Senate Bill sb2570c1

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    Florida Senate - 2005                           CS for SB 2570

    By the Committee on Health Care; and Senators Jones and
    Bennett




    587-2175-05

  1                      A bill to be entitled

  2         An act relating to home medical equipment

  3         providers; amending s. 400.925, F.S.; revising

  4         and providing definitions; amending s. 400.931,

  5         F.S.; including additional categories of

  6         equipment in a report required by applicants

  7         for licensure; increasing the amount of

  8         liability insurance required of home medical

  9         equipment providers; amending s. 400.933, F.S.;

10         revising requirements for licensure and

11         assessment of fees; amending s. 400.934, F.S.;

12         revising minimum standards required for

13         licensure; amending s. 400.935, F.S.; requiring

14         the Agency for Health Care Administration to

15         provide additional regulatory standards by

16         rule; creating s. 400.936, F.S.; requiring

17         proof of accreditation as a prerequisite for

18         licensure or license renewal; providing for

19         temporary licensure; providing for rules

20         relating to designation of accrediting

21         organizations; amending s. 400.95, F.S.;

22         providing for notice of a toll-free telephone

23         number to report fraud and abuse by providers;

24         providing an effective date.

25  

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

27  

28         Section 1.  Subsection (1) of section 400.925, Florida

29  Statutes, is amended, and subsections (17), (18), (19), and

30  (20) are added to that section, to read:

31         400.925  Definitions.--As used in this part, the term:

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    Florida Senate - 2005                           CS for SB 2570
    587-2175-05




 1         (1)  "Accrediting organizations" means the Joint

 2  Commission on Accreditation of Healthcare Organizations, the

 3  Community Health Accreditation Program (CHAP), the

 4  Accreditation Commission for Health Care, Inc. (ACHC), or

 5  other national accreditation agencies whose standards for

 6  accreditation are comparable to those required by this part

 7  for licensure.

 8         (17)  "High-tech medical equipment provider" means any

 9  home medical equipment company that provides life-sustaining

10  equipment, technologically advanced equipment, or any other

11  similar equipment or product to any patient.

12         (18)  "Life-sustaining equipment" means mechanical

13  ventilators or other equipment that is essential to the

14  restoration or continuation of a bodily function important to

15  the continuation of human life.

16         (19)  "Technologically advanced equipment" means

17  equipment of such complexity that a licensed respiratory

18  therapist or registered nurse must set it up and train the

19  patient in its use.

20         (20)  "From its own inventory" means to provide the

21  items or service directly to the patient.

22         Section 2.  Paragraph (a) of subsection (2) and

23  subsections (6) and (7) of section 400.931, Florida Statutes,

24  are amended to read:

25         400.931  Application for license; fee; provisional

26  license; temporary permit.--

27         (2)  The applicant must file with the application

28  satisfactory proof that the home medical equipment provider is

29  in compliance with this part and applicable rules, including:

30         (a)  A report, by category, of the equipment to be

31  provided, indicating those offered either directly by the

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    Florida Senate - 2005                           CS for SB 2570
    587-2175-05




 1  applicant or through contractual arrangements with existing

 2  providers. Categories of equipment include:

 3         1.  Respiratory modalities.

 4         2.  Ambulation aids.

 5         3.  Mobility aids.

 6         4.  Sickroom setup.

 7         5.  Disposables.

 8         6.  Life-sustaining equipment.

 9         7.  Technologically advanced equipment.

10         (6)  The home medical equipment provider must also

11  obtain and maintain professional and commercial liability

12  insurance. Proof of liability insurance, as defined in s.

13  624.605, must be submitted with the application. The agency

14  shall set the required amounts of liability insurance by rule,

15  but the required amount must not be less than $300,000

16  $250,000 per claim. In the case of contracted services, it is

17  required that the contractor have liability insurance not less

18  than $300,000 $250,000 per claim.

19         (7)  A provisional license shall be issued to an

20  approved applicant for initial licensure for a period of 90

21  days, during which time a survey must be conducted

22  demonstrating substantial compliance with this section. A

23  temporary provisional license shall also be issued pending the

24  results of an applicant's Federal Bureau of Investigation

25  report of background screening confirming that all standards

26  have been met. If substantial compliance is demonstrated, a

27  standard license shall be issued to expire 2 years after the

28  effective date of the provisional license.

29         Section 3.  Subsection (2) of section 400.933, Florida

30  Statutes, is amended, and subsection (3) is added to that

31  section, to read:

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    Florida Senate - 2005                           CS for SB 2570
    587-2175-05




 1         400.933  Licensure inspections and investigations.--

 2         (2)  The agency shall accept, in lieu of its own

 3  periodic inspections for licensure, submission of the

 4  following:

 5         (a)  the survey or inspection of an accrediting

 6  organization, provided the accreditation of the licensed home

 7  medical equipment provider is not provisional and provided the

 8  licensed home medical equipment provider authorizes release

 9  of, and the agency receives the report of, the accrediting

10  organization.; or

11         (b)  A copy of a valid medical oxygen retail

12  establishment permit issued by the Department of Health,

13  pursuant to chapter 499.

14         (3)  In addition to any administrative fines imposed,

15  the agency may assess a survey fee of $500 to cover the cost

16  of conducting complaint investigations that result in the

17  finding of a violation that was the subject of the compliant

18  and any followup visits conducted to verify the correction of

19  the violations found in complaints.

20         Section 4.  Subsections (3), (4), and (18) of section

21  400.934, Florida Statutes, are amended, and subsection (20) is

22  added to that section, to read:

23         400.934  Minimum standards.--As a requirement of

24  licensure, home medical equipment providers shall:

25         (3)  Respond to orders received for other equipment by

26  filling those orders from its own inventory or inventory from

27  other companies with which it has contracted to fill such

28  orders; or by customizing or fitting items for sale from

29  supplies purchased under contract, except that high-tech

30  medical equipment providers shall fill all orders for

31  technologically advanced equipment directly from their own

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    Florida Senate - 2005                           CS for SB 2570
    587-2175-05




 1  inventory and shall not contract with any entity for the

 2  delivery of such orders unless such entity is also licensed

 3  and accredited pursuant to this subsection.

 4         (4)  Maintain trained personnel to coordinate order

 5  fulfillment and schedule timely equipment and service

 6  delivery. High-tech medical equipment providers shall have on

 7  staff, at a minimum, one licensed respiratory therapist, who

 8  is either a certified respiratory therapist (CRT), a

 9  registered respiratory therapist (RRT), or a registered nurse.

10         (18)  Maintain safe premises that are fully accessible

11  to all patients between the hours of 9 a.m. and 5 p.m.

12         (20)  Provide consumers with after-hours emergency

13  service appropriately staffed by personnel equipped to offer

14  necessary services to the public. High-tech medical equipment

15  providers shall have on call, at a minimum, one licensed

16  respiratory therapist who is either a certified respiratory

17  therapist (CRT), a registered respiratory therapist (RRT), or

18  a registered nurse.

19         Section 5.  Subsections (11) and (12) are added to

20  section 400.935, Florida Statutes, to read:

21         400.935  Rules establishing minimum standards.--The

22  agency shall adopt, publish, and enforce rules to implement

23  this part, which must provide reasonable and fair minimum

24  standards relating to:

25         (11)  The designation of equipment as life sustaining

26  or technologically advanced.

27         (12)  The designation of appropriate accrediting

28  organizations.

29         Section 6.  Section 400.936, Florida Statutes, is

30  created to read:

31         400.936  Mandatory accreditation.--

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    Florida Senate - 2005                           CS for SB 2570
    587-2175-05




 1         (1)  Effective January 1, 2006, all home medical

 2  equipment providers licensed under this part shall submit to

 3  the agency proof of accreditation as a prerequisite for

 4  licensure or license renewal. Any provider that does not

 5  submit proof of accreditation shall be issued a temporary

 6  license and shall have 60 days to submit proof of application

 7  to an accrediting organization. Such provider shall submit

 8  proof of accreditation within 180 days after submitting an

 9  application in order to receive a permanent license. Any home

10  medical equipment provider licenses as of January 1, 2006,

11  shall have a reasonable period of time, not to exceed its next

12  licensure renewal date, to comply with the accreditation

13  requirement. Applicants that submit proof of accreditation, a

14  completed licensure application, and the required fee may

15  receive a temporary license until completion of the review of

16  accreditation.

17         (2)  The agency shall adopt rules designating

18  appropriate accrediting organizations whose standards for

19  accreditation are comparable to those required by this part

20  for licensure.

21         Section 7.  Section 400.95, Florida Statutes, is

22  amended to read:

23         400.95  Notice of toll-free telephone number for

24  central fraud and abuse hotline.--On or before the first day

25  home medical equipment is delivered to the patient's home, any

26  home medical equipment provider licensed under this part must

27  inform the consumer and his or her immediate family, if

28  appropriate, of the right to report fraudulent, abusive,

29  neglectful, or exploitative practices. The statewide toll-free

30  telephone number for the central fraud and abuse hotline must

31  be provided to consumers in a manner that is clearly legible

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    Florida Senate - 2005                           CS for SB 2570
    587-2175-05




 1  and must include the words: "To report fraud, abuse, neglect,

 2  or exploitation, please call toll-free 1-800-962-2873." Home

 3  medical equipment providers shall establish appropriate

 4  policies and procedures for providing such notice to

 5  consumers.

 6         Section 8.  This act shall take effect July 1, 2005.

 7  

 8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 9                             SB 2570

10                                 

11  The Committee Substitute differs from SB 2570 in the following
    ways:
12  
    A high-tech medical equipment provider will provide equipment
13  for all patients, not just pediatric patients.

14   A high-tech medical equipment provider will not provide
    ventilator care or tracheotomy care.
15  
    The bill does not define pediatric patient.
16  
    The bill revises the definition of "from its own inventory" to
17  delete the prohibition against using inventory personnel from
    other companies or subcontractors, and to permit a high-tech
18  medical equipment provider to contract with a licensed and
    accredited entity.
19  
    A survey fee of $500 is authorized to cover the cost of
20  conducting complaint investigations that result in the finding
    of a violation that was the subject of a complaint and any
21  follow-up visits.

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