SF 1378

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; modifying medical education
funding provisions; amending Minnesota Statutes 2004,
section 62J.692, subdivisions 3, 4, 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 62J.692,
subdivision 3, is amended to read:

Subd. 3.

Application process.

(a) A clinical medical
education program conducted in Minnesota by a teaching
institution to train physicians, doctor of pharmacy
practitioners, dentists, chiropractors, or physician assistants
is eligible for funds under subdivision 4 if the program:

(1) is funded, in part, by patient care revenues;

(2) occurs in patient care settings that face increased
financial pressure as a result of competition with nonteaching
patient care entities; and

(3) emphasizes primary care or specialties that are in
undersupply in Minnesota.

(b) A clinical medical education program for advanced
practice nursing is eligible for funds under subdivision 4 if
the program meets the eligibility requirements in paragraph (a),
clauses (1) to (3), and is sponsored by the University of
Minnesota Academic Health Center, the Mayo Foundation, or
institutions that are part of the Minnesota State Colleges and
Universities system or members of the Minnesota Private College
Council.

(c) Applications must be submitted to the commissioner by a
sponsoring institution on behalf of an eligible clinical medical
education program and must be received by October 31 of each
year for distribution in the following year. An application for
funds must contain the following information:

(1) the official name and address of the sponsoring
institution and the official name and site address of the
clinical medical education programs on whose behalf the
sponsoring institution is applying;

(2) the name, title, and business address of those persons
responsible for administering the funds;

(3) for each clinical medical education program for which
funds are being sought; the type and specialty orientation of
trainees in the program; the name, site address, and medical
assistance provider number of each training site used in the
program; the total number of trainees at each training site; and
the total number of eligible trainee FTEs at each site deleted text begin . Only
those training sites that host 0.5 FTE or more eligible trainees
for a program may be included in the program's application deleted text end ; and

(4) other supporting information the commissioner deems
necessary to determine program eligibility based on the criteria
in paragraphs (a) and (b) and to ensure the equitable
distribution of funds.

(d) An application must include the information specified
in clauses (1) to (3) for each clinical medical education
program on an annual basis for three consecutive years. After
that time, an application must include the information specified
in clauses (1) to (3) deleted text begin in the first year of each biennium deleted text end new text begin when
requested, at the discretion of the commissioner new text end :

(1) audited clinical training costs per trainee for each
clinical medical education program when available or estimates
of clinical training costs based on audited financial data;

(2) a description of current sources of funding for
clinical medical education costs, including a description and
dollar amount of all state and federal financial support,
including Medicare direct and indirect payments; and

(3) other revenue received for the purposes of clinical
training.

(e) An applicant that does not provide information
requested by the commissioner shall not be eligible for funds
for the current funding cycle.

Sec. 2.

Minnesota Statutes 2004, section 62J.692,
subdivision 4, is amended to read:

Subd. 4.

Distribution of funds.

(a) The commissioner
shall annually distribute 90 percent of available medical
education funds to all qualifying applicants based on a
distribution formula that reflects a summation of two factors:

(1) an education factor, which is determined by the total
number of eligible trainee FTEs and the total statewide average
costs per trainee, by type of trainee, in each clinical medical
education program; and

(2) a public program volume factor, which is determined by
the total volume of public program revenue received by each
training site as a percentage of all public program revenue
received by all training sites in the fund pool.

In this formula, the education factor is weighted at 67
percent and the public program volume factor is weighted at 33
percent.

Public program revenue for the distribution formula
includes revenue from medical assistance, prepaid medical
assistance, general assistance medical care, and prepaid general
assistance medical care. Training sites that receive no public
program revenue are ineligible for funds available under this
paragraph. Total statewide average costs per trainee for
medical residents is based on audited clinical training costs
per trainee in primary care clinical medical education programs
for medical residents. Total statewide average costs per
trainee for dental residents is based on audited clinical
training costs per trainee in clinical medical education
programs for dental students. Total statewide average costs per
trainee for pharmacy residents is based on audited clinical
training costs per trainee in clinical medical education
programs for pharmacy students.

(b) The commissioner shall annually distribute ten percent
of total available medical education funds to all qualifying
applicants based on the percentage received by each applicant
under paragraph (a). These funds are to be used to offset
clinical education costs at eligible clinical training sites
based on criteria developed by the clinical medical education
program. Applicants may choose to distribute funds allocated
under this paragraph based on the distribution formula described
in paragraph (a). deleted text begin Applicants may also choose to distribute
funds to clinical training sites with a valid Minnesota medical
assistance identification number that host fewer than 0.5
eligible trainee FTEs for a clinical medical education program.
deleted text end

(c) Funds distributed shall not be used to displace current
funding appropriations from federal or state sources.

(d) Funds shall be distributed to the sponsoring
institutions indicating the amount to be distributed to each of
the sponsor's clinical medical education programs based on the
criteria in this subdivision and in accordance with the
commissioner's approval letter. Each clinical medical education
program must distribute funds allocated under paragraph (a) to
the training sites as specified in the commissioner's approval
letter. Sponsoring institutions, which are accredited through
an organization recognized by the Department of Education or the
Centers for Medicare and Medicaid Services, may contract
directly with training sites to provide clinical training. To
ensure the quality of clinical training, those accredited
sponsoring institutions must:

(1) develop contracts specifying the terms, expectations,
and outcomes of the clinical training conducted at sites; and

(2) take necessary action if the contract requirements are
not met. Action may include the withholding of payments under
this section or the removal of students from the site.

(e) Any funds not distributed in accordance with the
commissioner's approval letter must be returned to the medical
education and research fund within 30 days of receiving notice
from the commissioner. The commissioner shall distribute
returned funds to the appropriate training sites in accordance
with the commissioner's approval letter.

(f) The commissioner shall distribute by June 30 of each
year an amount equal to the funds transferred under subdivision
10, plus five percent interest to the University of Minnesota
Board of Regents for the instructional costs of health
professional programs at the Academic Health Center and for
interdisciplinary academic initiatives within the Academic
Health Center.

(g) A maximum of $150,000 of the funds dedicated to the
commissioner under section 297F.10, subdivision 1, paragraph
(b), clause (2), may be used by the commissioner for
administrative expenses associated with implementing this
section.

Sec. 3.

Minnesota Statutes 2004, section 62J.692,
subdivision 7, is amended to read:

Subd. 7.

Transfers from the commissioner of human
services.

(a) The amount transferred according to section
256B.69, subdivision 5c, paragraph (a), clause (1), shall be
distributed by the commissioner annually to clinical medical
education programs that meet the qualifications of subdivision 3
based on the formula in subdivision 4, paragraph (a).

(b) Fifty percent of the amount transferred according to
section 256B.69, subdivision 5c, paragraph (a), clause (2),
shall be distributed by the commissioner to the University of
Minnesota Board of Regents for the purposes described in
sections 137.38 to 137.40. Of the remaining amount transferred
according to section 256B.69, subdivision 5c, paragraph (a),
clause (2), 24 percent of the amount shall be distributed by the
commissioner to the Hennepin County Medical Center for clinical
medical education. The remaining 26 percent of the amount
transferred shall be distributed by the commissioner in
accordance with subdivision 7a. If the federal approval is not
obtained for the matching funds under section 256B.69,
subdivision 5c, paragraph (a), clause (2), 100 percent of the
amount transferred under this paragraph shall be distributed by
the commissioner to the University of Minnesota Board of Regents
for the purposes described in sections 137.38 to 137.40.

(c) The amount transferred according to section 256B.69,
subdivision 5c, paragraph (a), deleted text begin clause deleted text end new text begin clauses new text end (3) new text begin and (4) new text end , shall
be distributed by the commissioner upon receipt to the
University of Minnesota Board of Regents for the purposes of
clinical graduate medical education.