1.1                          A bill for an act 
  1.2             relating to health; requiring a study of alternatives 
  1.3             for providing regulatory oversight of nursing homes. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [NURSING HOME OVERSIGHT STUDY.] 
  1.6      (a) The commissioner of health shall study the feasibility 
  1.7   of contracting with an independent agency or organization to 
  1.8   become the state survey team required by the Centers for 
  1.9   Medicaid and Medicare Services, which would be authorized to 
  1.10  provide regulatory oversight of nursing homes for the state of 
  1.11  Minnesota and to assess, evaluate, and ensure quality of care 
  1.12  and quality of life for nursing home residents. 
  1.13     (b) The commissioner of health shall study options and 
  1.14  alternatives for establishing a contract with an independent 
  1.15  agency or organization to ensure quality assurance mechanisms 
  1.16  under state and federal regulatory programs.  The study shall 
  1.17  include exploring options with the following organizations and 
  1.18  individuals, including but not limited to: 
  1.19     (1) the commissioner of administration; 
  1.20     (2) the commissioner of human services; 
  1.21     (3) the commissioner of employee relations; 
  1.22     (4) the federal government; 
  1.23     (5) other states; 
  1.24     (6) provider groups; and 
  2.1      (7) advocacy organizations. 
  2.2      (c) The study must, at a minimum: 
  2.3      (1) identify the current process of licensure and 
  2.4   inspections; 
  2.5      (2) examine the current contractual relationship between 
  2.6   the Department of Health and the federal government; 
  2.7      (3) provide an option to delegate survey regulatory 
  2.8   functions to an independent agency or organization; 
  2.9      (4) consider the roles of licensure and federal 
  2.10  certification; 
  2.11     (5) consider the use of accreditation in lieu of licensure 
  2.12  or certification; 
  2.13     (6) examine federal regulatory and financial barriers; 
  2.14     (7) determine the appropriate level of public 
  2.15  accountability and reporting by the independent agency or 
  2.16  organization; 
  2.17     (8) determine whether licensing authority should reside 
  2.18  with the department through a contract or directly with the 
  2.19  independent agency or organization; 
  2.20     (9) examine cost concerns and payment issues; 
  2.21     (10) determine the desired legislative oversight of the 
  2.22  independent agency or organization; 
  2.23     (11) determine if performance of the survey process would 
  2.24  be enhanced, more consistent, or expanded to include additional 
  2.25  education and training and provide for more direct control; 
  2.26     (12) examine the ability and authority at the Department of 
  2.27  Health to retain performance audits and routine monitoring of 
  2.28  the independent agency or organization; 
  2.29     (13) examine other protections for the process of ensuring 
  2.30  quality of care; 
  2.31     (14) consider bidding and labor issues; and 
  2.32     (15) consider whether the quality improvement organization 
  2.33  (QIO) program is a feasible model for the state to follow. 
  2.34     (d) The commissioner shall report the results of the study 
  2.35  to the legislature by January 3, 2005. 
  2.36     Sec. 2.  [EFFECTIVE DATE.] 
  3.1      Section 1 is effective the day following final enactment.