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Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1988 

                        CHAPTER 435-S.F.No. 1970 
           An act relating to human services; exempting Indian 
          health service facilities from rate establishment; 
          requiring rate establishment for out-of-state 
          hospitals; amending Minnesota Statutes 1987 
          Supplement, section 256.969, subdivision 3.  
    Section 1.  Minnesota Statutes 1987 Supplement, section 
256.969, subdivision 3, is amended to read:  
    Subd. 3.  [SPECIAL CONSIDERATIONS.] (a) In determining the 
rate the commissioner of human services will take into 
consideration whether the following circumstances exist:  
    (1) minimal medical assistance and general assistance 
medical care utilization;  
    (2) unusual length of stay experience; and 
    (3) disproportionate numbers of low-income patients served. 
    (b) To the extent of available appropriations, the 
commissioner shall provide supplemental grants directly to a 
hospital described in section 256B.031, subdivision 10, 
paragraph (a), that receives medical assistance payments through 
a county-managed health plan that serves only residents of the 
county.  The payments must be designed to compensate for 
actuarially demonstrated higher health care costs within the 
county, for the population served by the plan, that are not 
reflected in the plan's rates under section 256B.031, 
subdivision 4. 
    (c) The computation of each hospital's payment rate and the 
relative values of the diagnostic categories are not subject to 
the routine service cost limitation imposed under the Medicare 
    (d) Indian health service facilities are exempt from the 
rate establishment methods required by this section and section 
256D.03, subdivision 4, and shall be reimbursed at the 
facility's usual and customary charges to the general public.  
    (e) Out-of-state hospitals that are located within a 
Minnesota local trade area shall have rates established using 
the same procedures and methods that apply to Minnesota 
hospitals.  Hospitals that are not required by law to file 
information in a format necessary to establish rates shall have 
rates established based on the commissioner's estimates of the 
information.  Relative values of the diagnostic categories shall 
not be redetermined under this paragraph until required by rule 
and hospitals affected by this paragraph shall then be included 
in determining relative values.  However, hospitals that have 
rates established based upon the commissioner's estimates of 
information shall not be included in determining relative values.
This paragraph is effective for hospital fiscal years beginning 
on or after July 1, 1988.  A hospital shall provide the 
information necessary to establish rates under this paragraph at 
least 90 days before the start of the hospital's fiscal year.  
    (f) Hospitals that are not located within Minnesota or a 
Minnesota local trade area shall have rates established as 
provided in paragraph (e) or, at the commissioner's discretion, 
at an amount negotiated by the commissioner.  Relative values 
shall not be affected by negotiated rates. 
    Sec. 2.  [EFFECTIVE DATE.] 
    Section 1 is effective the day after final enactment. 
    Approved March 30, 1988

Official Publication of the State of Minnesota
Revisor of Statutes