House Bill hb0339e2

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                                       CS/HB 339, Second Engrossed



  1                      A bill to be entitled

  2         An act relating to certificate of need;

  3         amending s. 408.043, F.S.; providing criteria

  4         for review of a certificate-of-need application

  5         for establishment of an adult open heart

  6         surgery program in a county in which none of

  7         the hospitals has an existing or approved adult

  8         open heart surgery program; requiring an

  9         agreement that a certain percent of Medicaid

10         and charity patients be served; requiring a

11         specified number of operations; amending s.

12         408.036, F.S.; authorizing certain facilities

13         to request exemption from the certificate of

14         need process; amending s. 15 of ch. 2000-318,

15         Laws of Florida; providing for additional

16         appointments to the workgroup; amending the

17         scope of responsibility for the workgroup;

18         providing new dates for final report to the

19         Governor and Legislature and termination of the

20         certificate-of-need workgroup; providing

21         effective dates.

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

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25         Section 1.  Subsection (5) is added to section 408.043,

26  Florida Statutes, to read:

27         408.043  Special provisions.--

28         (5)  OPEN HEART SURGERY.

29         (a)  When an application is made for a certificate of

30  need to establish an adult open heart surgery program in a

31  county in which none of the hospitals has an existing or


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                                       CS/HB 339, Second Engrossed



  1  approved adult open heart surgery program, need for one

  2  program shall be evaluated under special circumstances to

  3  promote reasonable access to such a program within the

  4  county.  The criteria on which the certificate of need is

  5  reviewed in such circumstances shall favor approval in those

  6  counties that can generate at least 1,200 annual hospital

  7  discharges with a principal diagnosis of ischemic heart

  8  disease.  County-specific need identified under these

  9  circumstances shall exist independently of and in addition to

10  any district need identified under the standard numeric need

11  formula.

12         (b)  An applicant for an adult open heart surgery

13  program who meets the special circumstances in paragraph (a)

14  shall, as a condition for approval, agree that the percentage

15  of admissions to its program which are Medicaid patients shall

16  be at least as great as the average percentage of Medicaid

17  patients admitted to open heart surgery programs in the

18  applicant's district; and shall also agree that the percentage

19  of admissions to its program which are charity patients shall

20  be at least as great as the average percentage of charity

21  patients admitted to open heart surgery programs in the

22  applicant's district.

23         (c)  An applicant approved for an adult open heart

24  surgery program consistent with this subsection shall perform

25  a 12-month total of at least 250 open heart surgery operations

26  during the third year that such procedures are being

27  performed. Failure to meet this requirement is subject to

28  agency action to terminate a hospital's authorization to

29  provide any open heart surgery operations.

30         Section 2.  Paragraph (r) is added to subsection (3) of

31  section 408.036, Florida Statutes, to read:


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                                       CS/HB 339, Second Engrossed



  1         408.036  Projects subject to review.--

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

  3  are subject to exemption from the provisions of subsection

  4  (1):

  5         (r)  For the provision of adult open heart surgery

  6  services in a hospital, the request for an exemption must

  7  comply with the following criteria:

  8         1.  The hospital must have at least 390 licensed beds

  9  as of the date of the exemption request.

10         2.  The hospital shall demonstrate, for the twelve

11  month period ending one month prior to the date of the

12  exemption request, at least 400 admissions to the hospital

13  through its emergency room of patients with the primary

14  diagnosis of acute myocardial infarction, and the performance

15  of at least 1,000 diagnostic and therapeutic cardiac

16  catheterizations.

17         3.  The hospital shall certify that its provision of

18  open heart surgery services will be offered in conjunction

19  with a therapeutic cardiac catheterization program, will be

20  available to all patients without regard as to ability to pay,

21  will maintain sufficient and appropriate equipment and staff

22  to ensure quality and safety, will be available 24 hours a

23  day, 7 days a week, and will maintain appropriate volumes as

24  reasonably necessary to ensure quality and safety.

25         4.  The exemption shall terminate if the agency

26  determines that the hospital has failed to comply with the

27  certifications set forth in subparagraph 3. In the event the

28  exemption terminates, the hospital will not again be eligible

29  to apply for an exemption until two years following the date

30  of termination.

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                                       CS/HB 339, Second Engrossed



  1         Section 3.  Effective July 1, 2001, section 15 of

  2  chapter 2000-318, Laws of Florida, is amended to read:

  3         Section 15.

  4         (1)(a)  There is created a certificate-of-need

  5  workgroup staffed by the Agency for Health Care

  6  Administration.

  7         (b)  Workgroup participants shall be responsible for

  8  only the expenses that they generate individually through

  9  workgroup participation.  The agency shall be responsible for

10  expenses incidental to the production of any required data or

11  reports.

12         (2)  The workgroup shall consist of 32 30 members, 10

13  appointed by the Governor, 11 10 appointed by the President of

14  the Senate, and 11 10 appointed by the Speaker of the House of

15  Representatives. The workgroup chairperson shall be selected

16  by majority vote of a quorum present. Sixteen members shall

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

18  limited to, representatives from health care provider

19  organizations, health care facilities, individual health care

20  practitioners, local health councils, and consumer

21  organizations, and persons with health care market expertise

22  as a private-sector consultant.

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

24         (a)  The Governor shall appoint one representative each

25  from the hospital industry; nursing home industry; hospice

26  industry; local health councils; a consumer organization; and

27  three health care market consultants, one of whom is a

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

29  recognized expert on nursing home or long-term-care markets,

30  and one of whom is a recognized expert on hospice markets; one

31  representative from the Medicaid program; and one


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                                       CS/HB 339, Second Engrossed



  1  representative from a health care facility that provides a

  2  tertiary service.

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

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

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

  6  hospital, two representatives of the nursing home industry,

  7  two representatives of the hospice industry, a representative

  8  of a consumer organization, a representative from the

  9  Department of Elderly Affairs involved with the implementation

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

11  care market consultant with expertise in health care

12  economics, and a member of the Senate.

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

14  appoint a representative from the Florida Hospital

15  Association, a representative of the Association of Community

16  Hospitals and Health Systems of Florida, a representative of

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

18  Florida Health Care Association, a representative of the

19  Florida Association of Homes for the Aging, three

20  representatives of Florida Hospices and Palliative Care, one

21  representative of local health councils, and one

22  representative of a consumer organization, and a member of the

23  House.

24         (4)  The workgroup shall develop a plan for the reform

25  or elimination of the certificate of need program, which shall

26  include recommendations for required legislative action and

27  agency rule making. Such plan shall be implemented not sooner

28  than the effective date of any rules necessary for its

29  implementation. In developing the plan, the workgroup shall

30  seek input from all classes of health care consumers, health

31  care providers and health care facilities subject to


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                                       CS/HB 339, Second Engrossed



  1  certificate of need review. All agencies, including, but not

  2  limited to, the Agency for Health Care Administration and the

  3  Department of Elder Affairs, shall provide assistance to the

  4  workgroup, upon request. The workgroup shall study issues

  5  pertaining to the certificate-of-need program, including the

  6  impact of trends in health care delivery and financing. The

  7  workgroup shall study issues relating to implementation of the

  8  certificate-of-need program.

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

10  request of the chairperson. The workgroup shall submit an

11  interim report by December 31, 2001, and a final report to the

12  Governor, the President of the Senate, and the Speaker of the

13  House of Representatives by January 7, by December 31, 2002.

14  The workgroup is abolished effective May 3, 2002 July 1, 2003.

15         Section 4.  This act shall take effect upon becoming a

16  law.

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