2019 -- S 0666

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LC002092

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO HEALTH AND SAFETY - LICENSING OF HEALTH CARE FACILITIES

     

     Introduced By: Senator Roger Picard

     Date Introduced: March 21, 2019

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled

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

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     23-17-38.1. Hospitals -- Licensing fee.

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     (a) There is also imposed a hospital licensing fee at the rate of five and eight hundred

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fifty-six thousandths percent (5.856%) upon the net patient-services revenue of every hospital for

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the hospital's first fiscal year ending on or after January 1, 2016, except that the license fee for all

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hospitals located in Washington County, Rhode Island shall be discounted by thirty-seven percent

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(37%). The discount for Washington County hospitals is subject to approval by the Secretary of

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the U.S. Department of Health and Human Services of a state plan amendment submitted by the

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executive office of health and human services for the purpose of pursuing a waiver of the

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uniformity requirement for the hospital license fee. This licensing fee shall be administered and

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collected by the tax administrator, division of taxation within the department of revenue, and all

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the administration, collection, and other provisions of chapter 51 of title 44 shall apply. Every

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hospital shall pay the licensing fee to the tax administrator on or before July 10, 2018, and

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payments shall be made by electronic transfer of monies to the general treasurer and deposited to

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the general fund. Every hospital shall, on or before June 14, 2018, make a return to the tax

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administrator containing the correct computation of net patient-services revenue for the hospital

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fiscal year ending September 30, 2016, and the licensing fee due upon that amount. All returns

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shall be signed by the hospital's authorized representative, subject to the pains and penalties of

 

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perjury.

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     (b) There is also imposed a hospital licensing fee at the rate of six percent (6%) upon the

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net patient-services revenue of every hospital for the hospital's first fiscal year ending on or after

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January 1, 2017, except that the license fee for all hospitals located in Washington County, Rhode

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Island shall be discounted by thirty-seven percent (37%). The discount for Washington County

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hospitals is subject to approval by the Secretary of the U.S. Department of Health and Human

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Services of a state plan amendment submitted by the executive office of health and human

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services for the purpose of pursuing a waiver of the uniformity requirement for the hospital

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license fee. This licensing fee shall be administered and collected by the tax administrator,

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division of taxation within the department of revenue, and all the administration, collection, and

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other provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to

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the tax administrator on or before July 10, 2019, and payments shall be made by electronic

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transfer of monies to the general treasurer and deposited to the general fund. Every hospital shall,

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on or before June 14, 2019, make a return to the tax administrator containing the correct

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computation of net patient-services revenue for the hospital fiscal year ending September 30,

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2017, and the licensing fee due upon that amount. All returns shall be signed by the hospital's

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authorized representative, subject to the pains and penalties of perjury.

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     (c) The tax administrator shall remit to the host municipality thirteen percent (13%) of

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any hospital licensing fee collected from any hospital located within that municipality.

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     (c)(d) For purposes of this section the following words and phrases have the following

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meanings:

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     (1) "Hospital" means the actual facilities and buildings in existence in Rhode Island,

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licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on

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that license, regardless of changes in licensure status pursuant to chapter 17.14 of title 23

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(hospital conversions) and § 23-17-6(b) (change in effective control), that provides short-term

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acute inpatient and/or outpatient care to persons who require definitive diagnosis and treatment

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for injury, illness, disabilities, or pregnancy. Notwithstanding the preceding language, the

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negotiated Medicaid managed care payment rates for a court-approved purchaser that acquires a

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hospital through receivership, special mastership, or other similar state insolvency proceedings

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(which court-approved purchaser is issued a hospital license after January 1, 2013) shall be based

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upon the newly negotiated rates between the court-approved purchaser and the health plan, and

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such rates shall be effective as of the date that the court-approved purchaser and the health plan

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execute the initial agreement containing the newly negotiated rate. The rate-setting methodology

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for inpatient hospital payments and outpatient hospital payments set forth in §§ 40-8-13.4(b) and

 

LC002092 - Page 2 of 4

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40-8-13.4(b)(2), respectively, shall thereafter apply to negotiated increases for each annual

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twelve-month (12) period as of July 1 following the completion of the first full year of the court-

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approved purchaser's initial Medicaid managed care contract.

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     (2) "Gross patient-services revenue" means the gross revenue related to patient care

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services.

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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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     (d)(e) The tax administrator shall make and promulgate any rules, regulations, and

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procedures not inconsistent with state law and fiscal procedures that he or she deems necessary

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for the proper administration of this section and to carry out the provisions, policy, and purposes

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of this section.

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     (e)(f) The licensing fee imposed by this section shall apply to hospitals as defined herein

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that are duly licensed on July 1, 2018, and shall be in addition to the inspection fee imposed by §

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23-17-38 and to any licensing fees previously imposed in accordance with § 23-17-38.1.

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     SECTION 2. This act shall take effect upon passage.

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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 require the tax administrator to remit thirteen percent (13%) of all hospital

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licensing fees to the municipality wherein the hospital is located.

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     This act would take effect upon passage.

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