| 1 | A bill to be entitled |
| 2 | An act relating to health care; amending s. 409.911, F.S.; |
| 3 | revising the method for calculating disproportionate share |
| 4 | payments to hospitals; amending s. 409.9112, F.S.; |
| 5 | revising the time period during which the Agency for |
| 6 | Health Care Administration is prohibited from distributing |
| 7 | disproportionate share payments to regional perinatal |
| 8 | intensive care centers; amending s. 409.9113, F.S.; |
| 9 | revising the time period for distribution of |
| 10 | disproportionate share payments to teaching hospitals; |
| 11 | amending s. 409.9117, F.S.; revising the time period |
| 12 | during which the agency is prohibited from distributing |
| 13 | certain moneys under the primary care disproportionate |
| 14 | share program; providing an effective date. |
| 15 |
|
| 16 | Be It Enacted by the Legislature of the State of Florida: |
| 17 |
|
| 18 | Section 1. Subsection (2) of section 409.911, Florida |
| 19 | Statutes, is amended to read: |
| 20 | 409.911 Disproportionate share program.--Subject to |
| 21 | specific allocations established within the General |
| 22 | Appropriations Act and any limitations established pursuant to |
| 23 | chapter 216, the agency shall distribute, pursuant to this |
| 24 | section, moneys to hospitals providing a disproportionate share |
| 25 | of Medicaid or charity care services by making quarterly |
| 26 | Medicaid payments as required. Notwithstanding the provisions of |
| 27 | s. 409.915, counties are exempt from contributing toward the |
| 28 | cost of this special reimbursement for hospitals serving a |
| 29 | disproportionate share of low-income patients. |
| 30 | (2) The Agency for Health Care Administration shall use |
| 31 | the following actual audited data to determine the Medicaid days |
| 32 | and charity care to be used in calculating the disproportionate |
| 33 | share payment: |
| 34 | (a) The average of the 2001, 2002, and 2003 2000, 2001, |
| 35 | and 2002 audited disproportionate share data to determine each |
| 36 | hospital's Medicaid days and charity care for the 2007-2008 |
| 37 | 2006-2007 state fiscal year. |
| 38 | (b) If the Agency for Health Care Administration does not |
| 39 | have the prescribed 3 years of audited disproportionate share |
| 40 | data as noted in paragraph (a) for a hospital, the agency shall |
| 41 | use the average of the years of the audited disproportionate |
| 42 | share data as noted in paragraph (a) which is available. |
| 43 | (c) In accordance with s. 1923(b) of the Social Security |
| 44 | Act, a hospital with a Medicaid inpatient utilization rate |
| 45 | greater than one standard deviation above the statewide mean or |
| 46 | a hospital with a low-income utilization rate of 25 percent or |
| 47 | greater shall qualify for reimbursement. |
| 48 | Section 2. Section 409.9112, Florida Statutes, is amended |
| 49 | to read: |
| 50 | 409.9112 Disproportionate share program for regional |
| 51 | perinatal intensive care centers.--In addition to the payments |
| 52 | made under s. 409.911, the Agency for Health Care Administration |
| 53 | shall design and implement a system of making disproportionate |
| 54 | share payments to those hospitals that participate in the |
| 55 | regional perinatal intensive care center program established |
| 56 | pursuant to chapter 383. This system of payments shall conform |
| 57 | with federal requirements and shall distribute funds in each |
| 58 | fiscal year for which an appropriation is made by making |
| 59 | quarterly Medicaid payments. Notwithstanding the provisions of |
| 60 | s. 409.915, counties are exempt from contributing toward the |
| 61 | cost of this special reimbursement for hospitals serving a |
| 62 | disproportionate share of low-income patients. For the state |
| 63 | fiscal year 2007-2008 2005-2006, the agency shall not distribute |
| 64 | moneys under the regional perinatal intensive care centers |
| 65 | disproportionate share program. |
| 66 | (1) The following formula shall be used by the agency to |
| 67 | calculate the total amount earned for hospitals that participate |
| 68 | in the regional perinatal intensive care center program: |
| 69 |
|
| 70 | TAE = HDSP/THDSP |
| 71 |
|
| 72 | Where: |
| 73 | TAE = total amount earned by a regional perinatal intensive |
| 74 | care center. |
| 75 | HDSP = the prior state fiscal year regional perinatal |
| 76 | intensive care center disproportionate share payment to the |
| 77 | individual hospital. |
| 78 | THDSP = the prior state fiscal year total regional |
| 79 | perinatal intensive care center disproportionate share payments |
| 80 | to all hospitals. |
| 81 | (2) The total additional payment for hospitals that |
| 82 | participate in the regional perinatal intensive care center |
| 83 | program shall be calculated by the agency as follows: |
| 84 |
|
| 85 | TAP = TAE x TA |
| 86 |
|
| 87 | Where: |
| 88 | TAP = total additional payment for a regional perinatal |
| 89 | intensive care center. |
| 90 | TAE = total amount earned by a regional perinatal intensive |
| 91 | care center. |
| 92 | TA = total appropriation for the regional perinatal |
| 93 | intensive care center disproportionate share program. |
| 94 | (3) In order to receive payments under this section, a |
| 95 | hospital must be participating in the regional perinatal |
| 96 | intensive care center program pursuant to chapter 383 and must |
| 97 | meet the following additional requirements: |
| 98 | (a) Agree to conform to all departmental and agency |
| 99 | requirements to ensure high quality in the provision of |
| 100 | services, including criteria adopted by departmental and agency |
| 101 | rule concerning staffing ratios, medical records, standards of |
| 102 | care, equipment, space, and such other standards and criteria as |
| 103 | the department and agency deem appropriate as specified by rule. |
| 104 | (b) Agree to provide information to the department and |
| 105 | agency, in a form and manner to be prescribed by rule of the |
| 106 | department and agency, concerning the care provided to all |
| 107 | patients in neonatal intensive care centers and high-risk |
| 108 | maternity care. |
| 109 | (c) Agree to accept all patients for neonatal intensive |
| 110 | care and high-risk maternity care, regardless of ability to pay, |
| 111 | on a functional space-available basis. |
| 112 | (d) Agree to develop arrangements with other maternity and |
| 113 | neonatal care providers in the hospital's region for the |
| 114 | appropriate receipt and transfer of patients in need of |
| 115 | specialized maternity and neonatal intensive care services. |
| 116 | (e) Agree to establish and provide a developmental |
| 117 | evaluation and services program for certain high-risk neonates, |
| 118 | as prescribed and defined by rule of the department. |
| 119 | (f) Agree to sponsor a program of continuing education in |
| 120 | perinatal care for health care professionals within the region |
| 121 | of the hospital, as specified by rule. |
| 122 | (g) Agree to provide backup and referral services to the |
| 123 | department's county health departments and other low-income |
| 124 | perinatal providers within the hospital's region, including the |
| 125 | development of written agreements between these organizations |
| 126 | and the hospital. |
| 127 | (h) Agree to arrange for transportation for high-risk |
| 128 | obstetrical patients and neonates in need of transfer from the |
| 129 | community to the hospital or from the hospital to another more |
| 130 | appropriate facility. |
| 131 | (4) Hospitals which fail to comply with any of the |
| 132 | conditions in subsection (3) or the applicable rules of the |
| 133 | department and agency shall not receive any payments under this |
| 134 | section until full compliance is achieved. A hospital which is |
| 135 | not in compliance in two or more consecutive quarters shall not |
| 136 | receive its share of the funds. Any forfeited funds shall be |
| 137 | distributed by the remaining participating regional perinatal |
| 138 | intensive care center program hospitals. |
| 139 | Section 3. Section 409.9113, Florida Statutes, is amended |
| 140 | to read: |
| 141 | 409.9113 Disproportionate share program for teaching |
| 142 | hospitals.--In addition to the payments made under ss. 409.911 |
| 143 | and 409.9112, the Agency for Health Care Administration shall |
| 144 | make disproportionate share payments to statutorily defined |
| 145 | teaching hospitals for their increased costs associated with |
| 146 | medical education programs and for tertiary health care services |
| 147 | provided to the indigent. This system of payments shall conform |
| 148 | with federal requirements and shall distribute funds in each |
| 149 | fiscal year for which an appropriation is made by making |
| 150 | quarterly Medicaid payments. Notwithstanding s. 409.915, |
| 151 | counties are exempt from contributing toward the cost of this |
| 152 | special reimbursement for hospitals serving a disproportionate |
| 153 | share of low-income patients. For the state fiscal year 2007- |
| 154 | 2008 2006-2007, the agency shall distribute the moneys provided |
| 155 | in the General Appropriations Act to statutorily defined |
| 156 | teaching hospitals and family practice teaching hospitals under |
| 157 | the teaching hospital disproportionate share program. The funds |
| 158 | provided for statutorily defined teaching hospitals shall be |
| 159 | distributed in the same proportion as the state fiscal year |
| 160 | 2003-2004 teaching hospital disproportionate share funds were |
| 161 | distributed. The funds provided for family practice teaching |
| 162 | hospitals shall be distributed equally among family practice |
| 163 | teaching hospitals. |
| 164 | (1) On or before September 15 of each year, the Agency for |
| 165 | Health Care Administration shall calculate an allocation |
| 166 | fraction to be used for distributing funds to state statutory |
| 167 | teaching hospitals. Subsequent to the end of each quarter of the |
| 168 | state fiscal year, the agency shall distribute to each statutory |
| 169 | teaching hospital, as defined in s. 408.07, an amount determined |
| 170 | by multiplying one-fourth of the funds appropriated for this |
| 171 | purpose by the Legislature times such hospital's allocation |
| 172 | fraction. The allocation fraction for each such hospital shall |
| 173 | be determined by the sum of three primary factors, divided by |
| 174 | three. The primary factors are: |
| 175 | (a) The number of nationally accredited graduate medical |
| 176 | education programs offered by the hospital, including programs |
| 177 | accredited by the Accreditation Council for Graduate Medical |
| 178 | Education and the combined Internal Medicine and Pediatrics |
| 179 | programs acceptable to both the American Board of Internal |
| 180 | Medicine and the American Board of Pediatrics at the beginning |
| 181 | of the state fiscal year preceding the date on which the |
| 182 | allocation fraction is calculated. The numerical value of this |
| 183 | factor is the fraction that the hospital represents of the total |
| 184 | number of programs, where the total is computed for all state |
| 185 | statutory teaching hospitals. |
| 186 | (b) The number of full-time equivalent trainees in the |
| 187 | hospital, which comprises two components: |
| 188 | 1. The number of trainees enrolled in nationally |
| 189 | accredited graduate medical education programs, as defined in |
| 190 | paragraph (a). Full-time equivalents are computed using the |
| 191 | fraction of the year during which each trainee is primarily |
| 192 | assigned to the given institution, over the state fiscal year |
| 193 | preceding the date on which the allocation fraction is |
| 194 | calculated. The numerical value of this factor is the fraction |
| 195 | that the hospital represents of the total number of full-time |
| 196 | equivalent trainees enrolled in accredited graduate programs, |
| 197 | where the total is computed for all state statutory teaching |
| 198 | hospitals. |
| 199 | 2. The number of medical students enrolled in accredited |
| 200 | colleges of medicine and engaged in clinical activities, |
| 201 | including required clinical clerkships and clinical electives. |
| 202 | Full-time equivalents are computed using the fraction of the |
| 203 | year during which each trainee is primarily assigned to the |
| 204 | given institution, over the course of the state fiscal year |
| 205 | preceding the date on which the allocation fraction is |
| 206 | calculated. The numerical value of this factor is the fraction |
| 207 | that the given hospital represents of the total number of full- |
| 208 | time equivalent students enrolled in accredited colleges of |
| 209 | medicine, where the total is computed for all state statutory |
| 210 | teaching hospitals. |
| 211 |
|
| 212 | The primary factor for full-time equivalent trainees is computed |
| 213 | as the sum of these two components, divided by two. |
| 214 | (c) A service index that comprises three components: |
| 215 | 1. The Agency for Health Care Administration Service |
| 216 | Index, computed by applying the standard Service Inventory |
| 217 | Scores established by the Agency for Health Care Administration |
| 218 | to services offered by the given hospital, as reported on |
| 219 | Worksheet A-2 for the last fiscal year reported to the agency |
| 220 | before the date on which the allocation fraction is calculated. |
| 221 | The numerical value of this factor is the fraction that the |
| 222 | given hospital represents of the total Agency for Health Care |
| 223 | Administration Service Index values, where the total is computed |
| 224 | for all state statutory teaching hospitals. |
| 225 | 2. A volume-weighted service index, computed by applying |
| 226 | the standard Service Inventory Scores established by the Agency |
| 227 | for Health Care Administration to the volume of each service, |
| 228 | expressed in terms of the standard units of measure reported on |
| 229 | Worksheet A-2 for the last fiscal year reported to the agency |
| 230 | before the date on which the allocation factor is calculated. |
| 231 | The numerical value of this factor is the fraction that the |
| 232 | given hospital represents of the total volume-weighted service |
| 233 | index values, where the total is computed for all state |
| 234 | statutory teaching hospitals. |
| 235 | 3. Total Medicaid payments to each hospital for direct |
| 236 | inpatient and outpatient services during the fiscal year |
| 237 | preceding the date on which the allocation factor is calculated. |
| 238 | This includes payments made to each hospital for such services |
| 239 | by Medicaid prepaid health plans, whether the plan was |
| 240 | administered by the hospital or not. The numerical value of this |
| 241 | factor is the fraction that each hospital represents of the |
| 242 | total of such Medicaid payments, where the total is computed for |
| 243 | all state statutory teaching hospitals. |
| 244 |
|
| 245 | The primary factor for the service index is computed as the sum |
| 246 | of these three components, divided by three. |
| 247 | (2) By October 1 of each year, the agency shall use the |
| 248 | following formula to calculate the maximum additional |
| 249 | disproportionate share payment for statutorily defined teaching |
| 250 | hospitals: |
| 251 |
|
| 252 | TAP = THAF x A |
| 253 |
|
| 254 | Where: |
| 255 | TAP = total additional payment. |
| 256 | THAF = teaching hospital allocation factor. |
| 257 | A = amount appropriated for a teaching hospital |
| 258 | disproportionate share program. |
| 259 | Section 4. Section 409.9117, Florida Statutes, is amended |
| 260 | to read: |
| 261 | 409.9117 Primary care disproportionate share program.--For |
| 262 | the state fiscal year 2007-2008 2006-2007, the agency shall not |
| 263 | distribute moneys under the primary care disproportionate share |
| 264 | program. |
| 265 | (1) If federal funds are available for disproportionate |
| 266 | share programs in addition to those otherwise provided by law, |
| 267 | there shall be created a primary care disproportionate share |
| 268 | program. |
| 269 | (2) The following formula shall be used by the agency to |
| 270 | calculate the total amount earned for hospitals that participate |
| 271 | in the primary care disproportionate share program: |
| 272 |
|
| 273 | TAE = HDSP/THDSP |
| 274 |
|
| 275 | Where: |
| 276 | TAE = total amount earned by a hospital participating in |
| 277 | the primary care disproportionate share program. |
| 278 | HDSP = the prior state fiscal year primary care |
| 279 | disproportionate share payment to the individual hospital. |
| 280 | THDSP = the prior state fiscal year total primary care |
| 281 | disproportionate share payments to all hospitals. |
| 282 | (3) The total additional payment for hospitals that |
| 283 | participate in the primary care disproportionate share program |
| 284 | shall be calculated by the agency as follows: |
| 285 |
|
| 286 | TAP = TAE x TA |
| 287 |
|
| 288 | Where: |
| 289 | TAP = total additional payment for a primary care hospital. |
| 290 | TAE = total amount earned by a primary care hospital. |
| 291 | TA = total appropriation for the primary care |
| 292 | disproportionate share program. |
| 293 | (4) In the establishment and funding of this program, the |
| 294 | agency shall use the following criteria in addition to those |
| 295 | specified in s. 409.911, payments may not be made to a hospital |
| 296 | unless the hospital agrees to: |
| 297 | (a) Cooperate with a Medicaid prepaid health plan, if one |
| 298 | exists in the community. |
| 299 | (b) Ensure the availability of primary and specialty care |
| 300 | physicians to Medicaid recipients who are not enrolled in a |
| 301 | prepaid capitated arrangement and who are in need of access to |
| 302 | such physicians. |
| 303 | (c) Coordinate and provide primary care services free of |
| 304 | charge, except copayments, to all persons with incomes up to 100 |
| 305 | percent of the federal poverty level who are not otherwise |
| 306 | covered by Medicaid or another program administered by a |
| 307 | governmental entity, and to provide such services based on a |
| 308 | sliding fee scale to all persons with incomes up to 200 percent |
| 309 | of the federal poverty level who are not otherwise covered by |
| 310 | Medicaid or another program administered by a governmental |
| 311 | entity, except that eligibility may be limited to persons who |
| 312 | reside within a more limited area, as agreed to by the agency |
| 313 | and the hospital. |
| 314 | (d) Contract with any federally qualified health center, |
| 315 | if one exists within the agreed geopolitical boundaries, |
| 316 | concerning the provision of primary care services, in order to |
| 317 | guarantee delivery of services in a nonduplicative fashion, and |
| 318 | to provide for referral arrangements, privileges, and |
| 319 | admissions, as appropriate. The hospital shall agree to provide |
| 320 | at an onsite or offsite facility primary care services within 24 |
| 321 | hours to which all Medicaid recipients and persons eligible |
| 322 | under this paragraph who do not require emergency room services |
| 323 | are referred during normal daylight hours. |
| 324 | (e) Cooperate with the agency, the county, and other |
| 325 | entities to ensure the provision of certain public health |
| 326 | services, case management, referral and acceptance of patients, |
| 327 | and sharing of epidemiological data, as the agency and the |
| 328 | hospital find mutually necessary and desirable to promote and |
| 329 | protect the public health within the agreed geopolitical |
| 330 | boundaries. |
| 331 | (f) In cooperation with the county in which the hospital |
| 332 | resides, develop a low-cost, outpatient, prepaid health care |
| 333 | program to persons who are not eligible for the Medicaid |
| 334 | program, and who reside within the area. |
| 335 | (g) Provide inpatient services to residents within the |
| 336 | area who are not eligible for Medicaid or Medicare, and who do |
| 337 | not have private health insurance, regardless of ability to pay, |
| 338 | on the basis of available space, except that nothing shall |
| 339 | prevent the hospital from establishing bill collection programs |
| 340 | based on ability to pay. |
| 341 | (h) Work with the Florida Healthy Kids Corporation, the |
| 342 | Florida Health Care Purchasing Cooperative, and business health |
| 343 | coalitions, as appropriate, to develop a feasibility study and |
| 344 | plan to provide a low-cost comprehensive health insurance plan |
| 345 | to persons who reside within the area and who do not have access |
| 346 | to such a plan. |
| 347 | (i) Work with public health officials and other experts to |
| 348 | provide community health education and prevention activities |
| 349 | designed to promote healthy lifestyles and appropriate use of |
| 350 | health services. |
| 351 | (j) Work with the local health council to develop a plan |
| 352 | for promoting access to affordable health care services for all |
| 353 | persons who reside within the area, including, but not limited |
| 354 | to, public health services, primary care services, inpatient |
| 355 | services, and affordable health insurance generally. |
| 356 |
|
| 357 | Any hospital that fails to comply with any of the provisions of |
| 358 | this subsection, or any other contractual condition, may not |
| 359 | receive payments under this section until full compliance is |
| 360 | achieved. |
| 361 | Section 5. This act shall take effect July 1, 2007. |