2015 -- H 5903

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LC001940

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO HEALTH AND SAFETY - LICENSING OF HEALTH CARE FACILITIES

     Introduced By: Representatives Palangio, Regunberg, Almeida, Ajello, and Hull

     Date Introduced: March 13, 2015

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 23-17-28 of the General Laws in Chapter 23-17 entitled "Licensing

of Health Care Facilities" is hereby amended to read as follows:

     23-17-28. Health care cost containment. – (a) Each health care facility licensed under

this chapter shall take any action consistent with the continued delivery of quality health care

services that it deems appropriate to reduce, limit, or contain health care costs and improve the

efficiency with which health care services are delivered to the citizens of this state. In furtherance

of these goals, health care facilities licensed under this chapter may, to the extent not inconsistent

with chapter 15 of this title, enter into agreements with other health care facilities, associations of

health care facilities, suppliers, third-party payers, and/or agencies or branches of government

providing, without limitation, for group planning, individual or group expenditure ceilings,

allocation of services and/or specialties, and group purchasing and/or service sharing.

     (b) Except as specifically provided in this section, no health care facility licensed as a

hospital under this chapter, or any affiliate thereof, may compensate an employee who the facility

is required to list in United States Internal Revenue Service form 990, Part VII-A (or any

successor provision) at a rate of compensation greater than one hundred and ten percent (110%)

of the amount determined annually by the director to constitute the northeast regional average

compensation level for comparable personnel serving in comparable hospitals (and their

affiliates), with facilities' comparability being determined based on the compared facilities' annual

collected revenue. Notwithstanding the foregoing, this section shall not apply to any person listed

in United States Internal Revenue Service form 990, Part VII-A who is a Rhode Island licensed

health care professional, including without limitation, physicians and nurses.

     SECTION 2. This act shall take effect on October 1, 2015.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY - LICENSING OF HEALTH CARE FACILITIES

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     This act would cap hospital employees' compensation at a rate not exceeding one hundred

ten percent (110%) of the northeast regional average for comparable personnel at comparable

hospitals. This act would not apply to physicians, nurses or other licensed health care personnel.

     This act would take effect on October 1, 2015.

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