Texas 2017 - 85th Regular

Texas Senate Bill SB2117 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 2117
	1	+	By: Seliger S.B. No. 2117
	2	+	(Price)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the creation and operations of a health care provider
6	8		participation program by the City of Amarillo Hospital District.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Subtitle D, Title 4, Health and Safety Code, is
9	11		amended by adding Chapter 295A to read as follows:
10	12		CHAPTER 295A. CITY OF AMARILLO HOSPITAL DISTRICT HEALTH CARE
11	13		PROVIDER PARTICIPATION PROGRAM
12	14		SUBCHAPTER A. GENERAL PROVISIONS
13	15		Sec. 295A.001. PURPOSE. The purpose of this chapter is to
14	16		authorize the district to administer a health care provider
15	17		participation program to provide additional compensation to
16	18		hospitals in the district by collecting mandatory payments from
17	19		each hospital in the district to be used to provide the nonfederal
18	20		share of a Medicaid supplemental payment program and for other
19	21		purposes as authorized under this chapter.
20	22		Sec. 295A.002. DEFINITIONS. In this chapter:
21	23		(1) "Board" means the board of hospital managers of
22	24		the district.
23	25		(2) "District" means the City of Amarillo Hospital
24	26		District.
25	27		(3) "Institutional health care provider" means a
26	28		nonpublic hospital that provides inpatient hospital services.
27	29		(4) "Paying hospital" means an institutional health
28	30		care provider required to make a mandatory payment under this
29	31		chapter.
30	32		(5) "Program" means the health care provider
31	33		participation program authorized by this chapter.
32	34		Sec. 295A.003. APPLICABILITY. This chapter applies only to
33	35		the City of Amarillo Hospital District.
34	36		Sec. 295A.004. HEALTH CARE PROVIDER PARTICIPATION PROGRAM;
35	37		PARTICIPATION IN PROGRAM. The board may authorize the district to
36	38		participate in a health care provider participation program on the
37	39		affirmative vote of a majority of the board, subject to the
38	40		provisions of this chapter.
39	41		SUBCHAPTER B. POWERS AND DUTIES OF BOARD
40	42		Sec. 295A.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
41	43		PAYMENT. The board may require a mandatory payment authorized
42	44		under this chapter by an institutional health care provider in the
43	45		district only in the manner provided by this chapter.
44	46		Sec. 295A.052. RULES AND PROCEDURES. The board may adopt
45	47		rules relating to the administration of the health care provider
46	48		participation program, including collection of the mandatory
47	49		payments, expenditures, audits, and any other administrative
48	50		aspects of the program.
49	51		Sec. 295A.053. INSTITUTIONAL HEALTH CARE PROVIDER
50	52		REPORTING. If the board authorizes the district to participate in a
51	53		health care provider participation program under this chapter, the
52	54		board shall require each institutional health care provider to
53	55		submit to the district a copy of any financial and utilization data
54	56		required by and reported to the Department of State Health Services
55	57		under Sections 311.032 and 311.033 and any rules adopted by the
56	58		executive commissioner of the Health and Human Services Commission
57	59		to implement those sections.
58	60		SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
59	61		Sec. 295A.101. HEARING. (a) In each year that the board
60	62		authorizes a health care provider participation program under this
61	63		chapter, the board shall hold a public hearing on the amounts of any
62	64		mandatory payments that the board intends to require during the
63	65		year and how the revenue derived from those payments is to be spent.
64	66		(b) Not later than the fifth day before the date of the
65	67		hearing required under Subsection (a), the board shall publish
66	68		notice of the hearing in a newspaper of general circulation in the
67	69		district and provide written notice of the hearing to the chief
68	70		operating officer of each institutional health care provider in the
69	71		district.
70	72		Sec. 295A.102. LOCAL PROVIDER PARTICIPATION FUND;
71	73		DEPOSITORY. (a) If the board collects a mandatory payment
72	74		authorized under this chapter, the board shall create a local
73	75		provider participation fund in one or more banks designated by the
74	76		district as a depository for public funds.
75	77		(b) The board may withdraw or use money in the fund only for
76	78		a purpose authorized under this chapter.
77	79		(c) All funds collected under this chapter shall be secured
78	80		in the manner provided by Chapter 1001, Special District Local Laws
79	81		Code, for securing other public funds of the district.
80	82		Sec. 295A.103. DEPOSITS TO FUND; AUTHORIZED USES OF MONEY.
81	83		(a) The local provider participation fund established under
82	84		Section 295A.102 consists of:
83	85		(1) all mandatory payments authorized under this
84	86		chapter and received by the district;
85	87		(2) money received from the Health and Human Services
86	88		Commission as a refund of an intergovernmental transfer from the
87	89		district to the state as the nonfederal share of Medicaid
88	90		supplemental payment program payments, provided that the
89	91		intergovernmental transfer does not receive a federal matching
90	92		payment; and
91	93		(3) the earnings of the fund.
92	94		(b) Money deposited to the local provider participation
93	95		fund may be used only to:
94	96		(1) fund intergovernmental transfers from the
95	97		district to the state to provide:
96	98		(A) the nonfederal share of a Medicaid
97	99		supplemental payment program authorized under the state Medicaid
98	100		plan, the Texas Healthcare Transformation and Quality Improvement
99	101		Program waiver issued under Section 1115 of the federal Social
100	102		Security Act (42 U.S.C. Section 1315), or a successor waiver
101	103		program authorizing similar Medicaid supplemental payment
102	104		programs; or
103	105		(B) payments to Medicaid managed care
104	106		organizations that are dedicated for payment to hospitals;
105	107		(2) pay costs associated with indigent care provided
106	108		by institutional health care providers in the district;
107	109		(3) pay the administrative expenses of the district in
108	110		administering the program, including collateralization of
109	111		deposits;
110	112		(4) refund a portion of a mandatory payment collected
111	113		in error from a paying hospital; and
112	114		(5) refund to paying hospitals a proportionate share
113	115		of the money that the district:
114	116		(A) receives from the Health and Human Services
115	117		Commission that is not used to fund the nonfederal share of Medicaid
116	118		supplemental payment program payments; or
117	119		(B) determines cannot be used to fund the
118	120		nonfederal share of Medicaid supplemental payment program
119	121		payments.
120	122		(c) Money in the local provider participation fund may not
121	123		be commingled with other district funds.
122	124		(d) An intergovernmental transfer of funds described by
123	125		Subsection (b)(1) and any funds received by the district as a result
124	126		of an intergovernmental transfer described by that subsection may
125	127		not be used by the district or any other entity to expand Medicaid
126	128		eligibility under the Patient Protection and Affordable Care Act
127	129		(Pub. L. No. 111-148) as amended by the Health Care and Education
128	130		Reconciliation Act of 2010 (Pub. L. No. 111-152).
129	131		SUBCHAPTER D. MANDATORY PAYMENTS
130	132		Sec. 295A.151. MANDATORY PAYMENTS. (a) Except as provided
131	133		by Subsection (e), if the board authorizes a health care provider
132	134		participation program under this chapter, the board shall require
133	135		an annual mandatory payment to be assessed on the net patient
134	136		revenue of each institutional health care provider located in the
135	137		district. The board shall provide that the mandatory payment is to
136	138		be collected at least annually, but not more often than quarterly.
137	139		In the first year in which the mandatory payment is required, the
138	140		mandatory payment is assessed on the net patient revenue of an
139	141		institutional health care provider as determined by the data
140	142		reported to the Department of State Health Services under Sections
141	143		311.032 and 311.033 in the most recent fiscal year for which that
142	144		data was reported. If the institutional health care provider did
143	145		not report any data under those sections, the provider's net
144	146		patient revenue is the amount of that revenue as contained in the
145	147		provider's Medicare cost report submitted for the previous fiscal
146	148		year or for the closest subsequent fiscal year for which the
147	149		provider submitted the Medicare cost report. The district shall
148	150		update the amount of the mandatory payment on an annual basis.
149	151		(b) The amount of a mandatory payment authorized under this
150	152		chapter must be a uniform percentage of the amount of net patient
151	153		revenue generated by each paying hospital in the district. A
152	154		mandatory payment authorized under this chapter may not hold
153	155		harmless any institutional health care provider, as required under
154	156		42 U.S.C. Section 1396b(w).
155	157		(c) The aggregate amount of the mandatory payments required
156	158		of all paying hospitals in the district may not exceed six percent
157	159		of the aggregate net patient revenue of all paying hospitals in the
158	160		district.
159	161		(d) Subject to the maximum amount prescribed by Subsection
160	162		(c), the board shall set the mandatory payments in amounts that in
161	163		the aggregate will generate sufficient revenue to cover the
162	164		administrative expenses of the district for activities under this
163	165		chapter, fund an intergovernmental transfer described by Section
164	166		295A.103(b)(1), or make other payments authorized under this
165	167		chapter. The amount of revenue from mandatory payments that may be
166	168		used for administrative expenses by the district in a year may not
167	169		exceed $25,000, plus the cost of collateralization of deposits. If
168	170		the board demonstrates to the paying hospitals that the costs of
169	171		administering the health care provider participation program under
170	172		this chapter, excluding those costs associated with the
171	173		collateralization of deposits, exceed $25,000 in any year, on
172	174		consent of all of the paying hospitals, the district may use
173	175		additional revenue from mandatory payments received under this
174	176		chapter to compensate the district for its administrative expenses.
175	177		A paying hospital may not unreasonably withhold consent to
176	178		compensate the district for administrative expenses.
177	179		(e) A paying hospital may not add a mandatory payment
178	180		required under this section as a surcharge to a patient or insurer.
179	181		(f) A mandatory payment under this chapter is not a tax for
180	182		purposes of Section 5(a), Article IX, Texas Constitution, or
181	183		Chapter 1001, Special District Local Laws Code.
182	184		Sec. 295A.152. ASSESSMENT AND COLLECTION OF MANDATORY
183	185		PAYMENTS. The district may collect or contract for the assessment
184	186		and collection of mandatory payments authorized under this chapter.
185	187		Sec. 295A.153. CORRECTION OF INVALID PROVISION OR
186	188		PROCEDURE. To the extent any provision or procedure under this
187	189		chapter causes a mandatory payment authorized under this chapter to
188	190		be ineligible for federal matching funds, the board may provide by
189	191		rule for an alternative provision or procedure that conforms to the
190	192		requirements of the federal Centers for Medicare and Medicaid
191	193		Services. A rule adopted under this section may not create, impose,
192	194		or materially expand the legal or financial liability or
193	195		responsibility of the district or an institutional health care
194	196		provider in the district beyond the provisions of this chapter.
195	197		This section does not require the board to adopt a rule.
196	198		SECTION 2. If before implementing any provision of this Act
197	199		a state agency determines that a waiver or authorization from a
198	200		federal agency is necessary for implementation of that provision,
199	201		the agency affected by the provision shall request the waiver or
200	202		authorization and may delay implementing that provision until the
201	203		waiver or authorization is granted.
202	204		SECTION 3. This Act takes effect immediately if it receives
203	205		a vote of two-thirds of all the members elected to each house, as
204	206		provided by Section 39, Article III, Texas Constitution. If this
205	207		Act does not receive the vote necessary for immediate effect, this
206	208		Act takes effect September 1, 2017.
207		-	______________________________ ______________________________
208		-	President of the Senate Speaker of the House
209		-	I hereby certify that S.B. No. 2117 passed the Senate on
210		-	May 4, 2017, by the following vote: Yeas 31, Nays 0.
211		-	______________________________
212		-	Secretary of the Senate
213		-	I hereby certify that S.B. No. 2117 passed the House on
214		-	May 21, 2017, by the following vote: Yeas 137, Nays 2, two
215		-	present not voting.
216		-	______________________________
217		-	Chief Clerk of the House
218		-	Approved:
219		-	______________________________
220		-	Date
221		-	______________________________
222		-	Governor