By May 15, 1993, the commissioner shall appoint

25  a health benefit plan committee composed of four

26  representatives of carriers which shall include at least two

27  representatives of HMOs, at least one of which is a staff

28  model HMO, two representatives of agents, four representatives

29  of small employers, and one employee of a small employer.  The

30  carrier members shall be selected from a list of individuals

31  recommended by the board.  The commissioner may require the

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  1  board to submit additional recommendations of individuals for

  2  appointment.  As alliances are established under s. 408.702,

  3  each alliance shall also appoint an additional member to the

  4  committee.

  5         2.  The committee shall develop changes to the form and

  6  level of coverages for the standard health benefit plan and

  7  the basic health benefit plan, and shall submit the forms, and

  8  levels of coverages to the department by September 30, 1993.

  9  The department must approve such forms and levels of coverages

10  by November 30, 1993, and may return the submissions to the

11  committee for modification on a schedule that allows the

12  department to grant final approval by November 30, 1993.

13         3.  The plans shall comply with all of the requirements

14  of this subsection.

15         4.  The plans must be filed with and approved by the

16  department prior to issuance or delivery by any small employer

17  carrier.

18         5.  After approval of the revised health benefit plans,

19  if the department determines that modifications to a plan

20  might be appropriate, the commissioner shall appoint a new

21  health benefit plan committee in the manner provided in

22  subparagraph 1. to submit recommended modifications to the

23  department for approval.

24         Section 36.  Subsection (1) of section 240.2995,

25  Florida Statutes, is amended to read:

26         240.2995  University health services support

27  organizations.--

28         (1)  Each state university is authorized to establish

29  university health services support organizations which shall

30  have the ability to enter into, for the benefit of the

31  university academic health sciences center, arrangements with

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  1  other entities as providers for accountable health

  2  partnerships, as defined in s. 408.701, and providers in other

  3  integrated health care systems or similar entities.  To the

  4  extent required by law or rule, university health services

  5  support organizations shall become licensed as insurance

  6  companies, pursuant to chapter 624, or be certified as health

  7  maintenance organizations, pursuant to chapter 641.

  8  University health services support organizations shall have

  9  sole responsibility for the acts, debts, liabilities, and

10  obligations of the organization.  In no case shall the state

11  or university have any responsibility for such acts, debts,

12  liabilities, and obligations incurred or assumed by university

13  health services support organizations.

14         Section 37.  Paragraph (a) of subsection (2) of section

15  240.2996, Florida Statutes, is amended to read:

16         240.2996  University health services support

17  organization; confidentiality of information.--

18         (2)  The following university health services support

19  organization's records and information are confidential and

20  exempt from the provisions of s. 119.07(1) and s. 24(a), Art.

21  I of the State Constitution:

22         (a)  Contracts for managed care arrangements, as

23  managed care is defined in s. 408.701, under which the

24  university health services support organization provides

25  health care services, including preferred provider

26  organization contracts, health maintenance organization

27  contracts, alliance network arrangements, and exclusive

28  provider organization contracts, and any documents directly

29  relating to the negotiation, performance, and implementation

30  of any such contracts for managed care arrangements or

31  alliance network arrangements. As used in this paragraph, the

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  1  term "managed care" means systems or techniques generally used

  2  by third-party payors or their agents to affect access to and

  3  control payment for health care services. Managed-care

  4  techniques most often include one or more of the following:

  5  prior, concurrent, and retrospective review of the medical

  6  necessity and appropriateness of services or site of services;

  7  contracts with selected health care providers; financial

  8  incentives or disincentives related to the use of specific

  9  providers, services, or service sites; controlled access to

10  and coordination of services by a case manager; and payor

11  efforts to identify treatment alternatives and modify benefit

12  restrictions for high-cost patient care.

13

14  The exemptions in this subsection are subject to the Open

15  Government Sunset Review Act of 1995 in accordance with s.

16  119.15 and shall stand repealed on October 2, 2001, unless

17  reviewed and saved from repeal through reenactment by the

18  Legislature.

19         Section 38.  Paragraph (b) of subsection (8) of section

20  240.512, Florida Statutes, is amended to read:

21         240.512  H. Lee Moffitt Cancer Center and Research

22  Institute.--There is established the H. Lee Moffitt Cancer

23  Center and Research Institute at the University of South

24  Florida.

25         (8)

26         (b)  Proprietary confidential business information is

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

28  and s. 24(a), Art. I of the State Constitution.  However, the

29  Auditor General and Board of Regents, pursuant to their

30  oversight and auditing functions, must be given access to all

31  proprietary confidential business information upon request and

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  1  without subpoena and must maintain the confidentiality of

  2  information so received. As used in this paragraph, the term

  3  "proprietary confidential business information" means

  4  information, regardless of its form or characteristics, which

  5  is owned or controlled by the not-for-profit corporation or

  6  its subsidiaries; is intended to be and is treated by the

  7  not-for-profit corporation or its subsidiaries as private and

  8  the disclosure of which would harm the business operations of

  9  the not-for-profit corporation or its subsidiaries; has not

10  been intentionally disclosed by the corporation or its

11  subsidiaries unless pursuant to law, an order of a court or

12  administrative body, a legislative proceeding pursuant to s.

13  5, Art. III of the State Constitution, or a private agreement

14  that provides that the information may be released to the

15  public; and which is information concerning:

16         1.  Internal auditing controls and reports of internal

17  auditors;

18         2.  Matters reasonably encompassed in privileged

19  attorney-client communications;

20         3.  Contracts for managed-care arrangements, as managed

21  care is defined in s. 408.701, including preferred provider

22  organization contracts, health maintenance organization

23  contracts, and exclusive provider organization contracts, and

24  any documents directly relating to the negotiation,

25  performance, and implementation of any such contracts for

26  managed-care arrangements;

27         4.  Bids or other contractual data, banking records,

28  and credit agreements the disclosure of which would impair the

29  efforts of the not-for-profit corporation or its subsidiaries

30  to contract for goods or services on favorable terms;

31

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  1         5.  Information relating to private contractual data,

  2  the disclosure of which would impair the competitive interest

  3  of the provider of the information;

  4         6.  Corporate officer and employee personnel

  5  information;

  6         7.  Information relating to the proceedings and records

  7  of credentialing panels and committees and of the governing

  8  board of the not-for-profit corporation or its subsidiaries

  9  relating to credentialing;

10         8.  Minutes of meetings of the governing board of the

11  not-for-profit corporation and its subsidiaries, except

12  minutes of meetings open to the public pursuant to subsection

13  (9);

14         9.  Information that reveals plans for marketing

15  services that the corporation or its subsidiaries reasonably

16  expect to be provided by competitors;

17         10.  Trade secrets as defined in s. 688.002, including

18  reimbursement methodologies or rates; or

19         11.  The identity of donors or prospective donors of

20  property who wish to remain anonymous or any information

21  identifying such donors or prospective donors.  The anonymity

22  of these donors or prospective donors must be maintained in

23  the auditor's report.

24

25  As used in this paragraph, the term "managed care" means

26  systems or techniques generally used by third-party payors or

27  their agents to affect access to and control payment for

28  health care services. Managed-care techniques most often

29  include one or more of the following:  prior, concurrent, and

30  retrospective review of the medical necessity and

31  appropriateness of services or site of services; contracts

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  1  with selected health care providers; financial incentives or

  2  disincentives related to the use of specific providers,

  3  services, or service sites; controlled access to and

  4  coordination of services by a case manager; and payor efforts

  5  to identify treatment alternatives and modify benefit

  6  restrictions for high-cost patient care.

  7         Section 39.  Subsection (14) of section 381.0406,

  8  Florida Statutes, is amended to read:

  9         381.0406  Rural health networks.--

10         (14)  NETWORK FINANCING.--Networks may use all sources

11  of public and private funds to support network activities.

12  Nothing in this section prohibits networks from becoming

13  managed care providers, or accountable health partnerships,

14  provided they meet the requirements for an accountable health

15  partnership as specified in s. 408.706.

16         Section 40.  Paragraph (a) of subsection (2) of section

17  395.3035, Florida Statutes, is amended to read:

18         395.3035  Confidentiality of hospital records and

19  meetings.--

20         (2)  The following records and information of any

21  hospital that is subject to chapter 119 and s. 24(a), Art. I

22  of the State Constitution are confidential and exempt from the

23  provisions of s. 119.07(1) and s. 24(a), Art. I of the State

24  Constitution:

25         (a)  Contracts for managed care arrangements, as

26  managed care is defined in s. 408.701, under which the public

27  hospital provides health care services, including preferred

28  provider organization contracts, health maintenance

29  organization contracts, exclusive provider organization

30  contracts, and alliance network arrangements, and any

31  documents directly relating to the negotiation, performance,

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  1  and implementation of any such contracts for managed care or

  2  alliance network arrangements. As used in this paragraph, the

  3  term "managed care" means systems or techniques generally used

  4  by third-party payors or their agents to affect access to and

  5  control payment for health care services. Managed-care

  6  techniques most often include one or more of the following:

  7  prior, concurrent, and retrospective review of the medical

  8  necessity and appropriateness of services or site of services;

  9  contracts with selected health care providers; financial

10  incentives or disincentives related to the use of specific

11  providers, services, or service sites; controlled access to

12  and coordination of services by a case manager; and payor

13  efforts to identify treatment alternatives and modify benefit

14  restrictions for high-cost patient care.

15         Section 41.  Paragraph (b) of subsection (1) of section

16  627.4301, Florida Statutes, is amended to read:

17         627.4301  Genetic information for insurance purposes.--

18         (1)  DEFINITIONS.--As used in this section, the term:

19         (b)  "Health insurer" means an authorized insurer

20  offering health insurance as defined in s. 624.603, a

21  self-insured plan as defined in s. 624.031, a

22  multiple-employer welfare arrangement as defined in s.

23  624.437, a prepaid limited health service organization as

24  defined in s. 636.003, a health maintenance organization as

25  defined in s. 641.19, a prepaid health clinic as defined in s.

26  641.402, a fraternal benefit society as defined in s. 632.601,

27  an accountable health partnership as defined in s. 408.701, or

28  any health care arrangement whereby risk is assumed.

29         Section 42.  Section 641.185, Florida Statutes, is

30  created to read:

31

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  1         641.185  Health maintenance organization subscriber

  2  protections.--

  3         (1)  With respect to the provisions of this part and

  4  part III, the principles expressed in the following statements

  5  shall serve as standards to be followed by the Department of

  6  Insurance and the Agency for Health Care Administration in

  7  exercising their powers and duties, in exercising

  8  administrative discretion, in administrative interpretations

  9  of the law, in enforcing its provisions, and in adopting

10  rules:

11         (a)  A health maintenance organization shall ensure

12  that the health care services provided to its subscribers

13  shall be rendered under reasonable standards of quality of

14  care which are at a minimum consistent with the prevailing

15  standards of medical practice in the community pursuant to ss.

16  641.495(1) and 641.51.

17         (b)  A health maintenance organization subscriber

18  should receive quality health care from a broad panel of

19  providers, including referrals, preventive care pursuant to s.

20  641.402(1), emergency screening and services pursuant to ss.

21  641.31(12) and 641.513, and second opinions pursuant to s.

22  641.51.

23         (c)  A health maintenance organization subscriber

24  should receive assurance that the health maintenance

25  organization has been independently accredited by a national

26  review organization pursuant to s. 641.512, and is financially

27  secure as determined by the state pursuant to ss. 641.221,

28  641.225, and 641.228.

29         (d)  A health maintenance organization subscriber

30  should receive continuity of health care, even after the

31

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  1  provider is no longer with the health maintenance organization

  2  pursuant to s. 641.51(7).

  3         (e)  A health maintenance organization subscriber

  4  should receive timely, concise information regarding the

  5  health maintenance organization's reimbursement to providers

  6  and services pursuant to ss. 641.31 and 641.31015.

  7         (f)  A health maintenance organization subscriber

  8  should receive the flexibility to transfer to another Florida

  9  health maintenance organization, regardless of health status,

10  pursuant to ss. 641.3104, 641.3107, 641.3111, 641.3921,

11  641.3922, and 641.228.

12         (g)  A health maintenance organization subscriber

13  should be eligible for coverage without discrimination against

14  individual participants and beneficiaries of group plans based

15  on health status pursuant to s. 641.31073.

16         (h)  A health maintenance organization that issues a

17  group health contract must: provide coverage for preexisting

18  conditions pursuant to s. 641.31071; guarantee renewability of

19  coverage pursuant to s. 641.31074; provide notice of

20  cancellation pursuant to s. 641.3108; provide extension of

21  benefits pursuant to s. 641.3111; provide for conversion on

22  termination of eligibility pursuant to s. 641.3921; and

23  provide for conversion contracts and conditions pursuant to s.

24  641.3922.

25         (i)  A health maintenance organization subscriber

26  should receive timely, and, if necessary, urgent grievances

27  and appeals within the health maintenance organization

28  pursuant to ss. 641.228, 641.31(5), 641.47, and 641.511.

29         (j)  A health maintenance organization should receive

30  timely and, if necessary, urgent review by an independent

31

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  1  state external review organization for unresolved grievances

  2  and appeals pursuant to s. 408.7056.

  3         (k)  A health maintenance organization subscriber shall

  4  be given written notice at least 30 days in advance of a rate

  5  change pursuant to s. 641.31(3)(b). In the case of a group

  6  member, there may be a contractual agreement with the health

  7  maintenance organization to have the employer provide the

  8  required notice to the individual members of the group

  9  pursuant to s. 641.31(3)(b).

10         (l)  A health maintenance organization subscriber shall

11  be given a copy of the applicable health maintenance contract,

12  certificate, or member handbook specifying: all the

13  provisions, disclosure, and limitations required pursuant to

14  s. 641.31(1) and (4); the covered services, including those

15  services, medical conditions, and provider types specified in

16  ss. 641.31, 641.31094, 641.31095, 641.31096, 641.51(10), and

17  641.513; and where and in what manner services may be obtained

18  pursuant to s. 641.31(4).

19         (2)  This section shall not be construed as creating a

20  civil cause of action by any subscriber or provider against

21  any health maintenance organization.

22         Section 43.  Subsection (11) of section 641.511,

23  Florida Statutes, is renumbered as subsection (12) and a new

24  subsection (11) is added to said section to read:

25         641.511  Subscriber grievance reporting and resolution

26  requirements.--

27         (11)  Each organization, as part of its contract with

28  any provider, must require the provider to post a consumer

29  assistance notice prominently displayed in the reception area

30  of the provider and clearly noticeable by all patients. The

31  consumer assistance notice must state the addresses and

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  1  toll-free telephone numbers of the organization's grievance

  2  department, the agency, the Statewide Provider and Subscriber

  3  Assistance Program, and the Department of Insurance. The

  4  agency is authorized to develop rules to implement this

  5  subsection. aaa

  6         Section 44.  Paragraph (n) of subsection (3), paragraph

  7  (c) of subsection (5), and paragraphs (b) and (d) of

  8  subsection (6) of section 627.6699, Florida Statutes, are

  9  amended to read:

10         627.6699  Employee Health Care Access Act.--

11         (3)  DEFINITIONS.--As used in this section, the term:

12         (n)  "Modified community rating" means a method used to

13  develop carrier premiums which spreads financial risk across a

14  large population, and allows the use of separate rating

15  factors adjustments for age, gender, family composition,

16  tobacco usage, and geographic area as determined under

17  paragraph (5)(j); and allows adjustments for claims

18  experience, health status, or duration of coverage as provided

19  in subparagraph (6)(b)5.; and administrative and acquisition

20  expenses as provided in subparagraph (6)(b)6.

21         (5)  AVAILABILITY OF COVERAGE.--

22         (c)  Every small employer carrier must, as a condition

23  of transacting business in this state:

24         1.  Beginning July 1, 2000 January 1, 1994, offer and

25  issue all small employer health benefit plans on a

26  guaranteed-issue basis to every eligible small employer, with

27  two 3 to 50 eligible employees, that elects to be covered

28  under such plan, agrees to make the required premium payments,

29  and satisfies the other provisions of the plan. A rider for

30  additional or increased benefits may be medically underwritten

31  and may only be added to the standard health benefit plan.

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  1  The increased rate charged for the additional or increased

  2  benefit must be rated in accordance with this section.

  3         2.  Beginning August 1, 2000 April 15, 1994, offer and

  4  issue basic and standard small employer health benefit plans

  5  on a guaranteed-issue basis, during an open enrollment period

  6  of August 1 through August 31 of each year, to every eligible

  7  small employer, with less than one or two eligible employees,

  8  which is not formed primarily for purposes of buying health

  9  insurance and which elects to be covered under such plan,

10  agrees to make the required premium payments, and satisfies

11  the other provisions of the plan.  Coverage provided pursuant

12  to this subparagraph shall begin on October 1 of the same year

13  as the date of enrollment, unless the small employer carrier

14  and the small employer agree to a different date.  A rider for

15  additional or increased benefits may be medically underwritten

16  and may only be added to the standard health benefit plan.

17  The increased rate charged for the additional or increased

18  benefit must be rated in accordance with this section. For

19  purposes of this subparagraph, a person, his or her spouse,

20  and his or her dependent children shall constitute a single

21  eligible employee if such person and spouse are employed by

22  the same small employer and either one has a normal work week

23  of less than 25 hours.

24

25  3.  Offer to eligible small employers the standard and basic

26  health benefit plans.  This paragraph subparagraph does not

27  limit a carrier's ability to offer other health benefit plans

28  to small employers if the standard and basic health benefit

29  plans are offered and rejected.

30         (6)  RESTRICTIONS RELATING TO PREMIUM RATES.--

31

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  1         (b)  For all small employer health benefit plans that

  2  are subject to this section and are issued by small employer

  3  carriers on or after January 1, 1994, premium rates for health

  4  benefit plans subject to this section are subject to the

  5  following:

  6         1.  Small employer carriers must use a modified

  7  community rating methodology in which the premium for each

  8  small employer must be determined solely on the basis of the

  9  eligible employee's and eligible dependent's gender, age,

10  family composition, tobacco use, or geographic area as

11  determined under paragraph (5)(j) and may be adjusted as

12  permitted by subparagraphs 5. and 6.

13         2.  Rating factors related to age, gender, family

14  composition, tobacco use, or geographic location may be

15  developed by each carrier to reflect the carrier's experience.

16  The factors used by carriers are subject to department review

17  and approval.

18         3.  Small employer carriers may not modify the rate for

19  a small employer for 12 months from the initial issue date or

20  renewal date, unless the composition of the group changes or

21  benefits are changed.

22         4.  Carriers participating in the alliance program, in

23  accordance with ss. 408.70-408.706, may apply a different

24  community rate to business written in that program.

25         5.  Any adjustments in rates for claims experience,

26  health status, or duration of coverage may not be charged to

27  individual employees or dependents. For a small employer's

28  policy, such adjustments may not result in a rate for the

29  small employer which deviates more than 15 percent from the

30  carrier's approved rate. Any such adjustment must be applied

31  uniformly to the rates charged for all employees and

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  1  dependents of the small employer. A small employer carrier may

  2  make an adjustment to a small employer's renewal premium, not

  3  to exceed 10 percent annually, due to the claims experience,

  4  health status, or duration of coverage of the employees or

  5  dependents of the small employer. Semiannually, small group

  6  carriers shall report information on forms adopted by rule by

  7  the department, to enable the department to monitor the

  8  relationship of aggregate adjusted premiums actually charged

  9  policyholders by each carrier to the premiums that would have

10  been charged by application of the carrier's approved modified

11  community rates. If the aggregate resulting from the

12  application of such adjustment exceeds the premium that would

13  have been charged by application of the approved modified

14  community rate by 5 percent for the current reporting period,

15  the carrier shall limit the application of such adjustments to

16  only minus adjustments beginning not more than 60 days after

17  the report is sent to the department. For any subsequent

18  reporting period, if the total aggregate adjusted premium

19  actually charged does not exceed the premium that would have

20  been charged by application of the approved modified community

21  rate by 5 percent, the carrier may apply both plus and minus

22  adjustments.

23         6.  A small employer carrier may provide a credit to a

24  small employer's premium based on administrative and

25  acquisition expense differences resulting from the size of the

26  group. Group size administrative and acquisition expense

27  factors may be developed by each carrier to reflect the

28  carrier's experience and are subject to department review and

29  approval.

30         7.  A small employer carrier rating methodology may

31  include separate rating categories for one dependent child,

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  1  for two dependent children, and for three or more dependent

  2  children for family coverage of employees having a spouse and

  3  dependent children or employees having dependent children

  4  only. A small employer carrier may have fewer, but not

  5  greater, numbers of categories for dependent children than

  6  those specified in this subparagraph.

  7         8.  Small employer carriers may not use a composite

  8  rating methodology to rate a small employer with fewer than 10

  9  employees. For the purposes of this subparagraph a "composite

10  rating methodology" means a rating methodology that averages

11  the impact of the rating factors for age and gender in the

12  premiums charged to all of the employees of a small employer.

13         (d)  Notwithstanding s. 627.401(2), this section and

14  ss. 627.410 and 627.411 apply to any health benefit plan

15  provided by a small employer carrier that is an insurer, and

16  this section and s. 641.31 apply to any health benefit

17  provided by a small employer carrier that is a health

18  maintenance organization, that provides coverage to one or

19  more employees of a small employer regardless of where the

20  policy, certificate, or contract is issued or delivered, if

21  the health benefit plan covers employees or their covered

22  dependents who are residents of this state.

23         Section 45.  Subsection (6) of section 409.212, Florida

24  Statutes, is renumbered as subsection (7), and new subsection

25  (6) is added to said section to read:

26         409.212  Optional supplementation.--

27         (6)  The optional state supplementation rate shall be

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

29  benefits rate provided the average state optional

30  supplementation contribution does not increase as a result.

31

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  1         Section 46.  Subsections (3), (15), and (18) of section

  2  409.901, Florida Statutes, are amended to read:

  3         409.901  Definitions.--As used in ss. 409.901-409.920,

  4  except as otherwise specifically provided, the term:

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

  6  application for medical assistance provided by Medicaid under

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

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

  9  Administration if the application is for Supplemental Security

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

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

12  application, whose application is submitted through a

13  representative or a person acting for the individual.

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

15  under Title XIX of the federal Social Security Act which

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

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

18  Children and Family Services, or, for Supplemental Security

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

20  on the date of service for Medicaid assistance.

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

22  individual whom the Department of Children and Family

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

24  Security Administration, determines is eligible, pursuant to

25  federal and state law, to receive medical assistance and

26  related services for which the agency may make payments under

27  the Medicaid program. For the purposes of determining

28  third-party liability, the term includes an individual

29  formerly determined to be eligible for Medicaid, an individual

30  who has received medical assistance under the Medicaid

31

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

  2  obligated.

  3         Section 47.  Section 409.902, Florida Statutes, is

  4  amended to read:

  5         409.902  Designated single state agency; payment

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

  7  Administration is designated as the single state agency

  8  authorized to make payments for medical assistance and related

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

10  payments shall be made, subject to any limitations or

11  directions provided for in the General Appropriations Act,

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

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

14  qualified providers in accordance with federal requirements

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

16  state law.  This program of medical assistance is designated

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

18  Services is responsible for Medicaid eligibility

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

20  and the agreement with the Social Security Administration for

21  Medicaid eligibility determinations for Supplemental Security

22  Income recipients, as well as the actual determination of

23  eligibility.

24         Section 48.  Section 409.903, Florida Statutes, is

25  amended to read:

26         409.903  Mandatory payments for eligible persons.--The

27  agency shall make payments for medical assistance and related

28  services on behalf of the following persons who the

29  department, or the Social Security Administration by contract

30  with the Department of Children and Family Services, agency

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

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  1  categorical eligibility tests set forth in federal and state

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

  3  subject to the availability of moneys and any limitations

  4  established by the General Appropriations Act or chapter 216.

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

  6  Medicaid provided they meet the following requirements:

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

  8  living with a caretaker relative.

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

10  income test limit.

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

12  exceed the applicable Aid to Families with Dependent Children

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

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

15  state plan to conform as closely as possible to the

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

17  the extent permitted by federal law.

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

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

20  benefits from the federal program known as the Supplemental

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

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

23  age 65 considered to be permanently and totally disabled.

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

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

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

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

28  WAGES Program.

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

30  Social Security Act for subsidized board payments, foster

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

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  1  has assumed temporary or permanent responsibility and who does

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

  3  shelter or emergency shelter care, or subsidized adoption.

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

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

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

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

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

  9  1992, that has an income which is at or below 185 percent of

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

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

12  applies for eligibility for the Medicaid program through a

13  qualified Medicaid provider must be offered the opportunity,

14  subject to federal rules, to be made presumptively eligible

15  for the Medicaid program.

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

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

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

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

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

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

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

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

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

25  a child, an assets test is not required.

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

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

28  percent of the most current federal poverty level and whose

29  assets do not exceed limitations established by the agency.

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

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

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

  2  s. 409.904(1).

  3         Section 49.  Subsection (6) of section 409.905, Florida

  4  Statutes, is amended to read:

  5         409.905  Mandatory Medicaid services.--The agency may

  6  make payments for the following services, which are required

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

  8  furnished by Medicaid providers to recipients who are

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

10  were provided.  Any service under this section shall be

11  provided only when medically necessary and in accordance with

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

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

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

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

16  the availability of moneys and any limitations or directions

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

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

19  pay for preventive, diagnostic, therapeutic, or palliative

20  care and other services provided to a recipient in the

21  outpatient portion of a hospital licensed under part I of

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

23  physician or licensed dentist, except that payment for such

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

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

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

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

28  necessity.

29         Section 50.  Subsection (5) of section 409.906, Florida

30  Statutes, is amended to read:

31

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  1         409.906  Optional Medicaid services.--Subject to

  2  specific appropriations, the agency may make payments for

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

  4  the Social Security Act and are furnished by Medicaid

  5  providers to recipients who are determined to be eligible on

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

  7  service that is provided shall be provided only when medically

  8  necessary and in accordance with state and federal law.

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

10  the agency from adjusting fees, reimbursement rates, lengths

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

12  any other adjustments necessary to comply with the

13  availability of moneys and any limitations or directions

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

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

16  services to elderly and disabled persons and subject to the

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

18  direct the Agency for Health Care Administration to amend the

19  Medicaid state plan to delete the optional Medicaid service

20  known as "Intermediate Care Facilities for the Developmentally

21  Disabled."  Optional services may include:

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

23  primary care case management services rendered to a recipient

24  pursuant to a federally approved waiver, and targeted case

25  management services for specific groups of targeted

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

27  rendered pursuant to federal guidelines. The agency is

28  authorized to limit reimbursement for targeted case management

29  services in order to comply with any limitations or directions

30  provided for in the General Appropriations Act.

31  Notwithstanding s. 216.292, the Department of Children and

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  1  Family Services may transfer general funds to the Agency for

  2  Health Care Administration to fund state match requirements

  3  exceeding the amount specified in the General Appropriations

  4  Act for targeted case management services.

  5         Section 51.  Subsections (9) and (10) of section

  6  409.907, Florida Statutes, are amended to read:

  7         409.907  Medicaid provider agreements.--The agency may

  8  make payments for medical assistance and related services

  9  rendered to Medicaid recipients only to an individual or

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

11  who is performing services or supplying goods in accordance

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

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

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

15  discrimination under any program or activity for which the

16  provider receives payment from the agency.

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

18  application, and completion of any necessary background

19  investigation and criminal history record check, the agency

20  must either:

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

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

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

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

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

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

27  affect the effective and efficient administration of the

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

29  availability of medical care, services, or supplies to

30  recipients, taking into account geographic location and

31  reasonable travel time.

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  1         (10)  The agency may consider whether deny enrollment

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

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

  4  person, or any partner or shareholder having an ownership

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

  6  provider is a corporation, partnership, or other business

  7  entity, has:

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

  9  material fact in making the application, including the

10  submission of an application that conceals the controlling or

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

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

13  not be eligible to participate;

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

15  terminated from, or has involuntarily withdrawn from

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

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

18  governmental or private health care or health insurance

19  program;

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

21  the delivery of any goods or services under Medicaid or

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

23  insurance program including the performance of management or

24  administrative services relating to the delivery of goods or

25  services under any such program;

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

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

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

29  services;

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

31  criminal offense relating to the unlawful manufacture,

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  1  distribution, prescription, or dispensing of a controlled

  2  substance;

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

  4  fraud, theft, embezzlement, breach of fiduciary

  5  responsibility, or other financial misconduct;

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

  7  crime punishable by imprisonment of a year or more which

  8  involves moral turpitude;

  9         (h)  Been convicted in connection with the interference

10  or obstruction of any investigation into any criminal offense

11  listed in this subsection;

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

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

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

15  any other publicly funded federal or state health care or

16  health insurance program, and been sanctioned accordingly;

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

18  or professional standards board or agency to have violated the

19  standards or conditions relating to licensure or certification

20  or the quality of services provided; or

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

22  assessed under the Medicaid program in which no appeal is

23  pending or after resolution of the proceeding by stipulation

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

25  of forgiveness or has approved a repayment schedule to which

26  the provider agrees to adhere.

27         Section 52.  Paragraph (a) of subsection (1) of section

28  409.908, Florida Statutes, is amended to read:

29         409.908  Reimbursement of Medicaid providers.--Subject

30  to specific appropriations, the agency shall reimburse

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

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  1  according to methodologies set forth in the rules of the

  2  agency and in policy manuals and handbooks incorporated by

  3  reference therein.  These methodologies may include fee

  4  schedules, reimbursement methods based on cost reporting,

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

  6  and other mechanisms the agency considers efficient and

  7  effective for purchasing services or goods on behalf of

  8  recipients.  Payment for Medicaid compensable services made on

  9  behalf of Medicaid eligible persons is subject to the

10  availability of moneys and any limitations or directions

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

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

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

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

15  making any other adjustments necessary to comply with the

16  availability of moneys and any limitations or directions

17  provided for in the General Appropriations Act, provided the

18  adjustment is consistent with legislative intent.

19         (1)  Reimbursement to hospitals licensed under part I

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

21  negotiation.

22         (a)  Reimbursement for inpatient care is limited as

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

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

25  year per recipient, 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.

31

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  1         Section 53.  Section 409.9119, Florida Statutes, is

  2  created to read:

  3         409.9119  Disproportionate share program for children's

  4  hospitals.--In addition to the payments made under s. 409.911,

  5  the Agency for Health Care Administration shall develop and

  6  implement a system under which disproportionate share payments

  7  are made to those hospitals that are licensed by the state as

  8  a children's hospital. This system of payments must conform to

  9  federal requirements and must distribute funds in each fiscal

10  year for which an appropriation is made by making quarterly

11  Medicaid payments. Notwithstanding s. 409.915, counties are

12  exempt from contributing toward the cost of this special

13  reimbursement for hospitals that serve a disproportionate

14  share of low-income patients.

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

16  calculate the total amount earned for hospitals that

17  participate in the children's hospital disproportionate share

18  program:

19                      TAE = DSR x BMPD x MD

20  Where:

21         TAE = total amount earned by a children's hospital.

22         DSR = disproportionate share rate.

23         BMPD = base Medicaid per diem.

24         MD = Medicaid days.

25         (2)  The agency shall calculate the total additional

26  payment for hospitals that participate in the children's

27  hospital disproportionate share program as follows:

28

29                         TAP = (TAE x TA)

30                                         

31                               STAE

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  1  Where:

  2         TAP = total additional payment for a children's

  3  hospital.

  4         TAE = total amount earned by a children's hospital.

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

  6  participates in the children's hospital disproportionate share

  7  program.

  8         TA = total appropriation for the children's hospital

  9  disproportionate share program.

10

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

12  section until it achieves full compliance with the applicable

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

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

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

16  remaining participating children's hospitals that are in

17  compliance.

18         Section 54.  Section 409.919, Florida Statutes, is

19  amended to read:

20         409.919  Rules.--The agency shall adopt any rules

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

22  all rules necessary to comply with federal requirements. In

23  addition, the Department of Children and Family Services shall

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

25  its responsibilities for receiving and processing Medicaid

26  applications and determining Medicaid eligibility, and for

27  assuring compliance with and administering ss. 409.901-409.906

28  and any other provisions related to responsibility for the

29  determination of Medicaid eligibility.

30         Section 55.  Notwithstanding the provisions of ss.

31  236.0812, 409.9071, and 409.908(21), Florida Statutes,

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  1  developmental research schools, as authorized under s.

  2  228.053, Florida Statutes, shall be authorized to participate

  3  in the Medicaid certified school match program subject to the

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

  5  Statutes.

  6         Section 56.  (1)  The Agency for Health Care

  7  Administration is directed to submit to the Health Care

  8  Financing Administration a request for a waiver that will

  9  allow the agency to undertake a pilot project that would

10  implement a coordinated system of care for adult ventilator

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

12  identify a network of skilled nursing facilities that have

13  respiratory departments geared towards intensive treatment and

14  rehabilitation of adult ventilator patients and will contract

15  with such a network for respiratory services under a

16  capitation arrangement. The pilot project must allow the

17  agency to evaluate a coordinated and focused system of care

18  for adult ventilator dependent patients to determine the

19  overall cost-effectiveness and improved outcomes for

20  participants.

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

22  2000.  The agency shall forward a preliminary report of the

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

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

25  months after project implementation.  The agency shall submit

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

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

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

29         Section 57.  Section 395.7015, subsection (3) of

30  section 400.464, subsection (3) of section 408.70, sections

31  408.701, 408.702, 408.703, 408.704, 408.7041, 408.7042,

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  1  408.7045, 408.7055, and 408.706, and paragraph (b) of

  2  subsection (4) of section 409.912, Florida Statutes, are

  3  repealed.

  4         Section 58.  There is hereby appropriated each fiscal

  5  year from either the General Revenue Fund or the Agency for

  6  Health Care Administration Tobacco Settlement Trust Fund an

  7  amount sufficient to provide for the increased reimbursement

  8  to hospitals for hospital outpatient care provided to adults

  9  eligible under the MedAccess program or Medicaid required by

10  the amendment of ss. 408.904, 409.905, and 409.908, Florida

11  Statutes, by this act.

12         Section 59.  There is appropriated from the General

13  Revenue Fund to the Department of Health the sum of $10

14  million to be used to establish and implement the Reducing

15  Racial and Ethnic Health Disparities: Closing the Gap grant

16  program, including funding for one full-time-equivalent

17  position.

18         Section 60.  The sum of $91,000 in nonrecurring general

19  revenue is hereby appropriated from the General Revenue Fund

20  to the Department of Health to cover costs of the Florida

21  Commission on Excellence in Health Care relating to the travel

22  and related expenses of staff, consumer members, and members

23  appointed by the department or agency; the hiring of

24  consultants, if necessary; and the reproduction and

25  dissemination of documents.

26         Section 61.  The sum of $200,000 is appropriated from

27  the Insurance Commissioner's Regulatory Trust Fund to the

28  Office of Legislative Services for the purpose of implementing

29  the legislative intent expressed in s. 624.215(1), Florida

30  Statutes, for a systematic review of current mandated health

31  coverages. The review must be conducted by certified actuaries

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  1  and other appropriate professionals and shall consist of an

  2  assessment of the impact, including, but not limited to, the

  3  costs and benefits, of current mandated health coverages using

  4  the guidelines provided in s. 624.215(2), Florida Statutes.

  5         Section 62.  Except as otherwise provided herein, this

  6  act shall take effect July 1, 2000.

  7

  8            *****************************************

  9                          HOUSE SUMMARY

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      Creates the Patient Protection Act of 2000. Provides a
11    comprehensive revision of various provisions relating to
      health care. See bill for details.
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