HF 3618

as introduced - 90th Legislature (2017 - 2018) Posted on 03/12/2018 02:16pm

A bill for an act
relating to health care; modifying the membership and terms of the Destination
Medical Center's governing board; requiring the medical business entity to conduct
community needs assessments and provide community benefits; amending
Minnesota Statutes 2016, sections 469.40, subdivision 1, by adding a subdivision;
469.41, subdivisions 2, 3; proposing coding for new law in Minnesota Statutes,
chapter 469.

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

Section 1.

Minnesota Statutes 2016, section 469.40, subdivision 1, is amended to read:

Subdivision 1.

Application.

For the purposes of sections 469.40 to 469.47, the terms
defined in this section have the meanings given them new text begin unless the context clearly indicates
otherwise new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end

Sec. 2.

Minnesota Statutes 2016, section 469.40, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Affected region. new text end

new text begin "Affected region" means the counties of Steele, Dodge,
Goodhue, Wabasha, Freeborn, Mower, Fillmore, Winona, and Houston.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end

Sec. 3.

Minnesota Statutes 2016, section 469.41, subdivision 2, is amended to read:

Subd. 2.

Membership; quorum.

(a) The corporation's governing board consists of deleted text begin eight deleted text end new text begin
11 new text end members appointed as follows:

(1) the mayor of the city, or the mayor's designee, subject to approval by the city council;

(2) the city council president, or the city council president's designee, subject to approval
by the city council;

(3) the chair or a member of the county board, appointed by the county board;

(4) a representative of the medical business entity, appointed by and serving at the
pleasure of the medical business entity; deleted text begin and
deleted text end

(5) deleted text begin four deleted text end new text begin five new text end members appointed by the governor, subject to confirmation by the senate. new text begin
Of these members, one must be a representative of labor, and one must represent rural health
care providers who provide health care services in any part of the affected region and are
not employed by or affiliated with the medical business entity; and
new text end

new text begin (6) two elected officials appointed by the governor who serve on a county board of a
county, or on a city council of a home rule charter or statutory city, in the affected region.
new text end

(b) Appointing authorities must make their respective new text begin initial new text end appointments as soon as
practicable after June 22, 2013, but no later than July 22, 2013. new text begin For changes or additions to
board membership effective June 1, 2018, appointing authorities must make their respective
initial appointments as soon as practicable after June 1, 2018, but no later than August 1,
2018.
new text end

(c) A quorum of the board is deleted text begin six deleted text end new text begin seven new text end members.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end

Sec. 4.

Minnesota Statutes 2016, section 469.41, subdivision 3, is amended to read:

Subd. 3.

Terms.

(a) A member first appointed after June 22, 2013, under subdivision
2, paragraph (a), clauses (1), (2), and (3), serves for a term coterminous with the term of
the elected office, but may be reappointed. new text begin A member first appointed after June 1, 2018,
under subdivision 2, paragraph (a), clause (6), serves for a term coterminous with the term
of the elected office, but may be reappointed.
new text end

(b) Two members first appointed after June 22, 2013, under subdivision 2, paragraph
(a), clause (5), serve from the date of appointment until the first Tuesday after the first
Monday in January 2017, and two members first appointed after June 22, 2013, under
subdivision 2, paragraph (a), clause (5), serve from the date of appointment until the first
Tuesday after the first Monday in January 2020. Thereafter, members appointed by the
governor serve six-year terms.

new text begin (c) Notwithstanding paragraph (b), the chair shall determine by lot one of the members
appointed under subdivision 2, paragraph (a), clause (5), whose term shall end on June 1,
2018. Members first appointed under subdivision 2, paragraph (a), clause (5), after June 1,
2018, shall serve from the date of appointment until the first Tuesday after the first Monday
in January 2024. Thereafter, these members shall serve six-year terms.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end

Sec. 5.

new text begin [469.411] COMMUNITY NEEDS ASSESSMENT; COMMUNITY BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Community needs assessment. new text end

new text begin (a) The medical business entity must
conduct periodic community needs assessments covering all counties in Minnesota in which
the medical business entity provides health care services. At a minimum, in the assessment
the medical business entity must:
new text end

new text begin (1) identify and prioritize community needs in all counties in Minnesota in which the
medical business entity provides health care services, and identify community needs the
medical business entity is able to directly address and community needs the medical business
entity is able to address in collaboration with other entities;
new text end

new text begin (2) describe the processes used by the medical business entity to consult with community
groups and local government officials in the counties in Minnesota in which the medical
business entity provides health care services, to identify and prioritize the community needs
of these counties; and
new text end

new text begin (3) specify proposals to sustain and expand access to health care services for residents
in rural areas outside Olmsted County.
new text end

new text begin (b) The initial assessment must be completed by January 1, 2019. The medical business
entity assessment must update the assessment at least every three years thereafter.
new text end

new text begin Subd. 2. new text end

new text begin Provision of community benefits. new text end

new text begin (a) The medical business entity must provide
or fund the provision of community benefits in counties in Minnesota in which the medical
business entity provides health care services. The community benefits must be consistent
with the most recent community needs assessment conducted under subdivision 1 and must
be classified in one of the following categories:
new text end

new text begin (1) health care services;
new text end

new text begin (2) other benefits for vulnerable populations;
new text end

new text begin (3) sustaining and expanding access to health care services for rural residents;
new text end

new text begin (4) other benefits for the broader community; and
new text end

new text begin (5) nonquantifiable benefits.
new text end

new text begin (b) At least 50 percent of the community benefits must be provided in counties other
than Olmsted County.
new text end

new text begin (c) The medical business entity must annually provide or fund the provision of community
benefits with an economic value of at least five percent of the medical business entity's most
recently reported annual net operating income. In calculating the economic value of the
community benefits provided or funded, the medical business entity shall not include costs
associated with medical education or research, the cost of providing charity care or health
care services for a reduced price due to the financial hardship of the patient, or the cost to
the medical business entity of providing care to persons covered by medical assistance or
MinnesotaCare that exceeds the amounts those programs reimburse for such care.
new text end

new text begin Subd. 3. new text end

new text begin Report on community benefits provided. new text end

new text begin By March 1 of each year, the medical
business entity shall issue a public report detailing the community benefits provided or
funded by the medical business entity in the previous calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2018.
new text end