1.1                          A bill for an act 
  1.2             relating to health; modifying provisions of the health 
  1.3             care cost information system; appropriating money; 
  1.4             amending Minnesota Statutes 1996, section 144.702, 
  1.5             subdivisions 2 and 8; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 144; repealing Minnesota 
  1.7             Statutes 1996, sections 144.701, subdivision 4; and 
  1.8             144.702, subdivision 7. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [144.7011] [FILING FEE; REPORTING.] 
  1.11     Subdivision 1.  [FILING FEES.] When a hospital or 
  1.12  outpatient surgical center submits a report to the commissioner 
  1.13  of health or to a voluntary nonprofit reporting organization 
  1.14  under sections 144.695 to 144.703, the hospital or outpatient 
  1.15  surgical center shall submit to the commissioner a filing fee in 
  1.16  the amount determined under subdivision 2.  Fees received under 
  1.17  this subdivision shall be deposited in the special revenue fund 
  1.18  and are appropriated to the commissioner of health for purposes 
  1.19  of sections 144.695 to 144.703. 
  1.20     Subd. 2.  [FEE DETERMINATION.] The base for calculating the 
  1.21  filing fee under subdivision 1 is the sum of the nonoperating 
  1.22  revenue plus the operating revenue reported by the hospital 
  1.23  under Minnesota Rules, part 4650.0112, for the accounting period 
  1.24  immediately preceding the reporting year for which the fee is 
  1.25  due.  The fee shall be determined as follows: 
  1.26     (1) for a hospital with a base less than or equal to 
  1.27  $12,000,000, the fee is $1,200; 
  2.1      (2) for a hospital with a base greater than $12,000,000 but 
  2.2   less than or equal to $40,000,000, the fee is equal to the base 
  2.3   multiplied by 0.0001; 
  2.4      (3) for a hospital with a base greater than $40,000,000 but 
  2.5   less than or equal to $80,000,000, the fee is equal to $4,000 
  2.6   plus the amount of the base exceeding $40,000,000 multiplied by 
  2.7   0.00009; 
  2.8      (4) for a hospital with a base greater than $80,000,000, 
  2.9   the fee is equal to $7,600 plus the amount of the base exceeding 
  2.10  $80,000,000 multiplied by 0.00008.  The maximum fee shall not 
  2.11  exceed $8,300; 
  2.12     (5) for a hospital that was not in operation and did not 
  2.13  file a report for the accounting period immediately preceding 
  2.14  the reporting year for which the fee is due, the fee is $1,200; 
  2.15  and 
  2.16     (6) for a hospital that was in operation, but failed to 
  2.17  file the report required under this chapter for the accounting 
  2.18  period immediately preceding the reporting year for which the 
  2.19  fee is due, the commissioner shall determine the amount of the 
  2.20  fee after considering one or more of the following factors: 
  2.21     (i) data submitted by the hospital in a previous year; 
  2.22     (ii) data submitted by the hospital on its Medicare cost 
  2.23  report; 
  2.24     (iii) data submitted by the hospital on its audited 
  2.25  financial statement; or 
  2.26     (iv) fees paid by similar hospitals. 
  2.27     Subd. 3.  [STAFF POSITION.] The commissioner shall use 
  2.28  sufficient money from the appropriation under subdivision 1 to 
  2.29  cover the costs of one professional staff position that directly 
  2.30  administers the health care cost information system. 
  2.31     Subd. 4.  [REPORTS FILED WITH COMMISSIONER.] For reports 
  2.32  filed with the commissioner of health, the commissioner shall 
  2.33  use money from the appropriation under subdivision 1 to produce 
  2.34  reports, analyses, and other deliverables related to the 
  2.35  commissioner's data collection and reporting duties.  
  2.36     Subd. 5.  [REPORTS FILED WITH REPORTING ORGANIZATION.] For 
  3.1   reports filed with the voluntary, nonprofit reporting 
  3.2   organization, the commissioner of health shall determine whether 
  3.3   the voluntary, nonprofit reporting organization has met the 
  3.4   obligations of the written operating requirements established 
  3.5   under section 144.702, subdivision 2.  If the commissioner 
  3.6   determines that the obligations have been met, the commissioner 
  3.7   shall make payments from the money appropriated under 
  3.8   subdivision 1 to the voluntary, nonprofit reporting organization 
  3.9   consistent with the written operating requirements.  
  3.10     Subd. 6.  [TERMINATION OR NONRENEWAL OF REPORTING 
  3.11  ORGANIZATION.] Upon the withdrawal of approval of a reporting 
  3.12  organization or the decision of the commissioner to not renew a 
  3.13  reporting organization under section 144.702, subdivision 8, 
  3.14  filing fees reserved for payment to the voluntary, nonprofit 
  3.15  reporting organization under subdivision 5 shall be used by the 
  3.16  commissioner of health to complete the reports, analyses, and 
  3.17  other deliverables that were not completed by the voluntary, 
  3.18  nonprofit reporting organization.  
  3.19     Sec. 2.  Minnesota Statutes 1996, section 144.702, 
  3.20  subdivision 2, is amended to read: 
  3.21     Subd. 2.  [APPROVAL OF ORGANIZATION'S REPORTING PROCEDURES; 
  3.22  WRITTEN OPERATING REQUIREMENTS; RULEMAKING.] (a) The 
  3.23  commissioner of health may approve voluntary reporting 
  3.24  procedures consistent with written operating requirements for 
  3.25  the voluntary, nonprofit reporting organization which shall be 
  3.26  established annually by the commissioner.  ~~These~~ 
  3.27     (b) The written operating requirements shall specify 
  3.28  reports, analyses, and other deliverables to be produced by the 
  3.29  voluntary, nonprofit reporting organization, and the dates on 
  3.30  which those deliverables must be submitted to the commissioner.  
  3.31  ~~These~~ The written operating requirements shall specify 
  3.32  deliverable dates sufficient to enable the commissioner of 
  3.33  health to process and report health care cost information system 
  3.34  data to the commissioner of human services by August 15 of each 
  3.35  year.  
  3.36     (c) The written operating requirements shall specify a 
  4.1   schedule for payments to the voluntary, nonprofit reporting 
  4.2   organization from the money appropriated under section 144.7011, 
  4.3   subdivision 1.  The payments shall be contingent on performance 
  4.4   of deliverables by the voluntary, nonprofit reporting 
  4.5   organization.  
  4.6      (d) The written operating requirements shall ensure that 
  4.7   budgeted costs are reasonably related to the projected total 
  4.8   fees for reports submitted to the voluntary, nonprofit reporting 
  4.9   organization.  
  4.10     (e) The commissioner of health shall, by rule, prescribe 
  4.11  standards for submission of data by hospitals and outpatient 
  4.12  surgical centers to the voluntary, nonprofit reporting 
  4.13  organization or to the commissioner.  These standards shall 
  4.14  provide for: 
  4.15     ~~(a)~~ (1) the filing of appropriate financial information 
  4.16  with the reporting organization; 
  4.17     ~~(b)~~ (2) adequate analysis and verification of that 
  4.18  financial information; and 
  4.19     ~~(c)~~ (3) timely publication of the costs, revenues, and 
  4.20  rates of individual hospitals and outpatient surgical centers 
  4.21  prior to the effective date of any proposed rate increase.  
  4.22     (f) The commissioner of health shall annually review the 
  4.23  procedures approved pursuant to this subdivision. 
  4.24     Sec. 3.  Minnesota Statutes 1996, section 144.702, 
  4.25  subdivision 8, is amended to read: 
  4.26     Subd. 8.  [TERMINATION OR NONRENEWAL OF REPORTING 
  4.27  ORGANIZATION.] (a) The commissioner may withdraw approval of any 
  4.28  voluntary, nonprofit reporting organization for failure on the 
  4.29  part of the voluntary, nonprofit reporting organization to 
  4.30  comply with the written operating requirements under subdivision 
  4.31  2.  ~~Upon the effective date of the withdrawal, all funds~~ 
  4.32  ~~collected by the voluntary, nonprofit reporting organization~~ 
  4.33  ~~under section 144.701, subdivision 4, but not expended shall be~~ 
  4.34  ~~deposited in the general fund.~~ 
  4.35     (b) The commissioner may choose not to renew approval of a 
  4.36  voluntary, nonprofit reporting organization if the organization 
  5.1   has failed to perform its obligations satisfactorily under the 
  5.2   written operating requirements under subdivision 2. 
  5.3      (c) The commissioner shall report the termination or 
  5.4   nonrenewal of the voluntary reporting organization to the chair 
  5.5   of the health and human services finance division of the health 
  5.6   and human services committee of the house of representatives, to 
  5.7   the chair of the health and family security budget division of 
  5.8   the health and family security committee of the senate, and to 
  5.9   the commissioner of finance.  
  5.10     Sec. 4.  [REPEALER.] 
  5.11     Minnesota Statutes 1996, sections 144.701, subdivision 4; 
  5.12  and 144.702, subdivision 7, are repealed.