Senate Bill sb1062e1

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  1                      A bill to be entitled

  2         An act relating to health care facilities;

  3         creating s. 400.0712, F.S.; authorizing the

  4         Agency for Health Care Administration to issue

  5         inactive licenses to nursing homes for all or a

  6         portion of their beds under certain

  7         circumstances; providing requirements for

  8         application for and issuance of such licenses;

  9         providing rulemaking authority; amending s.

10         400.071, F.S.; deleting a provision relating to

11         issuance of inactive licenses, to conform;

12         amending s. 400.021, F.S.; redefining the term

13         "resident care plan," as used in part II of ch.

14         400, F.S.; amending s. 400.23, F.S.; providing

15         that certain information from the agency must

16         be promptly updated to reflect the most current

17         agency actions; amending s. 400.211, F.S.;

18         revising inservice training requirements for

19         persons employed as nursing assistants in a

20         nursing home facility; amending s. 400.9905,

21         F.S.; providing that certain entities providing

22         oncology or radiation therapy services are

23         exempt from the licensure requirements of part

24         XIII of ch. 400, F.S.; providing legislative

25         intent with respect to such exemption;

26         providing for retroactive application; amending

27         s. 400.441, F.S.; requiring facilities to

28         conduct a minimum number of resident elopement

29         prevention and response drills annually;

30         amending s. 408.034, F.S.; requiring the

31         nursing-home-bed-need methodology established


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 1         by the agency by rule to include a goal of

 2         maintaining a specified subdistrict average

 3         occupancy rate; amending s. 408.036, F.S.,

 4         relating to health-care-related projects

 5         subject to review for a certificate of need;

 6         subjecting certain projects relating to

 7         replacement of a nursing home and relocation of

 8         nursing home beds to expedited review; revising

 9         requirements for certain projects relating to

10         the addition of nursing home beds which are

11         exempt from review; exempting from review

12         certain projects relating to replacement of a

13         licensed nursing home bed on the same site or

14         nearby and consolidation or combination of

15         licensed nursing homes or transfer of beds

16         between licensed nursing homes within the same

17         planning subdistrict; providing rulemaking

18         authority; providing for assessment of

19         exemption-request fees; amending s. 52, ch.

20         2001-45, Laws of Florida; specifying

21         nonapplication of a moratorium on certificates

22         of need and authorizing approval of certain

23         certificates of need for certain counties under

24         certain circumstances; providing review

25         requirements and bed limitations; amending s.

26         651.118, F.S.; revising provisions relating to

27         use of sheltered nursing home beds at a

28         continuing care facility by persons who are not

29         residents of the continuing care facility;

30         amending s. 395.003, F.S.; requiring a report

31         by the Agency for Health Care Administration


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 1         regarding the licensure of emergency

 2         departments located off the premises of

 3         hospitals; prohibiting the issuance of licenses

 4         for such departments before July 1, 2005;

 5         amending s. 430.701, F.S.; providing

 6         legislative intent relating to the Department

 7         of Elderly Affairs approving service providers;

 8         amending s. 400.601, F.S.; redefining the term

 9         "hospice" as used in part VI of ch. 400, F.S.;

10         amending s. 400.9935, F.S.; providing for

11         posting of signs in health care facilities

12         relating to rewards for information concerning

13         certain crimes; providing for inspections by an

14         employee of the Division of Insurance Fraud;

15         amending s. 400.9905, F.S.; redefining the term

16         "clinic"; amending s. 400.991, F.S.; changing

17         the date by which an initial application for a

18         health care clinic license must be filed with

19         the Agency for Health Care Administration;

20         making conforming changes to the requirement

21         that qualified applicants receive a temporary

22         license; providing for retroactive application;

23         providing an effective date.

24  

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

26  

27         Section 1.  Section 400.0712, Florida Statutes, is

28  created to read:

29         400.0712  Application for inactive license.--

30         (1)  As specified in this section, the agency may issue

31  an inactive license to a nursing home facility for all or a


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 1  portion of its beds. Any request by a licensee that a nursing

 2  home or portion of a nursing home become inactive must be

 3  submitted to the agency in the format specified by the agency.

 4  The facility may not initiate any suspension of services,

 5  notify residents, or initiate facility closure before

 6  receiving approval from the agency; and a facility that

 7  violates this provision shall not be issued an inactive

 8  license. Upon agency approval of an inactive license, the

 9  nursing home shall notify residents of any necessary discharge

10  or transfer as provided in s. 400.0255.

11         (2)  The agency may issue an inactive license to a

12  nursing home that chooses to use an unoccupied contiguous

13  portion of the facility for an alternative use to meet the

14  needs of elderly persons through the use of less restrictive,

15  less institutional services.

16         (a)  An inactive license issued under this subsection

17  may be granted for a period not to exceed 12 months but may be

18  renewed annually by the agency for 12 months.

19         (b)  A request to extend the inactive license must be

20  submitted to the agency in the format specified by the agency

21  and is not effective unless approved by the agency in writing.

22         (c)  Nursing homes that receive an inactive license to

23  provide alternative services shall not receive preference for

24  participation in the Assisted Living for the Elderly Medicaid

25  waiver.

26         (3)  The agency may issue an inactive license to a

27  nursing home that will be temporarily unable to provide

28  services but is reasonably expected to resume services.

29         (a)  An inactive license issued under this subsection

30  may be issued for a period not to exceed 12 months and may be

31  


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 1  renewed by the agency for an additional 6 months upon

 2  demonstration of progress toward reopening.

 3         (b)  All licensure fees must be current and paid in

 4  full, and may be prorated as provided by agency rule, before

 5  the inactive license is issued.

 6         (c)  Reactivation of an inactive license requires that

 7  the applicant pay all licensure fees and the facility be

 8  inspected by the agency to confirm compliance with this part

 9  and applicable rules.

10         (4)  The agency shall adopt rules pursuant to ss.

11  120.536(1) and 120.54 as necessary to implement this section.

12         Section 2.  Subsections (10), (11), and (12) of section

13  400.071, Florida Statutes, are amended to read:

14         400.071  Application for license.--

15         (10)  The agency may issue an inactive license to a

16  nursing home that will be temporarily unable to provide

17  services but that is reasonably expected to resume services.

18  Such designation may be made for a period not to exceed 12

19  months but may be renewed by the agency for up to 6 additional

20  months. Any request by a licensee that a nursing home become

21  inactive must be submitted to the agency and approved by the

22  agency prior to initiating any suspension of service or

23  notifying residents. Upon agency approval, the nursing home

24  shall notify residents of any necessary discharge or transfer

25  as provided in s. 400.0255.

26         (10)(11)  As a condition of licensure, each facility

27  must establish and submit with its application a plan for

28  quality assurance and for conducting risk management.

29         (11)(12)  The applicant must provide the agency with

30  proof of a legal right to occupy the property before a license

31  may be issued. Proof may include, but is not limited to,


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 1  copies of warranty deeds, lease or rental agreements,

 2  contracts for deeds, or quitclaim deeds.

 3         Section 3.  Subsection (17) of section 400.021, Florida

 4  Statutes, is amended to read:

 5         400.021  Definitions.--When used in this part, unless

 6  the context otherwise requires, the term:

 7         (17)  "Resident care plan" means a written plan

 8  developed, maintained, and reviewed not less than quarterly by

 9  a registered nurse, with participation from other facility

10  staff and the resident or his or her designee or legal

11  representative, which includes a comprehensive assessment of

12  the needs of an individual resident; the type and frequency of

13  services required to provide the necessary care for the

14  resident to attain or maintain the highest practicable

15  physical, mental, and psychosocial well-being; a listing of

16  services provided within or outside the facility to meet those

17  needs; and an explanation of service goals. The resident care

18  plan must be signed by the director of nursing or another

19  registered nurse employed by the facility to whom

20  institutional responsibilities have been delegated and by the

21  resident, the resident's designee, or the resident's legal

22  representative. The facility may not use an agency or

23  temporary registered nurse to satisfy the foregoing

24  requirement and must document the institutional

25  responsibilities that have been delegated to the registered

26  nurse.

27         Section 4.  Subsection (10) is added to section 400.23,

28  Florida Statutes, to read:

29         400.23  Rules; evaluation and deficiencies; licensure

30  status.--

31  


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 1         (10)  Agency records, reports, ranking systems,

 2  Internet information, and publications must be promptly

 3  updated to reflect the most current agency actions.

 4         Section 5.  Subsection (4) of section 400.211, Florida

 5  Statutes, is amended to read:

 6         400.211  Persons employed as nursing assistants;

 7  certification requirement.--

 8         (4)  When employed by a nursing home facility for a

 9  12-month period or longer, a nursing assistant, to maintain

10  certification, shall submit to a performance review every 12

11  months and must receive regular inservice education based on

12  the outcome of such reviews. The inservice training must:

13         (a)  Be sufficient to ensure the continuing competence

14  of nursing assistants and must meet the standard specified in

15  s. 464.203(7), must be at least 18 hours per year, and may

16  include hours accrued under s. 464.203(8);

17         (b)  Include, at a minimum:

18         1.  Techniques for assisting with eating and proper

19  feeding;

20         2.  Principles of adequate nutrition and hydration;

21         3.  Techniques for assisting and responding to the

22  cognitively impaired resident or the resident with difficult

23  behaviors;

24         4.  Techniques for caring for the resident at the

25  end-of-life; and

26         5.  Recognizing changes that place a resident at risk

27  for pressure ulcers and falls; and

28         (c)  Address areas of weakness as determined in nursing

29  assistant performance reviews and may address the special

30  needs of residents as determined by the nursing home facility

31  staff.


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 1  

 2  Costs associated with this training may not be reimbursed from

 3  additional Medicaid funding through interim rate adjustments.

 4         Section 6.  Paragraph (h) is added to subsection (3) of

 5  section 400.9905, Florida Statutes, to read:

 6         400.9905  Definitions.--

 7         (3)  "Clinic" means an entity at which health care

 8  services are provided to individuals and which tenders charges

 9  for reimbursement for such services. For purposes of this

10  part, the term does not include and the licensure requirements

11  of this part do not apply to:

12         (h)  Entities that provide oncology or radiation

13  therapy services by physicians licensed under chapter 458 or

14  459.

15         Section 7.  The amendment made by this act to section

16  400.9905(3), Florida Statutes, is intended to clarify the

17  legislative intent of this provision as it existed at the time

18  the provision initially took effect as section 456.0375(1)(b),

19  Florida Statutes, and section 400.9905(3)(h), Florida

20  Statutes, as created by this act, shall operate retroactively

21  to October 1, 2001.

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

23  400.441, Florida Statutes, is amended to read:

24         400.441  Rules establishing standards.--

25         (1)  It is the intent of the Legislature that rules

26  published and enforced pursuant to this section shall include

27  criteria by which a reasonable and consistent quality of

28  resident care and quality of life may be ensured and the

29  results of such resident care may be demonstrated.  Such rules

30  shall also ensure a safe and sanitary environment that is

31  residential and noninstitutional in design or nature.  It is


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 1  further intended that reasonable efforts be made to

 2  accommodate the needs and preferences of residents to enhance

 3  the quality of life in a facility. In order to provide safe

 4  and sanitary facilities and the highest quality of resident

 5  care accommodating the needs and preferences of residents, the

 6  department, in consultation with the agency, the Department of

 7  Children and Family Services, and the Department of Health,

 8  shall adopt rules, policies, and procedures to administer this

 9  part, which must include reasonable and fair minimum standards

10  in relation to:

11         (a)  The requirements for and maintenance of

12  facilities, not in conflict with the provisions of chapter

13  553, relating to plumbing, heating, cooling, lighting,

14  ventilation, living space, and other housing conditions, which

15  will ensure the health, safety, and comfort of residents and

16  protection from fire hazard, including adequate provisions for

17  fire alarm and other fire protection suitable to the size of

18  the structure. Uniform firesafety standards shall be

19  established and enforced by the State Fire Marshal in

20  cooperation with the agency, the department, and the

21  Department of Health.

22         1.  Evacuation capability determination.--

23         a.  The provisions of the National Fire Protection

24  Association, NFPA 101A, Chapter 5, 1995 edition, shall be used

25  for determining the ability of the residents, with or without

26  staff assistance, to relocate from or within a licensed

27  facility to a point of safety as provided in the fire codes

28  adopted herein.  An evacuation capability evaluation for

29  initial licensure shall be conducted within 6 months after the

30  date of licensure.  For existing licensed facilities that are

31  not equipped with an automatic fire sprinkler system, the


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 1  administrator shall evaluate the evacuation capability of

 2  residents at least annually. The evacuation capability

 3  evaluation for each facility not equipped with an automatic

 4  fire sprinkler system shall be validated, without liability,

 5  by the State Fire Marshal, by the local fire marshal, or by

 6  the local authority having jurisdiction over firesafety,

 7  before the license renewal date.  If the State Fire Marshal,

 8  local fire marshal, or local authority having jurisdiction

 9  over firesafety has reason to believe that the evacuation

10  capability of a facility as reported by the administrator may

11  have changed, it may, with assistance from the facility

12  administrator, reevaluate the evacuation capability through

13  timed exiting drills. Translation of timed fire exiting drills

14  to evacuation capability may be determined:

15         (I)  Three minutes or less: prompt.

16         (II)  More than 3 minutes, but not more than 13

17  minutes: slow.

18         (III)  More than 13 minutes: impractical.

19         b.  The Office of the State Fire Marshal shall provide

20  or cause the provision of training and education on the proper

21  application of Chapter 5, NFPA 101A, 1995 edition, to its

22  employees, to staff of the Agency for Health Care

23  Administration who are responsible for regulating facilities

24  under this part, and to local governmental inspectors. The

25  Office of the State Fire Marshal shall provide or cause the

26  provision of this training within its existing budget, but may

27  charge a fee for this training to offset its costs. The

28  initial training must be delivered within 6 months after July

29  1, 1995, and as needed thereafter.

30         c.  The Office of the State Fire Marshal, in

31  cooperation with provider associations, shall provide or cause


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 1  the provision of a training program designed to inform

 2  facility operators on how to properly review bid documents

 3  relating to the installation of automatic fire sprinklers.

 4  The Office of the State Fire Marshal shall provide or cause

 5  the provision of this training within its existing budget, but

 6  may charge a fee for this training to offset its costs.  The

 7  initial training must be delivered within 6 months after July

 8  1, 1995, and as needed thereafter.

 9         d.  The administrator of a licensed facility shall sign

10  an affidavit verifying the number of residents occupying the

11  facility at the time of the evacuation capability evaluation.

12         2.  Firesafety requirements.--

13         a.  Except for the special applications provided

14  herein, effective January 1, 1996, the provisions of the

15  National Fire Protection Association, Life Safety Code, NFPA

16  101, 1994 edition, Chapter 22 for new facilities and Chapter

17  23 for existing facilities shall be the uniform fire code

18  applied by the State Fire Marshal for assisted living

19  facilities, pursuant to s. 633.022.

20         b.  Any new facility, regardless of size, that applies

21  for a license on or after January 1, 1996, must be equipped

22  with an automatic fire sprinkler system.  The exceptions as

23  provided in section 22-2.3.5.1, NFPA 101, 1994 edition, as

24  adopted herein, apply to any new facility housing eight or

25  fewer residents.  On July 1, 1995, local governmental entities

26  responsible for the issuance of permits for construction shall

27  inform, without liability, any facility whose permit for

28  construction is obtained prior to January 1, 1996, of this

29  automatic fire sprinkler requirement.  As used in this part,

30  the term "a new facility" does not mean an existing facility

31  that has undergone change of ownership.


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 1         c.  Notwithstanding any provision of s. 633.022 or of

 2  the National Fire Protection Association, NFPA 101A, Chapter

 3  5, 1995 edition, to the contrary, any existing facility

 4  housing eight or fewer residents is not required to install an

 5  automatic fire sprinkler system, nor to comply with any other

 6  requirement in Chapter 23, NFPA 101, 1994 edition, that

 7  exceeds the firesafety requirements of NFPA 101, 1988 edition,

 8  that applies to this size facility, unless the facility has

 9  been classified as impractical to evacuate. Any existing

10  facility housing eight or fewer residents that is classified

11  as impractical to evacuate must install an automatic fire

12  sprinkler system within the timeframes granted in this

13  section.

14         d.  Any existing facility that is required to install

15  an automatic fire sprinkler system under this paragraph need

16  not meet other firesafety requirements of Chapter 23, NFPA

17  101, 1994 edition, which exceed the provisions of NFPA 101,

18  1988 edition.  The mandate contained in this paragraph which

19  requires certain facilities to install an automatic fire

20  sprinkler system supersedes any other requirement.

21         e.  This paragraph does not supersede the exceptions

22  granted in NFPA 101, 1988 edition or 1994 edition.

23         f.  This paragraph does not exempt facilities from

24  other firesafety provisions adopted under s. 633.022 and local

25  building code requirements in effect before July 1, 1995.

26         g.  A local government may charge fees only in an

27  amount not to exceed the actual expenses incurred by local

28  government relating to the installation and maintenance of an

29  automatic fire sprinkler system in an existing and properly

30  licensed assisted living facility structure as of January 1,

31  1996.


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 1         h.  If a licensed facility undergoes major

 2  reconstruction or addition to an existing building on or after

 3  January 1, 1996, the entire building must be equipped with an

 4  automatic fire sprinkler system.  Major reconstruction of a

 5  building means repair or restoration that costs in excess of

 6  50 percent of the value of the building as reported on the tax

 7  rolls, excluding land, before reconstruction.  Multiple

 8  reconstruction projects within a 5-year period the total costs

 9  of which exceed 50 percent of the initial value of the

10  building at the time the first reconstruction project was

11  permitted are to be considered as major reconstruction.

12  Application for a permit for an automatic fire sprinkler

13  system is required upon application for a permit for a

14  reconstruction project that creates costs that go over the

15  50-percent threshold.

16         i.  Any facility licensed before January 1, 1996, that

17  is required to install an automatic fire sprinkler system

18  shall ensure that the installation is completed within the

19  following timeframes based upon evacuation capability of the

20  facility as determined under subparagraph 1.:

21         (I)  Impractical evacuation capability, 24 months.

22         (II)  Slow evacuation capability, 48 months.

23         (III)  Prompt evacuation capability, 60 months.

24  

25  The beginning date from which the deadline for the automatic

26  fire sprinkler installation requirement must be calculated is

27  upon receipt of written notice from the local fire official

28  that an automatic fire sprinkler system must be installed. The

29  local fire official shall send a copy of the document

30  indicating the requirement of a fire sprinkler system to the

31  Agency for Health Care Administration.


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 1         j.  It is recognized that the installation of an

 2  automatic fire sprinkler system may create financial hardship

 3  for some facilities.  The appropriate local fire official

 4  shall, without liability, grant two 1-year extensions to the

 5  timeframes for installation established herein, if an

 6  automatic fire sprinkler installation cost estimate and proof

 7  of denial from two financial institutions for a construction

 8  loan to install the automatic fire sprinkler system are

 9  submitted.  However, for any facility with a class I or class

10  II, or a history of uncorrected class III, firesafety

11  deficiencies, an extension must not be granted.  The local

12  fire official shall send a copy of the document granting the

13  time extension to the Agency for Health Care Administration.

14         k.  A facility owner whose facility is required to be

15  equipped with an automatic fire sprinkler system under Chapter

16  23, NFPA 101, 1994 edition, as adopted herein, must disclose

17  to any potential buyer of the facility that an installation of

18  an automatic fire sprinkler requirement exists.  The sale of

19  the facility does not alter the timeframe for the installation

20  of the automatic fire sprinkler system.

21         l.  Existing facilities required to install an

22  automatic fire sprinkler system as a result of

23  construction-type restrictions in Chapter 23, NFPA 101, 1994

24  edition, as adopted herein, or evacuation capability

25  requirements shall be notified by the local fire official in

26  writing of the automatic fire sprinkler requirement, as well

27  as the appropriate date for final compliance as provided in

28  this subparagraph.  The local fire official shall send a copy

29  of the document to the Agency for Health Care Administration.

30         m.  Except in cases of life-threatening fire hazards,

31  if an existing facility experiences a change in the evacuation


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 1  capability, or if the local authority having jurisdiction

 2  identifies a construction-type restriction, such that an

 3  automatic fire sprinkler system is required, it shall be

 4  afforded time for installation as provided in this

 5  subparagraph.

 6         3.  Resident elopement requirements.--Facilities are

 7  required to conduct a minimum of two resident elopement

 8  prevention and response drills per year. All administrators

 9  and direct care staff must participate in the drills that

10  shall include a review of procedures to address resident

11  elopement. Facilities shall document the implementation of the

12  drills and ensure that the drills are conducted in a manner

13  consistent with the facility's resident elopement policies and

14  procedures.

15  

16  Facilities that are fully sprinkled and in compliance with

17  other firesafety standards are not required to conduct more

18  than one of the required fire drills between the hours of 11

19  p.m. and 7 a.m., per year.  In lieu of the remaining drills,

20  staff responsible for residents during such hours may be

21  required to participate in a mock drill that includes a review

22  of evacuation procedures. Such standards must be included or

23  referenced in the rules adopted by the State Fire Marshal.

24  Pursuant to s. 633.022(1)(b), the State Fire Marshal is the

25  final administrative authority for firesafety standards

26  established and enforced pursuant to this section. All

27  licensed facilities must have an annual fire inspection

28  conducted by the local fire marshal or authority having

29  jurisdiction.

30         Section 9.  Subsection (5) of section 408.034, Florida

31  Statutes, is amended to read:


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 1         408.034  Duties and responsibilities of agency;

 2  rules.--

 3         (5)  The agency shall establish by rule a

 4  nursing-home-bed-need methodology that has a goal of

 5  maintaining a subdistrict average occupancy rate of 94 percent

 6  and that reduces the community nursing home bed need for the

 7  areas of the state where the agency establishes pilot

 8  community diversion programs through the Title XIX aging

 9  waiver program.

10         Section 10.  Paragraphs (g) and (h) are added to

11  subsection (2) of section 408.036, Florida Statutes, paragraph

12  (p) of subsection (3) is amended, paragraphs (u) and (v) are

13  added to subsection (3) of that section, and subsection (4) of

14  that section is reenacted to read:

15         408.036  Projects subject to review; exemptions.--

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

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

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

19         (g)  Replacement of a nursing home within the same

20  district, provided the proposed project site is located within

21  a geographic area that contains at least 65 percent of the

22  facility's current residents and is within a 30-mile radius of

23  the replaced nursing home.

24         (h)  Relocation of a portion of a nursing home's

25  licensed beds to a facility within the same district, provided

26  the relocation is within a 30-mile radius of the existing

27  facility and the total number of nursing home beds in the

28  district does not increase.

29  

30  The agency shall develop rules to implement the provisions for

31  expedited review, including time schedule, application content


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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 exemption from the provisions of subsection

 5  (1):

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

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

 8  10 percent of the number of beds licensed in the facility

 9  being expanded, whichever is greater, or for the addition of

10  nursing home beds licensed under chapter 400 at a facility

11  that has been designated as a Gold Seal nursing home under s.

12  400.235 in a number not exceeding 20 total beds or 10 percent

13  of the number of beds licensed in the facility being expanded,

14  whichever is greater.

15         1.  In addition to any other documentation required by

16  the agency, a request for exemption submitted under this

17  paragraph must:

18         a.  Effective until June 30, 2001, Certify that the

19  facility has not had any class I or class II deficiencies

20  within the 30 months preceding the request for addition.

21         b.  Effective on July 1, 2001, certify that the

22  facility has been designated as a Gold Seal nursing home under

23  s. 400.235.

24         b.c.  Certify that the prior 12-month average occupancy

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

26  exceeds 96 percent.

27         c.d.  Certify that any beds authorized for the facility

28  under this paragraph before the date of the current request

29  for an exemption have been licensed and operational for at

30  least 12 months.

31  


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    CS for SB 1062                                 First Engrossed



 1         2.  The timeframes and monitoring process specified in

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

 3  paragraph.

 4         3.  The agency shall count beds authorized under this

 5  paragraph as approved beds in the published inventory of

 6  nursing home beds until the beds are licensed.

 7         (u)  For replacement of a licensed nursing home on the

 8  same site, or within 3 miles of the same site, provided the

 9  number of licensed beds does not increase.

10         (v)  For consolidation or combination of licensed

11  nursing homes or transfer of beds between licensed nursing

12  homes within the same planning subdistrict, by providers that

13  operate multiple nursing homes within that planning

14  subdistrict, provided there is no increase in the planning

15  subdistrict total of nursing home beds and the relocation does

16  not exceed 30 miles from the original location.

17         (4)  A request for exemption under subsection (3) may

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

19  requirements of this section. The request shall be supported

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

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

22  exemption submitted under subsection (3).

23         Section 11.  Section 52 of chapter 2001-45, Laws of

24  Florida, as amended by section 1693 of chapter 2003-261, Laws

25  of Florida, is amended to read:

26         Section 52.  (1)  Notwithstanding the establishment of

27  need as provided for in chapter 408, Florida Statutes, no

28  certificate of need for additional community nursing home beds

29  shall be approved by the agency until July 1, 2006.

30         (2)  The Legislature finds that the continued growth in

31  the Medicaid budget for nursing home care has constrained the


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    CS for SB 1062                                 First Engrossed



 1  ability of the state to meet the needs of its elderly

 2  residents through the use of less restrictive and less

 3  institutional methods of long-term care. It is therefore the

 4  intent of the Legislature to limit the increase in Medicaid

 5  nursing home expenditures in order to provide funds to invest

 6  in long-term care that is community-based and provides

 7  supportive services in a manner that is both more

 8  cost-effective and more in keeping with the wishes of the

 9  elderly residents of this state.

10         (3)  This moratorium on certificates of need shall not

11  apply to sheltered nursing home beds in a continuing care

12  retirement community certified by the former Department of

13  Insurance or by the Office of Insurance Regulation pursuant to

14  chapter 651, Florida Statutes.

15         (4)(a)  The moratorium on certificates of need does not

16  apply and a certificate of need for additional community

17  nursing home beds may be approved for a county that meets the

18  following circumstances:

19         1.  The county has no community nursing home beds; and

20         2.  The lack of community nursing home beds occurs

21  because all nursing home beds in the county which were

22  licensed on July 1, 2001, have subsequently closed.

23         (b)  The certificate-of-need review for such

24  circumstances shall be subject to the comparative review

25  process consistent with the provisions of section 408.039,

26  Florida Statutes, and the number of beds may not exceed the

27  number of beds lost by the county after July 1, 2001.

28  

29  This subsection shall be repealed upon the expiration of the

30  moratorium established in subsection (1).

31  


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    CS for SB 1062                                 First Engrossed



 1         (5)  The moratorium on certificates of need does not

 2  apply for the addition of nursing home beds licensed under

 3  chapter 400, Florida Statutes, to a nursing home located in a

 4  county having up to 50,000 residents, in a number not

 5  exceeding 10 total beds or 10 percent of the number of beds

 6  licensed in the facility being expanded, whichever is greater.

 7  In addition to any other documentation required by the agency,

 8  a request submitted under this subsection must:

 9         (a)  Certify that the facility has not had any class I

10  or class II deficiencies within the 30 months preceding the

11  request for addition.

12         (b)  Certify that the prior 12-month average occupancy

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

14  exceeds 94 percent and the facility has not had any class I or

15  class II deficiencies since its initial licensure.

16         (c)  For a facility that has been licensed for less

17  than 24 months, certify that the prior 6-month average

18  occupancy rate for the nursing home beds at the facility meets

19  or exceeds 94 percent and that the facility has not had any

20  class I or class II deficiencies since its initial licensure.

21  

22  This subsection shall be repealed upon the expiration of the

23  moratorium established in subsection (1).

24         Section 12.  Subsection (7) of section 651.118, Florida

25  Statutes, is amended to read:

26         651.118  Agency for Health Care Administration;

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

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

29  at the discretion of the continuing care provider, sheltered

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

31  residents of the continuing care facility and who are not


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    CS for SB 1062                                 First Engrossed



 1  parties to a continuing care contract for a period of up to 5

 2  years after the date of issuance of the initial nursing home

 3  license. A provider whose 5-year period has expired or is

 4  expiring may request the Agency for Health Care Administration

 5  for an extension, not to exceed 30 percent of the total

 6  sheltered nursing home beds, if the utilization by residents

 7  of the nursing home facility in the sheltered beds will not

 8  generate sufficient income to cover nursing home facility

 9  expenses, as evidenced by one of the following:

10         (a)  The nursing home facility has a net loss for the

11  most recent fiscal year as determined under generally accepted

12  accounting principles, excluding the effects of extraordinary

13  or unusual items, as demonstrated in the most recently audited

14  financial statement; or

15         (b)  The nursing home facility would have had a pro

16  forma loss for the most recent fiscal year, excluding the

17  effects of extraordinary or unusual items, if revenues were

18  reduced by the amount of revenues from persons in sheltered

19  beds who were not residents, as reported on by a certified

20  public accountant.

21  

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

23  provider based on the evidence required in this subsection.

24  The agency may request a continuing care facility to use up to

25  25 percent of the patient days generated by new admissions of

26  nonresidents during the extension period to serve Medicaid

27  recipients for those beds authorized for extended use if there

28  is a demonstrated need in the respective service area and if

29  funds are available. A provider who obtains an extension is

30  prohibited from applying for additional sheltered beds under

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


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    CS for SB 1062                                 First Engrossed



 1  units are built or the provider can demonstrate need by

 2  continuing care facility residents to the Agency for Health

 3  Care Administration. The 5-year limit does not apply to up to

 4  five sheltered beds designated for inpatient hospice care as

 5  part of a contractual arrangement with a hospice licensed

 6  under part VI of chapter 400. A continuing care facility that

 7  uses such beds after the 5-year period shall report such use

 8  to the Agency for Health Care Administration. For purposes of

 9  this subsection, "resident" means a person who, upon admission

10  to the continuing care facility, initially resides in a part

11  of the continuing care facility not licensed under part II of

12  chapter 400.

13         Section 13.  Subsection (1) of section 395.003, Florida

14  Statutes, is amended to read:

15         395.003  Licensure; issuance, renewal, denial,

16  modification, suspension, and revocation.--

17         (1)(a)  A No person may not shall establish, conduct,

18  or maintain a hospital, ambulatory surgical center, or mobile

19  surgical facility in this state without first obtaining a

20  license under this part.

21         (b)1.  It is unlawful for a any person to use or

22  advertise to the public, in any way or by any medium

23  whatsoever, any facility as a "hospital," "ambulatory surgical

24  center," or "mobile surgical facility" unless such facility

25  has first secured a license under the provisions of this part.

26         2.  Nothing in This part does not apply applies to

27  veterinary hospitals or to commercial business establishments

28  using the word "hospital," "ambulatory surgical center," or

29  "mobile surgical facility" as a part of a trade name if no

30  treatment of human beings is performed on the premises of such

31  establishments.


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    CS for SB 1062                                 First Engrossed



 1         3.  By December 31, 2004, the agency shall submit a

 2  report to the President of the Senate and the Speaker of the

 3  House of Representatives recommending whether it is in the

 4  public interest to allow a hospital to license or operate an

 5  emergency department located off the premises of the hospital.

 6  If the agency finds it to be in the public interest, the

 7  report shall also recommend licensure criteria for such

 8  medical facilities, including criteria related to quality of

 9  care and, if deemed necessary, the elimination of the

10  possibility of confusion related to the service capabilities

11  of such facility in comparison to the service capabilities of

12  an emergency department located on the premises of the

13  hospital. Until July 1, 2005, additional emergency departments

14  located off the premises of licensed hospitals may not be

15  authorized by the agency.

16         Section 14.  Section 430.701, Florida Statutes, is

17  amended to read:

18         430.701  Legislative findings and intent.--

19         (1)  The Legislature finds that state expenditures for

20  long-term care services continue to increase at a rapid rate

21  and that Florida faces increasing pressure in its efforts to

22  meet the long-term care needs of the public.  It is the intent

23  of the Legislature that the Department of Elderly Affairs, in

24  consultation with the Agency for Health Care Administration,

25  implement long-term care community diversion pilot projects to

26  test the effectiveness of managed care and outcome-based

27  reimbursement principles when applied to long-term care.

28         (2)  Until such time as the agency receives a federal

29  waiver placing a cap on the number of providers in each

30  geographic area, the Legislature intends that the department

31  not approve any additional providers in planning and service


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    CS for SB 1062                                 First Engrossed



 1  areas that are currently served by three or more providers,

 2  and not approve more than three providers in areas that are

 3  currently not served by any providers or are served by fewer

 4  than 3 providers. These restrictions do not prevent the

 5  department from approving a provider to expand service to

 6  additional counties within a planning and service area for

 7  which the provider is already approved to serve.

 8         Section 15.  Subsection (3) of section 400.601, Florida

 9  Statutes, is amended to read:

10         400.601  Definitions.--As used in this part, the term:

11         (3)  "Hospice" means a centrally administered

12  corporation not for profit, as defined in chapter 617, and

13  qualified as an exempt corporation under s. 501(c)(3) of the

14  Internal Revenue Code, providing a continuum of palliative and

15  supportive care for the terminally ill patient and his or her

16  family.

17         Section 16.  Subsection (13) is added to section

18  400.9935, Florida Statutes, to read:

19         400.9935  Clinic responsibilities.--

20         (13)  The clinic, including hospitals and walk-in

21  clinics, shall display a sign in a conspicuous location within

22  the clinic readily visible to all patients indicating that

23  pursuant to s. 626.9892, the Department of Financial Services

24  may pay rewards of up to $25,000 to persons providing

25  information leading to the arrest and conviction of persons

26  committing crimes investigated by the Division of Insurance

27  Fraud arising from violations of s. 440.105, s. 624.15, s.

28  626.9541, s. 626.989, or s. 817.234. An authorized employee of

29  the Division of Insurance Fraud may make unannounced

30  inspections of clinics licensed pursuant to this part as are

31  necessary to determine that the clinic is in compliance with


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    CS for SB 1062                                 First Engrossed



 1  this subsection. A licensed clinic shall allow full and

 2  complete access to the premises to such authorized employee of

 3  the division who makes an inspection to determine compliance

 4  with this subsection.

 5         Section 17.  Present paragraphs (f) and (g) of

 6  subsection (3) of section 400.9905, Florida Statutes, are

 7  redesignated as paragraphs (g) and (h) respectively, and a new

 8  paragraph (f) is added to that subsection, to read:

 9         400.9905  Definitions.--

10         (3)  "Clinic" means an entity at which health care

11  services are provided to individuals and which tenders charges

12  for reimbursement for such services. For purposes of this

13  part, the term does not include and the licensure requirements

14  of this part do not apply to:

15         (f)  A sole proprietorship, group practice,

16  partnership, or corporation that provides health care services

17  by physicians covered by s. 627.419, that is directly

18  supervised by one or more of such physicians, and that is

19  wholly owned by one or more of those physicians or by a

20  physician and the spouse, parent, child, or sibling of that

21  physician.

22         Section 18.  Subsections (2) and (3) of section

23  400.991,Florida Statutes, are amended to read:

24         400.991  License requirements; background screenings;

25  prohibitions.--

26         (2)  The initial clinic license application shall be

27  filed with the agency by all clinics, as defined in s.

28  400.9905, on or before July 1 March 1, 2004. A clinic license

29  must be renewed biennially.

30         (3)  Applicants that submit an application on or before

31  July 1 March 1, 2004, which meets all requirements for initial


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    CS for SB 1062                                 First Engrossed



 1  licensure as specified in this section shall receive a

 2  temporary license until the completion of an initial

 3  inspection verifying that the applicant meets all requirements

 4  in rules authorized by s. 400.9925. However, a clinic engaged

 5  in magnetic resonance imaging services may not receive a

 6  temporary license unless it presents evidence satisfactory to

 7  the agency that such clinic is making a good faith effort and

 8  substantial progress in seeking accreditation required under

 9  s. 400.9935.

10         Section 19.  This act shall take effect upon becoming a

11  law and section 18 shall apply retroactively to March 1, 2004.

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