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Regular Session, 2010
SENATE BILL NO. 711
BY SENATOR CHEEK
FUNDS/FUNDING. Provides for the Community Hospital Stabilization Fund. (gov sig)
AN ACT1
To enact Chapter 64 of Title 46 of the Louisiana Revised Statutes of 1950, to be comprised2
of R.S. 46:2901 through 2903, relative to the Community Hospital Stabilization3
Fund; to create the Community Hospital Stabilization Fund as a special fund in the4
state treasury; to provide for deposit of certain monies into the fund; to provide for5
the uses of monies in the fund; to provide for certified public expenditures; to6
provide for an effective date; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Chapter 64 of Title 46 of the Louisiana Revised Statutes of 1950, to be9
comprised of R.S. 46:2901 through 2903, is hereby enacted to read as follows: 10
CHAPTER 64. COMMUNITY HOSPITAL STABILIZATION FUND11
§2901. Community Hospital Stabilization Fund12
A. There is hereby established in the state treasury, as a special fund, the13
Community Hospital Stabilization Fund, hereinafter referred to as the "fund".14
B. The source of monies deposited into the fund shall be any monies15
appropriated annually by the legislature including donations, gifts, grants,16
federal funding generated by certified public expenditures, or any other monies17 SB NO. 711
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which may be provided by law. All unexpended and unencumbered monies in1
the fund at the end of the fiscal year shall remain in the fund. The monies in the2
fund shall be invested by the state treasurer in the same manner as monies in3
the state general fund, and interest earned on the investment of such monies4
shall be credited to the fund. The state treasurer shall report the status of the5
fund at least quarterly to the secretary of the Department of Health and6
Hospitals.7
C. The monies in the fund shall be appropriated annually and used solely8
for purposes as specified, as follows:9
(1) For Fiscal Year 2010-2011:10
(a) Supplemental payments for inpatient and outpatient Medicaid11
hospital services, Medicaid outlier payments, and Medicaid disproportionate12
share payments to community hospitals.13
(b) The payment of all costs of local governments for their certification14
of public expenditures.15
(c) The reimbursement of the Department of Health and Hospitals for16
costs incurred in preparing the application for programs established in this17
Chapter.18
(d) The reimbursement of any monies deposited into the fund as a result19
of overpayments of federal funds.20
(2) For Fiscal Year 2011-2012 and each year thereafter:21
(a) Enhanced Medicaid payments to community hospitals.22
(b) Enhanced disproportionate share payments and uncompensated care23
payments to community hospitals.24
(c) The payment of all costs of local governments for their certification25
of public expenditures.26
(d) The reimbursement of the Department of Health and Hospitals for27
costs incurred in preparing the application for programs established in this28
Chapter.29 SB NO. 711
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(e) The reimbursement of any monies deposited into the fund as a result1
of overpayments of federal funds.2
(3) Monies in the fund may also be appropriated for services of the state3
Medicaid program for community hospitals and for those services that are4
subject to federal financial participation in matching funds.5
D. Except when Medicaid reimbursements to community hospitals are6
reduced by a percentage that is not greater than the average percentage7
reductions of reimbursements paid to all other providers, monies in the fund8
shall not be used to displace, replace, or supplant appropriations from the state9
general fund for the Medicaid program below the amount of state general fund10
appropriations for the Medicaid program for the Fiscal Year 2009-2010.11
§2902. Certified Public Expenditures12
A. (1) Each non-state public hospital shall certify to the Department of13
Health and Hospitals its public expenditure in that hospital's most recently filed14
Medicaid cost report no later than May 1 each year. The obligation to certify15
shall begin in Fiscal Year 2009-2010.16
(2) All certifications shall be in a form satisfactory to the Department of17
Health and Hospitals.18
B. (1) In each fiscal year, the Department of Health and Hospitals shall19
request certification of all public expenditures from non-state public hospitals20
which have not been subject to a previous certification, not later than April 15,21
and shall promptly submit the certifications received for federal funds. Federal22
funds earned from such certification shall be deposited into the fund no later23
than June 1 of that fiscal year as specified in this Subpart. Any such federal24
funds not received by June 1 shall be deposited into the fund within five (5)25
business days of receipt as specified in this Subpart.26
(a) In Fiscal Year 2009-2010, the state treasurer shall deposit federal27
funds generated in excess of thirty million dollars from certifications of public28
expenditures by non-state public hospitals into the fund.29 SB NO. 711
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(b) In Fiscal Year 2010-2011, the state treasurer shall deposit federal1
funds generated from certifications of public expenditures by non-state public2
hospitals into the fund.3
(c) In Fiscal Year 2011-2012 and each fiscal year thereafter, the state4
treasurer shall deposit federal funds in excess of thirty million dollars generated5
from certifications of public expenditures by non-state public hospitals into the6
fund.7
(2) For the purposes of this Chapter, "certified public expenditure"8
means the certification by a hospital or other political subdivision or agency9
thereof, of matching funds for Medicaid payments including, but not limited to,10
incurred uncompensated care costs (UCC) that qualify for public expenditures11
which are eligible for federal financial participation under Title XIX of the12
Social Security Act to the Department of Health and Hospitals.13
§2903. Other Requirements14
A. The provisions of this Chapter shall be subject to review and approval15
of the Centers for Medicare and Medicaid Services.16
B. Notwithstanding the provisions of R.S. 46:1052, an additional object17
and purpose of hospital service districts and the governing bodies created under18
the provisions of Chapter 10 of Title 46 of the Louisiana Revised Statutes of19
1950, shall be to participate in and contribute to public agencies and non-profit20
entities in efforts to fund or otherwise provide healthcare services to21
underserved and uninsured citizens of Louisiana.22 SB NO. 711
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Section 2. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
Proposed law establishes the Community Hospital Stabilization Fund as a special fund in the
state treasury and provides for the sources of monies to be deposited into the fund, including
any monies appropriated annually by the legislature including donations, gifts, grants,
federal funding generated by certified public expenditures, or any other monies provided by
law.
Proposed law provides, subject to appropriation, for use of the monies in the fund for Fiscal
Year 2010-2011, Fiscal Year 2011-2012, and each fiscal year thereafter.
Proposed law further provides that monies in the fund may be appropriated for services of
the state Medicaid program for community hospitals, and for those services that are subject
to federal financial participation in matching funds.
Proposed law limits that, except when Medicaid reimbursements to community hospitals are
reduced by a percentage that is not greater than the average percentage reductions of
reimbursements paid to all other providers, monies in the fund shall not be used to displace,
replace, or supplant appropriations from the state general fund for the Medicaid program
below the amount of state general fund appropriations for the Medicaid program for Fiscal
Year 2009-2010.
Proposed law provides for certain non-state public hospitals to generate federal funding via
the certification of public expenditures for deposit into the fund.
Proposed law requires review and approval of the Centers for Medicare and Medicaid
Services and adds an object to the purposes of hospital service districts.
Effective upon governor signature or lapse of time for gubernatorial action.
(Adds R.S. 46:2901-2903)