1.1                          A bill for an act 
  1.2             relating to health care; establishing a charity care 
  1.3             equity fund; appropriating money; proposing coding for 
  1.4             new law in Minnesota Statutes, chapter 62J. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [62J.85] [CHARITY CARE EQUITY FUND.] 
  1.7      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.8   section, the terms defined in this subdivision have the meanings 
  1.9   given them. 
  1.10     (b) "Charity care services" means health care services 
  1.11  provided to low-income or uninsured patients who are determined 
  1.12  personally unable to pay for the cost of health care services.  
  1.13  The patient's inability to pay shall be determined in accordance 
  1.14  with generally accepted accounting principles through 
  1.15  examination of individual and family income, assets, employment 
  1.16  status, family size, or availability of alternative sources of 
  1.17  payment.  A hospital may determine the patient's inability to 
  1.18  pay at the time services are rendered or through subsequent 
  1.19  efforts to collect sufficient information to make such a 
  1.20  determination. 
  1.21     (c) "Statewide charity care average" means the sum of all 
  1.22  charity care services provided in Minnesota hospitals divided by 
  1.23  the sum of all hospital operating expenses in Minnesota.  This 
  1.24  shall be annually calculated by the commissioner from audited 
  1.25  financial statements filed under Minnesota Rules, part 4650.0110.
  2.1      (d) "Qualified hospital" means a hospital certified for 
  2.2   medical assistance under title XIX of the Social Security Act 
  2.3   that provides a level of charity care services relative to its 
  2.4   total hospital operating expenses that exceeds the statewide 
  2.5   charity care average.  Qualified hospital does not include a 
  2.6   state-owned hospital.  
  2.7      (e) "Qualified charity care services" means the sum of all 
  2.8   charity care services in excess of the statewide charity care 
  2.9   average provided at all qualified hospitals.  
  2.10     Subd. 2.  [ESTABLISHMENT.] The commissioner shall establish 
  2.11  a charity care equity fund for the purpose of compensating 
  2.12  qualified hospitals for qualified charity care services. 
  2.13     Subd. 3.  [REPORT.] (a) To be eligible to receive funds 
  2.14  from the charity care equity fund, a qualified hospital must:  
  2.15     (1) adopt policies and procedures to ensure documentation 
  2.16  of charity care services; and 
  2.17     (2) file by July 15 of each year a report with the 
  2.18  commissioner prepared from the hospital's audited financial 
  2.19  statements filed under Minnesota Rules, parts 4650.0110 to 
  2.20  4650.0112, that sets forth the aggregate amount of charity care 
  2.21  charges, total charges, and total operating expenses for the 
  2.22  previous fiscal year.  
  2.23     (b) The commissioner may audit any report filed pursuant to 
  2.24  this subdivision to validate the calculation of charity care 
  2.25  services. 
  2.26     Subd. 4.  [FUND DISTRIBUTION.] (a) The commissioner shall 
  2.27  annually distribute to each qualified hospital an amount 
  2.28  proportionately equal to the hospital's share of qualified 
  2.29  charity care services. 
  2.30     (b) No qualified hospital shall receive a distribution 
  2.31  amount that exceeds 60 percent of the qualified hospital's 
  2.32  aggregate charges for charity care services. 
  2.33     Sec. 2.  [APPROPRIATION.] 
  2.34     $....... is appropriated for the biennium ending June 30, 
  2.35  2001, from the general fund to the commissioner of health for 
  2.36  the charity care equity fund.