House Bill hb1885e1

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                                          HB 1885, First Engrossed



  1                      A bill to be entitled

  2         An act relating to health care; amending s.

  3         154.306, F.S.; providing procedures for

  4         computing the maximum amount that specified

  5         counties must pay for the treatment of an

  6         indigent resident of the county at a hospital

  7         located outside the county; providing for the

  8         exclusion of active-duty military personnel and

  9         certain institutionalized county residents from

10         state population estimates when calculating a

11         county's financial responsibility for such

12         hospital care; requiring the county of

13         residence to accept the hospital's

14         documentation of financial eligibility and

15         county residence; requiring that the

16         documentation meet specified criteria; amending

17         s. 381.0403, F.S.; transferring the programs

18         for community hospital education and graduate

19         medical education under the "Community Hospital

20         Education Act" from the Board of Regents to the

21         Department of Health; authorizing certain

22         expenditure of funds; revising provisions to

23         conform; authorizing participation in the

24         innovations grant program by individual Florida

25         medical schools providing graduate medical

26         education in community-based clinical settings;

27         revising the membership of a committee;

28         providing rulemaking authority to the

29         Department of Health; amending s. 409.908,

30         F.S.; revising provisions relating to the

31         reimbursement of Medicaid providers to conform


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                                          HB 1885, First Engrossed



  1         to the transfer of the Community Hospital

  2         Education Program from the Board of Regents to

  3         the Department of Health; providing for the

  4         certification of local matching funds;

  5         providing requirements for the distribution of

  6         federal funds earned as a result of local

  7         matching funds; requiring an impact statement;

  8         amending s. 409.911, F.S.; revising the

  9         definition of the term "charity care"; amending

10         s. 409.9117, F.S.; revising criteria for

11         participation in the primary care

12         disproportionate share program; amending s.

13         409.912, F.S.; extending the duration of

14         provider service network demonstration

15         projects; providing legislative intent;

16         amending ss. 395.3025, 400.1415, and 456.057,

17         F.S.; prohibiting the use of a patient's

18         medical records for purposes of solicitation

19         and marketing absent a specific written release

20         or authorization; providing penalties; creating

21         s. 626.9651, F.S.; requiring the Department of

22         Insurance to adopt rules governing the use of a

23         consumer's nonpublic personal financial and

24         health information; providing standards for the

25         rules; providing an effective date.

26  

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

28  

29         Section 1.  Subsections (3) and (4) of section 154.306,

30  Florida Statutes, are redesignated as subsections (4) and (5),

31  


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                                          HB 1885, First Engrossed



  1  respectively, and a new subsection (3) is added to said

  2  section, to read:

  3         154.306  Financial responsibility for certified

  4  residents who are qualified indigent patients treated at an

  5  out-of-county participating hospital or regional referral

  6  hospital.--Ultimate financial responsibility for treatment

  7  received at a participating hospital or a regional referral

  8  hospital by a qualified indigent patient who is a certified

  9  resident of a county in the State of Florida, but is not a

10  resident of the county in which the participating hospital or

11  regional referral hospital is located, is the obligation of

12  the county of which the qualified indigent patient is a

13  resident. Each county shall reimburse participating hospitals

14  or regional referral hospitals as provided for in this part,

15  and shall provide or arrange for indigent eligibility

16  determination procedures and resident certification

17  determination procedures as provided for in rules developed to

18  implement this part.  The agency, or any county determining

19  eligibility of a qualified indigent, shall provide to the

20  county of residence, upon request, a copy of any documents,

21  forms, or other information, as determined by rule, which may

22  be used in making an eligibility determination.

23         (3)  For the purpose of computing the maximum amount

24  that a county having a population of 100,000 or less may be

25  required to pay, the agency must reduce the official state

26  population estimates by the number of inmates and patients

27  residing in the county in institutions operated by the Federal

28  Government, the Department of Corrections, the Department of

29  Health, or the Department of Children and Family Services, and

30  by the number of active-duty military personnel residing in

31  the county, none of whom shall be considered residents of the


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                                          HB 1885, First Engrossed



  1  county. However, a county is entitled to receive the benefit

  2  of such a reduction in estimated population figures only if

  3  the county accepts as valid and true, and does not require any

  4  reverification of, the documentation of financial eligibility

  5  and county residency which is provided to it by the

  6  participating hospital or regional referral hospital. The

  7  participating hospital or regional referral hospital must

  8  provide documentation that is complete and in the form

  9  required by s. 154.3105.

10         Section 2.  Paragraphs (a), (b), and (c) of subsection

11  (3), subsections (4) and (5), paragraph (c) of subsection (6),

12  and subsections (7) and (9) of section 381.0403, Florida

13  Statutes, are amended, and subsection (10) is added to said

14  section, to read:

15         381.0403  The Community Hospital Education Act.--

16         (3)  PROGRAM FOR COMMUNITY HOSPITAL EDUCATION; STATE

17  AND LOCAL PLANNING.--

18         (a)  There is established under the Department of

19  Health Board of Regents a program for statewide graduate

20  medical education.  It is intended that continuing graduate

21  medical education programs for interns and residents be

22  established on a statewide basis.  The program shall provide

23  financial support for primary care specialty interns and

24  residents based on policies recommended and approved by the

25  Community Hospital Education Council, herein established, and

26  the department Board of Regents. Only those programs with at

27  least three residents or interns in each year of the training

28  program are qualified to apply for financial support. Programs

29  with fewer than three residents or interns per training year

30  are qualified to apply for financial support, but only if the

31  appropriate accrediting entity for the particular specialty


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                                          HB 1885, First Engrossed



  1  has approved the program for fewer positions. Programs added

  2  after fiscal year 1997-1998 shall have 5 years to attain the

  3  requisite number of residents or interns. When feasible and to

  4  the extent allowed through the General Appropriations Act,

  5  state funds shall be used to generate federal matching funds

  6  under Medicaid, or other federal programs, and the resulting

  7  combined state and federal funds shall be allocated to

  8  participating hospitals for the support of graduate medical

  9  education. The department is authorized to spend up to $75,000

10  of funds provided specifically for purposes of this section,

11  for administrative costs associated with the production of the

12  annual report as specified in subsection (9), and for

13  administration of the program and the council.

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

15  specialties include emergency medicine, family practice,

16  internal medicine, pediatrics, psychiatry,

17  obstetrics/gynecology, and combined pediatrics and internal

18  medicine, and other primary care specialties as may be

19  included by the council and the department Board of Regents.

20         (c)  Medical institutions throughout the state may

21  apply to the Community Hospital Education Council for

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

23  programs.  Recommendations for funding of approved programs

24  shall be forwarded to the department Board of Regents.

25         (4)  PROGRAM FOR GRADUATE MEDICAL EDUCATION

26  INNOVATIONS.--

27         (a)  There is established under the department Board of

28  Regents a program for fostering graduate medical education

29  innovations. Funds appropriated annually by the Legislature

30  for this purpose shall be distributed to participating

31  hospitals, a consortium or consortia of participating


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                                          HB 1885, First Engrossed



  1  hospitals and Florida medical schools, or a Florida medical

  2  school for the direct costs of providing graduate medical

  3  education in community-based clinical settings, on a

  4  competitive grant or formula basis to achieve state health

  5  care workforce policy objectives, including, but not limited

  6  to:

  7         1.  Increasing the number of residents in primary care

  8  and other high demand specialties or fellowships;

  9         2.  Enhancing retention of primary care physicians in

10  Florida practice;

11         3.  Promoting practice in medically underserved areas

12  of the state;

13         4.  Encouraging racial and ethnic diversity within the

14  state's physician workforce; and

15         5.  Encouraging increased production of geriatricians.

16         (b)  Participating hospitals, or consortia of

17  participating hospitals and Florida medical schools, or

18  Florida medical schools providing graduate medical education

19  in community-based clinical settings may apply to the

20  Community Hospital Education Council for funding under this

21  innovations program, except when such innovations directly

22  compete with services or programs provided by participating

23  hospitals or consortia of participating hospitals. Innovations

24  program funding shall provide funding based on policies

25  recommended and approved by the Community Hospital Education

26  Council and the department Board of Regents.

27         (c)  Participating hospitals, or consortia of

28  participating hospitals and Florida medical schools, or

29  Florida medical schools providing graduate medical education

30  in community-based clinical settings awarded an innovations

31  grant shall provide the Community Hospital Education Council


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                                          HB 1885, First Engrossed



  1  and the department Board of Regents with an annual report on

  2  their project.

  3         (5)  FAMILY PRACTICE RESIDENCIES.--In addition to the

  4  programs established in subsection (3), the Community Hospital

  5  Education Council and the department Board of Regents shall

  6  establish an ongoing statewide program of family practice

  7  residencies.  The administration of this program shall be in

  8  the manner described in this section.

  9         (6)  COUNCIL AND DIRECTOR.--

10         (c)  The Secretary of Health Chancellor of the State

11  University System shall designate an administrator to serve as

12  staff director.  The council shall elect a chair from among

13  its membership.  Such other personnel as may be necessary to

14  carry out the program shall be employed as authorized by the

15  department Board of Regents.

16         (7)  BOARD OF REGENTS; STANDARDS AND POLICIES.--

17         (a)  The department Board of Regents, with

18  recommendations from the council, shall establish standards

19  and policies for the use and expenditure of graduate medical

20  education funds appropriated pursuant to subsection (8) for a

21  program of community hospital education.  The department board

22  shall establish requirements for hospitals to be qualified for

23  participation in the program which shall include, but not be

24  limited to:

25         1.  Submission of an educational plan and a training

26  schedule.

27         2.  A determination by the council to ascertain that

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

29  degree of academic excellence and is accredited by the

30  Accreditation Council for Graduate Medical Education of the

31  


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                                          HB 1885, First Engrossed



  1  American Medical Association or is accredited by the American

  2  Osteopathic Association.

  3         3.  Supervision of the educational program of the

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

  5         (b)  The department Board of Regents shall periodically

  6  review the educational program provided by a participating

  7  hospital to assure that the program includes a reasonable

  8  amount of both formal and practical training and that the

  9  formal sessions are presented as scheduled in the plan

10  submitted by each hospital.

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

12  for Health Care Administration, the department Board of

13  Regents shall certify to the Agency for Health Care

14  Administration on a quarterly basis the number of primary care

15  specialty residents and interns at each of the participating

16  hospitals for which the Community Hospital Education Council

17  and the department board recommends funding.

18         (9)  ANNUAL REPORT ON GRADUATE MEDICAL EDUCATION;

19  COMMITTEE.--

20         (a)  The Board of Regents, the Executive Office of the

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

22  Care Administration shall collaborate to establish a committee

23  that shall produce an annual report on graduate medical

24  education.

25         1.  The committee shall consist of 11 members as

26  follows: the five deans of the five Florida medical schools or

27  their designees; two persons appointed by the Governor, one of

28  whom shall be a representative of the Florida Medical

29  Association who has supervised or is currently supervising

30  residents or interns and one of whom shall be a representative

31  of the Florida Hospital Association; two persons appointed by


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                                          HB 1885, First Engrossed



  1  the Secretary of Health Care Administration, one of whom shall

  2  be a representative of a statutory teaching hospital and one

  3  of whom shall be a physician who has supervised or is

  4  currently supervising residents or interns; and two persons

  5  appointed by the Secretary of Health, one of whom shall be a

  6  representative of a family practice teaching hospital and one

  7  of whom shall be a physician who has supervised or is

  8  currently supervising residents or interns. With the exception

  9  of the deans, members of the committee shall serve staggered

10  terms of 4 years; however, for the purpose of providing

11  staggered terms, the initial appointees of the Governor shall

12  serve a term of 4 years, the initial appointees of the

13  Secretary of Health shall serve a term of 3 years, and the

14  initial appointees of the Secretary of Health Care

15  Administration shall serve a term of 2 years.

16         2.  An appointment to fill an unexpired term shall be

17  for the remainder of the unexpired term only. A member shall

18  no longer be eligible to serve on the committee if, at any

19  point during his or her term, the member no longer possesses

20  his or her representative status. The committee shall elect a

21  chair from among its members, who shall serve a 1-year term.

22  To the maximum extent feasible, the committee shall have the

23  same membership as the Graduate Medical Education Study

24  Committee, established by proviso accompanying Specific

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

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

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

28  January 15 annually. Committee members shall serve without

29  compensation. From the funds provided pursuant to subsection

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

31  


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                                          HB 1885, First Engrossed



  1  $75,000 per year to provide for administrative costs and

  2  contractual services.

  3         (b)  The report shall be provided to the Governor, the

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

  5  Representatives by January 15, annually, and shall address the

  6  following:

  7         1.(a)  The role of residents and medical faculty in the

  8  provision of health care.

  9         2.(b)  The relationship of graduate medical education

10  to the state's physician workforce.

11         3.(c)  The costs of training medical residents for

12  hospitals, medical schools, teaching hospitals, including all

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

14  medical schools, and municipalities.

15         4.(d)  The availability and adequacy of all sources of

16  revenue to support graduate medical education and recommend

17  alternative sources of funding for graduate medical education.

18         5.(e)  The use of state and federal appropriated funds

19  for graduate medical education by hospitals receiving such

20  funds.

21         (10)  RULEMAKING.--The department has authority to

22  adopt rules pursuant to ss. 120.536(1) and 120.54 to implement

23  the provisions of this section.

24         Section 3.  Paragraphs (a) and (b) of subsection (1) of

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

26         409.908  Reimbursement of Medicaid providers.--Subject

27  to specific appropriations, the agency shall reimburse

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

29  according to methodologies set forth in the rules of the

30  agency and in policy manuals and handbooks incorporated by

31  reference therein.  These methodologies may include fee


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                                          HB 1885, First Engrossed



  1  schedules, reimbursement methods based on cost reporting,

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

  3  and other mechanisms the agency considers efficient and

  4  effective for purchasing services or goods on behalf of

  5  recipients.  Payment for Medicaid compensable services made on

  6  behalf of Medicaid eligible persons is subject to the

  7  availability of moneys and any limitations or directions

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

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

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

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

12  making 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, provided the

15  adjustment is consistent with legislative intent.

16         (1)  Reimbursement to hospitals licensed under part I

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

18  negotiation.

19         (a)  Reimbursement for inpatient care is limited as

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

21         1.  The raising of rate reimbursement caps, excluding

22  rural hospitals.

23         2.  Recognition of the costs of graduate medical

24  education.

25         3.  Other methodologies recognized in the General

26  Appropriations Act.

27  

28  During the years funds are transferred from the Department of

29  Health Board of Regents, any reimbursement supported by such

30  funds shall be subject to certification by the Department of

31  Health Board of Regents that the hospital has complied with s.


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                                          HB 1885, First Engrossed



  1  381.0403. The agency is authorized to receive funds from state

  2  entities, including, but not limited to, the Department of

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

  4  local political subdivisions, for the purpose of making

  5  special exception payments, including federal matching funds,

  6  through the Medicaid inpatient reimbursement methodologies.

  7  Funds received from state entities or local governments for

  8  this purpose shall be separately accounted for and shall not

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

10  The agency may certify all local governmental funds used as

11  state match under Title XIX of the Social Security Act, to the

12  extent that the identified local health care provider that is

13  otherwise entitled to and is contracted to receive such local

14  funds is the benefactor under the state's Medicaid program as

15  determined under the General Appropriations Act and pursuant

16  to an agreement between the Agency for Health Care

17  Administration and the local governmental entity. The local

18  governmental entity shall use a certification form prescribed

19  by the agency. At a minimum, the certification form shall

20  identify the amount being certified and describe the

21  relationship between the certifying local government entity

22  and local health care provider. The agency shall prepare an

23  annual statement of impact that documents the specific

24  activities undertaken during the previous fiscal year pursuant

25  to this paragraph, to be submitted to the Legislature no later

26  than January 1, annually. Notwithstanding this section and s.

27  409.915, counties are exempt from contributing toward the cost

28  of the special exception reimbursement for hospitals serving a

29  disproportionate share of low-income persons and providing

30  graduate medical education.

31  


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                                          HB 1885, First Engrossed



  1         (b)  Reimbursement for hospital outpatient care is

  2  limited to $1,500 per state fiscal year per recipient, except

  3  for:

  4         1.  Such care provided to a Medicaid recipient under

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

  6  necessity.

  7         2.  Renal dialysis services.

  8         3.  Other exceptions made by the agency.

  9  

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

11  including, but not limited to, the Department of Health, the

12  Board of Regents, local governments, and other local political

13  subdivisions, for the purpose of making payments, including

14  federal matching funds, through the Medicaid outpatient

15  reimbursement methodologies. Funds received from state

16  entities and local governments for this purpose shall be

17  separately accounted for and shall not be commingled with

18  other state or local funds in any manner.

19         Section 4.  Paragraph (d) of subsection (1) of section

20  409.911, Florida Statutes, is amended to read:

21         409.911  Disproportionate share program.--Subject to

22  specific allocations established within the General

23  Appropriations Act and any limitations established pursuant to

24  chapter 216, the agency shall distribute, pursuant to this

25  section, moneys to hospitals providing a disproportionate

26  share of Medicaid or charity care services by making quarterly

27  Medicaid payments as required. Notwithstanding the provisions

28  of s. 409.915, counties are exempt from contributing toward

29  the cost of this special reimbursement for hospitals serving a

30  disproportionate share of low-income patients.

31  


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                                          HB 1885, First Engrossed



  1         (1)  Definitions.--As used in this section and s.

  2  409.9112:

  3         (d)  "Charity care" or "uncompensated charity care"

  4  means that portion of hospital charges reported to the Agency

  5  for Health Care Administration for which there is no

  6  compensation, other than restricted and unrestricted revenues

  7  provided to a hospital by local governments or tax districts

  8  regardless of the method of payment, for care provided to a

  9  patient whose family income for the 12 months preceding the

10  determination is less than or equal to 200 150 percent of the

11  federal poverty level, unless the amount of hospital charges

12  due from the patient exceeds 25 percent of the annual family

13  income.  However, in no case shall the hospital charges for a

14  patient whose family income exceeds four times the federal

15  poverty level for a family of four be considered charity.

16         Section 5.  Subsection (2) of section 409.9117, Florida

17  Statutes, is amended to read:

18         409.9117  Primary care disproportionate share

19  program.--

20         (2)  In the establishment and funding of this program,

21  the agency shall use the following criteria in addition to

22  those specified in s. 409.911., Payments may not be made to a

23  hospital unless the hospital agrees to:

24         (a)  Cooperate with a Medicaid prepaid health plan, if

25  one exists in the community.

26         (b)  Ensure the availability of primary and specialty

27  care physicians to Medicaid recipients who are not enrolled in

28  a prepaid capitated arrangement and who are in need of access

29  to such physicians.

30         (c)  Coordinate and provide primary care services free

31  of charge, except copayments, to all persons with incomes up


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                                          HB 1885, First Engrossed



  1  to 100 percent of the federal poverty level who are not

  2  otherwise covered by Medicaid or another program that provides

  3  similar benefits administered by a governmental entity, and to

  4  provide such services based on a sliding fee scale to all

  5  persons with incomes up to 200 percent of the federal poverty

  6  level who are not otherwise covered by Medicaid or another

  7  program that provides similar benefits administered by a

  8  governmental entity, except that eligibility may be limited to

  9  persons who reside within a more limited area, as agreed to by

10  the agency and the hospital.

11         (d)  Contract with any federally qualified health

12  center, if one exists within the agreed geopolitical

13  boundaries, concerning the provision of primary care services,

14  in order to guarantee delivery of services in a nonduplicative

15  fashion, and to provide for referral arrangements, privileges,

16  and admissions, as appropriate.  The hospital shall agree to

17  provide at an onsite or offsite facility primary care services

18  within 24 hours to which all Medicaid recipients and persons

19  eligible under this paragraph who do not require emergency

20  room services are referred during normal daylight hours.

21         (e)  Cooperate with the agency, the county, and other

22  entities to ensure the provision of certain public health

23  services, case management, referral and acceptance of

24  patients, and sharing of epidemiological data, as the agency

25  and the hospital find mutually necessary and desirable to

26  promote and protect the public health within the agreed

27  geopolitical boundaries.

28         (f)  In cooperation with the county in which the

29  hospital resides, develop a low-cost, outpatient, prepaid

30  health care program to persons who are not eligible for the

31  Medicaid program, and who reside within the area.


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                                          HB 1885, First Engrossed



  1         (g)  Provide inpatient services to residents within the

  2  area who are not eligible for Medicaid or Medicare, and who do

  3  not have private health insurance, regardless of ability to

  4  pay, on the basis of available space, except that nothing

  5  shall prevent the hospital from establishing bill collection

  6  programs based on ability to pay.

  7         (h)  Work with the Florida Healthy Kids Corporation,

  8  the Florida Health Care Purchasing Cooperative, and business

  9  health coalitions, as appropriate, to develop a feasibility

10  study and plan to provide a low-cost comprehensive health

11  insurance plan to persons who reside within the area and who

12  do not have access to such a plan.

13         (i)  Work with public health officials and other

14  experts to provide community health education and prevention

15  activities designed to promote healthy lifestyles and

16  appropriate use of health services.

17         (j)  Work with the local health council to develop a

18  plan for promoting access to affordable health care services

19  for all persons who reside within the area, including, but not

20  limited to, public health services, primary care services,

21  inpatient services, and affordable health insurance generally.

22  

23  Any hospital that fails to comply with any of the provisions

24  of this subsection, or any other contractual condition, may

25  not receive payments under this section until full compliance

26  is achieved.

27         Section 6.  Paragraph (d) of subsection (3) of section

28  409.912, Florida Statutes, is amended to read:

29         409.912  Cost-effective purchasing of health care.--The

30  agency shall purchase goods and services for Medicaid

31  recipients in the most cost-effective manner consistent with


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                                          HB 1885, First Engrossed



  1  the delivery of quality medical care.  The agency shall

  2  maximize the use of prepaid per capita and prepaid aggregate

  3  fixed-sum basis services when appropriate and other

  4  alternative service delivery and reimbursement methodologies,

  5  including competitive bidding pursuant to s. 287.057, designed

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

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

  8  minimize the exposure of recipients to the need for acute

  9  inpatient, custodial, and other institutional care and the

10  inappropriate or unnecessary use of high-cost services.

11         (3)  The agency may contract with:

12         (d)  No more than four provider service networks for

13  demonstration projects to test Medicaid direct contracting.

14  The demonstration projects may be reimbursed on a

15  fee-for-service or prepaid basis.  A provider service network

16  which is reimbursed by the agency on a prepaid basis shall be

17  exempt from parts I and III of chapter 641, but must meet

18  appropriate financial reserve, quality assurance, and patient

19  rights requirements as established by the agency.  The agency

20  shall award contracts on a competitive bid basis and shall

21  select bidders based upon price and quality of care. Medicaid

22  recipients assigned to a demonstration project shall be chosen

23  equally from those who would otherwise have been assigned to

24  prepaid plans and MediPass.  The agency is authorized to seek

25  federal Medicaid waivers as necessary to implement the

26  provisions of this section.  A demonstration project awarded

27  pursuant to this paragraph shall be for 4 2 years from the

28  date of implementation.

29         Section 7.  All the statutory powers, duties, and

30  functions and the records, personnel, property, and unexpended

31  balances of appropriations, allocations, or other funds of the


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                                          HB 1885, First Engrossed



  1  programs under the Community Hospital Education Act are

  2  transferred from the Board of Regents to the Department of

  3  Health by a type two transfer as defined in s. 20.06, Florida

  4  Statutes.

  5         Section 8.  The Legislature finds that personal

  6  identifying information, name, age, diagnosis, address, bank

  7  account numbers, and debit and credit card numbers contained

  8  in the records relating to an individual's personal health or

  9  eligibility for health-related services made or received by

10  the individual's physician, and public or private health

11  facility should be held confidential.  Furthermore, the

12  Legislature finds that every person has an expectation of and

13  a right to privacy in all matters concerning her or his

14  personal health when medical services are provided. Matters of

15  personal health are traditionally private and confidential

16  concerns between the patient and the health care provider. The

17  private and confidential nature of personal health matters

18  pervades both the public and private sectors. For these

19  reasons, it is the express intent of the Legislature to

20  protect confidential information and the individual's

21  expectations of the right to privacy in all matters regarding

22  her or his personal health and not to have such information

23  exploited for purposes of solicitation or marketing the sale

24  of goods and services.

25         Section 9.  Subsection (5) of section 456.057, Florida

26  Statutes, is amended to read:

27         456.057  Ownership and control of patient records;

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

29         (5)(a)  Except as otherwise provided in this section

30  and in s. 440.13(4)(c), such records may not be furnished to,

31  and the medical condition of a patient may not be discussed


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                                          HB 1885, First Engrossed



  1  with, any person other than the patient or the patient's legal

  2  representative or other health care practitioners and

  3  providers involved in the care or treatment of the patient,

  4  except upon written authorization of the patient. However,

  5  such records may be furnished without written authorization

  6  under the following circumstances:

  7         1.(a)  To any person, firm, or corporation that has

  8  procured or furnished such examination or treatment with the

  9  patient's consent.

10         2.(b)  When compulsory physical examination is made

11  pursuant to Rule 1.360, Florida Rules of Civil Procedure, in

12  which case copies of the medical records shall be furnished to

13  both the defendant and the plaintiff.

14         3.(c)  In any civil or criminal action, unless

15  otherwise prohibited by law, upon the issuance of a subpoena

16  from a court of competent jurisdiction and proper notice to

17  the patient or the patient's legal representative by the party

18  seeking such records.

19         4.(d)  For statistical and scientific research,

20  provided the information is abstracted in such a way as to

21  protect the identity of the patient or provided written

22  permission is received from the patient or the patient's legal

23  representative.

24         (b)  Absent a specific written release or authorization

25  permitting utilization of patient information for solicitation

26  or marketing the sale of goods or services, any use of that

27  information for those purposes is prohibited.

28         (14)  Licensees in violation of the provisions of this

29  section shall be disciplined by the appropriate licensing

30  authority.

31  


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                                          HB 1885, First Engrossed



  1         (15)  The Attorney General is authorized to enforce the

  2  provisions of this section for records owners not otherwise

  3  licensed by the state, through injunctive relief and fines not

  4  to exceed $5,000 per violation.

  5         Section 10.  Subsection (7) of section 395.3025,

  6  Florida Statutes is amended to read:

  7         395.3025  Patient and personnel records; copies;

  8  examination.--

  9         (7)(a)  If the content of any record of patient

10  treatment is provided under this section, the recipient, if

11  other than the patient or the patient's representative, may

12  use such information only for the purpose provided and may not

13  further disclose any information to any other person or

14  entity, unless expressly permitted by the written consent of

15  the patient.  A general authorization for the release of

16  medical information is not sufficient for this purpose.  The

17  content of such patient treatment record is confidential and

18  exempt from the provisions of s. 119.07(1) and s. 24(a), Art.

19  I of the State Constitution.

20         (b)  Absent a specific written release or authorization

21  permitting utilization of patient information for solicitation

22  or marketing the sale of goods or services, any use of that

23  information for those purposes is prohibited.

24         Section 11.  Subsection (1) of section 400.1415,

25  Florida Statutes, is amended to read:

26         400.1415  Patient records; penalties for alteration.--

27         (1)  Any person who fraudulently alters, defaces, or

28  falsifies any medical record or releases medical records for

29  the purposes of solicitation or marketing the sale of goods or

30  services absent a specific written release or authorization

31  permitting utilization of patient information, or other


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                                          HB 1885, First Engrossed



  1  nursing home record, or causes or procures any of these

  2  offenses to be committed, commits a misdemeanor of the second

  3  degree, punishable as provided in s. 775.082 or s. 775.083.

  4         Section 12.  Section 626.9651, Florida Statutes, is

  5  created to read:

  6         626.9651  Privacy.--The department shall adopt rules

  7  consistent with other provisions of the Florida Insurance Code

  8  to govern the use of a consumer's nonpublic personal financial

  9  and health information. These rules must be based on,

10  consistent with, and not more restrictive than the Privacy of

11  Consumer Financial and Health Information Regulation, adopted

12  September 26, 2000, by the National Association of Insurance

13  Commissioners; however, the rules must permit the use and

14  disclosure of nonpublic personal health information for

15  scientific, medical, or public policy research, in accordance

16  with federal law. In addition, these rules must be consistent

17  with, and not more restrictive than, the standards contained

18  in Title V of the Gramm-Leach-Bliley Act of 1999, Pub. L. No.

19  106-102. If the department determines that a health insurer or

20  health maintenance organization is in compliance with, or is

21  actively undertaking compliance with, the consumer privacy

22  protection rules adopted by the United States Department of

23  Health and Human Services, in conformance with the Health

24  Insurance Portability and Affordability Act, that health

25  insurer or health maintenance organization is in compliance

26  with this section.

27         Section 13.  This act shall take effect July 1, 2001.

28  

29  

30  

31  


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