Senate Bill sb0968e1

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    SB 968                                         First Engrossed



  1                      A bill to be entitled

  2         An act relating to certificate of need;

  3         requiring the certificate-of-need workgroup to

  4         address open heart surgery services in its

  5         report; requiring final recommendations to be

  6         submitted by January 1, 2002; amending s.

  7         408.036, F.S.; providing an exemption from

  8         review for the conversion of certain skilled

  9         nursing beds to acute care beds; amending s.

10         408.039, F.S.; revising the review process for

11         certificates of need; amending s. 15 of ch.

12         2000-318, Laws of Florida; providing for

13         additional appointments to the

14         certificate-of-need workgroup; amending the

15         scope of responsibility for the workgroup;

16         providing an effective date.

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

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20         Section 1.  The certificate-of-need workgroup created

21  by section 15 of chapter 2000-318, Laws of Florida, shall

22  include in its report the issue of access to open heart

23  surgery services in areas currently lacking programs or deemed

24  underserved. In evaluating access to open heart surgery, the

25  work group shall consider the restriction of angioplasty to

26  hospitals providing open heart surgery and recommend ways to

27  improve access to primary angioplasty while assuring patient

28  safety and quality of care. The workgroup shall submit its

29  final recommendations on or before January 1, 2002.

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

31  section 408.036, Florida Statutes, to read:


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    SB 968                                         First 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 conversion of hospital-based Medicare and

  6  Medicaid certified skilled nursing beds to acute care beds, if

  7  the conversion does not involve the construction of new

  8  facilities.

  9         Section 3.  Paragraph (c) of subsection (5) of section

10  408.039, Florida Statutes, is amended to read:

11         408.039  Review process.--The review process for

12  certificates of need shall be as follows:

13         (5)  ADMINISTRATIVE HEARINGS.--

14         (c)  In administrative proceedings challenging the

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

16  considered by the agency in the same batching cycle are

17  entitled to a comparative hearing on their applications.

18  Existing health care facilities may initiate or intervene in

19  an administrative hearing only upon a showing that an

20  established program will be substantially affected by the

21  issuance of any certificate of need, whether reviewed under s.

22  408.036(1) or (2), to a competing proposed facility or program

23  within the same district. Any party appealing a final order

24  approving or denying a certificate of need to a district court

25  of appeal shall place in escrow an amount equal to the

26  proposed project cost or $500,000, whichever amount is less.

27  If any party appealing a final order fails in the appeal, that

28  party shall pay all costs of litigation, including treble

29  attorney fees, of the prevailing party. The Agency for Health

30  Care Administration shall not be subject to the provisions of

31  this paragraph except that it shall be entitled to all costs


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    SB 968                                         First Engrossed



  1  of litigation, including treble attorney fees if it is the

  2  prevailing party in an appeal of a final order. Such amounts

  3  shall be taken first from the escrow account established for

  4  this purpose, the balance to be considered enforceable as an

  5  obligation created by final order of the agency. The

  6  challenging facility may satisfy the escrow requirement with a

  7  bond of sufficient type and amount.

  8         Section 4.  Effective July 1, 2001, section 15 of

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

10         Section 15.

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

12  workgroup staffed by the Agency for Health Care

13  Administration.

14         (b)  Workgroup participants shall be responsible for

15  only the expenses that they generate individually through

16  workgroup participation.  The agency shall be responsible for

17  expenses incidental to the production of any required data or

18  reports.

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

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

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

22  Representatives. The workgroup chairperson shall be selected

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

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

25  limited to, representatives from health care provider

26  organizations, health care facilities, individual health care

27  practitioners, local health councils, and consumer

28  organizations, and persons with health care market expertise

29  as a private-sector consultant.

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

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    SB 968                                         First Engrossed



  1         (a)  The Governor shall appoint one representative each

  2  from the hospital industry; nursing home industry; hospice

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

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

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

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

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

  8  representative from the Medicaid program; and one

  9  representative from a health care facility that provides a

10  tertiary service.

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

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

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

14  hospital, two representatives of the nursing home industry,

15  two representatives of the hospice industry, a representative

16  of a consumer organization, a representative from the

17  Department of Elderly Affairs involved with the implementation

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

19  care market consultant with expertise in health care

20  economics, and a member of the Senate.

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

22  appoint a representative from the Florida Hospital

23  Association, a representative of the Association of Community

24  Hospitals and Health Systems of Florida, a representative of

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

26  Florida Health Care Association, a representative of the

27  Florida Association of Homes for the Aging, three

28  representatives of Florida Hospices and Palliative Care, one

29  representative of local health councils, and one

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

31  House.


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    SB 968                                         First Engrossed



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

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

  3  include recommendations for required legislative action and

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

  5  than the effective date of any rules necessary for its

  6  implementation. In developing the plan, the workgroup shall

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

  8  care providers and health care facilities subject to

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

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

11  Department of Elder Affairs, shall provide assistance to the

12  workgroup, upon request. The workgroup shall study issues

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

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

15  workgroup shall study issues relating to implementation of the

16  certificate-of-need program.

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

18  request of the chairperson. The workgroup shall submit an

19  interim report by December 31, 2001, and a final report by

20  December 31, 2002. The workgroup is abolished effective July

21  1, 2003.

22         Section 5.  This act shall take effect upon becoming a

23  law.

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