Bill Text: TX SB2286 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the creation and operations of health care provider participation programs in certain counties.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2019-06-10 - Effective immediately [SB2286 Detail]
Download: Texas-2019-SB2286-Enrolled.html
S.B. No. 2286 |
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relating to the creation and operations of health care provider | ||
participation programs in certain counties. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle D, Title 4, Health and Safety Code, is | ||
amended by adding Chapter 292C to read as follows: | ||
CHAPTER 292C. COUNTY HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN | ||
CERTAIN COUNTIES WITH HOSPITAL DISTRICT BORDERING OKLAHOMA | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 292C.001. DEFINITIONS. In this chapter: | ||
(1) "Institutional health care provider" means a | ||
nonpublic hospital that provides inpatient hospital services and | ||
that is not located within the boundaries of a hospital district. | ||
(2) "Paying hospital" means an institutional health | ||
care provider required to make a mandatory payment under this | ||
chapter. | ||
(3) "Program" means the county health care provider | ||
participation program authorized by this chapter. | ||
Sec. 292C.002. APPLICABILITY. This chapter applies only to | ||
a county that: | ||
(1) contains a hospital district that is not | ||
countywide; | ||
(2) has a population of more than 125,000; and | ||
(3) borders Oklahoma. | ||
Sec. 292C.003. COUNTY HEALTH CARE PROVIDER PARTICIPATION | ||
PROGRAM; PARTICIPATION IN PROGRAM. (a) A county health care | ||
provider participation program authorizes a county to collect a | ||
mandatory payment from each institutional health care provider | ||
located in the county to be deposited in a local provider | ||
participation fund established by the county. Money in the fund may | ||
be used by the county to fund certain intergovernmental transfers | ||
as provided by this chapter. | ||
(b) The commissioners court of a county may adopt an order | ||
authorizing the county to participate in the program, subject to | ||
the limitations provided by this chapter. | ||
Sec. 292C.004. EXPIRATION. The authority of a county to | ||
administer and operate a program under this chapter expires | ||
December 31, 2023. | ||
SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONERS COURT | ||
Sec. 292C.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY | ||
PAYMENT. The commissioners court of a county may require a | ||
mandatory payment authorized under this chapter by an institutional | ||
health care provider in the county only in the manner provided by | ||
this chapter. | ||
Sec. 292C.052. MAJORITY VOTE REQUIRED. The commissioners | ||
court of a county may not authorize the county to collect a | ||
mandatory payment authorized under this chapter without an | ||
affirmative vote of a majority of the members of the commissioners | ||
court. | ||
Sec. 292C.053. RULES AND PROCEDURES. After the | ||
commissioners court of a county has voted to require a mandatory | ||
payment authorized under this chapter, the commissioners court may | ||
adopt rules relating to the administration of the mandatory | ||
payment. | ||
Sec. 292C.054. INSTITUTIONAL HEALTH CARE PROVIDER | ||
REPORTING; INSPECTION OF RECORDS. (a) The commissioners court of | ||
a county that collects a mandatory payment authorized under this | ||
chapter shall require each institutional health care provider | ||
located in the county to submit to the county a copy of any | ||
financial and utilization data required by and reported to the | ||
Department of State Health Services under Sections 311.032 and | ||
311.033 and any rules adopted by the executive commissioner of the | ||
Health and Human Services Commission to implement those sections. | ||
(b) The commissioners court of a county that collects a | ||
mandatory payment authorized under this chapter may inspect the | ||
records of an institutional health care provider to the extent | ||
necessary to ensure compliance with the requirements of Subsection | ||
(a). | ||
SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS | ||
Sec. 292C.101. HEARING. (a) Each year, the commissioners | ||
court of a county that collects a mandatory payment authorized | ||
under this chapter shall hold a public hearing on the amounts of any | ||
mandatory payments that the commissioners court intends to require | ||
during the year. | ||
(b) Not later than the fifth day before the date of the | ||
hearing required under Subsection (a), the commissioners court of | ||
the county shall publish notice of the hearing in a newspaper of | ||
general circulation in the county. | ||
(c) A representative of a paying hospital is entitled to | ||
appear at the time and place designated in the public notice and to | ||
be heard regarding any matter related to the mandatory payments | ||
authorized under this chapter. | ||
Sec. 292C.102. DEPOSITORY. (a) The commissioners court of | ||
each county that collects a mandatory payment authorized under this | ||
chapter by resolution shall designate one or more banks located in | ||
the county as the depository for mandatory payments received by the | ||
county. | ||
(b) All income received by a county under this chapter, | ||
including the revenue from mandatory payments remaining after | ||
discounts and fees for assessing and collecting the payments are | ||
deducted, shall be deposited with the county depository in the | ||
county's local provider participation fund and may be withdrawn | ||
only as provided by this chapter. | ||
(c) All funds under this chapter shall be secured in the | ||
manner provided for securing county funds. | ||
Sec. 292C.103. LOCAL PROVIDER PARTICIPATION FUND; | ||
AUTHORIZED USES OF MONEY. (a) Each county that collects a | ||
mandatory payment authorized under this chapter shall create a | ||
local provider participation fund. | ||
(b) The local provider participation fund of a county | ||
consists of: | ||
(1) all revenue received by the county attributable to | ||
mandatory payments authorized under this chapter, including any | ||
penalties and interest attributable to delinquent payments; | ||
(2) money received from the Health and Human Services | ||
Commission as a refund of an intergovernmental transfer from the | ||
county to the state for the purpose of providing the nonfederal | ||
share of Medicaid supplemental payment program payments, provided | ||
that the intergovernmental transfer does not receive a federal | ||
matching payment; and | ||
(3) the earnings of the fund. | ||
(c) Money deposited to the local provider participation | ||
fund may be used only to: | ||
(1) fund intergovernmental transfers from the county | ||
to the state to provide: | ||
(A) the nonfederal share of a Medicaid | ||
supplemental payment program authorized under the state Medicaid | ||
plan, the Texas Healthcare Transformation and Quality Improvement | ||
Program waiver issued under Section 1115 of the federal Social | ||
Security Act (42 U.S.C. Section 1315), or a successor waiver | ||
program authorizing similar Medicaid supplemental payment | ||
programs; or | ||
(B) payments to Medicaid managed care | ||
organizations that are dedicated for payment to hospitals; | ||
(2) pay the administrative expenses of the county | ||
solely for activities under this chapter; | ||
(3) refund a portion of a mandatory payment collected | ||
in error from a paying hospital; and | ||
(4) refund to paying hospitals the proportionate share | ||
of money received by the county that is not used to fund the | ||
nonfederal share of Medicaid supplemental payment program | ||
payments. | ||
(d) Money deposited to the local provider participation | ||
fund may not be used to pay for the services of a consultant or a | ||
person required to register under Chapter 305, Government Code. | ||
(e) Money in the local provider participation fund may not | ||
be commingled with other county funds. | ||
(f) An intergovernmental transfer of funds described by | ||
Subsection (c)(1) and any funds received by the county as a result | ||
of an intergovernmental transfer described by that subsection may | ||
not be used by the county or any other entity to expand Medicaid | ||
eligibility under the Patient Protection and Affordable Care Act | ||
(Pub. L. No. 111-148) as amended by the Health Care and Education | ||
Reconciliation Act of 2010 (Pub. L. No. 111-152). | ||
SUBCHAPTER D. MANDATORY PAYMENTS | ||
Sec. 292C.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL | ||
NET PATIENT REVENUE. (a) Except as provided by Subsection (e), | ||
the commissioners court of a county that collects a mandatory | ||
payment authorized under this chapter may require an annual | ||
mandatory payment to be assessed on the net patient revenue of each | ||
institutional health care provider located in the county. The | ||
commissioners court may provide for the mandatory payment to be | ||
assessed quarterly. In the first year in which the mandatory | ||
payment is required, the mandatory payment is assessed on the net | ||
patient revenue of an institutional health care provider as | ||
determined by the data reported to the Department of State Health | ||
Services under Sections 311.032 and 311.033 in the fiscal year | ||
ending in 2017 or, if the institutional health care provider did not | ||
report any data under those sections in that fiscal year, as | ||
determined by the institutional health care provider's Medicare | ||
cost report submitted for the 2017 fiscal year or for the closest | ||
subsequent fiscal year for which the provider submitted the | ||
Medicare cost report. The county shall update the amount of the | ||
mandatory payment on an annual basis. | ||
(b) The amount of a mandatory payment authorized under this | ||
chapter must be uniformly proportionate with the amount of net | ||
patient revenue generated by each paying hospital in the county. A | ||
mandatory payment authorized under this chapter may not hold | ||
harmless any institutional health care provider, as required under | ||
42 U.S.C. Section 1396b(w). | ||
(c) The commissioners court of a county that collects a | ||
mandatory payment authorized under this chapter shall set the | ||
amount of the mandatory payment. The amount of the mandatory | ||
payment required of each paying hospital may not exceed six percent | ||
of the paying hospital's net patient revenue. | ||
(d) Subject to the maximum amount prescribed by Subsection | ||
(c), the commissioners court of a county that collects a mandatory | ||
payment authorized under this chapter shall set the mandatory | ||
payments in amounts that in the aggregate will generate sufficient | ||
revenue to cover the administrative expenses of the county for | ||
activities under this chapter and to fund an intergovernmental | ||
transfer described by Section 292C.103(c)(1), except that the | ||
amount of revenue from mandatory payments used for administrative | ||
expenses of the county for activities under this chapter in a year | ||
may not exceed $20,000, plus the cost of collateralization of | ||
deposits. If the county demonstrates to the paying hospitals that | ||
the costs of administering the program under this chapter, | ||
excluding those costs associated with the collateralization of | ||
deposits, exceed $20,000 in any year, on consent of a majority of | ||
the paying hospitals, the county may use additional revenue from | ||
mandatory payments received under this chapter to compensate the | ||
county for its administrative expenses. A paying hospital may not | ||
unreasonably withhold consent to compensate the county for | ||
administrative expenses. | ||
(e) A paying hospital may not add a mandatory payment | ||
required under this section as a surcharge to a patient. | ||
Sec. 292C.152. ASSESSMENT AND COLLECTION OF MANDATORY | ||
PAYMENTS. The county may collect or contract for the assessment and | ||
collection of mandatory payments authorized under this chapter. | ||
Sec. 292C.153. INTEREST, PENALTIES, AND DISCOUNTS. | ||
Interest, penalties, and discounts on mandatory payments required | ||
under this chapter are governed by the law applicable to county ad | ||
valorem taxes. | ||
Sec. 292C.154. PURPOSE; CORRECTION OF INVALID PROVISION OR | ||
PROCEDURE. (a) The purpose of this chapter is to generate revenue | ||
by collecting from institutional health care providers a mandatory | ||
payment to be used to provide the nonfederal share of a Medicaid | ||
supplemental payment program. | ||
(b) To the extent any provision or procedure under this | ||
chapter causes a mandatory payment authorized under this chapter to | ||
be ineligible for federal matching funds, the county may provide by | ||
rule for an alternative provision or procedure that conforms to the | ||
requirements of the federal Centers for Medicare and Medicaid | ||
Services. | ||
SECTION 2. As soon as practicable after the expiration of | ||
the authority of a county to administer and operate a health care | ||
provider participation program under Chapter 292C, Health and | ||
Safety Code, as added by this Act, the commissioners court of the | ||
county shall transfer to the institutional health care providers in | ||
the county a proportionate share of any remaining funds in any local | ||
provider participation fund created by the county under Section | ||
292C.103, Health and Safety Code, as added by this Act. | ||
SECTION 3. If before implementing any provision of this Act | ||
a state agency determines that a waiver or authorization from a | ||
federal agency is necessary for implementation of that provision, | ||
the agency affected by the provision shall request the waiver or | ||
authorization and may delay implementing that provision until the | ||
waiver or authorization is granted. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 2286 passed the Senate on | ||
April 29, 2019, by the following vote: Yeas 31, Nays 0; and that | ||
the Senate concurred in House amendment on May 21, 2019, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 2286 passed the House, with | ||
amendment, on May 14, 2019, by the following vote: Yeas 127, | ||
Nays 14, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |