2012 -- H 7896

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LC02073

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TAXATION - OUTPATIENT FACILITY AND IMAGING SERVICES

SURCHARGE

     Introduced By: Representative Eileen S. Naughton

     Date Introduced: March 06, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-64-2 of the General Laws in Chapter 44-64 entitled "The

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Outpatient Health Care Facility Surcharge" is hereby amended to read as follows:

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     44-64-2. Definitions. -- The following words and phrases as used in this chapter have the

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following meaning:

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      (1) "Administrator" means the tax administrator within the department of revenue.

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      (2) "Gross patient revenue" means the gross amount received on a cash basis by the

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provider from all patient care and other gross operating income. However, charitable

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contributions, fund raising proceeds, and endowment support shall not be considered "gross

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patient revenue."

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      (3) "Net patient services revenue" means the charges related to patient care services less

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(i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual allowances,

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and (iv) charges attributable to medical supplies used within the outpatient health care facility.

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      (4) "Person" means any individual, corporation, company, association, partnership, joint

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stock association, and the legal successor thereof.

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      (5) "Provider" means a licensed facility or operator, including a government facility or

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operator, subject to a surcharge under this chapter.

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      (6) "Surcharge" means the assessment that is imposed upon net patient revenue pursuant

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to this chapter.

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     SECTION 2. Section 44-65-2 of the General Laws in Chapter 44-65 entitled "Imaging

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Services Surcharge" is hereby amended to read as follows:

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     44-65-2. Definitions. -- The following words and phrases as used in this chapter have the

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following meaning:

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      (1) "Administrator" means the tax administrator within the department of administration.

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      (2) "Gross patient revenue" means the gross amount received on a cash basis by a

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provider from all income derived from the provision of imaging services to patients. Charitable

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contributions, fundraising proceeds, and endowment support shall not be considered as "gross

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patient revenue."

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      (3) "Imaging services" means and includes all the professional and technical components

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of x-ray, ultrasound (including echocardiography), computed tomography (CT), magnetic

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resonance imaging (MRI), positron emission tomography (PET), positron emission

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tomography/computed tomography (PET/CT), general nuclear medicine, and bone densitometry

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procedures.

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      (4) "Net patient services revenue" means the charges related to patient care services less

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(i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual allowances,

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and (iv) charges attributable to medical supplies used for imaging services.

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      (5) "Person" means any individual, corporation, company, association, partnership, joint

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stock association, and the legal successor thereof.

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      (6) "Provider" means any person who furnishes imaging services for the purposes of

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patient diagnosis, assessment or treatment, excluding any person licensed as a hospital or a

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rehabilitation hospital center or a not-for-profit organization ambulatory care facility, pursuant to

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the provisions of chapter 17 of title 23 of the Rhode Island general laws, as amended or not

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performing more than two hundred (200) radiological procedures per month. Further, the term

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"provider" shall not apply to any person subject to the provisions of chapter 64 of title 44 or to

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any person licensed in the state of Rhode Island as a dentist or a podiatrist or a veterinarian.

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      (7) "Surcharge" means the assessment imposed upon net patient revenue pursuant to this

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chapter.

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     SECTION 3. This act shall take effect upon passage.

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LC02073

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - OUTPATIENT FACILITY AND IMAGING SERVICES

SURCHARGE

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     This act would include charges for medical supplies used for imaging surcharges as

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charges exempt from the determination of outpatient health care facilities surcharges.

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     This act would take effect upon passage.

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LC02073

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