Bill Text: TX SB2117 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to the creation and operations of a health care provider participation program by the City of Amarillo Hospital District.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [SB2117 Detail]
Download: Texas-2017-SB2117-Enrolled.html
S.B. No. 2117 |
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relating to the creation and operations of a health care provider | ||
participation program by the City of Amarillo Hospital District. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle D, Title 4, Health and Safety Code, is | ||
amended by adding Chapter 295A to read as follows: | ||
CHAPTER 295A. CITY OF AMARILLO HOSPITAL DISTRICT HEALTH CARE | ||
PROVIDER PARTICIPATION PROGRAM | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 295A.001. PURPOSE. The purpose of this chapter is to | ||
authorize the district to administer a health care provider | ||
participation program to provide additional compensation to | ||
hospitals in the district by collecting mandatory payments from | ||
each hospital in the district to be used to provide the nonfederal | ||
share of a Medicaid supplemental payment program and for other | ||
purposes as authorized under this chapter. | ||
Sec. 295A.002. DEFINITIONS. In this chapter: | ||
(1) "Board" means the board of hospital managers of | ||
the district. | ||
(2) "District" means the City of Amarillo Hospital | ||
District. | ||
(3) "Institutional health care provider" means a | ||
nonpublic hospital that provides inpatient hospital services. | ||
(4) "Paying hospital" means an institutional health | ||
care provider required to make a mandatory payment under this | ||
chapter. | ||
(5) "Program" means the health care provider | ||
participation program authorized by this chapter. | ||
Sec. 295A.003. APPLICABILITY. This chapter applies only to | ||
the City of Amarillo Hospital District. | ||
Sec. 295A.004. HEALTH CARE PROVIDER PARTICIPATION PROGRAM; | ||
PARTICIPATION IN PROGRAM. The board may authorize the district to | ||
participate in a health care provider participation program on the | ||
affirmative vote of a majority of the board, subject to the | ||
provisions of this chapter. | ||
SUBCHAPTER B. POWERS AND DUTIES OF BOARD | ||
Sec. 295A.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY | ||
PAYMENT. The board may require a mandatory payment authorized | ||
under this chapter by an institutional health care provider in the | ||
district only in the manner provided by this chapter. | ||
Sec. 295A.052. RULES AND PROCEDURES. The board may adopt | ||
rules relating to the administration of the health care provider | ||
participation program, including collection of the mandatory | ||
payments, expenditures, audits, and any other administrative | ||
aspects of the program. | ||
Sec. 295A.053. INSTITUTIONAL HEALTH CARE PROVIDER | ||
REPORTING. If the board authorizes the district to participate in a | ||
health care provider participation program under this chapter, the | ||
board shall require each institutional health care provider to | ||
submit to the district a copy of any financial and utilization data | ||
required by and reported to the Department of State Health Services | ||
under Sections 311.032 and 311.033 and any rules adopted by the | ||
executive commissioner of the Health and Human Services Commission | ||
to implement those sections. | ||
SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS | ||
Sec. 295A.101. HEARING. (a) In each year that the board | ||
authorizes a health care provider participation program under this | ||
chapter, the board shall hold a public hearing on the amounts of any | ||
mandatory payments that the board intends to require during the | ||
year and how the revenue derived from those payments is to be spent. | ||
(b) Not later than the fifth day before the date of the | ||
hearing required under Subsection (a), the board shall publish | ||
notice of the hearing in a newspaper of general circulation in the | ||
district and provide written notice of the hearing to the chief | ||
operating officer of each institutional health care provider in the | ||
district. | ||
Sec. 295A.102. LOCAL PROVIDER PARTICIPATION FUND; | ||
DEPOSITORY. (a) If the board collects a mandatory payment | ||
authorized under this chapter, the board shall create a local | ||
provider participation fund in one or more banks designated by the | ||
district as a depository for public funds. | ||
(b) The board may withdraw or use money in the fund only for | ||
a purpose authorized under this chapter. | ||
(c) All funds collected under this chapter shall be secured | ||
in the manner provided by Chapter 1001, Special District Local Laws | ||
Code, for securing other public funds of the district. | ||
Sec. 295A.103. DEPOSITS TO FUND; AUTHORIZED USES OF MONEY. | ||
(a) The local provider participation fund established under | ||
Section 295A.102 consists of: | ||
(1) all mandatory payments authorized under this | ||
chapter and received by the district; | ||
(2) money received from the Health and Human Services | ||
Commission as a refund of an intergovernmental transfer from the | ||
district to the state as the nonfederal share of Medicaid | ||
supplemental payment program payments, provided that the | ||
intergovernmental transfer does not receive a federal matching | ||
payment; and | ||
(3) the earnings of the fund. | ||
(b) Money deposited to the local provider participation | ||
fund may be used only to: | ||
(1) fund intergovernmental transfers from the | ||
district to the state to provide: | ||
(A) the nonfederal share of a Medicaid | ||
supplemental payment program authorized under the state Medicaid | ||
plan, the Texas Healthcare Transformation and Quality Improvement | ||
Program waiver issued under Section 1115 of the federal Social | ||
Security Act (42 U.S.C. Section 1315), or a successor waiver | ||
program authorizing similar Medicaid supplemental payment | ||
programs; or | ||
(B) payments to Medicaid managed care | ||
organizations that are dedicated for payment to hospitals; | ||
(2) pay costs associated with indigent care provided | ||
by institutional health care providers in the district; | ||
(3) pay the administrative expenses of the district in | ||
administering the program, including collateralization of | ||
deposits; | ||
(4) refund a portion of a mandatory payment collected | ||
in error from a paying hospital; and | ||
(5) refund to paying hospitals a proportionate share | ||
of the money that the district: | ||
(A) receives from the Health and Human Services | ||
Commission that is not used to fund the nonfederal share of Medicaid | ||
supplemental payment program payments; or | ||
(B) determines cannot be used to fund the | ||
nonfederal share of Medicaid supplemental payment program | ||
payments. | ||
(c) Money in the local provider participation fund may not | ||
be commingled with other district funds. | ||
(d) An intergovernmental transfer of funds described by | ||
Subsection (b)(1) and any funds received by the district as a result | ||
of an intergovernmental transfer described by that subsection may | ||
not be used by the district or any other entity to expand Medicaid | ||
eligibility under the Patient Protection and Affordable Care Act | ||
(Pub. L. No. 111-148) as amended by the Health Care and Education | ||
Reconciliation Act of 2010 (Pub. L. No. 111-152). | ||
SUBCHAPTER D. MANDATORY PAYMENTS | ||
Sec. 295A.151. MANDATORY PAYMENTS. (a) Except as provided | ||
by Subsection (e), if the board authorizes a health care provider | ||
participation program under this chapter, the board shall require | ||
an annual mandatory payment to be assessed on the net patient | ||
revenue of each institutional health care provider located in the | ||
district. The board shall provide that the mandatory payment is to | ||
be collected at least annually, but not more often than quarterly. | ||
In the first year in which the mandatory payment is required, the | ||
mandatory payment is assessed on the net patient revenue of an | ||
institutional health care provider as determined by the data | ||
reported to the Department of State Health Services under Sections | ||
311.032 and 311.033 in the most recent fiscal year for which that | ||
data was reported. If the institutional health care provider did | ||
not report any data under those sections, the provider's net | ||
patient revenue is the amount of that revenue as contained in the | ||
provider's Medicare cost report submitted for the previous fiscal | ||
year or for the closest subsequent fiscal year for which the | ||
provider submitted the Medicare cost report. The district shall | ||
update the amount of the mandatory payment on an annual basis. | ||
(b) The amount of a mandatory payment authorized under this | ||
chapter must be a uniform percentage of the amount of net patient | ||
revenue generated by each paying hospital in the district. A | ||
mandatory payment authorized under this chapter may not hold | ||
harmless any institutional health care provider, as required under | ||
42 U.S.C. Section 1396b(w). | ||
(c) The aggregate amount of the mandatory payments required | ||
of all paying hospitals in the district may not exceed six percent | ||
of the aggregate net patient revenue of all paying hospitals in the | ||
district. | ||
(d) Subject to the maximum amount prescribed by Subsection | ||
(c), the board shall set the mandatory payments in amounts that in | ||
the aggregate will generate sufficient revenue to cover the | ||
administrative expenses of the district for activities under this | ||
chapter, fund an intergovernmental transfer described by Section | ||
295A.103(b)(1), or make other payments authorized under this | ||
chapter. The amount of revenue from mandatory payments that may be | ||
used for administrative expenses by the district in a year may not | ||
exceed $25,000, plus the cost of collateralization of deposits. If | ||
the board demonstrates to the paying hospitals that the costs of | ||
administering the health care provider participation program under | ||
this chapter, excluding those costs associated with the | ||
collateralization of deposits, exceed $25,000 in any year, on | ||
consent of all of the paying hospitals, the district may use | ||
additional revenue from mandatory payments received under this | ||
chapter to compensate the district for its administrative expenses. | ||
A paying hospital may not unreasonably withhold consent to | ||
compensate the district for administrative expenses. | ||
(e) A paying hospital may not add a mandatory payment | ||
required under this section as a surcharge to a patient or insurer. | ||
(f) A mandatory payment under this chapter is not a tax for | ||
purposes of Section 5(a), Article IX, Texas Constitution, or | ||
Chapter 1001, Special District Local Laws Code. | ||
Sec. 295A.152. ASSESSMENT AND COLLECTION OF MANDATORY | ||
PAYMENTS. The district may collect or contract for the assessment | ||
and collection of mandatory payments authorized under this chapter. | ||
Sec. 295A.153. CORRECTION OF INVALID PROVISION OR | ||
PROCEDURE. To the extent any provision or procedure under this | ||
chapter causes a mandatory payment authorized under this chapter to | ||
be ineligible for federal matching funds, the board may provide by | ||
rule for an alternative provision or procedure that conforms to the | ||
requirements of the federal Centers for Medicare and Medicaid | ||
Services. A rule adopted under this section may not create, impose, | ||
or materially expand the legal or financial liability or | ||
responsibility of the district or an institutional health care | ||
provider in the district beyond the provisions of this chapter. | ||
This section does not require the board to adopt a rule. | ||
SECTION 2. If before implementing any provision of this Act | ||
a state agency determines that a waiver or authorization from a | ||
federal agency is necessary for implementation of that provision, | ||
the agency affected by the provision shall request the waiver or | ||
authorization and may delay implementing that provision until the | ||
waiver or authorization is granted. | ||
SECTION 3. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2017. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 2117 passed the Senate on | ||
May 4, 2017, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 2117 passed the House on | ||
May 21, 2017, by the following vote: Yeas 137, Nays 2, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |