Florida Senate - 2008 SB 1374

By the Committee on Health Regulation

588-03491-08 20081374__

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A bill to be entitled

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An act relating to home health care; amending s. 400.462,

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F.S.; revising and adding definitions; amending s.

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400.471, F.S.; requiring an applicant for a new home

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health agency license to submit a surety bond or other

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security of a specified amount to the Agency for Health

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Care Administration; providing procedures for the agency

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with respect to making a claim against a surety bond or

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security; limiting the timing of receipt and the number of

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applications for a new home health agency license which

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the agency may accept each quarter; providing an exception

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under certain circumstances for a home health agency that

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is part of a retirement community; specifying a procedure

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for the agency to follow in selecting applications to

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process for a new home health agency license; providing

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for the future expiration of such provisions; amending s.

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400.474, F.S.; providing additional grounds under which

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the Agency for Health Care Administration may take  

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disciplinary action against a home health agency; creating

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s. 400.476, F.S.; establishing staffing requirements for

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home health agencies; reducing the number of home health

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agencies that an administrator or director of nursing may

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serve; requiring that an alternate administrator be

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designated in writing; limiting the period that a home

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health agency may operate without a director of nursing;

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requiring notification upon the termination and

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replacement of a director of nursing; requiring the Agency

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for Health Care Administration to take administrative

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enforcement action against a home health agency for

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noncompliance with the notification and staffing

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requirements for a director of nursing; providing training

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requirements for certified nursing assistants and home

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health aides; amending s. 400.484, F.S.; requiring that

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the agency impose administrative fines for certain

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deficiencies; increasing the administrative fines imposed

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for certain deficiencies; amending s. 400.491, F.S.;

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extending the period that a home health agency must retain

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records of the nonskilled care it provides; amending s.

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400.497, F.S.; requiring that the Agency for Health Care

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Administration adopt rules related to standards for the

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director of nursing of a home health agency, requirements

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for a director of nursing to submit certified staff

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activity logs pursuant to an agency request, and quality

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assurance programs; amending s. 400.506, F.S.; providing

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training requirements for certified nursing assistants and

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home health aides referred for contract by a nurse

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registry; amending s. 400.518, F.S.; providing for a fine

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to be imposed against a home health agency that provides

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complimentary staffing to an assisted care community in

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exchange for patient referrals; requiring the Agency for

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Health Care Administration to conduct an unannounced

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survey of each home health agency within a specified

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period after issuing a license; requiring the Agency for

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Health Care Administration to review the process for prior

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authorization of home health agency visits and determine

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whether modifications to the process are necessary;

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requiring the agency to report to the Legislature on the

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feasibility of accessing the Medicare system to determine

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recipient eligibility for home health services; providing

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an effective date.

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

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     Section 1.  Section 400.462, Florida Statutes, is amended to

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read:

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     400.462  Definitions.--As used in this part, the term:

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     (1)  "Administrator" means a direct employee, as defined in

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subsection (9), who is. The administrator must be a licensed

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physician, physician assistant, or registered nurse licensed to

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practice in this state or an individual having at least 1 year of

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supervisory or administrative experience in home health care or

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in a facility licensed under chapter 395, under part II of this

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chapter, or under part I of chapter 429. An administrator may

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manage a maximum of five licensed home health agencies located

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within one agency service district or within an immediately

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contiguous county. If the home health agency is licensed under

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this chapter and is part of a retirement community that provides

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multiple levels of care, an employee of the retirement community

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may administer the home health agency and up to a maximum of four

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entities licensed under this chapter or chapter 429 that are

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owned, operated, or managed by the same corporate entity. An

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administrator shall designate, in writing, for each licensed

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entity, a qualified alternate administrator to serve during

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absences.

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     (2)  "Admission" means a decision by the home health agency,

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during or after an evaluation visit to the patient's home, that

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there is reasonable expectation that the patient's medical,

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nursing, and social needs for skilled care can be adequately met

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by the agency in the patient's place of residence. Admission

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includes completion of an agreement with the patient or the

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patient's legal representative to provide home health services as

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required in s. 400.487(1).

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     (3)  "Advanced registered nurse practitioner" means a person

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licensed in this state to practice professional nursing and

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certified in advanced or specialized nursing practice, as defined

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in s. 464.003.

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     (4)  "Agency" means the Agency for Health Care

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Administration.

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     (5)  "Certified nursing assistant" means any person who has

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been issued a certificate under part II of chapter 464. The

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licensed home health agency or licensed nurse registry shall

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ensure that the certified nursing assistant employed by or under

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contract with the home health agency or licensed nurse registry

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is adequately trained to perform the tasks of a home health aide

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in the home setting.

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     (6)  "Client" means an elderly, handicapped, or convalescent

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individual who receives companion services or homemaker services

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in the individual's home or place of residence.

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     (7)  "Companion" or "sitter" means a person who spends time

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with or cares for an elderly, handicapped, or convalescent

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individual and accompanies such individual on trips and outings

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and may prepare and serve meals to such individual. A companion

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may not provide hands-on personal care to a client.

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     (8)  "Department" means the Department of Children and

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Family Services.

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     (9)  "Direct employee" means an employee for whom one of the

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following entities pays withholding taxes: a home health agency;

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a management company that has a contract to manage the home

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health agency on a day-to-day basis; or an employee leasing

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company that has a contract with the home health agency to handle

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the payroll and payroll taxes for the home health agency.

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     (10)  "Director of nursing" means a registered nurse who is

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a direct employee, as defined in subsection (9), of the agency

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and who is a graduate of an approved school of nursing and is

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licensed in this state; who has at least 1 year of supervisory

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experience as a registered nurse; and who is responsible for

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overseeing the professional nursing and home health aid delivery

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of services of the agency. A director of nursing may be the

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director of a maximum of five licensed home health agencies

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operated by a related business entity and located within one

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agency service district or within an immediately contiguous

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county. If the home health agency is licensed under this chapter

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and is part of a retirement community that provides multiple

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levels of care, an employee of the retirement community may serve

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as the director of nursing of the home health agency and of up to

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four entities licensed under this chapter or chapter 429 which

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are owned, operated, or managed by the same corporate entity.

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     (11) "Fair market value" means the value in arms length

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transactions, consistent with the price that an asset would bring

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as the result of bona fide bargaining between well-informed

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buyers and sellers who are not otherwise in a position to

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generate business for the other party, or the compensation that

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would be included in a service agreement as the result of bona

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fide bargaining between well-informed parties to the agreement

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who are not otherwise in a position to generate business for the

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other party, on the date of acquisition of the asset or at the

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time of the service agreement.

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     (12)(11) "Home health agency" means an organization that

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provides home health services and staffing services.

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     (13)(12) "Home health agency personnel" means persons who

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are employed by or under contract with a home health agency and

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enter the home or place of residence of patients at any time in

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the course of their employment or contract.

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     (14)(13) "Home health services" means health and medical

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services and medical supplies furnished by an organization to an

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individual in the individual's home or place of residence. The

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term includes organizations that provide one or more of the

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following:

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     (a)  Nursing care.

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     (b)  Physical, occupational, respiratory, or speech therapy.

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     (c)  Home health aide services.

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     (d)  Dietetics and nutrition practice and nutrition

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counseling.

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     (e)  Medical supplies, restricted to drugs and biologicals

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prescribed by a physician.

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     (15)(14) "Home health aide" means a person who is trained

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or qualified, as provided by rule, and who provides hands-on

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personal care, performs simple procedures as an extension of

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therapy or nursing services, assists in ambulation or exercises,

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or assists in administering medications as permitted in rule and

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for which the person has received training established by the

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agency under s. 400.497(1). The licensed home health agency or

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licensed nurse registry shall ensure that the home health aide

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employed by or under contract with the home health agency or

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licensed nurse registry is adequately trained to perform the

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tasks of a home health aide in the home setting.

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     (16)(15) "Homemaker" means a person who performs household

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chores that include housekeeping, meal planning and preparation,

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shopping assistance, and routine household activities for an

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elderly, handicapped, or convalescent individual. A homemaker may

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not provide hands-on personal care to a client.

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     (17)(16) "Home infusion therapy provider" means an

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organization that employs, contracts with, or refers a licensed

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professional who has received advanced training and experience in

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intravenous infusion therapy and who administers infusion therapy

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to a patient in the patient's home or place of residence.

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     (18)(17) "Home infusion therapy" means the administration

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of intravenous pharmacological or nutritional products to a

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patient in his or her home.

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     (19) "Immediate family member" means a husband or wife; a

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birth or adoptive parent, child, or sibling; a stepparent,

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stepchild, stepbrother, or stepsister; a father-in-law, mother-

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in-law, son-in-law, daughter-in-law, brother-in-law, or sister-

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in-law; a grandparent or grandchild; or a spouse of a grandparent

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or grandchild.

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     (20) "Medical director" means a physician who is a

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volunteer with, or who receives remuneration from, a home health

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agency.

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     (21)(18) "Nurse registry" means any person that procures,

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offers, promises, or attempts to secure health-care-related

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contracts for registered nurses, licensed practical nurses,

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certified nursing assistants, home health aides, companions, or

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homemakers, who are compensated by fees as independent

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contractors, including, but not limited to, contracts for the

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provision of services to patients and contracts to provide

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private duty or staffing services to health care facilities

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licensed under chapter 395, this chapter, or chapter 429 or other

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business entities.

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     (22)(19) "Organization" means a corporation, government or

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governmental subdivision or agency, partnership or association,

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or any other legal or commercial entity, any of which involve

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more than one health care professional discipline; a health care

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professional and a home health aide or certified nursing

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assistant; more than one home health aide; more than one

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certified nursing assistant; or a home health aide and a

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certified nursing assistant. The term does not include an entity

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that provides services using only volunteers or only individuals

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related by blood or marriage to the patient or client.

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     (23)(20) "Patient" means any person who receives home

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health services in his or her home or place of residence.

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     (24)(21) "Personal care" means assistance to a patient in

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the activities of daily living, such as dressing, bathing,

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eating, or personal hygiene, and assistance in physical transfer,

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ambulation, and in administering medications as permitted by

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rule.

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     (25)(22) "Physician" means a person licensed under chapter

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458, chapter 459, chapter 460, or chapter 461.

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     (26)(23) "Physician assistant" means a person who is a

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graduate of an approved program or its equivalent, or meets

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standards approved by the boards, and is licensed to perform

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medical services delegated by the supervising physician, as

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defined in s. 458.347 or s. 459.022.

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     (27) "Remuneration" means any payment or other benefit made

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directly or indirectly, overtly or covertly, in cash or in kind.

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     (28)(24) "Skilled care" means nursing services or

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therapeutic services required by law to be delivered by a health

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care professional who is licensed under part I of chapter 464;

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part I, part III, or part V of chapter 468; or chapter 486 and

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who is employed by or under contract with a licensed home health

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agency or is referred by a licensed nurse registry.

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     (29)(25) "Staffing services" means services provided to a

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health care facility, school, or other business entity on a

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temporary or school-year basis pursuant to a written contract by

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licensed health care personnel and by certified nursing

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assistants and home heath aides who are employed by, or work

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under the auspices of, a licensed home health agency or who are

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registered with a licensed nurse registry. Staffing services may

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be provided anywhere within the state.

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     Section 2.  Section 400.471, Florida Statutes, is amended to

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read:

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     400.471 Application for license; fee; bond; limitation on

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applications accepted.--

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     (1)  Each applicant for licensure must comply with all

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provisions of this part and part II of chapter 408.

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     (2)  In addition to the requirements of part II of chapter

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408, the initial applicant must file with the application

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satisfactory proof that the home health agency is in compliance

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with this part and applicable rules, including:

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     (a)  A listing of services to be provided, either directly

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by the applicant or through contractual arrangements with

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existing providers.

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     (b)  The number and discipline of professional staff to be

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employed.

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     (c)  Completion of questions concerning volume data on the

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renewal application as determined by rule.

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     (3)  In addition to the requirements of s. 408.810, the home

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health agency must also obtain and maintain the following

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insurance coverage in an amount of not less than $250,000 per

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claim, and the home health agency must submit proof of coverage

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with an initial application for licensure and with each

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application for license renewal:

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     (a)  Malpractice insurance as defined in s. 624.605(1)(k).

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     (b)  Liability insurance as defined in s. 624.605(1)(b).

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     (4)  The agency shall accept, in lieu of its own periodic

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licensure survey, submission of the survey of an accrediting

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organization that is recognized by the agency if the

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accreditation of the licensed home health agency is not

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provisional and if the licensed home health agency authorizes

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release of, and the agency receives the report of, the

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accrediting organization.

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     (5)  In accordance with s. 408.805, an applicant or licensee

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shall pay a fee for each license application submitted under this

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part, part II of chapter 408, and applicable rules. The amount of

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the fee shall be established by rule and shall be set at an

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amount that is sufficient to cover the agency's costs in carrying

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out its responsibilities under this part, but not to exceed

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$2,000 per biennium. However, state, county, or municipal

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governments applying for licenses under this part are exempt from

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the payment of license fees.

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     (6)  The agency may not issue a license designated as

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certified to a home health agency that fails to satisfy the

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requirements of a Medicare certification survey from the agency.

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     (7) An applicant for a new home health agency license must

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submit a surety bond of $50,000, or other equivalent means of

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security acceptable to the agency, such as an irrevocable letter

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of credit or a deposit in a trust account or financial

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institution, payable to the Agency for Health Care

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Administration. A surety bond or other equivalent means of

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security must be valid from initial licensure until the end of

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the first license-renewal period. The purpose of this bond is to

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secure payment of any administrative penalties imposed by the

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agency and any fees and costs incurred by the agency regarding

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the home health agency license which are authorized under state

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law and which the licensee fails to pay 30 days after the fine or

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costs become final. The agency may make a claim against the

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surety bond or security until the later of:

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     (a) One year after the license ceases to be valid if the

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license is not renewed for a second biennial period;

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     (b) One year after the license has been renewed a second

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time; or

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     (c) Sixty days after any administrative or legal

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proceeding, including any appeal, is concluded involving an

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administrative penalty, fees, or costs for an act or omission

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that occurred at any time during the first 4 years after the

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license was initially issued.

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     (8)(a) The agency may accept for processing for a new home

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health agency license only the following number of applications

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quarterly:

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     1. Five for each geographic service area in service areas 1

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through 9;

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     2. Four for geographic service area 10; and

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     3. Three for geographic service area 11.

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However, an application for a new home health agency license that

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is part of a retirement community providing multiple levels of

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care and that will provide home health services exclusively to

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residents of that facility is not subject to the quarterly

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limitation and may not be counted as a new application for

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purposes of the quarterly limitation. If the home health agency

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provides home health services to persons outside that facility,

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the agency shall impose a moratorium on the license in accordance

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with s. 408.814 and revoke the home health agency license. The

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home health agency may reapply for a new home health agency

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license and is subject to the limits on the agency's acceptance

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of new applications.

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     (b) The agency shall accept applications for a new home

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health agency license only during the first 5 business days of a

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calendar quarter. Applications for a new home health agency

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license received during this period, except an application for a

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new home health agency license that is part of a retirement

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community providing multiple levels of care and that will provide

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home health services exclusively to residents of that facility,

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must be grouped according to the geographic service area in which

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the home health agency is to be located. During the first 6

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through 10 business days of the calendar quarter, the agency

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shall use a lottery system to select the number of applications

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authorized in paragraph (a) to be accepted for processing for

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each geographic service area.

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     (c) Notwithstanding ss. 120.60 or 408.806(3), the agency

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shall return to the sender all applications for a new home health

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agency license which were received:

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     1. And not accepted for processing pursuant to the lottery-

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selection process set forth in paragraph (b); or

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     2. Before or after the first 5 business days of a calendar

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quarter.

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     (d) This subsection expires July 1, 2011.

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     Section 3.  Section 400.474, Florida Statutes, is amended to

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read:

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     400.474  Administrative penalties.--

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     (1)  The agency may deny, revoke, and suspend a license and

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impose an administrative fine in the manner provided in chapter

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120.

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     (2)  Any of the following actions by a home health agency or

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its employee is grounds for disciplinary action by the agency:

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     (a)  Violation of this part, part II of chapter 408, or of

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applicable rules.

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     (b)  An intentional, reckless, or negligent act that

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materially affects the health or safety of a patient.

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     (c)  Knowingly providing home health services in an

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unlicensed assisted living facility or unlicensed adult family-

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care home, unless the home health agency or employee reports the

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unlicensed facility or home to the agency within 72 hours after

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providing the services.

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     (d) Preparing or maintaining fraudulent patient records,

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such as, but not limited to, charting ahead, recording vital

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signs or symptoms that were not personally obtained or observed

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by the home health agency's staff at the time indicated,

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borrowing patients or patient records from other home health

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agencies to pass a survey or inspection, or falsifying

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signatures.

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     (3) The agency shall impose a fine of $1,000 against a home

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health agency that demonstrates a pattern of falsifying:

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     (a) Documents of training for home health aides or

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certified nursing assistants; or

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     (b) Health statements for staff providing direct care to

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patients.

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A pattern may be demonstrated by a showing of at least three

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fraudulent entries or documents. The fine shall be imposed for

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each fraudulent document or, if multiple staff members are

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included on one document, for each fraudulent entry on the

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document.

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     (4) The agency shall impose a fine of $5,000 against a home

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health agency that demonstrates a pattern of billing any payor

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for services not provided. A pattern may be demonstrated by a

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showing of at least three billings for services not provided

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within a 12-month period. The fine must be imposed for each

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incident that is falsely billed. The agency may also:

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     (a) Require payback of all funds;

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     (b) Revoke the license; or

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     (c) Issue a moratorium in accordance with s. 408.814.

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     (5) The agency shall impose a fine of $5,000 against a home

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health agency that demonstrates a pattern of failing to provide a

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service specified in the home health agency's written agreement

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with a patient or the plan of care for that patient, unless a

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reduction in service is mandated by Medicare, Medicaid, or a

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state program or as provided in s. 400.492(3). A pattern may be

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demonstrated by a showing of at least three incidences,

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regardless of the patient or service, where the home health

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agency did not provide a service specified in a written agreement

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or plan of care during a 3-month period. The agency shall impose

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the fine for each occurrence. The agency may also impose

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additional administrative fines under s. 400.484 for the direct

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or indirect harm to a patient, or deny, revoke, or suspend the

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license of the home health agency for a pattern of failing to

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provide a service specified in the home health agency's written

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agreement with a patient or the plan of care for that patient.

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     (6) The agency may deny, revoke, or suspend the license of

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a home health agency and shall impose a fine of $5,000 against a

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home health agency that:

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     (a) Gives remuneration for staffing services to:

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     1. Another home health agency with which it has formal or

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informal patient-referral transactions or arrangements; or

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     2. A health services pool with which it has formal or

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informal patient-referral transactions or arrangements,

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unless the home health agency has activated its comprehensive

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emergency management plan in accordance with s. 400.492.

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     (b) Provides services to residents in an assisted living

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facility for which the home health agency does not receive fair

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market value remuneration.

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     (c) Provides staffing to an assisted living facility for

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which the home health agency does not receive fair market value

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remuneration.

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     (d) Fails to provide the agency, upon request, with copies

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of all contracts with assisted living facilities which were

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executed within 5 years before the request.

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     (e) Gives remuneration to a case manager, discharge

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planner, facility-based staff member, or third-party vendor who

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is involved in the discharge-planning process of a facility

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licensed under chapter 395 or this chapter from whom the home

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health agency receives referrals.

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     (f) Fails to submit to the agency, within 10 days after the

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end of each calendar quarter, a written report that includes the

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following data based on data as it existed on the last day of the

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quarter:

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     1. The number of insulin-dependent diabetic patients

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receiving insulin-injection services from the home health agency;

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     2. The number of patients receiving both home health

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services from the home health agency and hospice services;

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     3. The number of patients receiving home health services

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from that home health agency; and

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     4. The names and nursing license numbers of registered

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nurses whose primary job responsibility is to provide home health

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services to patients and who received remuneration from the home

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health agency in excess of $25,000 during the calendar quarter.

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     (g) Gives cash, or its equivalent, to a Medicare or

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Medicaid beneficiary.

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     (h) Has more than one medical director contract in effect

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at one time or more than one medical director contract and one

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contract with a physician-specialist whose services are mandated

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for the home health agency in order to qualify to participate in

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a federal or state health care program at one time.

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     (i) Gives remuneration to a physician without a medical

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director contract being in effect. The contract must:

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     1. Be in writing and signed by both parties;

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     2. Provide for remuneration that is at fair market value

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for an hourly rate, which must be supported by invoices submitted

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by the medical director describing the work performed, the dates

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on which that work was performed, and the duration of that work;

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and

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     3. Be for a term of at least 1 year.

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The hourly rate specified in the contract may not be increased

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during the term of the contract. The home health agency may not

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execute a subsequent contract with that physician which has an

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increased hourly rate and covers any portion of the term that was

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in the original contract.

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     (j) Gives remuneration to:

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     1. A physician, and the home health agency is in violation

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of paragraph (h) or paragraph (i);

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     2. A member of the physician's office staff; or

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     3. An immediate family member of the physician,

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if the home health agency has received a patient referral in the

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preceding 12 months from that physician or physician's office

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staff.

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     (k) Fails to provide to the agency, upon request, copies of

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all contracts with a medical director which were executed within

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5 years before the request.

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     (7)(3)(a) In addition to the requirements of s. 408.813,

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any person, partnership, or corporation that violates s. 408.812

493

or s. 408.813 and that previously operated a licensed home health

494

agency or concurrently operates both a licensed home health

495

agency and an unlicensed home health agency commits a felony of

496

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

497

775.083, or s. 775.084.

498

     (b)  If any home health agency is found to be operating

499

without a license and that home health agency has received any

500

government reimbursement for services, the agency shall make a

501

fraud referral to the appropriate government reimbursement

502

program.

503

     Section 4.  Section 400.476, Florida Statutes, is created to

504

read:

505

     400.476 Staffing requirements; notifications; limitations

506

on staffing services.--

507

     (1) ADMINISTRATOR.--

508

     (a) An administrator may manage only one home health

509

agency, except that an administrator may manage up to five home

510

health agencies if all five home health agencies have identical

511

controlling interests as defined in s. 408.803 and are located

512

within one agency geographic service area or within an

513

immediately contiguous county. If the home health agency is

514

licensed under this chapter and is part of a retirement community

515

that provides multiple levels of care, an employee of the

516

retirement community may administer the home health agency and up

517

to a maximum of four entities licensed under this chapter or

518

chapter 429 which all have identical controlling interests as

519

defined in s. 408.803. An administrator shall designate, in

520

writing, for each licensed entity, a qualified alternate

521

administrator to serve during the administrator's absence.

522

     (b) An administrator of a home health agency who is a

523

licensed physician, physician assistant, or registered nurse

524

licensed to practice in this state may also be the director of

525

nursing for a home health agency. An administrator may serve as a

526

director of nursing only for the number of entities authorized in

527

subsection (2).

528

     (2) DIRECTOR OF NURSING.--

529

     (a) A director of nursing may be the director of nursing

530

for:

531

     1. Up to two licensed home health agencies if the agencies

532

have identical controlling interests as defined in s. 408.803 and

533

are located within one agency geographic service area or within

534

an immediately contiguous county; or

535

     2. Up to five licensed home health agencies if:

536

     a. All of the home health agencies have identical

537

controlling interests as defined in s. 408.803;

538

     b. All of the home health agencies are located within one

539

agency geographic service area or within an immediately

540

contiguous county; and

541

     c. Each home health agency has a registered nurse who meets

542

the qualifications of a director of nursing and who has a written

543

delegation from the director of nursing to serve as the director

544

of nursing for that home health agency when the director of

545

nursing is not present.

546

547

If a home health agency licensed under this chapter is part of a

548

retirement community that provides multiple levels of care, an

549

employee of the retirement community may serve as the director of

550

nursing of the home health agency and up to a maximum of four

551

entities, other than home health agencies, licensed under this

552

chapter or chapter 429 which all have identical controlling

553

interests as defined in s. 408.803.

554

     (b) A home health agency may not operate for more than 30

555

calendar days without a director of nursing. A home health agency

556

and the director of nursing of a home health agency must notify

557

the agency within 10 business days after termination of the

558

services of the director of nursing for the home health agency. A

559

home health agency must notify the agency of the identity and

560

qualifications of the new director of nursing within 10 days

561

after the new director is hired. A home health agency that

562

operates for more than 30 calendar days without a director of

563

nursing commits a class II deficiency. In addition to the fine

564

for a class II deficiency, the agency may issue a moratorium in

565

accordance with s. 408.814 or revoke the license. The agency

566

shall fine a home health agency that fails to notify the agency

567

as required in this paragraph $1,000 for the first violation and

568

$2,000 for a repeat violation. The agency may not take

569

administrative action against a home health agency if the

570

director of nursing fails to notify the department upon

571

termination of services as the director of nursing for the home

572

health agency.

573

     (3) TRAINING.--A home health agency shall ensure that each

574

certified nursing assistant employed by or under contract with

575

the home health agency and each home health aide employed by or

576

under contract with the home health agency is adequately trained

577

to perform the tasks of a home health aide in the home setting.

578

     (4) STAFFING.--Staffing services may be provided anywhere

579

within the state.

580

     Section 5.  Section 400.484, Florida Statutes, is amended to

581

read:

582

     400.484  Right of inspection; deficiencies; fines.--

583

     (1)  In addition to the requirements of s. 408.811, the

584

agency may make such inspections and investigations as are

585

necessary in order to determine the state of compliance with this

586

part, part II of chapter 408, and applicable rules.

587

     (2)  The agency shall impose fines for various classes of

588

deficiencies in accordance with the following schedule:

589

     (a)  A class I deficiency is any act, omission, or practice

590

that results in a patient's death, disablement, or permanent

591

injury, or places a patient at imminent risk of death,

592

disablement, or permanent injury. Upon finding a class I

593

deficiency, the agency shall may impose an administrative fine in

594

the amount of $15,000 $5,000 for each occurrence and each day

595

that the deficiency exists.

596

     (b)  A class II deficiency is any act, omission, or practice

597

that has a direct adverse effect on the health, safety, or

598

security of a patient. Upon finding a class II deficiency, the

599

agency shall may impose an administrative fine in the amount of

600

$5,000 $1,000 for each occurrence and each day that the

601

deficiency exists.

602

     (c)  A class III deficiency is any act, omission, or

603

practice that has an indirect, adverse effect on the health,

604

safety, or security of a patient. Upon finding an uncorrected or

605

repeated class III deficiency, the agency shall may impose an

606

administrative fine not to exceed $1,000 $500 for each occurrence

607

and each day that the uncorrected or repeated deficiency exists.

608

     (d)  A class IV deficiency is any act, omission, or practice

609

related to required reports, forms, or documents which does not

610

have the potential of negatively affecting patients. These

611

violations are of a type that the agency determines do not

612

threaten the health, safety, or security of patients. Upon

613

finding an uncorrected or repeated class IV deficiency, the

614

agency shall may impose an administrative fine not to exceed $500

615

$200 for each occurrence and each day that the uncorrected or

616

repeated deficiency exists.

617

     (3)  In addition to any other penalties imposed pursuant to

618

this section or part, the agency may assess costs related to an

619

investigation that results in a successful prosecution, excluding

620

costs associated with an attorney's time.

621

     Section 6.  Subsection (2) of section 400.491, Florida

622

Statutes, is amended to read:

623

     400.491  Clinical records.--

624

     (2)  The home health agency must maintain for each client

625

who receives nonskilled care a service provision plan. Such

626

records must be maintained by the home health agency for 3 years

627

1 year following termination of services.

628

     Section 7.  Present subsections (5), (6), (7), and (8) of

629

section 400.497, Florida Statutes, are renumbered as subsections

630

(6), (7), (8), and (9), respectively, and a new subsection (5) is

631

added to that section, to read:

632

     400.497  Rules establishing minimum standards.--The agency

633

shall adopt, publish, and enforce rules to implement part II of

634

chapter 408 and this part, including, as applicable, ss. 400.506

635

and 400.509, which must provide reasonable and fair minimum

636

standards relating to:

637

     (5) Oversight by the director of nursing. The agency shall

638

develop rules related to:

639

     (a) Standards that address oversight responsibilities by

640

the director of nursing of skilled nursing and personal care

641

services provided by the home health agency's staff;

642

     (b) Requirements for a director of nursing to provide to

643

the agency, upon request, a certified daily report of the home

644

health services provided by a specified direct employee or

645

contracted staff member on behalf of the home health agency. The

646

agency may request a certified daily report only for a period not

647

to exceed 2 years prior to the date of the request; and

648

     (c) A quality assurance program for home health services

649

provided by the home health agency.

650

     Section 8.  Paragraph (a) of subsection (6) of section

651

400.506, Florida Statutes, is amended to read:

652

     400.506  Licensure of nurse registries; requirements;

653

penalties.--

654

     (6)(a)  A nurse registry may refer for contract in private

655

residences registered nurses and licensed practical nurses

656

registered and licensed under part I of chapter 464, certified

657

nursing assistants certified under part II of chapter 464, home

658

health aides who present documented proof of successful

659

completion of the training required by rule of the agency, and

660

companions or homemakers for the purposes of providing those

661

services authorized under s. 400.509(1). A licensed nurse

662

registry shall ensure that each certified nursing assistant

663

referred for contract by the nurse registry and each home health

664

aide referred for contract by the nurse registry is adequately

665

trained to perform the tasks of a home health aide in the home

666

setting. Each person referred by a nurse registry must provide

667

current documentation that he or she is free from communicable

668

diseases.

669

     Section 9.  Subsection (4) is added to section 400.518,

670

Florida Statutes, to read:

671

     400.518  Prohibited referrals to home health agencies.--

672

     (4) The agency shall impose an administrative fine of

673

$15,000 if a home health agency provides nurses, certified

674

nursing assistants, home health aides, or other staff without

675

charge to a facility licensed under chapter 429 in return for

676

patient referrals from the facility. The proceeds of such fines

677

shall be deposited into the Health Care Trust Fund.

678

     Section 10. The Agency for Health Care Administration shall

679

conduct an unannounced survey of each home health agency within

680

15 months after issuing a new license to the home health agency.

681

     Section 11. The Agency for Health Care Administration shall

682

review the process, procedures, and contractor's performance for

683

the prior authorization of home health agency visits that are in

684

excess of 60 visits over the lifetime of a Medicaid recipient.

685

The agency shall determine whether modifications are necessary in

686

order to reduce Medicaid fraud and abuse related to home health

687

services for a Medicaid recipient which are not medically

688

necessary. If modifications to the prior authorization function

689

are necessary, the agency shall amend the contract to require

690

contractor performance that reduces potential Medicaid fraud and

691

abuse with respect to home health agency visits.

692

     Section 12. The Agency for Health Care Administration shall

693

report to the Legislature by January 1, 2009, on the feasibility

694

and costs of accessing the Medicare system to disallow Medicaid

695

payment for home health services that are paid for under the

696

Medicare prospective payment system for recipients who are dually

697

eligible for Medicaid and Medicare.

698

     Section 13.  This act shall take effect July 1, 2008.

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