Senate Bill sb0424

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2007                                   SB 424

    By Senator Peaden





    2-307A-07

  1                      A bill to be entitled

  2         An act relating to rural health care; amending

  3         s. 381.0405, F.S.; revising the purpose and

  4         functions of the Office of Rural Health in the

  5         Department of Health; requiring the Secretary

  6         of Health and the Secretary of Health Care

  7         Administration to appoint an advisory council

  8         to advise the Office of Rural Health; providing

  9         for terms of office of the members of the

10         advisory council; authorizing per diem and

11         travel reimbursement for members of the

12         advisory council; requiring the Office of Rural

13         Health to submit an annual report to the

14         Governor and the Legislature; amending s.

15         381.0406, F.S.; revising legislative findings

16         and intent with respect to rural health

17         networks; redefining the term "rural health

18         network"; establishing requirements for

19         membership in rural health networks; adding

20         functions for the rural health networks;

21         revising requirements for the governance and

22         organization of rural health networks; revising

23         the services to be provided by provider members

24         of rural health networks; requiring

25         coordination among rural health networks and

26         area health education centers, health planning

27         councils, and regional education consortia;

28         establishing requirements for funding rural

29         health networks; establishing performance

30         standards for rural health networks;

31         establishing requirements for the receipt of

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         grant funding; requiring the Office of Rural

 2         Health to monitor rural health networks;

 3         authorizing the Department of Health to

 4         establish rules governing rural health network

 5         grant programs and performance standards;

 6         amending s. 395.602, F.S.; defining the term

 7         "critical access hospital"; deleting the

 8         definitions of "emergency care hospital," and

 9         "essential access community hospital"; revising

10         the definition of "rural primary care

11         hospital"; amending s. 395.603, F.S.; deleting

12         a requirement that the Agency for Health Care

13         Administration adopt a rule relating to

14         deactivation of rural hospital beds under

15         certain circumstances; requiring that critical

16         access hospitals and rural primary care

17         hospitals maintain a certain number of actively

18         licensed beds; amending s. 395.604, F.S.;

19         removing emergency care hospitals and essential

20         access community hospitals from certain

21         licensure requirements; specifying certain

22         special conditions for rural primary care

23         hospitals; amending s. 395.6061, F.S.;

24         specifying the purposes of capital improvement

25         grants for rural hospitals; modifying the

26         conditions for receiving a grant; authorizing

27         the Department of Health to award grants for

28         remaining funds to certain rural hospitals;

29         requiring a rural hospital that receives any

30         remaining funds to be bound by certain terms of

31         a participation agreement in order to receive

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         remaining funds; amending s. 409.908, F.S.;

 2         requiring the Agency for Health Care

 3         Administration to pay certain physicians a

 4         bonus for Medicaid physician services provided

 5         within a rural county; amending ss. 408.07,

 6         409.9116, and 1009.65, F.S.; conforming

 7         cross-references; requiring the Office of

 8         Program Policy Analysis and Government

 9         Accountability to contract for a study of the

10         financing options for replacing or changing the

11         use of certain rural hospitals; requiring a

12         report to the Legislature by a specified date;

13         repealing s. 395.605, F.S., relating to the

14         licensure of emergency care hospitals;

15         providing appropriations and authorizing

16         additional positions; providing an effective

17         date.

18  

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

20  

21         Section 1.  Section 381.0405, Florida Statutes, is

22  amended to read:

23         381.0405  Office of Rural Health.--

24         (1)  ESTABLISHMENT.--The Department of Health shall

25  establish an Office of Rural Health, which shall assist rural

26  health care providers in improving the health status and

27  health care of rural residents of this state and help rural

28  health care providers to integrate their efforts and prepare

29  for prepaid and at-risk reimbursement. The Office of Rural

30  Health shall coordinate its activities with rural health

31  networks established under s. 381.0406, local health councils

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  established under s. 408.033, the area health education center

 2  network established under pursuant to s. 381.0402, and with

 3  any appropriate research and policy development centers within

 4  universities that have state-approved medical schools.  The

 5  Office of Rural Health may enter into a formal relationship

 6  with any center that designates the office as an affiliate of

 7  the center.

 8         (2)  PURPOSE.--The Office of Rural Health shall

 9  actively foster the development of service-delivery systems

10  and cooperative agreements to enhance the provision of

11  high-quality health care services in rural areas and serve as

12  a catalyst for improved health services to residents citizens

13  in rural areas of the state.

14         (3)  GENERAL FUNCTIONS.--The office shall:

15         (a)  Integrate policies related to physician workforce,

16  hospitals, public health, and state regulatory functions.

17         (b)  Work with rural stakeholders in order to foster

18  the development of strategic planning that addresses Propose

19  solutions to problems affecting health care delivery in rural

20  areas.

21         (c)  Develop, in coordination with the rural health

22  networks, standards, guidelines, and performance objectives

23  for rural health networks.

24         (d)  Foster the expansion of rural health network

25  service areas to include rural counties that are not covered

26  by a rural health network.

27         (e)(c)  Seek grant funds from foundations and the

28  Federal Government.

29         (f)  Administer state grant programs for rural

30  hospitals and rural health networks.

31         (4)  COORDINATION.--The office shall:

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (a)  Identify federal and state rural health programs

 2  and provide information and technical assistance to rural

 3  providers regarding participation in such programs.

 4         (b)  Act as a clearinghouse for collecting and

 5  disseminating information on rural health care issues,

 6  research findings on rural health care, and innovative

 7  approaches to the delivery of health care in rural areas.

 8         (c)  Foster the creation of regional health care

 9  systems that promote cooperation through cooperative

10  agreements, rather than competition.

11         (d)  Coordinate the department's rural health care

12  activities, programs, and policies.

13         (e)  Design initiatives and promote cooperative

14  agreements in order to improve access to primary care,

15  prehospital emergency care, inpatient acute care, and

16  emergency medical services and promote the coordination of

17  such services in rural areas.

18         (f)  Assume responsibility for state coordination of

19  the Rural Hospital Transition Grant Program, the Essential

20  Access Community Hospital Program, and other federal rural

21  hospital and rural health care grant programs.

22         (5)  TECHNICAL ASSISTANCE.--The office shall:

23         (a)  Assist Help rural health care providers in

24  recruiting obtain health care practitioners by promoting the

25  location and relocation of health care practitioners in rural

26  areas and promoting policies that create incentives for

27  practitioners to serve in rural areas.

28         (b)  Provide technical assistance to hospitals,

29  community and migrant health centers, and other health care

30  providers that serve residents of rural areas.

31  

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (c)  Assist with the design of strategies to improve

 2  health care workforce recruitment and placement programs.

 3         (d)  Provide technical assistance to rural health

 4  networks in the development of their long-range development

 5  plans.

 6         (e)  Provide links to best practices and other

 7  technical-assistance resources on its website.

 8         (6)  RESEARCH PUBLICATIONS AND SPECIAL STUDIES.--The

 9  office shall:

10         (a)  Conduct policy and research studies.

11         (b)  Conduct health status studies of rural residents.

12         (c)  Collect relevant data on rural health care issues

13  for use in program planning and department policy development.

14         (7)  ADVISORY COUNCIL.--The Secretary of Health and the

15  Secretary of Health Care Administration shall each appoint no

16  more than five members having relevant health care operations

17  management, practice, and policy experience to an advisory

18  council to advise the office regarding its responsibilities

19  under this section and ss. 381.0406 and 395.6061. Members

20  shall be appointed for 4-year staggered terms and may be

21  reappointed to a second term of office. Members shall serve

22  without compensation, but are entitled to reimbursement for

23  per diem and travel expenses as provided in s. 112.061. The

24  department shall provide staff and other administrative

25  assistance reasonably necessary to assist the advisory council

26  in carrying out its duties. The advisory council shall work

27  with stakeholders to develop recommendations that address

28  barriers and identify options for establishing provider

29  networks in rural counties.

30         (8)  REPORTS.--Beginning January 1, 2008, and annually

31  thereafter, the Office of Rural Health shall submit a report

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  to the Governor, the President of the Senate, and the Speaker

 2  of the House of Representatives summarizing the activities of

 3  the office, including the grants obtained or administered by

 4  the office and the status of rural health networks and rural

 5  hospitals in the state. The report must also include

 6  recommendations that address barriers and identify options for

 7  establishing provider networks in rural counties.

 8         (9)(7)  APPROPRIATION.--The Legislature shall

 9  appropriate such sums as are necessary to support the Office

10  of Rural Health.

11         Section 2.  Section 381.0406, Florida Statutes, is

12  amended to read:

13         381.0406  Rural health networks.--

14         (1)  LEGISLATIVE FINDINGS AND INTENT.--

15         (a)  The Legislature finds that, in rural areas, access

16  to health care is limited and the quality of health care is

17  negatively affected by inadequate financing, difficulty in

18  recruiting and retaining skilled health professionals, and the

19  because of a migration of patients to urban areas for general

20  acute care and specialty services.

21         (b)  The Legislature further finds that the efficient

22  and effective delivery of health care services in rural areas

23  requires:

24         1.  The integration of public and private resources;

25         2.  The introduction of innovative outreach methods;

26         3.  The adoption of quality improvement and

27  cost-effectiveness measures;

28         4.  The organization of health care providers into

29  joint contracting entities;

30         5.  Establishing referral linkages;

31  

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         6.  The analysis of costs and services in order to

 2  prepare health care providers for prepaid and at-risk

 3  financing; and

 4         7.  The coordination of health care providers.

 5         (c)  The Legislature further finds that the

 6  availability of a continuum of quality health care services,

 7  including preventive, primary, secondary, tertiary, and

 8  long-term care, is essential to the economic and social

 9  vitality of rural communities.

10         (d)  The Legislature further finds that health care

11  providers in rural areas are not prepared for market changes

12  such as the introduction of managed care and

13  capitation-reimbursement methodologies into health care

14  services.

15         (e)(d)  The Legislature further finds that the creation

16  of rural health networks can help to alleviate these problems.

17  Rural health networks shall act in the broad public interest

18  and, to the extent possible, seek to improve the

19  accessibility, quality, and cost-effectiveness of rural health

20  care by planning, developing, coordinating, and providing be

21  structured to provide a continuum of quality health care

22  services for rural residents through the cooperative efforts

23  of rural health network members and other health care

24  providers.

25         (f)(e)  The Legislature further finds that rural health

26  networks shall have the goal of increasing the financial

27  stability of statutory rural hospitals by linking rural

28  hospital services to other services in a continuum of health

29  care services and by increasing the utilization of statutory

30  rural hospitals whenever for appropriate health care services

31  whenever feasible, which shall help to ensure their survival

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  and thereby support the economy and protect the health and

 2  safety of rural residents.

 3         (g)(f)  Finally, the Legislature finds that rural

 4  health networks may serve as "laboratories" to determine the

 5  best way of organizing rural health services and linking to

 6  out-of-area services that are not available locally in order,

 7  to move the state closer to ensuring that everyone has access

 8  to health care, and to promote cost-containment cost

 9  containment efforts. The ultimate goal of rural health

10  networks shall be to ensure that quality health care is

11  available and efficiently delivered to all persons in rural

12  areas.

13         (2)  DEFINITIONS.--

14         (a)  "Rural" means an area having with a population

15  density of fewer less than 100 individuals per square mile or

16  an area defined by the most recent United States Census as

17  rural.

18         (b)  "Health care provider" means any individual,

19  group, or entity, public or private, which that provides

20  health care, including: preventive health care, primary health

21  care, secondary and tertiary health care, hospital in-hospital

22  health care, public health care, and health promotion and

23  education.

24         (c)  "Rural health network" or "network" means a

25  nonprofit legal entity whose principal place of business is in

26  a rural area, whose members consist consisting of rural and

27  urban health care providers and others, and which that is

28  established organized to plan, develop, organize, and deliver

29  health care services on a cooperative basis in a rural area,

30  except for some secondary and tertiary care services.

31         (3)  NETWORK MEMBERSHIP.--

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (a)  Because each rural area is unique, with a

 2  different health care provider mix, health care provider

 3  membership may vary, but all networks shall include members

 4  that provide health promotion and disease-prevention services,

 5  public health services, comprehensive primary care, emergency

 6  medical care, and acute inpatient care.

 7         (b)  Each county health department shall be a member of

 8  the rural health network whose service area includes the

 9  county in which the county health department is located.

10  Federally qualified health centers and emergency medical

11  services providers are encouraged to become members of the

12  rural health networks in the areas in which their patients

13  reside or receive services.

14         (c)(4)  Network membership shall be available to all

15  health care providers in the network service area if, provided

16  that they render care to all patients referred to them from

17  other network members;, comply with network quality assurance,

18  quality improvement, and utilization-management and risk

19  management requirements; and, abide by the terms and

20  conditions of network provider agreements in paragraph

21  (11)(c), and provide services at a rate or price equal to the

22  rate or price negotiated by the network.

23         (4)(5)  NETWORK SERVICE AREAS.--Network service areas

24  are do not required need to conform to local political

25  boundaries or state administrative district boundaries.  The

26  geographic area of one rural health network, however, may not

27  overlap the territory of any other rural health network.

28         (5)(6)  NETWORK FUNCTIONS.-- Networks shall:

29         (a)  Seek to develop linkages with provisions for

30  referral to tertiary inpatient care, specialty physician care,

31  

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  and to other services that are not available in rural service

 2  areas.

 3         (b)(7)  Networks shall Make available health promotion,

 4  disease prevention, and primary care services, in order to

 5  improve the health status of rural residents and to contain

 6  health care costs.

 7         (8)  Networks may have multiple points of entry, such

 8  as through private physicians, community health centers,

 9  county health departments, certified rural health clinics,

10  hospitals, or other providers; or they may have a single point

11  of entry.

12         (c)(9)  Encourage members through training and

13  educational programs to adopt standards of care, and promote

14  the evidence-based practice of medicine. Networks shall

15  establish standard protocols, coordinate and share patient

16  records, and develop patient information exchange systems in

17  order to improve quality and access to services.

18         (d)  Develop quality-improvement programs and train

19  network members and other health care providers in the use of

20  such programs.

21         (e)  Develop disease-management systems and train

22  network members and other health care providers in the use of

23  such systems.

24         (f)  Promote outreach to areas that have a high need

25  for services.

26         (g)  Seek to develop community care alternatives for

27  elders who would otherwise be placed in nursing homes.

28         (h)  Emphasize community care alternatives for persons

29  with mental health and substance abuse disorders who are at

30  risk of being admitted to an institution.

31  

                                  11

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (i)  Develop and implement a long-range development

 2  plan for an integrated system of care that is responsive to

 3  the unique local health needs and the area health care

 4  services market. Each rural health network long-range

 5  development plan must address strategies to improve access to

 6  specialty care, train health care providers to use standards

 7  of care for chronic illness, develop disease-management

 8  capacity, and link to state and national quality-improvement

 9  initiatives. The initial long-range development plan must be

10  submitted to the Office of Rural Health for review and

11  approval no later than July 1, 2008, and thereafter the plans

12  must be updated and submitted to the Office of Rural Health

13  every 3 years.

14         (10)  Networks shall develop risk management and

15  quality assurance programs for network providers.

16         (6)(11)  NETWORK GOVERNANCE AND ORGANIZATION.--

17         (a)  Networks shall be incorporated as not-for-profit

18  corporations under chapter 617, with articles of incorporation

19  that set forth purposes consistent with this section the laws

20  of the state.

21         (b)  Each network Networks shall have an independent a

22  board of directors that derives membership from local

23  government, health care providers, businesses, consumers,

24  advocacy groups, and others. Boards of other community health

25  care entities may not serve in whole as the board of a rural

26  health network; however, some overlap of board membership with

27  other community organizations is encouraged. Network staff

28  must provide an annual orientation and strategic planning

29  activity for board members.

30         (c)  Network boards of directors shall have the

31  responsibility of determining the content of health care

                                  12

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  provider agreements that link network members.  The written

 2  agreements between the network and its health care provider

 3  members must specify participation in the essential functions

 4  of the network and shall specify:

 5         1.  Who provides what services.

 6         2.  The extent to which the health care provider

 7  provides care to persons who lack health insurance or are

 8  otherwise unable to pay for care.

 9         3.  The procedures for transfer of medical records.

10         4.  The method used for the transportation of patients

11  between providers.

12         5.  Referral and patient flow including appointments

13  and scheduling.

14         6.  Payment arrangements for the transfer or referral

15  of patients.

16         (d)  There shall be no liability on the part of, and no

17  cause of action of any nature shall arise against, any member

18  of a network board of directors, or its employees or agents,

19  for any lawful action taken by them in the performance of

20  their administrative powers and duties under this subsection.

21         (7)(12)  NETWORK PROVIDER MEMBER SERVICES.--

22         (a)  Networks, to the extent feasible, shall seek to

23  develop services that provide for a continuum of care for all

24  residents patients served by the network. Each network shall

25  recruit members that can provide include the following core

26  services:  disease prevention, health promotion, comprehensive

27  primary care, emergency medical care, and acute inpatient

28  care. Each network shall seek to ensure the availability of

29  comprehensive maternity care, including prenatal, delivery,

30  and postpartum care for uncomplicated pregnancies, either

31  directly, by contract, or through referral agreements.

                                  13

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  Networks shall, to the extent feasible, develop local services

 2  and linkages among health care providers in order to also

 3  ensure the availability of the following services: within the

 4  specified timeframes, either directly, by contract, or through

 5  referral agreements:

 6         1.  Services available in the home.

 7         1.a.  Home health care.

 8         2.b.  Hospice care.

 9         2.  Services accessible within 30 minutes travel time

10  or less.

11         3.a.  Emergency medical services, including advanced

12  life support, ambulance, and basic emergency room services.

13         4.b.  Primary care, including.

14         c.  prenatal and postpartum care for uncomplicated

15  pregnancies.

16         5.d.  Community-based services for elders, such as

17  adult day care and assistance with activities of daily living.

18         6.e.  Public health services, including communicable

19  disease control, disease prevention, health education, and

20  health promotion.

21         7.f.  Outpatient mental health psychiatric and

22  substance abuse treatment services.

23         3.  Services accessible within 45 minutes travel time

24  or less.

25         8.a.  Hospital acute inpatient care for persons whose

26  illnesses or medical problems are not severe.

27         9.b.  Level I obstetrical care, which is Labor and

28  delivery for low-risk patients.

29         10.c.  Skilled nursing services and, long-term care,

30  including nursing home care.

31  

                                  14

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (b)  Networks shall seek to foster linkages with

 2  out-of-area services to the extent feasible in order to ensure

 3  the availability of:

 4         1.d.  Dialysis.

 5         2.e.  Osteopathic and chiropractic manipulative

 6  therapy.

 7         4.  Services accessible within 2 hours travel time or

 8  less.

 9         3.a.  Specialist physician care.

10         4.b.  Hospital acute inpatient care for severe

11  illnesses and medical problems.

12         5.c.  Level II and III obstetrical care, which is Labor

13  and delivery care for high-risk patients and neonatal

14  intensive care.

15         6.d.  Comprehensive medical rehabilitation.

16         7.e.  Inpatient mental health psychiatric and substance

17  abuse treatment services.

18         8.f.  Magnetic resonance imaging, lithotripter

19  treatment, oncology, advanced radiology, and other

20  technologically advanced services.

21         9.g.  Subacute care.

22         (8)  COORDINATION WITH OTHER ENTITIES.--

23         (a)  Area health education centers, health planning

24  councils, and regional education consortia having

25  technological expertise in continuing education shall

26  participate in the rural health networks' preparation of

27  long-range development plans. The Department of Health may

28  require written memoranda of agreement between a network and

29  an area health education center or health planning council.

30         (b)  Rural health networks shall initiate activities,

31  in coordination with area health education centers, to carry

                                  15

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  out the objectives of the adopted long-range development plan,

 2  including continuing education for health care practitioners

 3  performing functions such as disease management, continuous

 4  quality improvement, telemedicine, long-distance learning, and

 5  the treatment of chronic illness using standards of care. As

 6  used in this section, the term "telemedicine" means the use of

 7  telecommunications to deliver or expedite the delivery of

 8  health care services.

 9         (c)  Health planning councils shall support the

10  preparation of network long-range development plans through

11  data collection and analysis in order to assess the health

12  status of area residents and the capacity of local health

13  services.

14         (d)  Regional education consortia that have the

15  technology available to assist rural health networks in

16  establishing systems for the exchange of patient information

17  and for long-distance learning are encouraged to provide

18  technical assistance upon the request of a rural health

19  network.

20         (e)(b)  Networks shall actively participate with area

21  health education center programs, whenever feasible, in

22  developing and implementing recruitment, training, and

23  retention programs directed at positively influencing the

24  supply and distribution of health care professionals serving

25  in, or receiving training in, network areas.

26         (c)  As funds become available, networks shall

27  emphasize community care alternatives for elders who would

28  otherwise be placed in nursing homes.

29         (d)  To promote the most efficient use of resources,

30  networks shall emphasize disease prevention, early diagnosis

31  and treatment of medical problems, and community care

                                  16

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  alternatives for persons with mental health and substance

 2  abuse disorders who are at risk to be institutionalized.

 3         (f)(13)  TRAUMA SERVICES.--In those network areas

 4  having which have an established trauma agency approved by the

 5  Department of Health, the network shall seek the participation

 6  of that trauma agency must be a participant in the network.

 7  Trauma services provided within the network area must comply

 8  with s. 395.405.

 9         (9)(14)  NETWORK FINANCING.--

10         (a)  Networks may use all sources of public and private

11  funds to support network activities. Nothing in this section

12  prohibits networks from becoming managed care providers.

13         (b)  The Department of Health shall establish grant

14  programs to provide funding to support the administrative

15  costs of developing and operating rural health networks.

16         (10)  NETWORK PERFORMANCE STANDARDS.--The Department of

17  Health shall develop and enforce performance standards for

18  rural health network operations grants and rural health

19  infrastructure development grants.

20         (a)  Operations grant performance standards must

21  include, but are not limited to, standards that require the

22  rural health network to:

23         1.  Have a qualified board of directors that meets at

24  least quarterly.

25         2.  Have sufficient staff who have the qualifications

26  and experience to perform the requirements of this section, as

27  assessed by the Office of Rural Health, or a written plan to

28  obtain such staff.

29         3.  Comply with the department's grant-management

30  standards in a timely and responsive manner.

31  

                                  17

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         4.  Comply with the department's standards for the

 2  administration of federal grant funding, including assistance

 3  to rural hospitals.

 4         5.  Demonstrate a commitment to network activities from

 5  area health care providers and other stakeholders, as

 6  described in letters of support.

 7         (b)  Rural health infrastructure development grant

 8  performance standards must include, but are not limited to,

 9  standards that require the rural health network to:

10         1.  During the 2007-2008 fiscal year develop a

11  long-range development plan and, after July 1, 2008, have a

12  long-range development plan that has been reviewed and

13  approved by the Office of Rural Health.

14         2.  Have two or more successful network-development

15  activities, such as:

16         a.  Management of a network-development or outreach

17  grant from the federal Office of Rural Health Policy;

18         b.  Implementation of outreach programs to address

19  chronic disease, infant mortality, or assistance with

20  prescription medication;

21         c.  Development of partnerships with community and

22  faith-based organizations to address area health problems;

23         d.  Provision of direct services, such as clinics or

24  mobile units;

25         e.  Operation of credentialing services for health care

26  providers or quality-assurance and quality-improvement

27  initiatives that, whenever possible, are consistent with state

28  or federal quality initiatives;

29         f.  Support for the development of community health

30  centers, local community health councils, federal designation

31  

                                  18

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  as a rural critical access hospital, or comprehensive

 2  community health planning initiatives; and

 3         g.  Development of the capacity to obtain federal,

 4  state, and foundation grants.

 5         (11)(15)  NETWORK IMPLEMENTATION.--As funds become

 6  available, networks shall be developed and implemented in two

 7  phases.

 8         (a)  Phase I shall consist of a network planning and

 9  development grant program. Planning grants shall be used to

10  organize networks, incorporate network boards, and develop

11  formal provider agreements as provided for in this section.

12  The Department of Health shall develop a request-for-proposal

13  process to solicit grant applications.

14         (b)  Phase II shall consist of a network operations

15  grant program. As funds become available, certified networks

16  that meet performance standards shall be eligible to receive

17  grant funds to be used to help defray the costs of rural

18  health network infrastructure development, patient care, and

19  network administration.  Rural health network infrastructure

20  development includes, but is not limited to: recruitment and

21  retention of primary care practitioners; enhancements of

22  primary care services through the use of mobile clinics;

23  development of preventive health care programs; linkage of

24  urban and rural health care systems; design and implementation

25  of automated patient records, outcome measurement, quality

26  assurance, and risk management systems; establishment of

27  one-stop service delivery sites; upgrading of medical

28  technology available to network providers; enhancement of

29  emergency medical systems; enhancement of medical

30  transportation; formation of joint contracting entities

31  composed of rural physicians, rural hospitals, and other rural

                                  19

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  health care providers; establishment of comprehensive

 2  disease-management programs that meet Medicaid requirements;

 3  establishment of regional quality-improvement programs

 4  involving physicians and hospitals consistent with state and

 5  national initiatives; establishment of speciality networks

 6  connecting rural primary care physicians and urban

 7  specialists; development of regional broadband

 8  telecommunications systems that have the capacity to share

 9  patient information in a secure network, telemedicine, and

10  long-distance learning capacity; and linkage between training

11  programs for health care practitioners and the delivery of

12  health care services in rural areas and development of

13  telecommunication capabilities. A Phase II award may occur in

14  the same fiscal year as a Phase I award.

15         (12)(16)  CERTIFICATION.--For the purpose of certifying

16  networks that are eligible for Phase II funding, the

17  Department of Health shall certify networks that meet the

18  criteria delineated in this section and the rules governing

19  rural health networks. The Office of Rural Health in the

20  Department of Health shall monitor rural health networks in

21  order to ensure continued compliance with established

22  certification and performance standards.

23         (13)(17)  RULES.--The Department of Health shall

24  establish rules that govern the creation and certification of

25  networks, the provision of grant funds under Phase I and Phase

26  II, and the establishment of performance standards including

27  establishing outcome measures for networks.

28         Section 3.  Subsection (2) of section 395.602, Florida

29  Statutes, is amended to read:

30         395.602  Rural hospitals.--

31         (2)  DEFINITIONS.--As used in this part:

                                  20

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (a)  "Critical access hospital" means a hospital that

 2  meets the definition of rural hospital in paragraph (d) and

 3  meets the requirements for reimbursement by Medicare and

 4  Medicaid under 42 C.F.R. ss. 485.601-485.647. "Emergency care

 5  hospital" means a medical facility which provides:

 6         1.  Emergency medical treatment; and

 7         2.  Inpatient care to ill or injured persons prior to

 8  their transportation to another hospital or provides inpatient

 9  medical care to persons needing care for a period of up to 96

10  hours.  The 96-hour limitation on inpatient care does not

11  apply to respite, skilled nursing, hospice, or other nonacute

12  care patients.

13         (b)  "Essential access community hospital" means any

14  facility which:

15         1.  Has at least 100 beds;

16         2.  Is located more than 35 miles from any other

17  essential access community hospital, rural referral center, or

18  urban hospital meeting criteria for classification as a

19  regional referral center;

20         3.  Is part of a network that includes rural primary

21  care hospitals;

22         4.  Provides emergency and medical backup services to

23  rural primary care hospitals in its rural health network;

24         5.  Extends staff privileges to rural primary care

25  hospital physicians in its network; and

26         6.  Accepts patients transferred from rural primary

27  care hospitals in its network.

28         (b)(c)  "Inactive rural hospital bed" means a licensed

29  acute care hospital bed, as defined in s. 395.002(14), that is

30  inactive in that it cannot be occupied by acute care

31  inpatients.

                                  21

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (c)(d)  "Rural area health education center" means an

 2  area health education center (AHEC), as authorized by Pub. L.

 3  No. 94-484, which provides services in a county with a

 4  population density of no greater than 100 persons per square

 5  mile.

 6         (d)(e)  "Rural hospital" means an acute care hospital

 7  licensed under this chapter, having 100 or fewer licensed beds

 8  and an emergency room, which is:

 9         1.  The sole provider within a county with a population

10  density of no greater than 100 persons per square mile;

11         2.  An acute care hospital, in a county with a

12  population density of no greater than 100 persons per square

13  mile, which is at least 30 minutes of travel time, on normally

14  traveled roads under normal traffic conditions, from any other

15  acute care hospital within the same county;

16         3.  A hospital supported by a tax district or

17  subdistrict whose boundaries encompass a population of 100

18  persons or fewer per square mile;

19         4.  A hospital in a constitutional charter county with

20  a population of over 1 million persons that has imposed a

21  local option health service tax pursuant to law and in an area

22  that was directly impacted by a catastrophic event on August

23  24, 1992, for which the Governor of Florida declared a state

24  of emergency pursuant to chapter 125, and has 120 beds or less

25  that serves an agricultural community with an emergency room

26  utilization of no less than 20,000 visits and a Medicaid

27  inpatient utilization rate greater than 15 percent;

28         5.  A hospital with a service area that has a

29  population of 100 persons or fewer per square mile. As used in

30  this subparagraph, the term "service area" means the fewest

31  number of zip codes that account for 75 percent of the

                                  22

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  hospital's discharges for the most recent 5-year period, based

 2  on information available from the hospital inpatient discharge

 3  database in the Florida Center for Health Information and

 4  Policy Analysis at the Agency for Health Care Administration;

 5  or

 6         6.  A hospital designated as a critical access

 7  hospital, as defined in s. 408.07(15).

 8  

 9  Population densities used in this paragraph must be based upon

10  the most recently completed United States census. A hospital

11  that received funds under s. 409.9116 for a quarter beginning

12  no later than July 1, 2002, is deemed to have been and shall

13  continue to be a rural hospital from that date through June

14  30, 2012, if the hospital continues to have 100 or fewer

15  licensed beds and an emergency room, or meets the criteria of

16  subparagraph 4. An acute care hospital that has not previously

17  been designated as a rural hospital and that meets the

18  criteria of this paragraph shall be granted such designation

19  upon application, including supporting documentation to the

20  Agency for Health Care Administration.

21         (e)(f)  "Rural primary care hospital" means any

22  facility that meeting the criteria in paragraph (e) or s.

23  395.605 which provides:

24         1.  Twenty-four-hour emergency medical care;

25         2.  Temporary inpatient care for periods of 96 72 hours

26  or less to patients requiring stabilization before discharge

27  or transfer to another hospital.  The 96-hour 72-hour

28  limitation does not apply to respite, skilled nursing,

29  hospice, or other nonacute care patients; and

30         3.  Has at least no more than six licensed acute care

31  inpatient beds.

                                  23

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (f)(g)  "Swing-bed" means a bed which can be used

 2  interchangeably as either a hospital, skilled nursing facility

 3  (SNF), or intermediate care facility (ICF) bed pursuant to 42

 4  C.F.R. parts 405, 435, 440, 442, and 447.

 5         Section 4.  Subsection (1) of section 395.603, Florida

 6  Statutes, is amended to read:

 7         395.603  Deactivation of general hospital beds; rural

 8  hospital impact statement.--

 9         (1)  The agency shall establish, by rule, a process by

10  which A rural hospital, as defined in s. 395.602, which that

11  seeks licensure as a rural primary care hospital or as an

12  emergency care hospital, or becomes a certified rural health

13  clinic as defined in Pub. L. No. 95-210, or becomes a primary

14  care program such as a county health department, community

15  health center, or other similar outpatient program that

16  provides preventive and curative services, may deactivate

17  general hospital beds. A critical access hospital or a rural

18  primary care hospital hospitals and emergency care hospitals

19  shall maintain the number of actively licensed general

20  hospital beds necessary for the facility to be certified for

21  Medicare reimbursement. Hospitals that discontinue inpatient

22  care to become rural health care clinics or primary care

23  programs shall deactivate all licensed general hospital beds.

24  All hospitals, clinics, and programs with inactive beds shall

25  provide 24-hour emergency medical care by staffing an

26  emergency room. Providers with inactive beds shall be subject

27  to the criteria in s. 395.1041. The agency shall specify in

28  rule requirements for making 24-hour emergency care available.

29  Inactive general hospital beds shall be included in the acute

30  care bed inventory, maintained by the agency for

31  certificate-of-need purposes, for 10 years from the date of

                                  24

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  deactivation of the beds. After 10 years have elapsed,

 2  inactive beds shall be excluded from the inventory. The agency

 3  shall, at the request of the licensee, reactivate the inactive

 4  general beds upon a showing by the licensee that licensure

 5  requirements for the inactive general beds are met.

 6         Section 5.  Section 395.604, Florida Statutes, is

 7  amended to read:

 8         395.604  Other Rural primary care hospitals hospital

 9  programs.--

10         (1)  The agency may license rural primary care

11  hospitals subject to federal approval for participation in the

12  Medicare and Medicaid programs. Rural primary care hospitals

13  shall be treated in the same manner as emergency care

14  hospitals and rural hospitals with respect to ss.

15  395.605(2)-(8)(a), 408.033(2)(b)3., and 408.038.

16         (2)  The agency may designate essential access

17  community hospitals.

18         (3)  The agency may adopt licensure rules for rural

19  primary care hospitals and essential access community

20  hospitals. Such rules must conform to s. 395.1055.

21         (3)  For the purpose of Medicaid swing-bed

22  reimbursement pursuant to the Medicaid program, the agency

23  shall treat rural primary care hospitals in the same manner as

24  rural hospitals.

25         (4)  For the purpose of participation in the Medical

26  Education Reimbursement and Loan Repayment Program as defined

27  in s. 1009.65 or other loan repayment or incentive programs

28  designed to relieve medical workforce shortages, the

29  department shall treat rural primary care hospitals in the

30  same manner as rural hospitals.

31  

                                  25

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (5)  For the purpose of coordinating primary care

 2  services described in s. 154.011(1)(c)10., the department

 3  shall treat rural primary care hospitals in the same manner as

 4  rural hospitals.

 5         (6)  Rural hospitals that make application under the

 6  certificate-of-need program to be licensed as rural primary

 7  care hospitals shall receive expedited review as defined in s.

 8  408.032. Rural primary care hospitals seeking relicensure as

 9  acute care general hospitals shall also receive expedited

10  review.

11         (7)  Rural primary care hospitals are exempt from

12  certificate-of-need requirements for home health and hospice

13  services and for swing beds in a number that does not exceed

14  one-half of the facility's licensed beds.

15         (8)  Rural primary care hospitals shall have agreements

16  with other hospitals, skilled nursing facilities, home health

17  agencies, and providers of diagnostic-imaging and laboratory

18  services that are not provided on site but are needed by

19  patients.

20         (4)  The department may seek federal recognition of

21  emergency care hospitals authorized by s. 395.605 under the

22  essential access community hospital program authorized by the

23  Omnibus Budget Reconciliation Act of 1989.

24         Section 6.  Section 395.6061, Florida Statutes, is

25  amended to read:

26         395.6061  Rural hospital capital improvement.--There is

27  established a rural hospital capital improvement grant

28  program.

29         (1)  A rural hospital as defined in s. 395.602 may

30  apply to the department for a grant to acquire, repair,

31  

                                  26

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  improve, or upgrade systems, facilities, or equipment. The

 2  grant application must provide information that includes:

 3         (a)  A statement indicating the problem the rural

 4  hospital proposes to solve with the grant funds;

 5         (b)  The strategy proposed to resolve the problem;

 6         (c)  The organizational structure, financial system,

 7  and facilities that are essential to the proposed solution;

 8         (d)  The projected longevity of the proposed solution

 9  after the grant funds are expended;

10         (e)  Evidence of participation in a rural health

11  network as defined in s. 381.0406 and evidence that, after

12  July 1, 2008, the application is consistent with the rural

13  health network long-range development plan;

14         (f)  Evidence that the rural hospital has difficulty in

15  obtaining funding or that funds available for the proposed

16  solution are inadequate;

17         (g)  Evidence that the grant funds will assist in

18  maintaining or returning the hospital to an economically

19  stable condition or that any plan for closure of the hospital

20  or realignment of services will involve development of

21  innovative alternatives for the provision of needed

22  discontinued services;

23         (h)  Evidence of a satisfactory record-keeping system

24  to account for grant fund expenditures within the rural

25  county; and

26         (i)  A rural health network plan that includes a

27  description of how the plan was developed, the goals of the

28  plan, the links with existing health care providers under the

29  plan, Indicators quantifying the hospital's financial status

30  well-being, measurable outcome targets, and the current

31  physical and operational condition of the hospital.

                                  27

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (2)  Each rural hospital as defined in s. 395.602 shall

 2  receive a minimum of $200,000 $100,000 annually, subject to

 3  legislative appropriation, upon application to the Department

 4  of Health, for projects to acquire, repair, improve, or

 5  upgrade systems, facilities, or equipment.

 6         (3)  Any remaining funds may shall annually be

 7  disbursed to rural hospitals in accordance with this section.

 8  The Department of Health shall establish, by rule, criteria

 9  for awarding grants for any remaining funds, which must be

10  used exclusively for the support and assistance of rural

11  hospitals as defined in s. 395.602, including criteria

12  relating to the level of charity uncompensated care rendered

13  by the hospital, the financial stability of the hospital,

14  financial and quality indicators for the hospital, whether the

15  project is sustainable beyond the funding period, the

16  hospital's ability to improve or expand services, the

17  hospital's participation in a rural health network as defined

18  in s. 381.0406, and the proposed use of the grant by the rural

19  hospital to resolve a specific problem. The department must

20  consider any information submitted in an application for the

21  grants in accordance with subsection (1) in determining

22  eligibility for and the amount of the grant, and none of the

23  individual items of information by itself may be used to deny

24  grant eligibility.

25         (4)  To receive any of the remaining funds, a rural

26  hospital must agree to be bound by the terms of a

27  participation agreement with the department, which may

28  include:

29         (a)  The appointment of a health care expert under

30  contract with the department to analyze and monitor the

31  hospital's operations.

                                  28

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (b)  The establishment of an orientation and

 2  development program for members of the board.

 3         (c)  The approval of any facility relocation plans.

 4         (5)(4)  The department shall ensure that the funds are

 5  used solely for the purposes specified in this section. The

 6  total grants awarded pursuant to this section shall not exceed

 7  the amount appropriated for this program.

 8         Section 7.  Subsection (12) of section 409.908, Florida

 9  Statutes, is amended to read:

10         409.908  Reimbursement of Medicaid providers.--Subject

11  to specific appropriations, the agency shall reimburse

12  Medicaid providers, in accordance with state and federal law,

13  according to methodologies set forth in the rules of the

14  agency and in policy manuals and handbooks incorporated by

15  reference therein.  These methodologies may include fee

16  schedules, reimbursement methods based on cost reporting,

17  negotiated fees, competitive bidding pursuant to s. 287.057,

18  and other mechanisms the agency considers efficient and

19  effective for purchasing services or goods on behalf of

20  recipients. If a provider is reimbursed based on cost

21  reporting and submits a cost report late and that cost report

22  would have been used to set a lower reimbursement rate for a

23  rate semester, then the provider's rate for that semester

24  shall be retroactively calculated using the new cost report,

25  and full payment at the recalculated rate shall be effected

26  retroactively. Medicare-granted extensions for filing cost

27  reports, if applicable, shall also apply to Medicaid cost

28  reports. Payment for Medicaid compensable services made on

29  behalf of Medicaid eligible persons is subject to the

30  availability of moneys and any limitations or directions

31  provided for in the General Appropriations Act or chapter 216.

                                  29

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  Further, nothing in this section shall be construed to prevent

 2  or limit the agency from adjusting fees, reimbursement rates,

 3  lengths of stay, number of visits, or number of services, or

 4  making any other adjustments necessary to comply with the

 5  availability of moneys and any limitations or directions

 6  provided for in the General Appropriations Act, provided the

 7  adjustment is consistent with legislative intent.

 8         (12)(a)  A physician shall be reimbursed the lesser of

 9  the amount billed by the provider or the Medicaid maximum

10  allowable fee established by the agency.

11         (b)  The agency shall adopt a fee schedule, subject to

12  any limitations or directions provided for in the General

13  Appropriations Act, based on a resource-based relative value

14  scale for pricing Medicaid physician services. Under this fee

15  schedule, physicians shall be paid a dollar amount for each

16  service based on the average resources required to provide the

17  service, including, but not limited to, estimates of average

18  physician time and effort, practice expense, and the costs of

19  professional liability insurance.  The fee schedule shall

20  provide increased reimbursement for preventive and primary

21  care services and lowered reimbursement for specialty services

22  by using at least two conversion factors, one for cognitive

23  services and another for procedural services. The fee schedule

24  shall not increase total Medicaid physician expenditures

25  unless moneys are available, and shall be phased in over a

26  2-year period beginning on July 1, 1994. The Agency for Health

27  Care Administration shall seek the advice of a 16-member

28  advisory panel in formulating and adopting the fee schedule.

29  The panel shall consist of Medicaid physicians licensed under

30  chapters 458 and 459 and shall be composed of 50 percent

31  

                                  30

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  primary care physicians and 50 percent specialty care

 2  physicians.

 3         (c)  Notwithstanding paragraph (b), reimbursement fees

 4  to physicians for providing total obstetrical services to

 5  Medicaid recipients, which include prenatal, delivery, and

 6  postpartum care, shall be at least $1,500 per delivery for a

 7  pregnant woman with low medical risk and at least $2,000 per

 8  delivery for a pregnant woman with high medical risk. However,

 9  reimbursement to physicians working in Regional Perinatal

10  Intensive Care Centers designated pursuant to chapter 383, for

11  services to certain pregnant Medicaid recipients with a high

12  medical risk, may be made according to obstetrical care and

13  neonatal care groupings and rates established by the agency.

14  Nurse midwives licensed under part I of chapter 464 or

15  midwives licensed under chapter 467 shall be reimbursed at no

16  less than 80 percent of the low medical risk fee. The agency

17  shall by rule determine, for the purpose of this paragraph,

18  what constitutes a high or low medical risk pregnant woman and

19  shall not pay more based solely on the fact that a caesarean

20  section was performed, rather than a vaginal delivery. The

21  agency shall by rule determine a prorated payment for

22  obstetrical services in cases where only part of the total

23  prenatal, delivery, or postpartum care was performed. The

24  Department of Health shall adopt rules for appropriate

25  insurance coverage for midwives licensed under chapter 467.

26  Prior to the issuance and renewal of an active license, or

27  reactivation of an inactive license for midwives licensed

28  under chapter 467, such licensees shall submit proof of

29  coverage with each application.

30         (d)  Notwithstanding other provisions of this

31  subsection, physicians licensed under chapter 458 or chapter

                                  31

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  459 who have a provider agreement with a rural health network

 2  as established in s. 381.0406 shall be paid a 10-percent bonus

 3  over the Medicaid physician fee schedule for any physician

 4  service provided within the geographic boundary of a rural

 5  county as defined by the most recent United States Census as

 6  rural.

 7         Section 8.  Subsection (43) of section 408.07, Florida

 8  Statutes, is amended to read:

 9         408.07  Definitions.--As used in this chapter, with the

10  exception of ss. 408.031-408.045, the term:

11         (43)  "Rural hospital" means an acute care hospital

12  licensed under chapter 395, having 100 or fewer licensed beds

13  and an emergency room, and which is:

14         (a)  The sole provider within a county with a

15  population density of no greater than 100 persons per square

16  mile;

17         (b)  An acute care hospital, in a county with a

18  population density of no greater than 100 persons per square

19  mile, which is at least 30 minutes of travel time, on normally

20  traveled roads under normal traffic conditions, from another

21  acute care hospital within the same county;

22         (c)  A hospital supported by a tax district or

23  subdistrict whose boundaries encompass a population of 100

24  persons or fewer per square mile;

25         (d)  A hospital with a service area that has a

26  population of 100 persons or fewer per square mile. As used in

27  this paragraph, the term "service area" means the fewest

28  number of zip codes that account for 75 percent of the

29  hospital's discharges for the most recent 5-year period, based

30  on information available from the hospital inpatient discharge

31  database in the Florida Center for Health Information and

                                  32

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  Policy Analysis at the Agency for Health Care Administration;

 2  or

 3         (e)  A critical access hospital.

 4  

 5  Population densities used in this subsection must be based

 6  upon the most recently completed United States census. A

 7  hospital that received funds under s. 409.9116 for a quarter

 8  beginning no later than July 1, 2002, is deemed to have been

 9  and shall continue to be a rural hospital from that date

10  through June 30, 2012, if the hospital continues to have 100

11  or fewer licensed beds and an emergency room, or meets the

12  criteria of s. 395.602(2)(d)4. s. 395.602(2)(e)4. An acute

13  care hospital that has not previously been designated as a

14  rural hospital and that meets the criteria of this subsection

15  shall be granted such designation upon application, including

16  supporting documentation, to the Agency for Health Care

17  Administration.

18         Section 9.  Subsection (6) of section 409.9116, Florida

19  Statutes, is amended to read:

20         409.9116  Disproportionate share/financial assistance

21  program for rural hospitals.--In addition to the payments made

22  under s. 409.911, the Agency for Health Care Administration

23  shall administer a federally matched disproportionate share

24  program and a state-funded financial assistance program for

25  statutory rural hospitals. The agency shall make

26  disproportionate share payments to statutory rural hospitals

27  that qualify for such payments and financial assistance

28  payments to statutory rural hospitals that do not qualify for

29  disproportionate share payments. The disproportionate share

30  program payments shall be limited by and conform with federal

31  requirements. Funds shall be distributed quarterly in each

                                  33

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1  fiscal year for which an appropriation is made.

 2  Notwithstanding the provisions of s. 409.915, counties are

 3  exempt from contributing toward the cost of this special

 4  reimbursement for hospitals serving a disproportionate share

 5  of low-income patients.

 6         (6)  This section applies only to hospitals that were

 7  defined as statutory rural hospitals, or their

 8  successor-in-interest hospital, prior to January 1, 2001. Any

 9  additional hospital that is defined as a statutory rural

10  hospital, or its successor-in-interest hospital, on or after

11  January 1, 2001, is not eligible for programs under this

12  section unless additional funds are appropriated each fiscal

13  year specifically to the rural hospital disproportionate share

14  and financial assistance programs in an amount necessary to

15  prevent any hospital, or its successor-in-interest hospital,

16  eligible for the programs prior to January 1, 2001, from

17  incurring a reduction in payments because of the eligibility

18  of an additional hospital to participate in the programs. A

19  hospital, or its successor-in-interest hospital, which

20  received funds pursuant to this section before January 1,

21  2001, and which qualifies under s. 395.602(2)(d) s.

22  395.602(2)(e), shall be included in the programs under this

23  section and is not required to seek additional appropriations

24  under this subsection.

25         Section 10.  Paragraph (b) of subsection (2) of section

26  1009.65, Florida Statutes, is amended to read:

27         1009.65  Medical Education Reimbursement and Loan

28  Repayment Program.--

29         (2)  From the funds available, the Department of Health

30  shall make payments to selected medical professionals as

31  follows:

                                  34

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         (b)  All payments shall be contingent on continued

 2  proof of primary care practice in an area defined in s.

 3  395.602(2)(d) s. 395.602(2)(e), or an underserved area

 4  designated by the Department of Health, provided the

 5  practitioner accepts Medicaid reimbursement if eligible for

 6  such reimbursement. Correctional facilities, state hospitals,

 7  and other state institutions that employ medical personnel

 8  shall be designated by the Department of Health as underserved

 9  locations. Locations with high incidences of infant mortality,

10  high morbidity, or low Medicaid participation by health care

11  professionals may be designated as underserved.

12         Section 11.  The Office of Program Policy Analysis and

13  Government Accountability shall contract with an entity having

14  expertise in the financing of rural hospital capital

15  improvement projects to study the financing options for

16  replacing or changing the use of rural hospital facilities

17  having 55 or fewer beds which were built before 1985 and which

18  have not had major renovations since 1985. For each such

19  hospital, the contractor shall assess the need to replace or

20  convert the facility, identify all available sources of

21  financing for such replacement or conversion and assess each

22  community's capacity to maximize these funding options,

23  propose a model replacement facility if a facility should be

24  replaced, and propose alternative uses of the facility if

25  continued operation of the hospital is not financially

26  feasible. Based on the results of the contract study, the

27  Office of Program Policy Analysis and Government

28  Accountability shall submit recommendations to the Legislature

29  by February 1, 2008, regarding whether the state should

30  provide financial assistance to replace or convert these rural

31  hospital facilities and what form that assistance should take.

                                  35

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1         Section 12.  Section 395.605, Florida Statutes, is

 2  repealed.

 3         Section 13.  The sum of $440,000 from nonrecurring

 4  general revenue funds is appropriated to the Office of Program

 5  Policy Analysis and Government Accountability to implement

 6  section 11 of this act.

 7         Section 14.  The sums of $3,638,709 in recurring

 8  general revenue funds and $5,067,392 in recurring funds from

 9  the Medical Care Trust Fund are appropriated to the Agency for

10  Health Care Administration to implement the 10-percent

11  Medicaid fee schedule bonus payment as provided in this act.

12         Section 15.  The sum of $3 million in recurring general

13  revenue funds is appropriated to the Department of Health to

14  implement rural health network infrastructure development as

15  provided in section 2 of this act.

16         Section 16.  The sum of $7.5 million in nonrecurring

17  general revenue funds is appropriated to the Department of

18  Health to implement the rural hospital capital improvement

19  grant program as provided in section 6 of this act.

20         Section 17.  The sums of $196,818 in recurring general

21  revenue funds and $17,556 in nonrecurring general revenue

22  funds are appropriated to the Department of Health, and three

23  full-time equivalent positions and associated salary rate of

24  121,619 are authorized to implement this act.

25         Section 18.  This act shall take effect July 1, 2007.

26  

27  

28  

29  

30  

31  

                                  36

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                                   SB 424
    2-307A-07




 1            *****************************************

 2                          SENATE SUMMARY

 3    Revises various provisions relating to rural health care.
      Revises the duties of the Office of Rural Health within
 4    the Department of Health. Requires the appointment of an
      advisory council to the Office of Rural Health. Requires
 5    the office to submit an annual report to the Governor and
      Legislature. Revises the functions of the rural health
 6    networks and establishes requirements for funding the
      networks. Requires that the Office of Rural Health
 7    monitor rural health networks. Revises requirements for
      rural primary care hospitals and emergency care
 8    hospitals. Provides for the Department of Health to award
      grants to rural hospitals. Provides for a bonus to be
 9    paid for certain services provided under the Medicaid
      program. Requires the Office of Program Policy Analysis
10    and Government Accountability to award a contract for a
      study concerning replacing or changing the use of certain
11    rural hospitals. (See bill for details.)

12  

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  37

CODING: Words stricken are deletions; words underlined are additions.