Senate Bill sb0424c1

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    Florida Senate - 2007                            CS for SB 424

    By the Committee on Health Regulation; and Senator Peaden





    588-2158-07

  1                      A bill to be entitled

  2         An act relating to the provision of health care

  3         services; amending s. 381.0402, F.S.; revising

  4         provisions governing the area health education

  5         center network; requiring that the Department

  6         of Health maintain and evaluate the network in

  7         cooperation with medical schools; providing for

  8         expanded purposes and responsibilities of the

  9         network; requiring the department to enter

10         contracts concerning funding of certain

11         initiatives of the network; providing

12         requirements governing certain network

13         activities concerning medical students,

14         students in the health care professions, and

15         persons providing health care to medically

16         underserved populations; specifying the

17         percentage of funds that the department may

18         spend to administer and evaluate the network;

19         amending s. 381.0405, F.S.; revising the

20         purpose and functions of the Office of Rural

21         Health in the Department of Health; requiring

22         the Secretary of Health and the Secretary of

23         Health Care Administration to appoint an

24         advisory council to advise the Office of Rural

25         Health; providing for terms of office of the

26         members of the advisory council; authorizing

27         per diem and travel reimbursement for members

28         of the advisory council; requiring the Office

29         of Rural Health to submit an annual report to

30         the Governor and the Legislature; amending s.

31         381.0406, F.S.; revising legislative findings

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    Florida Senate - 2007                            CS for SB 424
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 1         and intent with respect to rural health

 2         networks; redefining the term "rural health

 3         network"; establishing requirements for

 4         membership in rural health networks; adding

 5         functions for the rural health networks;

 6         revising requirements for the governance and

 7         organization of rural health networks; revising

 8         the services to be provided by provider members

 9         of rural health networks; requiring

10         coordination among rural health networks and

11         area health education centers, health planning

12         councils, and regional education consortia;

13         establishing requirements for funding rural

14         health networks; establishing performance

15         standards for rural health networks;

16         establishing requirements for the receipt of

17         grant funding; requiring the Office of Rural

18         Health to monitor rural health networks;

19         authorizing the Department of Health to

20         establish rules governing rural health network

21         grant programs and performance standards;

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

23         "critical access hospital"; deleting the

24         definitions of "emergency care hospital," and

25         "essential access community hospital"; revising

26         the definition of "rural primary care

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

28         a requirement that the Agency for Health Care

29         Administration adopt a rule relating to

30         deactivation of rural hospital beds under

31         certain circumstances; requiring that critical

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    Florida Senate - 2007                            CS for SB 424
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 1         access hospitals and rural primary care

 2         hospitals maintain a certain number of actively

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

 4         removing emergency care hospitals and essential

 5         access community hospitals from certain

 6         licensure requirements; specifying certain

 7         special conditions for rural primary care

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

 9         specifying the purposes of capital improvement

10         grants for rural hospitals; modifying the

11         conditions for receiving a grant; authorizing

12         the Department of Health to award grants for

13         remaining funds to certain rural hospitals;

14         requiring a rural hospital that receives any

15         remaining funds to be bound by certain terms of

16         a participation agreement in order to receive

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

18         requiring the Agency for Health Care

19         Administration to pay certain physicians a

20         bonus for Medicaid physician services provided

21         within a rural county; amending ss. 408.07,

22         409.9116, and 1009.65, F.S.; conforming

23         cross-references; requiring the Office of

24         Program Policy Analysis and Government

25         Accountability to contract for a study of the

26         financing options for replacing or changing the

27         use of certain rural hospitals; requiring a

28         report to the Legislature by a specified date;

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

30         licensure of emergency care hospitals;

31         providing appropriations and authorizing

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    Florida Senate - 2007                            CS for SB 424
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 1         additional positions; providing an effective

 2         date.

 3  

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

 5  

 6         Section 1.  Section 381.0402, Florida Statutes, is

 7  amended to read:

 8         381.0402  Area health education center network.--The

 9  department, in cooperation with the state-approved medical

10  schools in this state which form the area health education

11  center network, shall maintain and evaluate organize an area

12  health education center network focused based on earlier

13  medically indigent demonstration projects and shall evaluate

14  the impact of each network on improving access to health

15  services by persons who are medically underserved. The network

16  shall serve as be a catalyst for the primary care training of

17  health professionals by increasing through increased

18  opportunities for training in medically underserved areas,

19  increasing access to primary care services, providing health

20  workforce recruitment, enhancing the quality of health care,

21  and addressing current and emerging public health issues.

22         (1)  The department shall contract with medical schools

23  to assist in funding the an area health education center

24  network in a manner that which links the provision of primary

25  care services to medically underserved populations and

26  provides for low-income persons with the education of:

27         (a)  Medical students, interns, and residents. The

28  network shall:

29         (a)  Be coordinated with and under contract with the

30  state-approved medical schools, which shall be responsible for

31  the clinical training and supervision.

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 1         1.(b)  Divide the state into service areas with the

 2  network for each state-approved medical school coordinating

 3  the recruitment recruiting, training, and retention of medical

 4  students within its assigned area.

 5         (c)  Use a multidisciplinary approach with appropriate

 6  medical supervision.

 7         2.(d)  Use current community resources such as county

 8  health departments, federally funded community or migrant

 9  health primary care centers, and or other primary health care

10  providers as community-based sites for training medical

11  students, interns, and residents.

12         3.  Use a multidisciplinary approach with appropriate

13  medical supervision.

14         (b)  Students in the health care professions. The

15  network shall:

16         1.  Facilitate the recruitment, training, and retention

17  of students in the health care professions within service

18  areas.

19         2.  Use community resources such as county health

20  departments, federally funded community or migrant health

21  centers, and other primary health care providers as sites for

22  training students in the health care professions.

23         3.  Use a multidisciplinary approach with appropriate

24  supervision.

25         (c)  Health care providers serving medically

26  underserved populations. The network shall:

27         1.  Assist providers in medically underserved areas and

28  other safety-net providers in remaining current in their

29  fields through a variety of community resource initiatives.

30  

31  

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 1         2.  Strengthen the health care safety net in this state

 2  by enhancing services and increasing access to care in

 3  medically underserved areas.

 4         3.  Provide other services, such as library and

 5  information resources, continuing professional education,

 6  technical assistance, and other support services, for

 7  providers serving in medically underserved areas.

 8         (2)  The department shall establish criteria and

 9  procedures for quality assurance, performance evaluations,

10  periodic audits, and other appropriate safeguards for the

11  network.

12         (3)  The department shall make every effort to ensure

13  assure that the network does participating medical schools do

14  not discriminate among enrollees with respect to age, race,

15  gender sex, or health status. However, the network such

16  schools may target high-risk medically needy population

17  groups.

18         (4)  The department may use no more than 1 5 percent of

19  the annual appropriation for administering and evaluating the

20  network.

21         (5)  Notwithstanding subsection (4), the department may

22  not use any portion of the annual appropriation to administer

23  and evaluate the network. This subsection expires July 1,

24  2007.

25         Section 2.  Section 381.0405, Florida Statutes, is

26  amended to read:

27         381.0405  Office of Rural Health.--

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

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

30  health care providers in improving the health status and

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

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    Florida Senate - 2007                            CS for SB 424
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 1  health care providers to integrate their efforts and prepare

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

 3  Health shall coordinate its activities with rural health

 4  networks established under s. 381.0406, local health councils

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

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

 7  any appropriate research and policy development centers within

 8  universities that have state-approved medical schools.  The

 9  Office of Rural Health may enter into a formal relationship

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

11  the center.

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

13  actively foster the development of service-delivery systems

14  and cooperative agreements to enhance the provision of

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

16  a catalyst for improved health services to residents citizens

17  in rural areas of the state.

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

19         (a)  Integrate policies related to physician workforce,

20  hospitals, public health, and state regulatory functions.

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

22  the development of strategic planning that addresses Propose

23  solutions to problems affecting health care delivery in rural

24  areas.

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

26  networks, standards, guidelines, and performance objectives

27  for rural health networks.

28         (d)  Foster the expansion of rural health network

29  service areas to include rural counties that are not covered

30  by a rural health network.

31  

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

 2  Federal Government.

 3         (f)  Administer state grant programs for rural

 4  hospitals and rural health networks.

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

 6         (a)  Identify federal and state rural health programs

 7  and provide information and technical assistance to rural

 8  providers regarding participation in such programs.

 9         (b)  Act as a clearinghouse for collecting and

10  disseminating information on rural health care issues,

11  research findings on rural health care, and innovative

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

13         (c)  Foster the creation of regional health care

14  systems that promote cooperation through cooperative

15  agreements, rather than competition.

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

17  activities, programs, and policies.

18         (e)  Design initiatives and promote cooperative

19  agreements in order to improve access to primary care,

20  prehospital emergency care, inpatient acute care, and

21  emergency medical services and promote the coordination of

22  such services in rural areas.

23         (f)  Assume responsibility for state coordination of

24  the Rural Hospital Transition Grant Program, the Essential

25  Access Community Hospital Program, and other federal rural

26  hospital and rural health care grant programs.

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

28         (a)  Assist Help rural health care providers in

29  recruiting obtain health care practitioners by promoting the

30  location and relocation of health care practitioners in rural

31  

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    Florida Senate - 2007                            CS for SB 424
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 1  areas and promoting policies that create incentives for

 2  practitioners to serve in rural areas.

 3         (b)  Provide technical assistance to hospitals,

 4  community and migrant health centers, and other health care

 5  providers that serve residents of rural areas.

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

 7  health care workforce recruitment and placement programs.

 8         (d)  Provide technical assistance to rural health

 9  networks in the development of their long-range development

10  plans.

11         (e)  Provide links to best practices and other

12  technical-assistance resources on its website.

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

14  office shall:

15         (a)  Conduct policy and research studies.

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

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

18  for use in program planning and department policy development.

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

20  Secretary of Health Care Administration shall each appoint no

21  more than five members having relevant health care operations

22  management, practice, and policy experience to an advisory

23  council to advise the office regarding its responsibilities

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

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

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

27  without compensation, but are entitled to reimbursement for

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

29  department shall provide staff and other administrative

30  assistance reasonably necessary to assist the advisory council

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

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    Florida Senate - 2007                            CS for SB 424
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 1  with stakeholders to develop recommendations that address

 2  barriers and identify options for establishing provider

 3  networks in rural counties.

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

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

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

 7  of the House of Representatives summarizing the activities of

 8  the office, including the grants obtained or administered by

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

10  hospitals in the state. The report must also include

11  recommendations that address barriers and identify options for

12  establishing provider networks in rural counties.

13         (9)(7)  APPROPRIATION.--The Legislature shall

14  appropriate such sums as are necessary to support the Office

15  of Rural Health.

16         Section 3.  Section 381.0406, Florida Statutes, is

17  amended to read:

18         381.0406  Rural health networks.--

19         (1)  LEGISLATIVE FINDINGS AND INTENT.--

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

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

22  negatively affected by inadequate financing, difficulty in

23  recruiting and retaining skilled health professionals, and the

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

25  acute care and specialty services.

26         (b)  The Legislature further finds that the efficient

27  and effective delivery of health care services in rural areas

28  requires:

29         1.  The integration of public and private resources;

30         2.  The introduction of innovative outreach methods;

31  

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 1         3.  The adoption of quality improvement and

 2  cost-effectiveness measures;

 3         4.  The organization of health care providers into

 4  joint contracting entities;

 5         5.  Establishing referral linkages;

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

 7  prepare health care providers for prepaid and at-risk

 8  financing; and

 9         7.  The coordination of health care providers.

10         (c)  The Legislature further finds that the

11  availability of a continuum of quality health care services,

12  including preventive, primary, secondary, tertiary, and

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

14  vitality of rural communities.

15         (d)  The Legislature further finds that health care

16  providers in rural areas are not prepared for market changes

17  such as the introduction of managed care and

18  capitation-reimbursement methodologies into health care

19  services.

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

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

22  Rural health networks shall act in the broad public interest

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

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

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

26  structured to provide a continuum of quality health care

27  services for rural residents through the cooperative efforts

28  of rural health network members and other health care

29  providers.

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

31  networks shall have the goal of increasing the financial

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 1  stability of statutory rural hospitals by linking rural

 2  hospital services to other services in a continuum of health

 3  care services and by increasing the utilization of statutory

 4  rural hospitals whenever for appropriate health care services

 5  whenever feasible, which shall help to ensure their survival

 6  and thereby support the economy and protect the health and

 7  safety of rural residents.

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

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

10  best way of organizing rural health services and linking to

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

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

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

14  containment efforts. The ultimate goal of rural health

15  networks shall be to ensure that quality health care is

16  available and efficiently delivered to all persons in rural

17  areas.

18         (2)  DEFINITIONS.--

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

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

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

22  rural.

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

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

25  health care, including: preventive health care, primary health

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

27  health care, public health care, and health promotion and

28  education.

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

30  nonprofit legal entity whose members consist, consisting of

31  rural and urban health care providers and others, and which

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 1  that is established organized to plan, develop, organize, and

 2  deliver health care services on a cooperative basis in a rural

 3  area, except for some secondary and tertiary care services.

 4         (3)  NETWORK MEMBERSHIP.--

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

 6  different health care provider mix, health care provider

 7  membership may vary, but all networks shall include members

 8  that provide health promotion and disease-prevention services,

 9  public health services, comprehensive primary care, emergency

10  medical care, and acute inpatient care.

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

12  the rural health network whose service area includes the

13  county in which the county health department is located.

14  Federally qualified health centers and emergency medical

15  services providers are encouraged to become members of the

16  rural health networks in the areas in which their patients

17  reside or receive services.

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

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

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

21  other network members, comply with network quality assurance

22  and risk management requirements, abide by the terms and

23  conditions of network provider agreements and network

24  development plans in paragraph (11)(c), and provide services

25  at a rate or price equal to the rate or price negotiated by

26  the network.

27         (4)(5)  NETWORK SERVICE AREAS.--Network service areas

28  are do not required need to conform to local political

29  boundaries or state administrative district boundaries.  The

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

31  overlap the territory of any other rural health network.

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 1         (5)(6)  NETWORK FUNCTIONS.--To the extent that

 2  resources permit, networks shall:

 3         (a)  Seek to develop linkages with provisions for

 4  referral to tertiary inpatient care, specialty physician care,

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

 6  areas.

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

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

 9  improve the health status of rural residents and to contain

10  health care costs.

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

12  as through private physicians, community health centers,

13  county health departments, certified rural health clinics,

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

15  of entry.

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

17  educational programs to adopt standards of care, and promote

18  the evidence-based practice of medicine. Networks shall

19  promote the adoption of standards of care and establish

20  standard protocols, coordinate and share patient records, and

21  develop patient information exchange systems in order to

22  improve quality and access to services.

23         (d)  Assist members to develop initiatives that improve

24  the quality of health care services and delivery, and obtain

25  training to carry out such initiatives.

26         (e)  Assist members with the implementation of disease

27  management systems and identify available resources for

28  training network members and other health care providers in

29  the use of such systems.

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

31  for services.

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 1         (g)  Seek to develop community care alternatives for

 2  elders who would otherwise be placed in nursing homes.

 3         (h)  Emphasize community care alternatives for persons

 4  with mental health and substance abuse disorders who are at

 5  risk of being admitted to an institution.

 6         (i)  Develop a long-range development plan, in concert

 7  with network health care providers and community leaders, for

 8  an integrated system of care that is responsive to the unique

 9  needs for services in local health care markets, and implement

10  this plan as resources permit. The initial long-range

11  development plan must be submitted to the Office of Rural

12  Health for review and comment no later than July 1, 2008, and

13  thereafter the plan must be updated and submitted to the

14  Office of Rural Health every 3 years.

15         (10)  Networks shall develop risk management and

16  quality assurance programs for network providers.

17         (6)(11)  NETWORK GOVERNANCE AND ORGANIZATION.--

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

19  corporations under chapter 617, with articles of incorporation

20  that set forth purposes consistent with this section the laws

21  of the state.

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

23  board of directors that derives membership from local

24  government, health care providers, businesses, consumers,

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

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

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

28  other community organizations is encouraged. Network staff

29  must provide an annual orientation and strategic planning

30  activity for board members.

31  

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 1         (c)  Network boards of directors shall have the

 2  responsibility of determining the content of health care

 3  provider agreements that link network members. The written

 4  agreements between the network and its health care provider

 5  members must specify participation in the essential functions

 6  of the network and the goals and objectives of the support

 7  network development plan. shall specify:

 8         1.  Who provides what services.

 9         2.  The extent to which the health care provider

10  provides care to persons who lack health insurance or are

11  otherwise unable to pay for care.

12         3.  The procedures for transfer of medical records.

13         4.  The method used for the transportation of patients

14  between providers.

15         5.  Referral and patient flow including appointments

16  and scheduling.

17         6.  Payment arrangements for the transfer or referral

18  of patients.

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

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

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

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

23  their administrative powers and duties under this subsection.

24         (7)(12)  NETWORK PROVIDER MEMBER SERVICES.--

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

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

27  residents patients served by the network. Each network shall

28  recruit members that can provide include the following core

29  services:  disease prevention, health promotion, comprehensive

30  primary care, emergency medical care, and acute inpatient

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

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 1  comprehensive maternity care, including prenatal, delivery,

 2  and postpartum care for uncomplicated pregnancies, either

 3  directly, by contract, or through referral agreements.

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

 5  and linkages among health care providers in order to also

 6  ensure the availability of the following services: within the

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

 8  referral agreements:

 9         1.  Services available in the home.

10         1.a.  Home health care.

11         2.b.  Hospice care.

12         2.  Services accessible within 30 minutes travel time

13  or less.

14         3.a.  Emergency medical services, including advanced

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

16         4.b.  Primary care, including.

17         c.  prenatal and postpartum care for uncomplicated

18  pregnancies.

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

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

21         6.e.  Public health services, including communicable

22  disease control, disease prevention, health education, and

23  health promotion.

24         7.f.  Outpatient mental health psychiatric and

25  substance abuse treatment services.

26         3.  Services accessible within 45 minutes travel time

27  or less.

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

29  illnesses or medical problems are not severe.

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

31  delivery for low-risk patients.

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

 2  including nursing home care.

 3         (b)  Networks shall seek to foster linkages with

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

 5  the availability of:

 6         1.d.  Dialysis.

 7         2.e.  Osteopathic and chiropractic manipulative

 8  therapy.

 9         4.  Services accessible within 2 hours travel time or

10  less.

11         3.a.  Specialist physician care.

12         4.b.  Hospital acute inpatient care for severe

13  illnesses and medical problems.

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

15  and delivery care for high-risk patients and neonatal

16  intensive care.

17         6.d.  Comprehensive medical rehabilitation.

18         7.e.  Inpatient mental health psychiatric and substance

19  abuse treatment services.

20         8.f.  Magnetic resonance imaging, lithotripter

21  treatment, oncology, advanced radiology, and other

22  technologically advanced services.

23         9.g.  Subacute care.

24         (8)  COORDINATION WITH OTHER ENTITIES.--

25         (a)  Area health education centers, health planning

26  councils, and regional education consortia having

27  technological expertise in continuing education shall

28  participate in the rural health networks' preparation of

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

30  require written memoranda of agreement between a network and

31  an area health education center or health planning council.

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 1         (b)  Rural health networks shall initiate activities,

 2  in coordination with area health education centers, to carry

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

 4  including continuing education for health care practitioners

 5  performing functions such as disease management, continuous

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

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

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

 9  telecommunications to deliver or expedite the delivery of

10  health care services.

11         (c)  Health planning councils shall support the

12  preparation of network long-range development plans through

13  data collection and analysis in order to assess the health

14  status of area residents and the capacity of local health

15  services.

16         (d)  Regional education consortia that have the

17  technology available to assist rural health networks in

18  establishing systems for the exchange of patient information

19  and for long-distance learning are encouraged to provide

20  technical assistance upon the request of a rural health

21  network.

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

23  health education center programs, whenever feasible, in

24  developing and implementing recruitment, training, and

25  retention programs directed at positively influencing the

26  supply and distribution of health care professionals serving

27  in, or receiving training in, network areas.

28         (c)  As funds become available, networks shall

29  emphasize community care alternatives for elders who would

30  otherwise be placed in nursing homes.

31  

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

 2  networks shall emphasize disease prevention, early diagnosis

 3  and treatment of medical problems, and community care

 4  alternatives for persons with mental health and substance

 5  abuse disorders who are at risk to be institutionalized.

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

 7  having which have an established trauma agency approved by the

 8  Department of Health, the network shall seek the participation

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

10  Trauma services provided within the network area must comply

11  with s. 395.405.

12         (9)(14)  NETWORK FINANCING.--

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

14  funds to support network activities. Nothing in this section

15  prohibits networks from becoming managed care providers.

16         (b)  The Department of Health shall establish grant

17  programs to provide funding to support the administrative

18  costs of developing and operating rural health networks.

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

20  Health shall develop and enforce performance standards for

21  rural health network operations grants and rural health

22  infrastructure development grants.

23         (a)  Operations grant performance standards must

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

25  rural health network to:

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

27  least quarterly.

28         2.  Have sufficient staff who have the qualifications

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

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

31  obtain such staff.

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

 2  standards in a timely and responsive manner.

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

 4  administration of federal grant funding, including assistance

 5  to rural hospitals.

 6         5.  Demonstrate a commitment to network activities from

 7  area health care providers and other stakeholders, as

 8  described in letters of support.

 9         (b)  Rural health infrastructure development grant

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

11  standards that require the rural health network to:

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

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

14  long-range development plan that has been reviewed and

15  approved by the Office of Rural Health.

16         2.  Have two or more successful network-development

17  activities, such as:

18         a.  Management of a network-development or outreach

19  grant from the federal Office of Rural Health Policy;

20         b.  Implementation of outreach programs to address

21  chronic disease, infant mortality, or assistance with

22  prescription medication;

23         c.  Development of partnerships with community and

24  faith-based organizations to address area health problems;

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

26  mobile units;

27         e.  Operation of credentialing services for health care

28  providers or quality-assurance and quality-improvement

29  initiatives that, whenever possible, are consistent with state

30  or federal quality initiatives;

31  

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 1         f.  Support for the development of community health

 2  centers, local community health councils, federal designation

 3  as a rural critical access hospital, or comprehensive

 4  community health planning initiatives; and

 5         g.  Development of the capacity to obtain federal,

 6  state, and foundation grants.

 7         (11)(15)  NETWORK IMPLEMENTATION.--As funds become

 8  available, networks shall be developed and implemented in two

 9  phases.

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

11  development grant program. Planning grants shall be used to

12  organize networks, incorporate network boards, and develop

13  formal provider agreements as provided for in this section.

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

15  process to solicit grant applications.

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

17  grant program. As funds become available, certified networks

18  that meet performance standards shall be eligible to receive

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

20  health network infrastructure development, patient care, and

21  network administration. Rural health network infrastructure

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

23  retention of primary care practitioners; enhancements of

24  primary care services through the use of mobile clinics;

25  development of preventive health care programs; linkage of

26  urban and rural health care systems; design and implementation

27  of automated patient records, outcome measurement, quality

28  assurance, and risk management systems; establishment of

29  one-stop service delivery sites; upgrading of medical

30  technology available to network providers; enhancement of

31  emergency medical systems; enhancement of medical

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 1  transportation; formation of joint contracting entities

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

 3  health care providers; establishment of comprehensive

 4  disease-management programs that meet Medicaid requirements;

 5  establishment of regional quality-improvement programs

 6  involving physicians and hospitals consistent with state and

 7  national initiatives; establishment of speciality networks

 8  connecting rural primary care physicians and urban

 9  specialists; development of regional broadband

10  telecommunications systems that have the capacity to share

11  patient information in a secure network, telemedicine, and

12  long-distance learning capacity; and linkage between training

13  programs for health care practitioners and the delivery of

14  health care services in rural areas and development of

15  telecommunication capabilities. A Phase II award may occur in

16  the same fiscal year as a Phase I award.

17         (12)(16)  CERTIFICATION.--For the purpose of certifying

18  networks that are eligible for Phase II funding, the

19  Department of Health shall certify networks that meet the

20  criteria delineated in this section and the rules governing

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

22  Department of Health shall monitor rural health networks in

23  order to ensure continued compliance with established

24  certification and performance standards.

25         (13)(17)  RULES.--The Department of Health shall

26  establish rules that govern the creation and certification of

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

28  II, and the establishment of performance standards including

29  establishing outcome measures for networks.

30         Section 4.  Subsection (2) of section 395.602, Florida

31  Statutes, is amended to read:

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 1         395.602  Rural hospitals.--

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

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

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

 5  meets the requirements for reimbursement by Medicare and

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

 7  hospital" means a medical facility which provides:

 8         1.  Emergency medical treatment; and

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

10  their transportation to another hospital or provides inpatient

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

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

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

14  care patients.

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

16  facility which:

17         1.  Has at least 100 beds;

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

19  essential access community hospital, rural referral center, or

20  urban hospital meeting criteria for classification as a

21  regional referral center;

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

23  care hospitals;

24         4.  Provides emergency and medical backup services to

25  rural primary care hospitals in its rural health network;

26         5.  Extends staff privileges to rural primary care

27  hospital physicians in its network; and

28         6.  Accepts patients transferred from rural primary

29  care hospitals in its network.

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

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

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 1  inactive in that it cannot be occupied by acute care

 2  inpatients.

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

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

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

 6  population density of no greater than 100 persons per square

 7  mile.

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

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

10  and an emergency room, which is:

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

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

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

14  population density of no greater than 100 persons per square

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

16  traveled roads under normal traffic conditions, from any other

17  acute care hospital within the same county;

18         3.  A hospital supported by a tax district or

19  subdistrict whose boundaries encompass a population of 100

20  persons or fewer per square mile;

21         4.  A hospital in a constitutional charter county with

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

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

24  that was directly impacted by a catastrophic event on August

25  24, 1992, for which the Governor of Florida declared a state

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

27  that serves an agricultural community with an emergency room

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

29  inpatient utilization rate greater than 15 percent;

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

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

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

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

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

 4  on information available from the hospital inpatient discharge

 5  database in the Florida Center for Health Information and

 6  Policy Analysis at the Agency for Health Care Administration;

 7  or

 8         6.  A hospital designated as a critical access

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

10  

11  Population densities used in this paragraph must be based upon

12  the most recently completed United States census. A hospital

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

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

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

16  30, 2012, if the hospital continues to have 100 or fewer

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

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

19  been designated as a rural hospital and that meets the

20  criteria of this paragraph shall be granted such designation

21  upon application, including supporting documentation to the

22  Agency for Health Care Administration.

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

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

25  395.605 which provides:

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

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

28  or less to patients requiring stabilization before discharge

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

30  limitation does not apply to respite, skilled nursing,

31  hospice, or other nonacute care patients; and

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

 2  inpatient beds.

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

 4  interchangeably as either a hospital, skilled nursing facility

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

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

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

 8  Statutes, is amended to read:

 9         395.603  Deactivation of general hospital beds; rural

10  hospital impact statement.--

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

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

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

14  emergency care hospital, or becomes a certified rural health

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

16  care program such as a county health department, community

17  health center, or other similar outpatient program that

18  provides preventive and curative services, may deactivate

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

20  primary care hospital hospitals and emergency care hospitals

21  shall maintain the number of actively licensed general

22  hospital beds necessary for the facility to be certified for

23  Medicare reimbursement. Hospitals that discontinue inpatient

24  care to become rural health care clinics or primary care

25  programs shall deactivate all licensed general hospital beds.

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

27  provide 24-hour emergency medical care by staffing an

28  emergency room. Providers with inactive beds shall be subject

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

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

31  Inactive general hospital beds shall be included in the acute

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 1  care bed inventory, maintained by the agency for

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

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

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

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

 6  general beds upon a showing by the licensee that licensure

 7  requirements for the inactive general beds are met.

 8         Section 6.  Section 395.604, Florida Statutes, is

 9  amended to read:

10         395.604  Other Rural primary care hospitals hospital

11  programs.--

12         (1)  The agency may license rural primary care

13  hospitals subject to federal approval for participation in the

14  Medicare and Medicaid programs. Rural primary care hospitals

15  shall be treated in the same manner as emergency care

16  hospitals and rural hospitals with respect to ss.

17  395.605(2)-(8)(a), 408.033(2)(b)3., and 408.038.

18         (2)  The agency may designate essential access

19  community hospitals.

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

21  primary care hospitals and essential access community

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

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

24  reimbursement pursuant to the Medicaid program, the agency

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

26  rural hospitals.

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

28  Education Reimbursement and Loan Repayment Program as defined

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

30  designed to relieve medical workforce shortages, the

31  

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 1  department shall treat rural primary care hospitals in the

 2  same manner as rural hospitals.

 3         (5)  For the purpose of coordinating primary care

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

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

 6  rural hospitals.

 7         (6)  Rural hospitals that make application under the

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

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

10  408.032. Rural primary care hospitals seeking relicensure as

11  acute care general hospitals shall also receive expedited

12  review.

13         (7)  Rural primary care hospitals are exempt from

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

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

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

17         (8)  Rural primary care hospitals shall have agreements

18  with other hospitals, skilled nursing facilities, home health

19  agencies, and providers of diagnostic-imaging and laboratory

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

21  patients.

22         (4)  The department may seek federal recognition of

23  emergency care hospitals authorized by s. 395.605 under the

24  essential access community hospital program authorized by the

25  Omnibus Budget Reconciliation Act of 1989.

26         Section 7.  Section 395.6061, Florida Statutes, is

27  amended to read:

28         395.6061  Rural hospital capital improvement.--There is

29  established a rural hospital capital improvement grant

30  program.

31  

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

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

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

 4  grant application must provide information that includes:

 5         (a)  A statement indicating the problem the rural

 6  hospital proposes to solve with the grant funds;

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

 8         (c)  The organizational structure, financial system,

 9  and facilities that are essential to the proposed solution;

10         (d)  The projected longevity of the proposed solution

11  after the grant funds are expended;

12         (e)  Evidence of participation in a rural health

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

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

15  health network long-range development plan;

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

17  obtaining funding or that funds available for the proposed

18  solution are inadequate;

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

20  maintaining or returning the hospital to an economically

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

22  or realignment of services will involve development of

23  innovative alternatives for the provision of needed

24  discontinued services;

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

26  to account for grant fund expenditures within the rural

27  county; and

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

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

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

31  plan, Indicators quantifying the hospital's financial status

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

 2  physical and operational condition of the hospital.

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

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

 5  legislative appropriation, upon application to the Department

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

 7  upgrade systems, facilities, or equipment.

 8         (3)  Any remaining funds may shall annually be

 9  disbursed to rural hospitals in accordance with this section.

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

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

12  used exclusively for the support and assistance of rural

13  hospitals as defined in s. 395.602, including criteria

14  relating to the level of charity uncompensated care rendered

15  by the hospital, the financial stability of the hospital,

16  financial and quality indicators for the hospital, whether the

17  project is sustainable beyond the funding period, the

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

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

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

21  hospital to resolve a specific problem. The department must

22  consider any information submitted in an application for the

23  grants in accordance with subsection (1) in determining

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

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

26  grant eligibility.

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

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

29  participation agreement with the department, which may

30  include:

31  

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

 2  contract with the department to analyze and monitor the

 3  hospital's operations.

 4         (b)  The establishment of an orientation and

 5  development program for members of the board.

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

 7         (5)(4)  The department shall ensure that the funds are

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

 9  total grants awarded pursuant to this section shall not exceed

10  the amount appropriated for this program.

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

12  Statutes, is amended to read:

13         409.908  Reimbursement of Medicaid providers.--Subject

14  to specific appropriations, the agency shall reimburse

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

16  according to methodologies set forth in the rules of the

17  agency and in policy manuals and handbooks incorporated by

18  reference therein.  These methodologies may include fee

19  schedules, reimbursement methods based on cost reporting,

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

21  and other mechanisms the agency considers efficient and

22  effective for purchasing services or goods on behalf of

23  recipients. If a provider is reimbursed based on cost

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

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

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

27  shall be retroactively calculated using the new cost report,

28  and full payment at the recalculated rate shall be effected

29  retroactively. Medicare-granted extensions for filing cost

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

31  reports. Payment for Medicaid compensable services made on

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 1  behalf of Medicaid eligible persons is subject to the

 2  availability of moneys and any limitations or directions

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

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

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

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

 7  making any other adjustments necessary to comply with the

 8  availability of moneys and any limitations or directions

 9  provided for in the General Appropriations Act, provided the

10  adjustment is consistent with legislative intent.

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

12  the amount billed by the provider or the Medicaid maximum

13  allowable fee established by the agency.

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

15  any limitations or directions provided for in the General

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

17  scale for pricing Medicaid physician services. Under this fee

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

19  service based on the average resources required to provide the

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

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

22  professional liability insurance.  The fee schedule shall

23  provide increased reimbursement for preventive and primary

24  care services and lowered reimbursement for specialty services

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

26  services and another for procedural services. The fee schedule

27  shall not increase total Medicaid physician expenditures

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

29  2-year period beginning on July 1, 1994. The Agency for Health

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

31  advisory panel in formulating and adopting the fee schedule.

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 1  The panel shall consist of Medicaid physicians licensed under

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

 3  primary care physicians and 50 percent specialty care

 4  physicians.

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

 6  to physicians for providing total obstetrical services to

 7  Medicaid recipients, which include prenatal, delivery, and

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

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

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

11  reimbursement to physicians working in Regional Perinatal

12  Intensive Care Centers designated pursuant to chapter 383, for

13  services to certain pregnant Medicaid recipients with a high

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

15  neonatal care groupings and rates established by the agency.

16  Nurse midwives licensed under part I of chapter 464 or

17  midwives licensed under chapter 467 shall be reimbursed at no

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

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

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

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

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

23  agency shall by rule determine a prorated payment for

24  obstetrical services in cases where only part of the total

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

26  Department of Health shall adopt rules for appropriate

27  insurance coverage for midwives licensed under chapter 467.

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

29  reactivation of an inactive license for midwives licensed

30  under chapter 467, such licensees shall submit proof of

31  coverage with each application.

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 1         (d)  Notwithstanding other provisions of this

 2  subsection, physicians licensed under chapter 458 or chapter

 3  459 who have a provider agreement with a rural health network

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

 5  over the Medicaid physician fee schedule for any physician

 6  service provided within the geographic boundary of a rural

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

 8  rural.

 9         Section 9.  Subsection (43) of section 408.07, Florida

10  Statutes, is amended to read:

11         408.07  Definitions.--As used in this chapter, with the

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

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

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

15  and an emergency room, and which is:

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

17  population density of no greater than 100 persons per square

18  mile;

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

20  population density of no greater than 100 persons per square

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

22  traveled roads under normal traffic conditions, from another

23  acute care hospital within the same county;

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

25  subdistrict whose boundaries encompass a population of 100

26  persons or fewer per square mile;

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

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

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

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

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

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 1  on information available from the hospital inpatient discharge

 2  database in the Florida Center for Health Information and

 3  Policy Analysis at the Agency for Health Care Administration;

 4  or

 5         (e)  A critical access hospital.

 6  

 7  Population densities used in this subsection must be based

 8  upon the most recently completed United States census. A

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

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

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

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

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

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

15  care hospital that has not previously been designated as a

16  rural hospital and that meets the criteria of this subsection

17  shall be granted such designation upon application, including

18  supporting documentation, to the Agency for Health Care

19  Administration.

20         Section 10.  Subsection (6) of section 409.9116,

21  Florida Statutes, is amended to read:

22         409.9116  Disproportionate share/financial assistance

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

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

25  shall administer a federally matched disproportionate share

26  program and a state-funded financial assistance program for

27  statutory rural hospitals. The agency shall make

28  disproportionate share payments to statutory rural hospitals

29  that qualify for such payments and financial assistance

30  payments to statutory rural hospitals that do not qualify for

31  disproportionate share payments. The disproportionate share

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 1  program payments shall be limited by and conform with federal

 2  requirements. Funds shall be distributed quarterly in each

 3  fiscal year for which an appropriation is made.

 4  Notwithstanding the provisions of s. 409.915, counties are

 5  exempt from contributing toward the cost of this special

 6  reimbursement for hospitals serving a disproportionate share

 7  of low-income patients.

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

 9  defined as statutory rural hospitals, or their

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

11  additional hospital that is defined as a statutory rural

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

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

14  section unless additional funds are appropriated each fiscal

15  year specifically to the rural hospital disproportionate share

16  and financial assistance programs in an amount necessary to

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

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

19  incurring a reduction in payments because of the eligibility

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

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

22  received funds pursuant to this section before January 1,

23  2001, and which qualifies under s. 395.602(2)(d) s.

24  395.602(2)(e), shall be included in the programs under this

25  section and is not required to seek additional appropriations

26  under this subsection.

27         Section 11.  Paragraph (b) of subsection (2) of section

28  1009.65, Florida Statutes, is amended to read:

29         1009.65  Medical Education Reimbursement and Loan

30  Repayment Program.--

31  

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

 2  shall make payments to selected medical professionals as

 3  follows:

 4         (b)  All payments shall be contingent on continued

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

 6  395.602(2)(d) s. 395.602(2)(e), or an underserved area

 7  designated by the Department of Health, provided the

 8  practitioner accepts Medicaid reimbursement if eligible for

 9  such reimbursement. Correctional facilities, state hospitals,

10  and other state institutions that employ medical personnel

11  shall be designated by the Department of Health as underserved

12  locations. Locations with high incidences of infant mortality,

13  high morbidity, or low Medicaid participation by health care

14  professionals may be designated as underserved.

15         Section 12.  The Office of Program Policy Analysis and

16  Government Accountability shall contract with an entity having

17  expertise in the financing of rural hospital capital

18  improvement projects to study the financing options for

19  replacing or changing the use of rural hospital facilities

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

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

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

23  convert the facility, identify all available sources of

24  financing for such replacement or conversion and assess each

25  community's capacity to maximize these funding options,

26  propose a model replacement facility if a facility should be

27  replaced, and propose alternative uses of the facility if

28  continued operation of the hospital is not financially

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

30  Office of Program Policy Analysis and Government

31  Accountability shall submit recommendations to the Legislature

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

 2  provide financial assistance to replace or convert these rural

 3  hospital facilities and what form that assistance should take.

 4         Section 13.  Section 395.605, Florida Statutes, is

 5  repealed.

 6         Section 14.  The sum of $440,000 from nonrecurring

 7  general revenue funds is appropriated to the Office of Program

 8  Policy Analysis and Government Accountability to implement

 9  section 11 of this act.

10         Section 15.  The sums of $3,638,709 in recurring

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

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

13  Health Care Administration to implement the 10-percent

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

15         Section 16.  The sum of $3 million in recurring general

16  revenue funds is appropriated to the Department of Health to

17  implement rural health network infrastructure development as

18  provided in section 2 of this act.

19         Section 17.  The sum of $7.5 million in nonrecurring

20  general revenue funds is appropriated to the Department of

21  Health to implement the rural hospital capital improvement

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

23         Section 18.  The sums of $196,818 in recurring general

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

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

26  full-time equivalent positions and associated salary rate of

27  121,619 are authorized to implement this act.

28         Section 19.  This act shall take effect July 1, 2007.

29  

30  

31  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 424

 3                                 

 4  The committee substitute revises the Department of Health
    (DOH) duties relating to the Area Health Education Center
 5  (AHEC) network in Florida. The committee substitute specifies
    that the AHEC network include the AHECs at the medical schools
 6  in the state. The DOH must contract with the medical schools
    at these universities to assist in funding the AHEC network,
 7  which links the education of medical students, interns, and
    residents with the provision of primary care services to
 8  medically under served populations.

 9  The committee substitute establishes requirements for the AHEC
    network relating to students in the health care professions
10  and health care providers serving medically underserved
    populations. The committee substitute requires the DOH to make
11  every effort to assure that the network, rather than the
    participating medical schools, does not discriminate among
12  enrollees with respect to age, race, sex, or health status.
    The DOH may use no more than one percent of the annual
13  appropriation for administering and evaluating the network.

14  The committee substitute also modifies the functions and
    activities of the rural health networks.
15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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