2018 -- S 2166

========

LC004199

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

____________

A N   A C T

RELATING TO HEALTH AND SAFETY - LICENSING OF HEALTH CARE FACILITIES

     Introduced By: Senators McCaffrey, Lynch Prata, Lombardi, Goodwin, and Miller

     Date Introduced: January 25, 2018

     Referred To: Senate Health & Human Services

     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, 2018.

========

LC004199

========

LC004199 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY - LICENSING OF HEALTH CARE FACILITIES

***

     This act would cap certain 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, 2018.

========

LC004199

========

LC004199 - Page 3 of 3