Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1312 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to health; prohibiting facility fees for nonemergency services provided at
3	3	1.3 provider-based clinics; prohibiting facility fees for certain health care services;
4	4	1.4 requiring a report; proposing coding for new law in Minnesota Statutes, chapter
5	5	1.5 62J; repealing Minnesota Statutes 2024, section 62J.824.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. [62J.8241] FACILITY FEES PROHIBITED.
8	8	1.8 Subdivision 1.Definitions.(a) For purposes of this section, the definitions have the
9	9	1.9meanings given.
10	10	1.10 (b) "Facility fee" means any separate charge or billing by a provider-based clinic in
11	11	1.11addition to a professional fee for physicians' services that is intended to cover building,
12	12	1.12electronic medical records systems, billing, and other administrative and operational
13	13	1.13expenses.
14	14	1.14 (c) "Health care provider" has the meaning given in section 145B.02.
15	15	1.15 (d) "Provider-based clinic" means the site of an off-campus clinic or provider office,
16	16	1.16located at least 250 yards from the main hospital buildings or as determined by the Centers
17	17	1.17for Medicare and Medicaid Services, that is owned by a hospital licensed under chapter 144
18	18	1.18or a health system that operates one or more hospitals licensed under chapter 144, and is
19	19	1.19primarily engaged in providing diagnostic and therapeutic care, including medical history,
20	20	1.20physical examinations, assessment of health status, and treatment monitoring. This definition
21	21	1.21does not include clinics that are exclusively providing laboratory, x-ray, testing, therapy,
22	22	1.22pharmacy, or educational services and does not include facilities designated as rural health
23	23	1.23clinics.
24	24	1Section 1.
25	25	REVISOR SGS/CH 25-0262002/07/25
26	26	State of Minnesota
27	27	This Document can be made available
28	28	in alternative formats upon request
29	29	HOUSE OF REPRESENTATIVES
30	30	H. F. No. 1312
31	31	NINETY-FOURTH SESSION
32	32	Authored by Hollins and Feist02/20/2025
33	33	The bill was read for the first time and referred to the Committee on Health Finance and Policy 2.1 Subd. 2.Provider-based clinic prohibition.Health care providers are prohibited from
34	34	2.2charging, billing, or collecting a facility fee for nonemergency services provided at a
35	35	2.3provider-based clinic, including services provided by telehealth as defined in section 62A.673,
36	36	2.4subdivision 2, paragraph (h).
37	37	2.5 Subd. 3.Service-specific prohibition.Regardless of where the services are provided,
38	38	2.6health care providers are prohibited from charging, billing, or collecting a facility fee for:
39	39	2.7 (1) outpatient evaluation and management services; and
40	40	2.8 (2) any other services identified by the commissioner of health pursuant to subdivision
41	41	2.95, paragraph (a).
42	42	2.10 Subd. 4.Reporting.(a) By January 15, 2027, and each year thereafter, hospitals licensed
43	43	2.11under chapter 144 and health systems operating one or more hospitals licensed under chapter
44	44	2.12144 must submit a report to the commissioner of health identifying facility fees charged,
45	45	2.13billed, and collected during the preceding calendar year. The commissioner must publish
46	46	2.14the information reported on a publicly accessible website. The report shall be in the format
47	47	2.15prescribed by the commissioner of health.
48	48	2.16 (b) The report under this subdivision must include the following information for each
49	49	2.17facility owned or operated by the hospital or health system providing services for which a
50	50	2.18facility fee is charged, billed, or collected:
51	51	2.19 (1) the name and full address of each facility;
52	52	2.20 (2) the number of patient visits at each facility; and
53	53	2.21 (3) the number, total amount, and range of allowable facility fees paid at each facility
54	54	2.22by Medicare, medical assistance, MinnesotaCare, and private insurance.
55	55	2.23 (c) The report under this subdivision must include the following information for the
56	56	2.24entire hospital or health system:
57	57	2.25 (1) the total amount charged and billed for facility fees;
58	58	2.26 (2) the total amount collected from facility fees;
59	59	2.27 (3) the top ten procedures or services provided by the hospital or health system that
60	60	2.28generated the greatest amount of facility fee gross revenue, the volume each of these ten
61	61	2.29procedures or services and gross and net revenue totals, for each such procedure or service,
62	62	2.30and the total net amount of revenue received by the hospital or health system derived from
63	63	2.31facility fees;
64	64	2Section 1.
65	65	REVISOR SGS/CH 25-0262002/07/25 3.1 (4) the top ten procedures or services, based on patient volume, provided by the hospital
66	66	3.2or health system for which facility fees are charged, billed, or collected, based on patient
67	67	3.3volume, including the gross and net revenue totals received for each such procedure or
68	68	3.4service; and
69	69	3.5 (5) any other information related to facility fees that the commissioner of health may
70	70	3.6require.
71	71	3.7 Subd. 5.Regulatory authority.(a) The commissioner of health may adopt rules to
72	72	3.8include additional outpatient, diagnostic, imaging, or other services in the prohibition on
73	73	3.9facility fees set forth in subdivision 3. The commissioner may only include in the prohibition
74	74	3.10services that the commissioner determines are reliably provided safely and effectively in
75	75	3.11settings other than hospitals.
76	76	3.12 (b) The commissioner of health may adopt rules to carry out the provisions of this section.
77	77	3.13 Subd. 6.Enforcement.(a) A violation of this section is an unlawful business practice.
78	78	3.14All remedies, penalties, and authority granted to the attorney general under section 8.31 are
79	79	3.15available to the attorney general to enforce this section.
80	80	3.16 (b) The commissioner of health and health-related licensing boards may impose penalties
81	81	3.17for noncompliance consistent with their authority to regulate health care providers.
82	82	3.18 (c) In addition to penalties provided in paragraphs (a) and (b), the commissioner of health
83	83	3.19may impose an administrative penalty on a health care provider that violates this section.
84	84	3.20The penalty must not exceed $1,000 per occurrence.
85	85	3.21 (d) The commissioner of health or its designee may audit any health care provider for
86	86	3.22compliance with the requirements of this section. A health care provider must make available,
87	87	3.23upon written request of the commissioner or its designee, copies of any books, documents,
88	88	3.24records, or data that are necessary for the purposes of completing the audit for four years
89	89	3.25after the furnishing of any services for which a facility fee was charged, billed, or collected.
90	90	3.26 Sec. 2. REPEALER.
91	91	3.27 Minnesota Statutes, section 62J.824, is repealed.
92	92	3Sec. 2.
93	93	REVISOR SGS/CH 25-0262002/07/25 62J.824 FACILITY FEE DISCLOSURE.
94	94	(a) Prior to the delivery of nonemergency services, a provider-based clinic that charges a facility
95	95	fee shall provide notice to any patient, including patients served by telehealth as defined in section
96	96	62A.673, subdivision 2, paragraph (h), stating that the clinic is part of a hospital and the patient
97	97	may receive a separate charge or billing for the facility component, which may result in a higher
98	98	out-of-pocket expense.
99	99	(b) Each health care facility must post prominently in locations easily accessible to and visible
100	100	by patients, including on its website, a statement that the provider-based clinic is part of a hospital
101	101	and the patient may receive a separate charge or billing for the facility, which may result in a higher
102	102	out-of-pocket expense.
103	103	(c) This section does not apply to laboratory services, imaging services, or other ancillary health
104	104	services that are provided by staff who are not employed by the health care facility or clinic.
105	105	(d) For purposes of this section:
106	106	(1) "facility fee" means any separate charge or billing by a provider-based clinic in addition to
107	107	a professional fee for physicians' services that is intended to cover building, electronic medical
108	108	records systems, billing, and other administrative and operational expenses; and
109	109	(2) "provider-based clinic" means the site of an off-campus clinic or provider office, located at
110	110	least 250 yards from the main hospital buildings or as determined by the Centers for Medicare and
111	111	Medicaid Services, that is owned by a hospital licensed under chapter 144 or a health system that
112	112	operates one or more hospitals licensed under chapter 144, and is primarily engaged in providing
113	113	diagnostic and therapeutic care, including medical history, physical examinations, assessment of
114	114	health status, and treatment monitoring. This definition does not include clinics that are exclusively
115	115	providing laboratory, x-ray, testing, therapy, pharmacy, or educational services and does not include
116	116	facilities designated as rural health clinics.
117	117	1R
118	118	APPENDIX
119	119	Repealed Minnesota Statutes: 25-02620