SLS 14RS-471 ORIGINAL
Page 1 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 495
BY SENATOR HEITMEIER
HOSPITALS. Provides for a public benefit assessment by the Department of Health and
Hospitals. (8/1/14)
AN ACT1
To enact Subpart C of Part II of Chapter 11 of Title 40 of the Louisiana Revised Statutes of2
1950, to be comprised of R.S. 40:2115.31, relative to a public benefit assessment; to3
provide for a public benefit assessment process; to provide the department with rule4
making authority; to provide the department with criteria to consider in the5
assessment process; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. Subpart C of Part II of Chapter 11 of Title 40 of the Louisiana Revised8
Statutes of 1950, comprised of R.S. 40:2115.31 is hereby enacted to read as follows: 9
SUBPART C. PUBLIC BENEFIT ASSESSMENT10
ยง2115.31. Public benefit assessment11
A. The Department of Health and Hospitals, in accordance with the12
Administrative Procedure Act, shall establish a public benefit assessment13
process consistent with the regulations for licensure of a hospital, as defined in14
R.S. 40:2102, and an ambulatory surgical center, as defined in R.S. 40:2133, and15
consistent with the regulations issued pursuant to Title XIX of the Social16
Security Act.17 SB NO. 495
SLS 14RS-471 ORIGINAL
Page 2 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
B. The department shall promulgate rules and regulations in accordance1
with the Administrative Procedure Act to provide for public benefit assessment.2
The rules and regulations shall include but not be limited to the following:3
(1) Criteria the department shall consider when assessing a new hospital4
or ambulatory surgical center. Such criteria shall include but not be limited to5
the following:6
(a) The extent to which the proposed hospital or ambulatory surgical7
center will provide or increase access to needed services for residents of the area8
to be served and the effects that the proposed hospital or surgical center may9
have on access to needed services in areas having distinct and unique10
geographic, socioeconomic, cultural, transportation, and other barriers to11
access to care.12
(b) The extent to which the proposed hospital or ambulatory surgical13
center will meet the needs of the residents of the area to be served, as14
demonstrated by each of the following:15
(i) The level of community support for the project demonstrated by16
citizens, businesses, and governmental leaders representing the area to be17
served.18
(ii) The availability of reasonable alternatives to the proposed hospital19
or ambulatory surgical center that would meet the needs of the population in20
a less costly, more efficient, or more effective manner.21
(iii) The costs and benefits of the proposed hospital or ambulatory22
surgical center.23
(iv) The financial accessibility of the proposed hospital or ambulatory24
surgical center to the residents of the area to be served, including indigent25
residents, and whether the proposed hospital or ambulatory surgical center will26
accept Medicaid.27
(v) Whether the proposed hospital or ambulatory surgical center would28
require its employed physicians, or if an exclusive arrangement will be used,29 SB NO. 495
SLS 14RS-471 ORIGINAL
Page 3 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
whether the proposed hospital or ambulatory surgical center based physicians1
would be required to contract with the same payors that contract with the2
proposed hospital or ambulatory surgical center.3
(c) The extent to which the proposed hospital or ambulatory surgical4
center fosters institutional competition that benefits the area to be served while5
improving access to health care services for all individuals in the area to be6
served.7
(d) The relationship of the project to the existing health care system of8
the area to be served, including the utilization and efficiency of existing services9
or facilities.10
(e) The feasibility of the proposed hospital or ambulatory surgical center,11
including the financial benefits of the proposed hospital or ambulatory surgical12
center to the applicant, the cost of construction, the availability of financial and13
human resources, and the cost of capital.14
(f) The extent to which the proposed hospital or ambulatory surgical15
center provides improvements or innovations in the financing and delivery of16
health services, as demonstrated by:17
(i) The introduction of new technology that promotes quality and cost18
effectiveness, or both, in the delivery of health care services.19
(ii) The potential for provision of services on an outpatient basis.20
(iii) Any cooperative efforts to meet regional health care needs.21
(iv) Any other factors the secretary of the department deems may be22
appropriate.23
(g) In the case of a proposed hospital or ambulatory surgical center24
affecting a teaching hospital associated with a public institution or medical25
school in the area to be served, the unique research, training, and clinical26
mission of the teaching hospital or medical school and any contribution the27
teaching hospital or medical school may provide in the delivery, innovation, and28
improvement of health care for residents of this state, including those eligible29 SB NO. 495
SLS 14RS-471 ORIGINAL
Page 4 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
for Medicaid, the indigent, and the underserved.1
(2) Appropriate methodology for the collection of data necessary for the2
administration of the program.3
(3) Procedures to grant and revoke approvals.4
(4) Procedures for review of applications by the department.5
(5) Procedures to request a fair hearing from a determination made by6
the department.7
(6) Provisions for judicial review from the decision rendered after a fair8
hearing.9
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Christopher D. Adams.
DIGEST
Heitmeier (SB 495)
Proposed law provides the Department of Health and Hospitals (the department), in
accordance with the Administrative Procedure Act (APA), shall establish a public benefit
assessment process consistent with the regulations for licensure of a hospital, as defined in
present law, and an ambulatory surgical center, as defined in present law, and consistent with
the regulations issued pursuant to Title XIX of the Social Security Act.
Proposed law provides the department shall promulgate rules and regulations in accordance
with the APA to provide for public benefit review.
Proposed law provides the rules and regulations shall include but not be limited to the
following:
(1)Criteria the department shall consider when assessing a new hospital or ambulatory
surgical center. Such criteria shall include but not be limited to the following:
(a)The extent to which the proposed hospital or ambulatory surgical center will
provide or increase access to needed services for residents of the area to be
served and the effects that the proposed hospital or surgical center may have
on access to needed services in areas having distinct and unique geographic,
socioeconomic, cultural, transportation, and other barriers to access to care.
(b)The extent to which the proposed hospital or ambulatory surgical center will
meet the needs of the residents of the area to be served, as demonstrated by
each of the following:
(i)The level of community support for the project demonstrated by
citizens, businesses, and governmental leaders representing the area
to be served.
(ii)The availability of reasonable alternatives to the proposed hospital or
ambulatory surgical center that would meet the needs of the
population in a less costly, more efficient, or more effective manner. SB NO. 495
SLS 14RS-471 ORIGINAL
Page 5 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(iii)The costs and benefits of the proposed hospital or ambulatory
surgical center.
(iv)The financial accessibility of the proposed hospital or ambulatory
surgical center to the residents of the area to be served, including
indigent residents, and whether the proposed hospital or ambulatory
surgical center will accept Medicaid.
(v)Whether the proposed hospital or ambulatory surgical center would
require its employed physicians, or if an exclusive arrangement will
be used, whether the proposed hospital or ambulatory surgical center
based physicians would be required to contract with the same payors
that contract with the proposed hospital or ambulatory surgical
center.
(c)The extent to which the proposed hospital or ambulatory surgical center
fosters institutional competition that benefits the area to be served while
improving access to health care services for all individuals in the area to be
served.
(d)The relationship of the project to the existing health care system of the area
to be served, including the utilization and efficiency of existing services or
facilities.
(e)The feasibility of the proposed hospital or ambulatory surgical center,
including the financial benefits of the proposed hospital or ambulatory
surgical center to the applicant, the cost of construction, the availability of
financial and human resources, and the cost of capital.
(f)The extent to which the proposed hospital or ambulatory surgical center
provides improvements or innovations in the financing and delivery of health
services, as demonstrated by:
(i)The introduction of new technology that promotes quality and
cost effectiveness, or both, in the delivery of health care
services.
(ii)The potential for provision of services on an outpatient basis.
(iii)Any cooperative efforts to meet regional health care needs.
(iv)Any other factors the secretary of the department deems may
be appropriate.
(g)In the case of a proposed hospital or ambulatory surgical center affecting a
teaching hospital associated with a public institution or medical school in the
area to be served, the unique research, training, and clinical mission of the
teaching hospital or medical school and any contribution the teaching
hospital or medical school may provide in the delivery, innovation, and
improvement of health care for residents of this state, including those eligible
for Medicaid, the indigent, and the underserved.
(2)Appropriate methodology for the collection of data necessary for the administration
of the program.
(3)Procedures to grant and revoke approvals.
(4)Procedures for review of applications by the department. SB NO. 495
SLS 14RS-471 ORIGINAL
Page 6 of 6
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(5)Procedures to request a fair hearing from a determination made by the department.
(6)Provisions for judicial review from the decision rendered after a fair hearing.
Effective August 1, 2014.
(Adds R.S. 40:2115.31)