Senate Bill sb1882c1

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    Florida Senate - 2007                           CS for SB 1882

    By the Committee on Banking and Insurance; and Senator Posey





    597-2345-07

  1                      A bill to be entitled

  2         An act relating to the Health Care Clinic Act;

  3         amending s. 400.9905, F.S.; clarifying certain

  4         types of sole proprietorships, group practices,

  5         partnerships, corporations, and other legal

  6         entities that are not subject to the licensure

  7         requirements of the act; amending s. 400.991,

  8         F.S.; requiring certain persons having a

  9         financial interest in a clinic, or having

10         control over certain activities relating to the

11         operations of a clinic, to undergo background

12         screening; authorizing the Agency for Health

13         Care Administration to adopt rules; authorizing

14         the agency to deny or revoke a license if an

15         applicant, licensee, or person having an

16         interest in a clinic has been excluded,

17         suspended, or terminated from the Medicare or

18         Medicaid programs or has committed certain

19         offenses prohibited under level 2 screening

20         standards; providing additional requirements

21         for background screening with respect to

22         offenses committed within the past 10 years;

23         providing that failure to provide such

24         information is a material omission; authorizing

25         the agency to deny, revoke, or suspend a

26         license or assess an administrative penalty if

27         a person fails to comply with the requirements

28         for background screening; authorizing the

29         agency to declare a loss of exempt status under

30         certain conditions; requiring an applicant that

31         performs magnetic resonance imaging, static

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 1         radiographs, computed tomography, or positron

 2         emission tomography to provide certain

 3         information to the agency; providing that the

 4         submission of fraudulent or misleading

 5         information on an application for licensure is

 6         a third-degree felony; amending s. 400.9935,

 7         F.S.; specifying additional duties of a medical

 8         director or clinic director; limiting the

 9         number of clinics and employees for which a

10         medical or clinic director may be responsible;

11         requiring that multiple clinics under the

12         control of the same medical or clinic director

13         must be within a specified proximity;

14         authorizing the agency to waive such

15         limitations upon a showing of good cause;

16         requiring clinics that are exempt from

17         licensure and located within certain counties

18         to obtain a certificate of exemption; requiring

19         that the application be notarized and subject

20         to penalty for perjury; providing for an

21         application fee; providing requirements for

22         renewal of an exemption from licensure;

23         providing a penalty for submitting fraudulent

24         or misleading information in an application for

25         exemption; requiring that the agency issue an

26         emergency order of suspension upon a finding

27         that an applicant has provided false or

28         misleading information or omitted a material

29         fact from an application for a certificate of

30         exemption; amending s. 456.072, F.S.; providing

31         that intentionally providing false information

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 1         on an application for a certificate of

 2         exemption from clinic licensure is grounds for

 3         discipline under provisions regulating medical

 4         professionals; providing an effective date.

 5  

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

 7  

 8         Section 1.  Subsection (4) of section 400.9905, Florida

 9  Statutes, is amended to read:

10         400.9905  Definitions.--

11         (4)  "Clinic" means an entity at which health care

12  services are provided to individuals and which tenders charges

13  for reimbursement for such services, including a mobile clinic

14  and a portable equipment provider. For purposes of this part,

15  the term does not include and the licensure requirements of

16  this part do not apply to:

17         (a)  Entities licensed or registered by the state under

18  chapter 395; or entities licensed or registered by the state

19  and providing only health care services within the scope of

20  services authorized under their respective licenses granted

21  under ss. 383.30-383.335, chapter 390, chapter 394, chapter

22  397, this chapter except part X, chapter 429, chapter 463,

23  chapter 465, chapter 466, chapter 478, part I of chapter 483,

24  chapter 484, or chapter 651; end-stage renal disease providers

25  authorized under 42 C.F.R. part 405, subpart U; or providers

26  certified under 42 C.F.R. part 485, subpart B or subpart H; or

27  any entity that provides neonatal or pediatric hospital-based

28  health care services by licensed practitioners solely within a

29  hospital licensed under chapter 395.

30         (b)  Entities that own, directly or indirectly,

31  entities licensed or registered by the state pursuant to

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 1  chapter 395; or entities that own, directly or indirectly,

 2  entities licensed or registered by the state and providing

 3  only health care services within the scope of services

 4  authorized pursuant to their respective licenses granted under

 5  ss. 383.30-383.335, chapter 390, chapter 394, chapter 397,

 6  this chapter except part X, chapter 429, chapter 463, chapter

 7  465, chapter 466, chapter 478, part I of chapter 483, chapter

 8  484, chapter 651; end-stage renal disease providers authorized

 9  under 42 C.F.R. part 405, subpart U; or providers certified

10  under 42 C.F.R. part 485, subpart B or subpart H; or any

11  entity that provides neonatal or pediatric hospital-based

12  health care services by licensed practitioners solely within a

13  hospital licensed under chapter 395.

14         (c)  Entities that are owned, directly or indirectly,

15  by an entity licensed or registered by the state pursuant to

16  chapter 395; or entities that are owned, directly or

17  indirectly, by an entity licensed or registered by the state

18  and providing only health care services within the scope of

19  services authorized pursuant to their respective licenses

20  granted under ss. 383.30-383.335, chapter 390, chapter 394,

21  chapter 397, this chapter except part X, chapter 429, chapter

22  463, chapter 465, chapter 466, chapter 478, part I of chapter

23  483, chapter 484, or chapter 651; end-stage renal disease

24  providers authorized under 42 C.F.R. part 405, subpart U; or

25  providers certified under 42 C.F.R. part 485, subpart B or

26  subpart H; or any entity that provides neonatal or pediatric

27  hospital-based health care services by licensed practitioners

28  solely within a hospital under chapter 395.

29         (d)  Entities that are under common ownership, directly

30  or indirectly, with an entity licensed or registered by the

31  state pursuant to chapter 395; or entities that are under

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 1  common ownership, directly or indirectly, with an entity

 2  licensed or registered by the state and providing only health

 3  care services within the scope of services authorized pursuant

 4  to their respective licenses granted under ss. 383.30-383.335,

 5  chapter 390, chapter 394, chapter 397, this chapter except

 6  part X, chapter 429, chapter 463, chapter 465, chapter 466,

 7  chapter 478, part I of chapter 483, chapter 484, or chapter

 8  651; end-stage renal disease providers authorized under 42

 9  C.F.R. part 405, subpart U; or providers certified under 42

10  C.F.R. part 485, subpart B or subpart H; or any entity that

11  provides neonatal or pediatric hospital-based health care

12  services by licensed practitioners solely within a hospital

13  licensed under chapter 395.

14         (e)  An entity that is exempt from federal taxation

15  under 26 U.S.C. s. 501(c)(3) or (4), an employee stock

16  ownership plan under 26 U.S.C. s. 409 that has a board of

17  trustees not less than two-thirds of which are

18  Florida-licensed health care practitioners and provides only

19  physical therapy services under physician orders, any

20  community college or university clinic, and any entity owned

21  or operated by the federal or state government, including

22  agencies, subdivisions, or municipalities thereof.

23         (f)  A sole proprietorship, group practice,

24  partnership, or corporation, or other legal entity that

25  provides health care services by physicians licensed under

26  chapter 458, chapter 459, chapter 460, chapter 461, or chapter

27  466 covered by s. 627.419, that is directly supervised by one

28  or more of such physicians, and that is wholly owned by one or

29  more of those physicians or by a physician and the spouse,

30  parent, child, or sibling of that physician.

31  

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 1         (g)  A sole proprietorship, group practice,

 2  partnership, or corporation, or other legal entity that

 3  provides health care services by licensed health care

 4  practitioners under chapter 457, physician assistants under

 5  chapter 458, chapter 459, chapter 460, or chapter 461, or

 6  practitioners under chapter 462, chapter 463, chapter 466,

 7  chapter 467, chapter 480, chapter 484, chapter 486, chapter

 8  490, chapter 491, or part I, part III, part X, part XIII, or

 9  part XIV of chapter 468, or s. 464.012, which entities are

10  wholly owned by one or more licensed health care

11  practitioners, or the licensed health care practitioners set

12  forth in this paragraph and the spouse, parent, child, or

13  sibling of a licensed health care practitioner, so long as one

14  of the owners who is a licensed health care practitioner is

15  supervising the health care services business activities and

16  is legally responsible for the entity's compliance with all

17  federal and state laws. However, health care services provided

18  may not exceed the scope of the licensed owner's health care a

19  health care practitioner may not supervise services beyond the

20  scope of the practitioner's license, except that, for the

21  purposes of this part, a clinic owned by a licensee in s.

22  456.053(3)(b) that provides only services authorized pursuant

23  to s. 456.053(3)(b) may be supervised by a licensee specified

24  in s. 456.053(3)(b).

25         (h)  Clinical facilities affiliated with an accredited

26  medical school at which training is provided for medical

27  students, residents, or fellows.

28         (i)  Entities that provide only oncology or radiation

29  therapy services by physicians licensed under chapter 458 or

30  chapter 459 or entities that provide oncology or radiation

31  therapy services by physicians licensed under chapter 458 or

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 1  chapter 459 which are owned by a corporation whose shares are

 2  publicly traded on a recognized stock exchange.

 3         (j)  Clinical facilities affiliated with a college of

 4  chiropractic accredited by the Council on Chiropractic

 5  Education at which training is provided for chiropractic

 6  students.

 7         (k)  Entities that provide licensed practitioners to

 8  staff emergency departments or to deliver anesthesia services

 9  in facilities licensed under chapter 395 and that derive at

10  least 90 percent of their gross annual revenues from the

11  provision of such services. Entities claiming an exemption

12  from licensure under this paragraph must provide documentation

13  demonstrating compliance.

14         Section 2.  Section 400.991, Florida Statutes, is

15  amended to read:

16         400.991  License requirements; background screenings;

17  prohibitions.--

18         (1)(a)  Each clinic, as defined in s. 400.9905, must be

19  licensed and shall at all times maintain a valid license with

20  the agency. Each clinic location shall be licensed separately

21  regardless of whether the clinic is operated under the same

22  business name or management as another clinic.

23         (b)  Each mobile clinic must obtain a separate health

24  care clinic license and must provide to the agency, at least

25  quarterly, its projected street location to enable the agency

26  to locate and inspect such clinic. A portable equipment

27  provider must obtain a health care clinic license for a single

28  administrative office and is not required to submit quarterly

29  projected street locations.

30         (2)  The initial clinic license application shall be

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

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 1  400.9905, on or before July 1, 2004. A clinic license must be

 2  renewed biennially.

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

 4  July 1, 2004, which meets all requirements for initial

 5  licensure as specified in this section shall receive a

 6  temporary license until the completion of an initial

 7  inspection verifying that the applicant meets all requirements

 8  in rules authorized in s. 400.9925. However, a clinic engaged

 9  in magnetic resonance imaging services may not receive a

10  temporary license unless it presents evidence satisfactory to

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

12  substantial progress in seeking accreditation required under

13  s. 400.9935.

14         (4)  Application for an initial clinic license or for

15  renewal of an existing license shall be notarized on forms

16  furnished by the agency and must be accompanied by the

17  appropriate license fee as provided in s. 400.9925. The agency

18  shall take final action on an initial license application

19  within 60 days after receipt of all required documentation.

20         (5)(a)  The application shall contain information that

21  includes, but need not be limited to, information pertaining

22  to the name, residence and business address, phone number,

23  social security number, and license number of the medical or

24  clinic director, of the licensed medical providers employed or

25  under contract with the clinic, and of each person who,

26  directly or indirectly, owns or controls 5 percent or more of

27  an interest in the clinic, or general partners in limited

28  liability partnerships.

29         (b)  Any person having a financial interest in a

30  clinic, directly or indirectly, as set forth in this paragraph

31  is subject to background screening requirements under this

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 1  part. This includes any person who may or may not own stock or

 2  an equivalent interest in the clinic, but nonetheless has

 3  control over or the authority to approve, directly or

 4  indirectly, clinic billing, policy, business activities, or

 5  personnel decisions, including, but not limited to, contracted

 6  or employed persons or entities, managers, and management

 7  companies performing third-party billing services and persons

 8  and entities, directly or indirectly, which lend, give, or

 9  gift money of any denomination or any thing of value exceeding

10  an aggregate of $5,000 for clinic use, with or without an

11  expectation of a return of the money or thing of value, and

12  regardless of profit motive.

13         (c)  The agency may adopt rules to administer this

14  subsection.

15         (6)  The applicant must file with the application

16  satisfactory proof that the clinic is in compliance with this

17  part and applicable rules, including:

18         (a)  A listing of services to be provided either

19  directly by the applicant or through contractual arrangements

20  with existing providers;

21         (b)  The number and discipline of each professional

22  staff member to be employed; and

23         (c)  Proof of financial ability to operate. An

24  applicant must demonstrate financial ability to operate a

25  clinic by submitting a balance sheet and an income and expense

26  statement for the first year of operation which provide

27  evidence of the applicant's having sufficient assets, credit,

28  and projected revenues to cover liabilities and expenses. The

29  applicant shall have demonstrated financial ability to operate

30  if the applicant's assets, credit, and projected revenues meet

31  or exceed projected liabilities and expenses. All documents

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 1  required under this subsection must be prepared in accordance

 2  with generally accepted accounting principles, may be in a

 3  compilation form, and the financial statement must be signed

 4  by a certified public accountant. As an alternative to

 5  submitting a balance sheet and an income and expense statement

 6  for the first year of operation, the applicant may file a

 7  surety bond of at least $500,000 which guarantees that the

 8  clinic will act in full conformity with all legal requirements

 9  for operating a clinic, payable to the agency. The agency may

10  adopt rules to specify related requirements for such surety

11  bond.

12         (7)  Each applicant for licensure shall comply with the

13  following requirements:

14         (a)  As used in this subsection, the term "applicant"

15  means an individual individuals owning or controlling,

16  directly or indirectly, 5 percent or more of an interest in a

17  clinic; the medical or clinic director, or a similarly titled

18  person who is responsible for the day-to-day operation of the

19  licensed clinic; the financial officer or similarly titled

20  individual who is responsible for the financial operation of

21  the clinic; and licensed health care practitioners at the

22  clinic; and any person who has a controlling interest as

23  defined in s. 408.803(7).

24         (b)  Upon receipt of a completed, signed, and dated

25  application, the agency shall require background screening of

26  the applicant, in accordance with the level 2 standards for

27  screening set forth in paragraph (d) chapter 435. Proof of

28  compliance with the level 2 background screening requirements

29  of paragraph (d) chapter 435 which has been submitted within

30  the previous 5 years in compliance with the any other health

31  care clinic licensure requirements of this part state is

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 1  acceptable in fulfillment of this paragraph. Applicants who

 2  own less than 10 percent of a health care clinic are not

 3  required to submit fingerprints under this section.

 4         (c)  Each applicant must submit to the agency, with the

 5  application, a description and explanation of any exclusions,

 6  permanent suspensions, or terminations of an applicant from

 7  the Medicare or Medicaid programs. Proof of compliance with

 8  the requirements for disclosure of ownership and control

 9  interest under the Medicaid or Medicare programs may be

10  accepted in lieu of this submission. The description and

11  explanation may indicate whether such exclusions, suspensions,

12  or terminations were voluntary or not voluntary on the part of

13  the applicant. The agency may deny or revoke licensure based

14  on information received under this paragraph for exclusions,

15  permanent suspensions, or terminations of an applicant or

16  persons or entities identified in paragraph (5)(b) from the

17  Medicare or Medicaid programs.

18         (d)  A license may not be granted to a clinic if the

19  applicant, or a person or entity identified in paragraph

20  (5)(b), has been found guilty of, regardless of adjudication,

21  or has entered a plea of nolo contendere or guilty to, any

22  offense prohibited under the level 2 standards for screening

23  set forth in chapter 435 or this section. In addition to the

24  process and procedures set forth in s. 408.809 which are

25  specifically required, all persons who must meet level 2

26  standards of chapter 435 must also undergo level 2 background

27  screening for any felony committed within the past 10 years

28  under chapter 400, chapter 408, chapter 409, chapter 440,

29  chapter 456, chapter 624, chapter 626, chapter 627, chapter

30  812, chapter 817, chapter 831, chapter 837, chapter 838,

31  chapter 895, or chapter 896, or any substantially comparable

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 1  offense or crime of another state or of the United States if

 2  such offense is a felony in that jurisdiction. The agency may

 3  require each person who must undergo background screening to

 4  disclose, on forms provided by the agency, his or her name,

 5  address, social security number, and date of birth and any

 6  arrest for any crime for which any court disposition other

 7  than dismissal has been rendered within the past 10 years

 8  prior to an affiliation with an applicant or licensee under

 9  this part. Failure to provide such information may be

10  considered by the agency as a material omission in the

11  application or licensure process. Notwithstanding the time

12  provisions of chapter 120 for granting or denying an

13  application for a license, the agency may not approve an

14  initial, renewal, or change-of-ownership application for any

15  applicant whose background screening process is not complete

16  and all persons required to undergo such screening demonstrate

17  compliance with this paragraph. The agency shall deny a

18  pending application or revoke or suspend a license and assess

19  an administrative penalty in accordance with s. 400.995(1)

20  against a licensee if the agency substantiates that a person

21  who is required to meet background screening standards has

22  failed or refused to submit to background screening as set

23  forth in this part or does not meet the minimum requirements

24  of such screening after the timely submission of fingerprint

25  cards to the agency., or a violation of insurance fraud under

26  s. 817.234, within the past 5 years. If the applicant has been

27  convicted of an offense prohibited under the level 2 standards

28  or insurance fraud in any jurisdiction, the applicant must

29  show that his or her civil rights have been restored prior to

30  submitting an application.

31  

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 1         (e)  The agency may deny or revoke licensure or declare

 2  loss of an exempt status, effective on the date that the

 3  requirements for exempt status are not met, if the applicant

 4  has falsely represented any material fact or omitted any

 5  material fact from the application required by this part or by

 6  agency rule. An exempt status under this part ceases to exist

 7  on the date that a business fails to qualify for an exemption

 8  under this part or the Health Care Licensing Procedures Act.

 9         (f)  Each applicant that performs the technical

10  component of magnetic resonance imaging, static radiographs,

11  computed tomography, or positron emission tomography, and also

12  provides the professional components of such services through

13  an employee or independent contractor must provide to the

14  agency on a form provided by the agency, the name and address

15  of the clinic, the serial or operating number of each magnetic

16  resonance imaging, static radiograph, computed tomography, and

17  positron emission tomography machine, the name of the

18  manufacturer of the machine, and such other information as

19  required by the agency to identify the machine. The

20  information must be provided to the agency upon renewal of the

21  clinic's license and within 30 days after a clinic begins

22  using a machine for which it has not provided the information

23  to the agency.

24         (8)  Requested information omitted from an application

25  for licensure, license renewal, or transfer of ownership must

26  be filed with the agency within 21 days after receipt of the

27  agency's request for omitted information, or the application

28  shall be deemed incomplete and shall be withdrawn from further

29  consideration.

30  

31  

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 1         (9)  The failure to file a timely renewal application

 2  shall result in a late fee charged to the facility in an

 3  amount equal to 50 percent of the current license fee.

 4         (10)  Any person or entity that submits an application

 5  for a license which contains fraudulent or material and

 6  misleading information commits a felony of the third degree,

 7  punishable as provided in s. 775.082, s. 775.083, or s.

 8  775.084.

 9         Section 3.  Section 400.9935, Florida Statutes, is

10  amended to read:

11         400.9935  Clinic responsibilities.--

12         (1)  Each clinic shall appoint a medical director or

13  clinic director who shall agree in writing to accept legal

14  responsibility for the following activities on behalf of the

15  clinic. The medical director or the clinic director shall:

16         (a)  Have signs identifying the medical director or

17  clinic director posted in a conspicuous location within the

18  clinic readily visible to all patients.

19         (b)  Ensure that all practitioners providing health

20  care services or supplies to patients maintain a current

21  active and unencumbered Florida license and do not provide

22  health care services or supplies outside the scope of that

23  license or as otherwise prohibited by law.

24         (c)  Review any patient referral contracts or

25  agreements executed by the clinic.

26         (d)  Ensure that all health care practitioners at the

27  clinic have active appropriate certification or licensure for

28  the level of care being provided.

29         (e)  Serve as the clinic records owner as defined in s.

30  456.057.

31  

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 1         (f)  Ensure compliance with the recordkeeping, office

 2  surgery, and adverse incident reporting requirements of

 3  chapter 456, the respective practice acts, and rules adopted

 4  under this part.

 5         (g)  Conduct systematic reviews of clinic billings to

 6  ensure that the billings are not fraudulent or unlawful. Upon

 7  discovery of an unlawful charge, the medical director or

 8  clinic director shall take immediate corrective action. If the

 9  clinic performs only the technical component of magnetic

10  resonance imaging, static radiographs, computed tomography, or

11  positron emission tomography, and provides the professional

12  interpretation of such services, in a fixed facility that is

13  accredited by the Joint Commission on Accreditation of

14  Healthcare Organizations or the Accreditation Association for

15  Ambulatory Health Care, and the American College of Radiology;

16  and if, in the preceding quarter, the percentage of scans

17  performed by that clinic which was billed to all personal

18  injury protection insurance carriers was less than 15 percent,

19  the chief financial officer of the clinic may, in a written

20  acknowledgment provided to the agency, assume the

21  responsibility for the conduct of the systematic reviews of

22  clinic billings to ensure that the billings are not fraudulent

23  or unlawful.

24         (h)  Not refer a patient to the clinic if the clinic

25  performs magnetic resonance imaging, static radiographs,

26  computed tomography, or positron emission tomography. The term

27  "refer a patient" means the referral of one or more patients

28  of the medical or clinical director or a member of the medical

29  or clinical director's group practice to the clinic for

30  magnetic resonance imaging, static radiographs, computed

31  tomography, or positron emission tomography. A medical

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 1  director who is found to violate this paragraph commits a

 2  felony of the third degree, punishable as provided in s.

 3  775.082, s. 775.083, or s. 775.084.

 4         (i)  Serve in that capacity for no more than a maximum

 5  of three health care clinics that have a cumulative total of

 6  no more than 100 employees and persons under contract with the

 7  health care clinic at a given time. A medical or clinic

 8  director may not supervise a health care clinic more than 200

 9  miles away from any other health care clinic supervised by the

10  same medical or clinic director. The agency may allow for

11  waivers to the limitations of this paragraph upon a showing of

12  good cause and a determination by the agency that the medical

13  director will be able to adequately perform the requirements

14  of this subsection.

15         (2)  Any business that becomes a clinic after

16  commencing operations must, within 5 days after becoming a

17  clinic, file a license application under this part and shall

18  be subject to all provisions of this part applicable to a

19  clinic.

20         (3)  Any contract to serve as a medical director or a

21  clinic director entered into or renewed by a physician or a

22  licensed health care practitioner in violation of this part is

23  void as contrary to public policy. This subsection shall apply

24  to contracts entered into or renewed on or after March 1,

25  2004.

26         (4)  All charges or reimbursement claims made by or on

27  behalf of a clinic that is required to be licensed under this

28  part, but that is not so licensed, or that is otherwise

29  operating in violation of this part, are unlawful charges, and

30  therefore are noncompensable and unenforceable.

31  

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 1         (5)  Any person establishing, operating, or managing an

 2  unlicensed clinic otherwise required to be licensed under this

 3  part, or any person who knowingly files a false or misleading

 4  license application or license renewal application, or false

 5  or misleading information related to such application or

 6  department rule, commits a felony of the third degree,

 7  punishable as provided in s. 775.082, s. 775.083, or s.

 8  775.084.

 9         (6)  Any licensed health care provider who violates

10  this part is subject to discipline in accordance with this

11  chapter and his or her respective practice act.

12         (7)  The agency may fine, or suspend or revoke the

13  license of, any clinic licensed under this part for operating

14  in violation of the requirements of this part or the rules

15  adopted by the agency.

16         (8)  The agency shall investigate allegations of

17  noncompliance with this part and the rules adopted under this

18  part.

19         (9)(a)  Any person or entity providing health care

20  services which is not a clinic, as defined under s. 400.9905,

21  may voluntarily apply for a certificate of exemption from

22  licensure under its exempt status. A certificate of exemption

23  is valid for 2 years and may be renewed.

24         (b)  However, an entity that is exempt from licensure

25  as a clinic pursuant to s. 400.9905(4)(f) or (g) and that

26  provides health care services for which payment is made

27  pursuant to s. 627.736 must apply for a certificate of

28  exemption from licensure under its exempt status if the entity

29  is located in any of the three counties certified by the

30  Division of Insurance Fraud as having the greatest number of

31  arrests by the division during the previous 2 years. However,

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 1  a health care provider listed in s. 400.9905(4)(f) or (g) need

 2  not apply for a certificate of exemption if the health care

 3  provider's practice act prohibits an individual who is not

 4  similarly licensed from owning or operating the health care

 5  provider's practice and prohibits individuals not similarly

 6  licensed from interfering with the health care provider's

 7  clinical judgment. An entity that is required to apply for a

 8  certificate of exemption must renew its certificate every 2

 9  years as a condition of maintaining an exemption from

10  licensure.

11         (c)  The agency shall provide a form that requires the

12  name or names and addresses, a statement of the reasons why

13  the applicant is exempt from licensure as a health care

14  clinic, and other information considered necessary by the

15  agency. The signature on an application for a certificate of

16  exemption must be notarized and signed under oath, subject to

17  penalty for perjury, by persons having knowledge of the truth

18  of its contents. An exemption is not transferable and is valid

19  only for the reasons, location, persons, and entity set forth

20  on the application form. A person or entity claiming an

21  exemption under this part or issued a current certificate of

22  exemption must be exempt from the licensing provisions of this

23  part at all times, or such claim or certificate is invalid

24  from the date that such person or entity is not exempt.

25         (d)  The agency shall charge an applicant for a

26  certificate of exemption a fee of $100 to cover the cost of

27  processing the certificate or the actual cost of processing

28  the certificate, whichever is less.

29         (e)  An application for the renewal of a certificate of

30  exemption must be submitted to the agency 60 days prior to the

31  expiration of the certificate of exemption. The agency may

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 1  investigate any applicant, person, or entity claiming an

 2  exemption for purposes of determining compliance when a

 3  certificate of exemption is sought. Authorized personnel of

 4  the agency shall have access to the premises of any

 5  certificateholder or applicant for the sole purpose of

 6  determining compliance with an exemption under this part. The

 7  agency shall have access to all billings and records indicated

 8  in s. 400.9915(2) and agency rules. The agency may deny or

 9  withdraw a certificate of exemption when a person or entity

10  does not qualify under this part.

11         (f)  A certificate of exemption is considered withdrawn

12  when the agency determines that an exempt status cannot be

13  confirmed. The provisions applicable to the unlicensed

14  operation of a health care clinic apply to any health care

15  provider that self-determines or claims an exemption or that

16  is issued a certificate of exemption if, in fact, such clinic

17  does not meet the exemption claimed.

18         (g)  Any person or entity that submits an application

19  for a certificate of exemption which contains fraudulent or

20  material and misleading information commits a felony of the

21  third degree, punishable as provided in s. 775.082, s.

22  775.083, or s. 775.084.

23         (h)  A response to a request in writing for additional

24  information or clarification must be filed with the agency no

25  later than 21 days after receipt of the request or the

26  application shall be denied.

27         (i)  The agency shall grant or deny an application for

28  a certificate of exemption in accordance with s. 120.60(1).

29         (j)  A person or entity that qualifies as a health care

30  clinic and has been denied a certificate of exemption must

31  

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 1  file an initial application and pay the fee. A certificate of

 2  exemption is valid only when issued and current.

 3         (k)  The agency shall issue an emergency order of

 4  suspension of a certificate of exemption if the agency finds

 5  that the applicant has provided false or misleading material

 6  information or omitted any material fact from the application

 7  for a certificate of exemption which is permitted or required

 8  by this part, or has submitted false or misleading information

 9  to the agency when self-determining an exempt status and

10  materially misleading the agency as to such status. with the

11  agency on a form that sets forth its name or names and

12  addresses, a statement of the reasons why it cannot be defined

13  as a clinic, and other information deemed necessary by the

14  agency. An exemption is not transferable. The agency may

15  charge an applicant for a certificate of exemption in an

16  amount equal to $100 or the actual cost of processing the

17  certificate, whichever is less.

18         (10)  The clinic shall display its license in a

19  conspicuous location within the clinic readily visible to all

20  patients.

21         (11)(a)  Each clinic engaged in magnetic resonance

22  imaging services must be accredited by the Joint Commission on

23  Accreditation of Healthcare Organizations, the American

24  College of Radiology, or the Accreditation Association for

25  Ambulatory Health Care, within 1 year after licensure.

26  However, a clinic may request a single, 6-month extension if

27  it provides evidence to the agency establishing that, for good

28  cause shown, such clinic can not be accredited within 1 year

29  after licensure, and that such accreditation will be completed

30  within the 6-month extension. After obtaining accreditation as

31  

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 1  required by this subsection, each such clinic must maintain

 2  accreditation as a condition of renewal of its license.

 3         (b)  The agency may deny the application or revoke the

 4  license of any entity formed for the purpose of avoiding

 5  compliance with the accreditation provisions of this

 6  subsection and whose principals were previously principals of

 7  an entity that was unable to meet the accreditation

 8  requirements within the specified timeframes. The agency may

 9  adopt rules as to the accreditation of magnetic resonance

10  imaging clinics.

11         (12)  The agency shall give full faith and credit

12  pertaining to any past variance and waiver granted to a

13  magnetic resonance imaging clinic from rule 64-2002, Florida

14  Administrative Code, by the Department of Health, until

15  September 2004. After that date, such clinic must request a

16  variance and waiver from the agency under s. 120.542.

17         (13)  The clinic shall display a sign in a conspicuous

18  location within the clinic readily visible to all patients

19  indicating that, pursuant to s. 626.9892, the Department of

20  Financial Services may pay rewards of up to $25,000 to persons

21  providing information leading to the arrest and conviction of

22  persons committing crimes investigated by the Division of

23  Insurance Fraud arising from violations of s. 440.105, s.

24  624.15, s. 626.9541, s. 626.989, or s. 817.234. An authorized

25  employee of the Division of Insurance Fraud may make

26  unannounced inspections of a clinic licensed under this part

27  as necessary to determine whether the clinic is in compliance

28  with this subsection. A licensed clinic shall allow full and

29  complete access to the premises to such authorized employee of

30  the division who makes an inspection to determine compliance

31  with this subsection.

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 1         Section 4.  Paragraph (ii) is added to subsection (1)

 2  of section 456.072, Florida Statutes, to read:

 3         456.072  Grounds for discipline; penalties;

 4  enforcement.--

 5         (1)  The following acts shall constitute grounds for

 6  which the disciplinary actions specified in subsection (2) may

 7  be taken:

 8         (ii)  Intentionally providing false information on an

 9  application for a certificate of exemption from clinic

10  licensure under part XIII of chapter 400.

11         Section 5.  This act shall take effect October 1, 2007.

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 1882

 3                                 

 4  The committee substitute provides the following changes:

 5  1.   Redefines the criteria under which certain health care
         providers and practitioners are held to be exempt from
 6       licensure under the Health Care Clinic Act
         (ss.400.990-400.995, F.S.).
 7  
    2.   Limits a clinic or medical director to being the medical
 8       or clinic director of a maximum of three clinics with a
         cumulative total of no more than 100 employees and
 9       persons under contract at a given time.

10  3.   Expands the scope of background screening requirements
         pursuant to clinic licensure and states that a license
11       may not be granted to a health care clinic if the
         applicant or party subject to background screening
12       related to the clinic has been found guilty or,
         regardless of adjudication, or has entered a plea of nolo
13       contendere or has been found guilty of any offense under
         the level 2 standards for screening in ch. 435, F.S., and
14       other specified offenses.

15  4.   Requires applicants for clinic licensure to provide the
         Agency for Health Care Administration (AHCA) with the
16       serial or operating numbers of each magnetic resonance
         imaging (MRI), static radiograph (static X-ray), computed
17       tomography, or positron emission tomography machine used
         by the clinic if the clinic performs the technical
18       component (the scan itself) and interprets the scan
         itself or uses an independent contractor to interpret the
19       scan.

20  5.   Places a 2-year expiration date on each certificate of
         exemption. Certain provider-owned entities that are
21       currently exempt must apply for and maintain a valid
         certificate of exemption if they provide personal injury
22       protection (PIP) related health care services and are
         located in any of the three counties that the Division of
23       Insurance fraud certifies as experiencing the greatest
         number of arrests by the division during the prior two
24       years.

25  6.   Authorizes AHCA to investigate any applicant claiming an
         exemption for purposes of compliance, and provides it
26       with access to the premises of a certificate holder or
         applicant and all specified billings and records to
27       determine compliance.

28  7.   Makes internationally providing false information on an
         application for a certificate of exemption from clinic
29       licensure grounds for disciplinary action pursuant to
         s.456.072, F.S.
30  

31  

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