Senate Bill sb1116c1

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    Florida Senate - 2007                           CS for SB 1116

    By the Committee on Health and Human Services Appropriations;
    and Senator Peaden




    603-2261-07

  1                      A bill to be entitled

  2         An act relating to health care; amending s.

  3         409.911, F.S.; providing for the calculation of

  4         payments made to hospitals serving a

  5         disproportionate share of low-income patients;

  6         amending s. 409.9112, F.S.; prohibiting the

  7         Agency for Health Care Administration from

  8         distributing moneys under the regional

  9         perinatal intensive care centers

10         disproportionate share program for the

11         2007-2008 fiscal year; amending s. 409.9113,

12         F.S.; requiring the agency to distribute moneys

13         provided in the General Appropriations Act to

14         statutorily defined teaching hospitals and

15         family practice teaching hospitals under the

16         teaching hospital disproportionate share

17         program for the 2007-2008 fiscal year; amending

18         s. 409.9117, F.S.; prohibiting the agency from

19         distributing moneys under the primary care

20         disproportionate share program for the

21         2007-2008 fiscal year; providing an effective

22         date.

23  

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

25  

26         Section 1.  Paragraph (a) of subsection (2) of section

27  409.911, Florida Statutes, is amended to read:

28         409.911  Disproportionate share program.--Subject to

29  specific allocations established within the General

30  Appropriations Act and any limitations established pursuant to

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

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1  section, moneys to hospitals providing a disproportionate

 2  share of Medicaid or charity care services by making quarterly

 3  Medicaid payments as required. Notwithstanding the provisions

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

 5  the cost of this special reimbursement for hospitals serving a

 6  disproportionate share of low-income patients.

 7         (2)  The Agency for Health Care Administration shall

 8  use the following actual audited data to determine the

 9  Medicaid days and charity care to be used in calculating the

10  disproportionate share payment:

11         (a)  The average of the 2000, 2001, and 2002, and 2003

12  audited disproportionate share data to determine each

13  hospital's Medicaid days and charity care for the 2007-2008

14  2006-2007 state fiscal year.

15         Section 2.  Section 409.9112, Florida Statutes, is

16  amended to read:

17         409.9112  Disproportionate share program for regional

18  perinatal intensive care centers.--In addition to the payments

19  made under s. 409.911, the Agency for Health Care

20  Administration shall design and implement a system of making

21  disproportionate share payments to those hospitals that

22  participate in the regional perinatal intensive care center

23  program established pursuant to chapter 383. This system of

24  payments shall conform with federal requirements and shall

25  distribute funds in each fiscal year for which an

26  appropriation is made by making quarterly Medicaid payments.

27  Notwithstanding the provisions of s. 409.915, counties are

28  exempt from contributing toward the cost of this special

29  reimbursement for hospitals serving a disproportionate share

30  of low-income patients. For the state fiscal year 2007-2008

31  2005-2006, the agency shall not distribute moneys under the

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1  regional perinatal intensive care centers disproportionate

 2  share program.

 3         (1)  The following formula shall be used by the agency

 4  to calculate the total amount earned for hospitals that

 5  participate in the regional perinatal intensive care center

 6  program:

 7  

 8                         TAE = HDSP/THDSP

 9  

10  Where:

11         TAE = total amount earned by a regional perinatal

12  intensive care center.

13         HDSP = the prior state fiscal year regional perinatal

14  intensive care center disproportionate share payment to the

15  individual hospital.

16         THDSP = the prior state fiscal year total regional

17  perinatal intensive care center disproportionate share

18  payments to all hospitals.

19  

20         (2)  The total additional payment for hospitals that

21  participate in the regional perinatal intensive care center

22  program shall be calculated by the agency as follows:

23  

24                          TAP = TAE x TA

25  

26  Where:

27         TAP = total additional payment for a regional perinatal

28  intensive care center.

29         TAE = total amount earned by a regional perinatal

30  intensive care center.

31  

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1         TA = total appropriation for the regional perinatal

 2  intensive care center disproportionate share program.

 3  

 4         (3)  In order to receive payments under this section, a

 5  hospital must be participating in the regional perinatal

 6  intensive care center program pursuant to chapter 383 and must

 7  meet the following additional requirements:

 8         (a)  Agree to conform to all departmental and agency

 9  requirements to ensure high quality in the provision of

10  services, including criteria adopted by departmental and

11  agency rule concerning staffing ratios, medical records,

12  standards of care, equipment, space, and such other standards

13  and criteria as the department and agency deem appropriate as

14  specified by rule.

15         (b)  Agree to provide information to the department and

16  agency, in a form and manner to be prescribed by rule of the

17  department and agency, concerning the care provided to all

18  patients in neonatal intensive care centers and high-risk

19  maternity care.

20         (c)  Agree to accept all patients for neonatal

21  intensive care and high-risk maternity care, regardless of

22  ability to pay, on a functional space-available basis.

23         (d)  Agree to develop arrangements with other maternity

24  and neonatal care providers in the hospital's region for the

25  appropriate receipt and transfer of patients in need of

26  specialized maternity and neonatal intensive care services.

27         (e)  Agree to establish and provide a developmental

28  evaluation and services program for certain high-risk

29  neonates, as prescribed and defined by rule of the department.

30  

31  

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    Florida Senate - 2007                           CS for SB 1116
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 1         (f)  Agree to sponsor a program of continuing education

 2  in perinatal care for health care professionals within the

 3  region of the hospital, as specified by rule.

 4         (g)  Agree to provide backup and referral services to

 5  the department's county health departments and other

 6  low-income perinatal providers within the hospital's region,

 7  including the development of written agreements between these

 8  organizations and the hospital.

 9         (h)  Agree to arrange for transportation for high-risk

10  obstetrical patients and neonates in need of transfer from the

11  community to the hospital or from the hospital to another more

12  appropriate facility.

13         (4)  Hospitals which fail to comply with any of the

14  conditions in subsection (3) or the applicable rules of the

15  department and agency shall not receive any payments under

16  this section until full compliance is achieved.  A hospital

17  which is not in compliance in two or more consecutive quarters

18  shall not receive its share of the funds.  Any forfeited funds

19  shall be distributed by the remaining participating regional

20  perinatal intensive care center program hospitals.

21         Section 3.  Section 409.9113, Florida Statutes, is

22  amended to read:

23         409.9113  Disproportionate share program for teaching

24  hospitals.--In addition to the payments made under ss. 409.911

25  and 409.9112, the Agency for Health Care Administration shall

26  make disproportionate share payments to statutorily defined

27  teaching hospitals for their increased costs associated with

28  medical education programs and for tertiary health care

29  services provided to the indigent. This system of payments

30  shall conform with federal requirements and shall distribute

31  funds in each fiscal year for which an appropriation is made

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1  by making quarterly Medicaid payments. Notwithstanding s.

 2  409.915, counties are exempt from contributing toward the cost

 3  of this special reimbursement for hospitals serving a

 4  disproportionate share of low-income patients. For the state

 5  fiscal year 2007-2008 2006-2007, the agency shall distribute

 6  the moneys provided in the General Appropriations Act to

 7  statutorily defined teaching hospitals and family practice

 8  teaching hospitals under the teaching hospital

 9  disproportionate share program. The funds provided for

10  statutorily defined teaching hospitals shall be distributed in

11  the same proportion as the state fiscal year 2003-2004

12  teaching hospital disproportionate share funds were

13  distributed. The funds provided for family practice teaching

14  hospitals shall be distributed equally among family practice

15  teaching hospitals.

16         (1)  On or before September 15 of each year, the Agency

17  for Health Care Administration shall calculate an allocation

18  fraction to be used for distributing funds to state statutory

19  teaching hospitals. Subsequent to the end of each quarter of

20  the state fiscal year, the agency shall distribute to each

21  statutory teaching hospital, as defined in s. 408.07, an

22  amount determined by multiplying one-fourth of the funds

23  appropriated for this purpose by the Legislature times such

24  hospital's allocation fraction.  The allocation fraction for

25  each such hospital shall be determined by the sum of three

26  primary factors, divided by three. The primary factors are:

27         (a)  The number of nationally accredited graduate

28  medical education programs offered by the hospital, including

29  programs accredited by the Accreditation Council for Graduate

30  Medical Education and the combined Internal Medicine and

31  Pediatrics programs acceptable to both the American Board of

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1  Internal Medicine and the American Board of Pediatrics at the

 2  beginning of the state fiscal year preceding the date on which

 3  the allocation fraction is calculated. The numerical value of

 4  this factor is the fraction that the hospital represents of

 5  the total number of programs, where the total is computed for

 6  all state statutory teaching hospitals.

 7         (b)  The number of full-time equivalent trainees in the

 8  hospital, which comprises two components:

 9         1.  The number of trainees enrolled in nationally

10  accredited graduate medical education programs, as defined in

11  paragraph (a).  Full-time equivalents are computed using the

12  fraction of the year during which each trainee is primarily

13  assigned to the given institution, over the state fiscal year

14  preceding the date on which the allocation fraction is

15  calculated. The numerical value of this factor is the fraction

16  that the hospital represents of the total number of full-time

17  equivalent trainees enrolled in accredited graduate programs,

18  where the total is computed for all state statutory teaching

19  hospitals.

20         2.  The number of medical students enrolled in

21  accredited colleges of medicine and engaged in clinical

22  activities, including required clinical clerkships and

23  clinical electives.  Full-time equivalents are computed using

24  the fraction of the year during which each trainee is

25  primarily assigned to the given institution, over the course

26  of the state fiscal year preceding the date on which the

27  allocation fraction is calculated. The numerical value of this

28  factor is the fraction that the given hospital represents of

29  the total number of full-time equivalent students enrolled in

30  accredited colleges of medicine, where the total is computed

31  for all state statutory teaching hospitals.

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1  

 2  The primary factor for full-time equivalent trainees is

 3  computed as the sum of these two components, divided by two.

 4         (c)  A service index that comprises three components:

 5         1.  The Agency for Health Care Administration Service

 6  Index, computed by applying the standard Service Inventory

 7  Scores established by the Agency for Health Care

 8  Administration to services offered by the given hospital, as

 9  reported on Worksheet A-2 for the last fiscal year reported to

10  the agency before the date on which the allocation fraction is

11  calculated.  The numerical value of this factor is the

12  fraction that the given hospital represents of the total

13  Agency for Health Care Administration Service Index values,

14  where the total is computed for all state statutory teaching

15  hospitals.

16         2.  A volume-weighted service index, computed by

17  applying the standard Service Inventory Scores established by

18  the Agency for Health Care Administration to the volume of

19  each service, expressed in terms of the standard units of

20  measure reported on Worksheet A-2 for the last fiscal year

21  reported to the agency before the date on which the allocation

22  factor is calculated.  The numerical value of this factor is

23  the fraction that the given hospital represents of the total

24  volume-weighted service index values, where the total is

25  computed for all state statutory teaching hospitals.

26         3.  Total Medicaid payments to each hospital for direct

27  inpatient and outpatient services during the fiscal year

28  preceding the date on which the allocation factor is

29  calculated.  This includes payments made to each hospital for

30  such services by Medicaid prepaid health plans, whether the

31  plan was administered by the hospital or not.  The numerical

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1  value of this factor is the fraction that each hospital

 2  represents of the total of such Medicaid payments, where the

 3  total is computed for all state statutory teaching hospitals.

 4  

 5  The primary factor for the service index is computed as the

 6  sum of these three components, divided by three.

 7         (2)  By October 1 of each year, the agency shall use

 8  the following formula to calculate the maximum additional

 9  disproportionate share payment for statutorily defined

10  teaching hospitals:

11  

12                          TAP = THAF x A

13  

14  Where:

15         TAP = total additional payment.

16         THAF = teaching hospital allocation factor.

17         A = amount appropriated for a teaching hospital

18  disproportionate share program.

19         Section 4.  Section 409.9117, Florida Statutes, is

20  amended to read:

21         409.9117  Primary care disproportionate share

22  program.--For the state fiscal year 2007-2008 2006-2007, the

23  agency shall not distribute moneys under the primary care

24  disproportionate share program.

25         (1)  If federal funds are available for

26  disproportionate share programs in addition to those otherwise

27  provided by law, there shall be created a primary care

28  disproportionate share program.

29         (2)  The following formula shall be used by the agency

30  to calculate the total amount earned for hospitals that

31  

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1  participate in the primary care disproportionate share

 2  program:

 3  

 4                         TAE = HDSP/THDSP

 5  

 6  Where:

 7         TAE = total amount earned by a hospital participating

 8  in the primary care disproportionate share program.

 9         HDSP = the prior state fiscal year primary care

10  disproportionate share payment to the individual hospital.

11         THDSP = the prior state fiscal year total primary care

12  disproportionate share payments to all hospitals.

13  

14         (3)  The total additional payment for hospitals that

15  participate in the primary care disproportionate share program

16  shall be calculated by the agency as follows:

17  

18                          TAP = TAE x TA

19  

20  Where:

21         TAP = total additional payment for a primary care

22  hospital.

23         TAE = total amount earned by a primary care hospital.

24         TA = total appropriation for the primary care

25  disproportionate share program.

26  

27         (4)  In the establishment and funding of this program,

28  the agency shall use the following criteria in addition to

29  those specified in s. 409.911, payments may not be made to a

30  hospital unless the hospital agrees to:

31  

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




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

 2  one exists in the community.

 3         (b)  Ensure the availability of primary and specialty

 4  care physicians to Medicaid recipients who are not enrolled in

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

 6  to such physicians.

 7         (c)  Coordinate and provide primary care services free

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

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

10  otherwise covered by Medicaid or another program administered

11  by a governmental entity, and to provide such services based

12  on a sliding fee scale to all persons with incomes up to 200

13  percent of the federal poverty level who are not otherwise

14  covered by Medicaid or another program administered by a

15  governmental entity, except that eligibility may be limited to

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

17  the agency and the hospital.

18         (d)  Contract with any federally qualified health

19  center, if one exists within the agreed geopolitical

20  boundaries, concerning the provision of primary care services,

21  in order to guarantee delivery of services in a nonduplicative

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

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

24  provide at an onsite or offsite facility primary care services

25  within 24 hours to which all Medicaid recipients and persons

26  eligible under this paragraph who do not require emergency

27  room services are referred during normal daylight hours.

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

29  entities to ensure the provision of certain public health

30  services, case management, referral and acceptance of

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

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1  and the hospital find mutually necessary and desirable to

 2  promote and protect the public health within the agreed

 3  geopolitical boundaries.

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

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

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

 7  Medicaid program, and who reside within the area.

 8         (g)  Provide inpatient services to residents within the

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

10  not have private health insurance, regardless of ability to

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

12  shall prevent the hospital from establishing bill collection

13  programs based on ability to pay.

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

15  the Florida Health Care Purchasing Cooperative, and business

16  health coalitions, as appropriate, to develop a feasibility

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

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

19  do not have access to such a plan.

20         (i)  Work with public health officials and other

21  experts to provide community health education and prevention

22  activities designed to promote healthy lifestyles and

23  appropriate use of health services.

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

25  plan for promoting access to affordable health care services

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

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

28  inpatient services, and affordable health insurance generally.

29  

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

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

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    Florida Senate - 2007                           CS for SB 1116
    603-2261-07




 1  not receive payments under this section until full compliance

 2  is achieved.

 3         Section 5.  This act shall take effect July 1, 2007.

 4  

 5          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 6                         Senate Bill 1116

 7                                 

 8  Updates the years of audited data used to determine Medicaid
    and charity care days for each hospital in the
 9  Disproportionate Share Program for Fiscal Year 2007-2008.

10  Continues language that does not allow for distribution of
    funds through the Regional Perinatal Intensive Care Centers
11  and the Primary Care Disproportionate Share Programs in Fiscal
    Year 2007-2008.
12  
    Updates the year and requires disproportionate share payments
13  to teaching hospitals in Fiscal Year 2007-2008.

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