HF 2748

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; establishing oversight for rural health cooperative; requiring
the administrative services unit to apportion the amount necessary to purchase
medical professional liability insurance coverage and authorizing fees to be
adjusted to compensate for the apportioned amount; appropriating money;
amending Minnesota Statutes 2006, section 214.40, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 62R.

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

Section 1.

new text begin [62R.09] RURAL HEALTH COOPERATIVE CONTRACT
OVERSIGHT.
new text end

new text begin Subdivision 1. new text end

new text begin Review and approval; monitoring. new text end

new text begin (a) The commissioner shall
establish criteria and procedures to review and authorize contracts and business or
financial arrangements under section 62R.06, subdivision 1. All contracts and business
or financial arrangements must be submitted on an application for approval to the
commissioner. The commissioner shall not deny any application unless the commissioner
determines that the proposed arrangement is likely to result in higher health care costs
or diminished access to or quality of health care than would occur in the competitive
marketplace. The cost of developing the criteria and procedures, as determined by the
commissioner and notwithstanding section 16A.1283, shall be paid by health provider
cooperatives operating under this chapter.
new text end

new text begin (b) Within 30 days after receiving an application, the commissioner may request
additional information that is necessary to complete the review required under this section.
If the commissioner does not request additional information and does not act within 60
days after receipt of an application, the application shall be deemed approved if the
commissioner does not act within 60 days of receiving the additional information.
new text end

new text begin (c) The commissioner may condition approval of a proposed arrangement on a
modification of all or part of the arrangement to eliminate any restriction on competition
that is not reasonably related to the goals of improving health care access or quality. The
commissioner may also establish conditions for approval that are reasonably necessary
to protect against abuses of private economic power and to ensure that the arrangement
has oversight by the state.
new text end

new text begin (d) The commissioner shall monitor arrangements approved under this section
to ensure that the arrangement remains in compliance with the conditions of approval.
The commissioner may revoke an approval upon a finding that the arrangement is not in
substantial compliance with the terms of the application or the conditions of approval.
new text end

new text begin Subd. 2. new text end

new text begin Applications. new text end

new text begin Applications for approval under this section must describe
the proposed arrangement in detail. The application must include: the identities of all the
parties to the arrangement; the intent of the arrangement; the expected outcome of the
arrangement; and an explanation of how the arrangement will improve access or quality of
care. The commissioner may ask the attorney general to comment on an application, but
the application and any information obtained by the commissioner under this section is
not admissible in any proceeding brought by the attorney general based on antitrust law.
Data on providers collected under this section are private data on individuals or nonpublic
data, as defined in section 13.02.
new text end

new text begin Subd. 3. new text end

new text begin Application fee. new text end

new text begin When submitting an application to the commissioner, a
health care cooperative shall pay a fee of $2,000 for the commissioner's cost of reviewing
and monitoring the arrangement.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin Money received by the commissioner under this section
shall be deposited into a revolving fund and is appropriated to the commissioner of health
for the purpose of administering this section.
new text end

Sec. 2.

Minnesota Statutes 2006, section 214.40, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Fee adjustment. new text end

new text begin The administrative services unit shall apportion between
the Board of Medical Practice, the Board of Dentistry, and the Board of Nursing an
amount to be raised through fees by the respective board. The amount apportioned to each
board shall be the total amount expended on medical professional liability insurance
coverage purchased for the providers regulated by the respective board. The respective
board may adjust the fees in which the board is required to collect to compensate for the
amount apportioned to the board by the administrative services unit.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $65,000 is appropriated in the fiscal year beginning July 1, 2008, from the
state government special revenue fund to the administrative services unit to pay for
medical professional liability insurance coverage required under Minnesota Statutes,
section 214.40. This appropriation shall become part of the base appropriation for
the administrative services unit and shall be annually adjusted based on the cost of the
coverage purchased to comply with Minnesota Statutes, section 214.40.
new text end