Senate Bill 2456c1

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    Florida Senate - 2000                           CS for SB 2456

    By the Committee on Education and Senator Sullivan





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  1                      A bill to be entitled

  2         An act relating to health care; amending s.

  3         381.0403, F.S.; placing an emphasis on primary

  4         care physicians rather than family physicians;

  5         modifying the provisions relating to the

  6         funding of graduate medical education; defining

  7         primary care specialties; establishing a

  8         program for graduate medical education

  9         innovations; creating a process regarding the

10         release of funds; amending s. 408.07, F.S.;

11         modifying the definition of the term "teaching

12         hospital"; amending s. 409.905, F.S.;

13         increasing the Medicaid reimbursement

14         limitation for certain hospital outpatient

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

16         exceptions to Medicaid reimbursement

17         limitations for certain hospital inpatient

18         care; authorizing the agency to receive certain

19         funds for such exceptional reimbursements;

20         providing an exemption from county contribution

21         requirements; increasing the Medicaid

22         reimbursement limitation for certain hospital

23         outpatient care; authorizing the agency to

24         receive certain funds for such outpatient care;

25         removing authority for additional reimbursement

26         for hospitals participating in the

27         extraordinary disproportionate share program;

28         providing an exemption from county contribution

29         requirements; requiring an annual report

30         addressing specific topics; providing a

31         committee for report purposes; providing a

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  1         reporting due date; providing an effective

  2         date.

  3

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

  5

  6         Section 1.  Section 381.0403, Florida Statutes, is

  7  amended to read:

  8         381.0403  The Community Hospital Education Act.--

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

10  cited as "The Community Hospital Education Act."

11         (2)  LEGISLATIVE INTENT.--

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

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

14  that a program for continuing these services be maintained

15  through a plan for community medical education.  The program

16  is intended to provide additional outpatient and inpatient

17  services, a continuing supply of highly trained physicians,

18  and graduate medical education.

19         (b)  The Legislature further acknowledges the critical

20  need for increased numbers of primary care family physicians

21  to provide the necessary current and projected health and

22  medical services.  In order to meet both present and

23  anticipated needs, the Legislature supports an expansion in

24  the number of family practice residency positions.  The

25  Legislature intends that the funding for graduate education in

26  family practice be maintained and that funding for all primary

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

28  resident per year.  Should funding for this act remain

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

30  funded by this act be maintained or reduced proportionately.

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  1         (3)  PROGRAM FOR COMMUNITY HOSPITAL EDUCATION; STATE

  2  AND LOCAL PLANNING.--

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

  4  program for statewide graduate medical education.  It is

  5  intended that continuing graduate medical education programs

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

  7  The program shall provide financial support for primary care

  8  specialty interns and residents based on policies recommended

  9  and approved by the Community Hospital Education Council,

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

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

12  of the training program are qualified to apply for financial

13  support. Programs with fewer than three residents or interns

14  per training year are qualified to apply for financial

15  support, but only if the appropriate accrediting entity for

16  the particular specialty has approved the program for fewer

17  positions. When feasible and to the extent allowed through the

18  General Appropriations Act, state funds shall be used to

19  generate federal matching funds under Medicaid or other

20  federal programs, and the resulting combined state and federal

21  funds shall be allocated to participating hospitals for the

22  support of graduate medical education and for administrative

23  costs associated with the production of the annual report as

24  specified in section 5 of this act.

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

26  specialties include emergency medicine, family practice,

27  internal medicine, pediatrics, psychiatry,

28  obstetrics/gynecology, and combined pediatrics and internal

29  medicine, and other primary care specialties included by the

30  council and the Board of Regents.

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

  2  apply to the Community Hospital Education Council for

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

  4  programs.  Recommendations for funding of approved programs

  5  shall be forwarded to the Board of Regents.

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

  7  clinical teaching and training with the cooperation of the

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

  9  also include formal teaching opportunities for intern and

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

11  off-campus medical faculty with university faculty review to

12  be located throughout the state in local communities.

13         (4)  PROGRAM FOR GRADUATE MEDICAL EDUCATION

14  INNOVATIONS.--

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

16  program for fostering graduate medical education innovations.

17  Funds appropriated annually by the Legislature for this

18  purpose shall be distributed to participating hospitals or

19  consortia of participating hospitals and Florida medical

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

21  state health care workforce policy objectives, including, but

22  not limited to:

23         1.  Increasing the number of residents in primary care

24  and other high demand specialties or fellowships;

25         2.  Enhancing retention of primary care physicians in

26  Florida practice;

27         3.  Promoting practice in medically under-served areas

28  of the state; 

29         4.  Encouraging racial and ethnic diversity within the

30  state's physician workforce; and

31         5.  Encouraging increased production of geriatricians.

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  1         (b)  Participating hospitals or consortia of

  2  participating hospitals and Florida medical schools may apply

  3  to the Community Hospital Education Council for funding under

  4  this innovation program. Innovation program funding shall

  5  provide funding based on policies recommended and approved by

  6  the Community Hospital Education Council and the Board of

  7  Regents.

  8         (c)  Participating hospitals or consortia of

  9  participating hospitals and Florida medical schools awarded an

10  innovation grant shall provide the Community Hospital

11  Education Council and Board of Regents with an annual report

12  on their project.

13         (5)(4)  FAMILY PRACTICE RESIDENCIES.--In addition to

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

15  Hospital Education Council and the Board of Regents shall

16  establish an ongoing statewide program of family practice

17  residencies.  The administration of this program shall be in

18  the manner described in this section.

19         (6)(5)  COUNCIL AND DIRECTOR.--

20         (a)  There is established the Community Hospital

21  Education Council, hereinafter referred to as the council,

22  which shall consist of eleven members, as follows:

23         1.  Seven members must be program directors of

24  accredited graduate medical education programs or practicing

25  physicians who have faculty appointments in accredited

26  graduate medical education programs.  Six of these members

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

28  internal medicine, pediatrics, emergency medicine,

29  obstetrics-gynecology, and psychiatry, respectively, and

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

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

  2  must be licensed pursuant to chapter 459.

  3         2.  One member must be a representative of the

  4  administration of a hospital with an approved community

  5  hospital medical education program;

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

  7  this state; and

  8         4.  Two members must be consumer representatives.

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

11  terms of 4 years each.

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

13  representative status no longer exists.  Members of similar

14  representative status shall be appointed to replace retiring

15  or resigning members of the council.

16         (c)  The Chancellor of the State University System

17  shall designate an administrator to serve as staff director.

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

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

20  program shall be employed as authorized by the Board of

21  Regents.

22         (7)(6)  BOARD OF REGENTS; STANDARDS.--

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

24  the council, shall establish standards and policies for the

25  use and expenditure of graduate medical education funds

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

27  community hospital education.  The board shall establish

28  requirements for hospitals to be qualified for participation

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

30         1.  Submission of an educational plan and a training

31  schedule.

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    Florida Senate - 2000                           CS for SB 2456
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  1         2.  A determination by the council to ascertain that

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

  3  degree of academic excellence and is accredited by the

  4  Accreditation Council for Graduate Medical Education of the

  5  American Medical Association or is accredited by the American

  6  Osteopathic Association.

  7         3.  Supervision of the educational program of the

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

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

10  educational program provided by a participating hospital to

11  assure that the program includes a reasonable amount of both

12  formal and practical training and that the formal sessions are

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

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

15  for Health Care Administration, the Board of Regents shall

16  certify to the Agency for Health Care Administration quarterly

17  the number of primary care specialty residents and interns at

18  each of the participating hospitals for which the Community

19  Hospital Education Council and the board recommend funding.

20         (8)(7)  MATCHING FUNDS.--State funds shall be used to

21  match funds from any local governmental or hospital source.

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

23  community hospital medical education program shall provide the

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

25  provisions of this subsection shall not apply to any program

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

27  first 3 years after such program is in operation.

28         Section 2.  Subsection (44) of section 408.07, Florida

29  Statutes, is amended to read:

30         408.07  Definitions.--As used in this chapter, with the

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

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

  2  officially formally affiliated with an accredited medical

  3  school which exhibits activity in the area of graduate medical

  4  education as reflected by at least seven different graduate

  5  medical education programs accredited by the Accreditation

  6  Council for Graduate Medical Education resident physician

  7  specialties and the presence of 100 or more

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

  9  Agency for Health Care Administration shall be responsible for

10  determining which hospitals meet this definition.

11         Section 3.  Subsection (6) of section 409.905, Florida

12  Statutes, is amended to read:

13         409.905  Mandatory Medicaid services.--The agency may

14  make payments for the following services, which are required

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

16  furnished by Medicaid providers to recipients who are

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

18  were provided.  Any service under this section shall be

19  provided only when medically necessary and in accordance with

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

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

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

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

24  the availability of moneys and any limitations or directions

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

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

27  pay for preventive, diagnostic, therapeutic, or palliative

28  care and other services provided to a recipient in the

29  outpatient portion of a hospital licensed under part I of

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

31  physician or licensed dentist, except that payment for such

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    Florida Senate - 2000                           CS for SB 2456
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  1  care and services is limited to $1,500 $1,000 per state fiscal

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

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

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

  5  necessity.

  6         Section 4.  Subsection (1) of section 409.908, Florida

  7  Statutes, is amended to read:

  8         409.908  Reimbursement of Medicaid providers.--Subject

  9  to specific appropriations, the agency shall reimburse

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

11  according to methodologies set forth in the rules of the

12  agency and in policy manuals and handbooks incorporated by

13  reference therein.  These methodologies may include fee

14  schedules, reimbursement methods based on cost reporting,

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

16  and other mechanisms the agency considers efficient and

17  effective for purchasing services or goods on behalf of

18  recipients.  Payment for Medicaid compensable services made on

19  behalf of Medicaid eligible persons is subject to the

20  availability of moneys and any limitations or directions

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

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

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

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

25  making any other adjustments necessary to comply with the

26  availability of moneys and any limitations or directions

27  provided for in the General Appropriations Act, provided the

28  adjustment is consistent with legislative intent.

29         (1)  Reimbursement to hospitals licensed under part I

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

31  negotiation.

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  1         (a)  Reimbursement for inpatient care is limited as

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

  3         1.  The raising of rate reimbursement caps, subject to

  4  certification from the Board of Regents that the hospital has

  5  complied with s. 381.0403 excluding rural hospitals.

  6         2.  Recognition of the costs of graduate medical

  7  education.

  8         3.  Other methodologies recognized in the General

  9  Appropriations Act.

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

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

13  local political subdivisions, for the purpose of making

14  special exception payments, including federal matching funds,

15  through the Medicaid inpatient reimbursement methodologies.

16  Funds received from state entities or local governments for

17  this purpose shall be separately accounted for and shall not

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

19  Notwithstanding this section or s. 409.915, counties are

20  exempt from contributing toward the cost of the

21  special-exception reimbursement for hospitals serving a

22  disproportionate share of low-income persons and providing

23  graduate medical education.

24         (b)  Reimbursement for hospital outpatient care is

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

26  except for:

27         1.  Such care provided to a Medicaid recipient under

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

29  necessity.;

30         2.  Renal dialysis services.; and

31         3.  Other exceptions made by the agency.

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  1

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

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

  4  local political subdivisions, for the purpose of making

  5  payments, including federal matching funds, through the

  6  Medicaid outpatient reimbursement methodologies. Funds

  7  received from state entities and local governments for this

  8  purpose shall be separately accounted for and shall not be

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

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

11  disproportionate share of low-income Medicaid recipients, or

12  that participate in the regional perinatal intensive care

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

14  statutory teaching hospital disproportionate share program, or

15  that participate in the extraordinary disproportionate share

16  program, may receive additional reimbursement. The total

17  amount of payment for disproportionate share hospitals shall

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

19  these payments must be made in compliance with all federal

20  regulations and the methodologies described in ss. 409.911,

21  409.9112, and 409.9113.

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

23  increases for outpatient hospital services as directed by the

24  General Appropriations Act.

25         Section 5.  The Board of Regents, the Executive Office

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

27  Health Care Administration shall collaborate to establish a

28  committee that shall produce an annual report on graduate

29  medical education. To the maximum extent feasible, the

30  committee shall have the same membership as the Graduate

31  Medical Education Study Committee, established by the proviso

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  1  accompanying Specific Appropriation 191 of the fiscal year

  2  1999-2000 General Appropriations Act. The report shall be

  3  provided to the Governor, the President of the Senate, and the

  4  Speaker of the House of Representatives by January 15 of each

  5  year. Committee members shall serve without compensation. From

  6  the funds provided in section 381.0403(3), Florida Statutes,

  7  the committee is authorized to expend a maximum of $75,000 per

  8  year to provide for administrative costs and contractual

  9  services. The report must address the following topics:

10         (1)  The role of residents and medical faculty in the

11  provision of health care.

12         (2)  The relationship of graduate medical education to

13  the state's physician workforce.

14         (3)  The costs of training medical residents for

15  hospitals, medical schools, teaching hospitals, including all

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

17  medical schools, and municipalities.

18         (4)  The availability and adequacy of all sources of

19  revenue to support graduate medical education. The report must

20  also recommend alternative sources of funding for graduate

21  medical education.

22         (5)  The use of state and federal appropriated funds

23  for graduate medical education by hospitals receiving such

24  funds.

25         Section 6.  This act shall take effect July 1, 2000.

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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 2456

  3

  4  The Committee Substitute for SB 2456:

  5  Transfers funding for the Community Hospital Education Act to
    the Agency for Health Care Administration, in an attempt to
  6  generate federal matching funds under Medicaid.

  7  Creates a Program for Graduate Medical Education Innovations
    to achieve workforce policy objectives, such as more
  8  physicians in under-served areas, more geriatricians, and more
    ethnic diversity among physicians.
  9
    Defines the term "teaching hospital" and specifies priorities
10  for the Community Hospital Education Program.

11  Creates in statute a committee established in last year's
    General Appropriations Act for graduate medical education in
12  Florida.

13  Increases from $1,000 to $1,500 the annual Medicaid hospital
    inpatient and outpatient services cap for adults.
14
    Revises Medicaid limitations for hospital inpatient services
15  to provide exceptions for raising reimbursement caps,
    recognition of the costs associated with graduate medical
16  education, and other methodologies provided in the General
    Appropriations Act; authorizes AHCA to receive funds from
17  certain entities for the reimbursements; and exempts counties
    from them.
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    Deletes obsolete provisions.
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