10-R341

2010 -- S 3021

Enacted 06/10/10

 

S E N A T E R E S O L U T I O N

CREATING A SPECIAL SENATE COMMISSION TO STUDY COST CONTAINMENT, EFFICIENCY, AND TRANSPARENCY IN THE DELIVERY OF QUALITY PATIENT CARE AND ACCESS BY HOSPITALS

     

     

     Introduced By: Senators Miller, Algiere, and Sosnowski

     Date Introduced: June 10, 2010

 

 

     RESOLVED, That a special senate commission be and the same is hereby created

consisting of seventeen (17) members: three (3) of whom shall be members of the Senate, not

more than two (2) from the same political party, to be appointed by the President of the Senate;

two (2) of whom shall be representatives from community hospitals, to be appointed by the

President of the Senate; two (2) of whom shall be representatives of hospitals affiliated with an

academic medical center that is part of a major health care system, to be appointed by the

President of the Senate; four (4) of whom shall be representatives of each of the four health

insurance providers licensed in the State of Rhode Island, to be appointed by the President of the

Senate; one of whom shall be the health insurance commissioner, or his or her designee; one of

whom shall be the director of the Department of Health, or his or her designee; one of whom shall

be the director of Human Services, or his or her designee; and two (2) of whom shall be

physicians licensed to practice medicine in Rhode Island, one to be appointed by the President of

the Senate; and one of whom shall be a registered nurse, to be appointed by the President of the

Senate. The commission shall have two (2) co-chairs from among its members, to be appointed

by the President of the Senate.

     In lieu of any appointment of a member of the legislature to a permanent advisory

commission, a legislative study commission, or any commission created by a general assembly

resolution, the appointing authority may appoint a member of the general public to serve,

provided that the majority leader or the minority leader of the political party which is entitled to

the appointment consents to the appointment of the member of the general public.

     The purpose of said commission shall be to study:

     (1) The establishment of procedures to provide for more efficient administration of health

care services to citizens of this state, the implementation of a more efficient, transparent, and

uniform rate-approval process for the purchase of health services, in particular, health services by

hospitals, and the control of rising costs of health care in this state, including the costs of the

provision of health insurance benefits by employers, and the out-of-pocket costs of health

services to persons residing in this state;

     (2) The advisability and implementation of a requirement that health insurers pay

comparable rates to health care providers, in particular, hospitals, for similar services to improve

the efficiency and effectiveness of communications among insurers and providers, to minimize

rate disparity among providers, to restore competitive balance and improve competition in the

markets for health care services in this state, and to assure the fair treatment of all health care

providers, in particular, hospitals, of similar services and the availability of cost-effective health

care services in this state;

     (3) The advisability and implementation of payment methodologies that promote cost

containment, efficiency, and transparency, including global payment reimbursement for total care

per patient, rather than inequitable reimbursement and other unfair payment terms that adversely

affect quality patient care and access by reducing the resources that health care providers can

devote to patient care;

     (4) The establishment of procedures for the review of provider contracts and rates, in

particular hospital provider contracts and rates, to determine if: (i) The proposed terms are

reasonable, fair, and equitable, and the rates set equitably among all hospitals without undue

discrimination or preference; and (ii) The aggregate reimbursement rates of the hospital are

related reasonably to the aggregate costs of the hospital, considering such standards, measures,

and guidelines that are relevant, each weighted as appropriate, including without limitation: (A)

Per diem payment; (B) Payment per stay: (C) Case mix adjusted payment per stay indexed to

average payment; (D) Case mix adjusted payment per stay indexed to Medicare payment; (E)

Cost per adjusted discharged; (F) Uncompensated care; (G) Teaching costs; (H) License fee

imposed by the Department of Health or other agency; (I) DSH payments; (J) Innovative

methodologists; and (K) Any publicly reported quality measures such as Department of Health

licensure surveys, CMS Core Measures, and patient satisfaction surveys;

     (5) The establishment of a procedure for the disclosure by hospitals of third-party Rhode

Island insurance contracts to assure transparency and efficiency;

     At its discretion, the Commission may also study:

     (6) The development and establishment of a state-based health insurance exchange, as

provided under the “Patient Protection and Affordable Care Act,” H.R. 3590, signed into law

March 23, 2010, and as modified by the “Health Care and Education Reconciliation Act,” of

2010, H.R. 4872, to ensure Rhode Island is prepared to create and operate a state-based health

insurance exchange, as required by such acts, by 2014.

     In making its examination and investigation, the commission shall consult with the

Rhode Island Department of Health, the Rhode Island office of the health insurance

commissioner, the Rhode Island Department of the Attorney General, the Rhode Island

Department of Human Services, health care economists, and other individuals or organizations

with expertise in state and federal health care payment methodologies and rates. The commission

shall use data and other information gathered in the course of such consultations as a basis for its

findings and recommendations.

     The commission shall also consult with a reasonable variety of classes of individuals and

organizations likely to be affected by its recommendations, including without limitation, the

Hospital Association of Rhode Island.

     Forthwith upon passage of this resolution, the members of the commission shall meet at

the call of the President of the Senate and organize, and thereafter, shall meet regularly with all

due diligence to carry out its purpose and finalize its recommendations as soon as practicable.

The first meeting of the commission shall be held no later than September 15, 2010. Vacancies in

the commission shall be filled in like manner as the original appointment.

     The members of the commission shall receive no compensation for their services.

     All departments and agencies of the state shall furnish such advice and information,

documentary and otherwise, to said commission and its agents as is deemed necessary or

appropriate to facilitate the purposes of this resolution.

     The Joint Committee on Legislative Services is hereby authorized and directed to provide

suitable offices and staff for the commission; and be it further

     RESOLVED, That the commission shall report its findings and recommendations to the

clerk of the Senate on study purposes (1) through (5) no later than March 31, 2011, and on

optional study purpose (6) no later than May 31, 2011, and the commission shall expire on

December 31, 2011.

     

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LC02936

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