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SF 1593

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to health; changing the public program volume factor for MERC
from revenue to charges; amending Minnesota Statutes 2006, section 62J.692,
subdivision 4.

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

Section 1.

Minnesota Statutes 2006, 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 deleted text begin revenue receiveddeleted text end new text begin charges submitted new text end by each training site as a percentage of
all public program deleted text begin revenue receiveddeleted text end new text begin charges submitted new text end 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 deleted text begin revenuedeleted text end new text begin charges new text end for the distribution formula deleted text begin includes revenue fromdeleted text end
new text begin include charges for new text end medical assistance, prepaid medical assistance, general assistance
medical care, and prepaid general assistance medical carenew text begin submitted for payment to this
state and to contiguous states
new text end . Training sites that deleted text begin receivedeleted text end new text begin have new text end no public program deleted text begin revenuedeleted text end
new text begin charges new text end 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).

(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.